City of La Grange Financial Audit Shows No Deficiencies, Overall Funds Increased

CPA Greg Trlicek of Trlicek & Co. presented the City of La Grange 2020 Financial Audit at the City Council meeting Monday night, May 24.

Trlicek said the City’s overall fund balance stood at over $600,000 at the end of the 2020 fiscal year.

“We always say you should have three months of expenses in your fund balance,” Trlicek told the Council. “Your (governmental fund) was three and a half months. Your utility fund was 3.6 months. You’re a little bit above that, so your fund balances are good.

Trlicek said he did not find any deficiencies in internal financial controls that he considered a “material weakness.” Moreover, Trliciek said he did not identify any instances of non-compliance that would require him to report under government auditing standards.

“Overall, you increased the fund balance a little over $600,000, the fund balances are adequate and we didn’t identify any problems with internal controls,” Trlicek said.

Other items of interest in the audit included the following:

• The City’s debt decreased from $7,724,834 in 2019 to $6,327,946 in 2020.

• The City added more than $1.6 million to its Capital Improvement Fund, which stood at over $5.6 million last year.

• The City’s fund balance for governmental funds decreased by $320,449. After calculating depreciation, pension and other liabilities, the net position of government activities decreased by $812,246 in 2020.

Most of the City’s revenue comes through the sale of utilities, which the auditor classified as “business-type activities.” The net position for businesstype activities increased by $871,150.

Overall, the City’s net position increased by $58,904 between 2019 and 2020, for a total of $33,864,604.

The public can view the audit online at http://www.cityoflg.com/departments/finance_documents.php#outer-358.