Peotone Receives Clean Audit, But Management Letter Flags Financial Concerns

Peotone Village Board Meeting | September 8, 2025

Article Summary: The Village of Peotone received an “unmodified” or “clean” opinion on its fiscal year 2025 audit, the highest level of assurance possible. However, an accompanying management letter highlighted several areas for improvement, including a significant deficit in the Business Development District fund, uncollateralized bank deposits, and budget overruns in two funds.

2025 Village Audit Key Points:

• Auditing firm Lauterbach & Amen issued an unmodified/clean opinion on the village’s financial statements for the fiscal year ending March 31, 2025.

• The village’s General Fund balance increased by approximately $127,000 to end the year at roughly $11 million.

• A management letter flagged a $655,000 deficit in the Business Development District (BDD) fund, which staff explained was a timing issue related to a planned fund transfer.

• Auditors repeated recommendations from the previous year, noting village cash deposits were not fully collateralized through FDIC insurance and that bank reconciliations needed to be more timely.

The Peotone Village Board on Monday, September 8, 2025, received a presentation on its annual audit, which found the village’s finances to be in good standing overall but identified several areas needing attention.

Courtney Moore, an audit principal with Lauterbach & Amen, presented the board with the results for the fiscal year that ended March 31, 2025. Moore reported that the village received an “unmodified opinion,” also known as a clean opinion, which is the highest level of assurance an auditor can provide.

“It states that the financial statements are presented fairly in all material respects and we can rely on the internal control environment of the village,” Moore said. She added that there were no difficulties or disagreements with village management during the audit process and thanked Village Administrator Nick Palmer and staff member Annmarie Mampe for their work.

Financially, the village’s General Fund remains strong, ending the year with a fund balance of approximately $11 million, an increase of about $127,000 from the previous year. Special revenue funds, including the Motor Fuel Tax and TIF 2 funds, also reported positive balances.

However, the audit’s management letter, which provides recommendations on best practices, highlighted several concerns. The Business Development District (BDD) fund showed a deficit of $655,000, as expenditures of $3.5 million outpaced revenues of $2.5 million for the year.

Annmarie Mampe explained the deficit was a timing issue. A planned $875,000 transfer from the General Fund to the BDD was included in the 2025 budget but was not executed because the BDD fund had sufficient cash on hand at the time. “Once that transfer is done, and it’ll be done in 2026 once we get the final expenses of that project, then that fund balance will be positive,” Mampe clarified.

The management letter also repeated two findings from the prior year’s audit. First, the village’s cash held in bank accounts was not fully collateralized through FDIC insurance, prompting a recommendation to spread the risk or purchase additional collateral. Second, bank reconciliations were not consistently completed in a timely manner, though Moore noted that the village staff is actively working to implement procedures to correct this.

Finally, the audit found that two funds—the Motor Fuel Tax fund and the TIF 2 fund—had spent over their budgeted amounts due to higher-than-anticipated expenses. The firm recommended the village review its budget regularly and consider amendments when necessary.

The board took no formal action on the audit, which was presented as a discussion item. It will be placed on the next meeting’s agenda for formal acceptance.