Board accepts 2025 audit; staff flagged cash collateralization and segregation-of-duties concerns

A presenter for the village told the board on July 14 that the 2025 financial statements received an unmodified (clean) audit opinion and the board voted to accept the audit as presented.

The presenter summarized key figures: the general fund grew by $636,858 (largely from higher-than-budgeted revenues and lower expenditures), the capital projects fund ended 2025 with a $1,309,000 balance after anticipated project spending, and the village issued $3,815,000 in general obligation debt during 2025. The presenter noted debt service and developer agreement payments (principal $1,458,694; developer agreements $629,997) and reported that at year end the village had approximately $4,712,438 in uninsured cash balances due to large December tax collections.

Auditors included a management letter item and recorded a material weakness tied to material audit adjustments; staff explained the adjustments largely involved fund reclassifications (moving debt between funds and fiduciary property taxes to fiduciary fund). The presenter recommended the village consider collateralizing year-end cash balances and review unspent debt proceeds before taking new borrowings.

After a brief opportunity for questions, Trustee Kurtz moved to accept the audit and Trustee Olson seconded; the motion carried by voice vote. The auditor offered to follow up on detailed questions by email or phone.