Oswego Village Committee of the Whole Meeting - August 4, 2025: Financial Audit and Q2 Update
Oswego Village Committee of the Whole Meeting - August 4, 2025: Financial Audit and Q2 Update
The Oswego Village Committee of the Whole met on August 4, 2025, at 6:00 PM at Oswego Village Hall. The meeting focused on the financial audit for the stub period ending December 31, 2024, and the calendar year 2025 second quarter financial update. No public comments were made. Trustee Cooper and Novi were absent.
Financial Audit for the Eight Months Ending December 31, 2024
- Billy Robinson, assistant finance director for 19 of his 25 years with the village, introduced Martha Trotter of the firm Sikich, who presented the audit for the stub fiscal year (May 1, 2024 to December 31, 2024).
- Martha Trotter reported a clean unmodified opinion, the highest level of assurance, on the village's financial statements. No material weaknesses or instances of noncompliance were noted.
- The audit included the implementation of GASBE Statement 101 on compensated absences, requiring a restatement of beginning balances to accrue additional liabilities.
- The village also underwent a single audit due to grant activity, and all reports (annual comprehensive financial report, board communication, management letter, TIF examination report, single audit report) were issued.
- The village has been awarded the Certificate of Achievement for Excellence in Financial Reporting for the 22nd consecutive year by the Government Finance Officers Association.
- In response to a trustee question, Martha explained that fraud inquiries are standard part of auditing standards to gain employee perspectives. She also noted upcoming GASBE pronouncements related to capital asset disclosures.
- Trustees praised the village staff for their professionalism and timely preparation, especially given the compressed timeline between fiscal year transitions.
CY25 Q2 Quarterly Financial Update
- Andrea presented the quarterly update for the six months ending June 30, 2025 (50% of the fiscal year).
- General Fund: Revenue of $16.4 million and expenses of $11.0 million resulted in a surplus of $5.36 million. Revenues were at 58% of budget, expenditures at 38%. A transfer of over $500,000 to the capital fund for the public works facility expansion is pending later in the year.
- Major revenue sources: Sales tax $5.1 million (58% of target), food and beverage tax at 56%, accessory permit revenue at 69%, and interest revenue at 137% of target due to conservative estimates and continued high rates.
- Water and Sewer Operating Fund: Revenue $4.6 million, expenses $3.4 million, surplus $1.2 million. Revenues and expenditures at 43% and 44% of budget respectively (target 33% due to bimonthly billing). A $20 million bond sale closed in July for Lake Michigan connection.
- Water and Sewer Capital Fund: Real estate transfer tax revenue was $714,000 (92% of $780,000 budget), inflated by a one-time large development transaction. Staff noted the annual baseline is now around $800,000, not the original $400,000 projection.
- Parking Fund: Activity below expectations; permit revenue at $54,000 (45% of budget). Ordinance violation revenue low due to transition to a new collection agency, expected to recover.
- Motor Fuel Tax Fund: High growth allotment exceeded expectations, creating a surplus to be discussed in the 2026 budget.
- TIF Fund: A $3 million bond closed in July for the second parking facility, with reimbursement paid. The TIF district expires December 31, 2039; Andrea explained that development must generate enough increment to repay loans from other funds, or those loans become permanent contributions. Trustees emphasized the urgency of downtown development.
- Garbage and Fleet Funds: Both trending on or below budget.
- Trustees asked about potential concerns; Andrea noted no concerns for FY25 but expected the general fund to finish with an operating surplus. Sales tax growth is consistent year-over-year with seasonal variation.
Key Outcomes
- The audit and quarterly financial updates were presented for discussion; no formal votes were taken during the Committee of the Whole.
- The meeting moved to closed session after adjournment for pending litigation, personnel, collective bargaining, and property matters.
- The board took a 30-minute break before the regular board meeting.
Meeting Transcript
Trustee Hughes. Here. Trustee Conan. Here. Trustee McCarthy Lang. Here. Trustee Torres. Here. Trustee Cooper absent and Trustee Novi absent. All right. First up, let's open the public forum. So if there's anyone wishing to address the board, please feel free to come forward now. Seeing nobody, we will close the public forum and move on to new business. And under new business, we have item F1. Billy. Hi. First, I just wanted to take the opportunity to introduce myself to any new trustees. My name is Billy Robinson. I've had the pleasure of working here for the last 25 years. 19 of which have been the assistant finance director. And I also get the opportunity to introduce Martha Trotter. She is with the firm Sickage, who does our annual audits. And she's gonna give a brief recap on our latest one, which was for the eight-month period May 1, 24 to December 31st, 24. Welcome. Hi Mark. I don't think your mic is on. There you go. How's that? Better. All right. Thank you. Good evening. I am Martha Trotter. I'm the lead principal on the village's annual financial statement audit engagement. And as uh Billy noted, I am here to present the audit for the stub year ended December 31st, 2024. So as you are aware, uh the village did change fiscal year ends from an April 30 fiscal year to a December 31st fiscal year calendar year period. And as part of that transition, there was a requirement to complete an audit of the stub year period. So that was conducted by our company beginning in February with our preliminary field work phase. Uh March, we completed our testing and detailed field work, and then we were able to issue the completed audit uh in July. And that audit will be filed with the uh required agencies throughout the state as well as submitted to the government finance officers association as the village has submitted uh historically annually its uh annual comprehensive financial report to the GFOA to the Certificate of Achievement Program. As part of the audit process, we have issued not only the annual comprehensive financial report but also a number of other reports. There is a board communication which includes information that our auditing standards require us to communicate to those charged with governance. We have issued the management letter, which complies with Illinois compiled statutes. We have issued the TIFF examination compliance report, and as well for the stub year under December 31st, 2024, due to the level of grant activity, uh the village was required to undergo a single audit, and uh we issued the single audit report to comply with uniform grant guidance. So a lot of activity for that short time frame. Uh in addition to those reports that were issued during the stub fiscal year, there were requirements to implement additional uh new Kiesby pronouncements. So the government accounting standards board issues guidance as to accounting and reporting for the financial statements, and there were uh there was one standard that was implemented during the stub fiscal year that did impact the village's financial reporting. This is called out in the independent auditors report as well as referenced in the board communication. There was a change to accounting required for compensated absences, so historically uh balances are accrued for uh on a long-term basis for any uh benefit balances that are paid out at employee termination uh under the new requirements. Not only are balances that are paid out required to be recorded as a liability, but also those balances that are carried uh accrued during the fiscal year and can be carried into future periods and used as time in future periods.
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