Annual Financial Report
For the Year Ended June 30, 2025
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Table of Contents
Financial Section
- Independent Auditor’s Report1 - 2
- Management’s Discussion and Analysis3 - 8
- Basic Financial Statements
- Government-Wide Financial Statements
- Statement of Net Position9
- Statement of Activities10
- Fund Financial Statements
- Balance Sheet – Governmental Fund11
- Reconciliation of Balance Sheet – Governmental Fund to the Statement of Net Position12
- Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Fund13
- Reconciliation of Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Fund to the Statement of Activities14
- Statement of Fiduciary Net Position15
- Statement of Changes in Fiduciary Net Position16
- Notes to Financial Statements17 - 33
- Required Supplementary Information
- General Fund – Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual34 - 35
- Schedule of Changes in Employer’s Net Pension Liability and Related Ratios36 - 37
- Schedule of Employer Contributions38
- Notes to Required Supplementary Information39
Financial Section
Independent Auditor’s Report
To the Board of Trustees
South Cook County Mosquito Abatement District
Harvey, Illinois
Opinions
We have audited the accompanying financial statements of the governmental activities, the major fund, and the aggregate remaining fund information of South Cook County Mosquito Abatement District (the “District”) as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the major fund, and the aggregate remaining fund information of South Cook County Mosquito Abatement District as of June 30, 2025, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the District and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards, we:
- Exercise professional judgment and maintain professional skepticism throughout the audit.
1
Independent Auditor’s Report - continued
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, no such opinion is expressed.
- Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
- Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, schedule of employer’s net pension liability and related ratios, schedule of employer contributions, and budgetary comparison information be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context.
We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Hillside, Illinois
June 9, 2026
2
South Cook County Mosquito Abatement District
Management’s Discussion and Analysis
June 30, 2025
Management’s Discussion and Analysis
June 30, 2025
Management’s Discussion and Analysis
As management of the South Cook County Mosquito District (the “District”) we offer readers of the District’s financial statements this narrative overview and analysis of the District’s financial performance during the fiscal year ended June 30, 2025. We encourage readers to read this information in conjunction with the District’s financial statements. Financial Highlights The District’s total net position at June 30, 2025 was $6,689,940, an increase of $207,722 from June 30, 2024. The District’s governmental activities had revenues of $4,330,264 in the year ended June 30, 2025 as compared to revenues of $4,339,799 in the prior year. The District’s governmental activities had expenses of $4,122,542 in the year ended June 30, 2025 as compared to expenses of $3,667,240 in the prior year. This represented a .19% decrease in revenues and a 12.42% increase in expenses. Overview of the Financial Statements Management’s discussion and analysis serves as an introduction to the District’s financial statements. The basic financial statements include the Governmental Funds Balance Sheet and Statement of Net Position, Governmental Funds Revenues, Expenditures and Changes in Fund Balances and Statement of Activities, and Notes to Financial Statements. Government-wide Financial Statements The Government-wide financial statements are designed to provide readers with a broad overview of the District’s finances, in a manner similar to a private-sector business. The Statement of Net Position includes all of the District’s assets, deferred outflows, liabilities and deferred inflows with thedifference reported as net position. Increases and decreases in net position serve as a useful indicator of change in net position and whether the financial position of the District as a whole is improving or deteriorating. Non-financial factors, such as changes in the District’s property tax base and condition of the District’s buildings and equipment, should be considered regarding the overall health of the District. The Statement of Activities reports how the District’s net position changed during the current fiscal year. All revenues and expenses are included regardless of when cash is received or paid. Fund Financial Statements A fund is a group of accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The District uses funds to ensure and demonstrate compliance with finance-related laws and regulations. The District’s only governmental fund is the General Fund. The General Fund is reported in the fund financial statements and encompass essentially the same functions reported as governmental activities in the government-wide financial statements. However, the
3
South Cook County Mosquito Abatement District
Management’s Discussion and Analysis - Continued
June 30, 2025
Management’s Discussion and Analysis - Continued
June 30, 2025
Management’s Discussion and Analysis - Continued
focus is very different with fund statements providing a distinctive view of the District’s governmental funds. These statements are useful in evaluating annual financing requirements of governmental programs and the commitment of spendable resources for the short-term. Both the Governmental Fund Balance Sheet and Governmental Fund Revenues, Expenditures, and Changes in Fund Balances provide a reconciliation to assist in understanding the difference between the government-wide and fund financial statements. The Statement of Fiduciary Net Position provides information on the District’s Pension Plan Trust Fund relating to its assets and liabilities. The Statement of Changes in Fiduciary Net Position provides information on the District’s Pension Plan Trust Fund relating to its additions, deductions, and changes in plan net position. In addition to the basic financial statements, notes to the financial statements provide further information to the reader and should be considered an integral part of the financial statements. Budgetary comparison schedules are also provided as required supplemental information, which is useful in comparing how District expenditures were made in comparison to budgeted amounts. Financial Analysis Net position may serve, over time, as a useful indicator of the District’s financial position. The District’s assets and deferred outflows exceeded liabilities and deferred inflows of resources by $6,689,940 at the end of the fiscal year. Of the net position balance, $1,839,391 is invested in capital assets, $2,840,927 is restricted and $2,009,622 is unrestricted net position.
4
South Cook County Mosquito Abatement District
Management’s Discussion and Analysis - Continued
June 30, 2025
Management’s Discussion and Analysis - Continued
June 30, 2025
Management’s Discussion and Analysis - Continued
Table 1
Condensed Statement of Net Position
2025 2024
Current and other assets 5,868,164 $ 5,630,611
Net pension asset 2,840,927 2,706,760
Capital assets, net 1,839,391 1,852,782
Total assets 10,548,482 10,190,153
Deferred outflows 513,919 472,324
Total assets and
deferred outflows 11,062,401 10,662,477
Current liabilities 126,492 12,500
Non-current liabilities 181,432 225,067
Total liabilities 307,924 237,567
Deferred inflows 4,064,537 3,942,692
Total liabilities and
deferred inflows 4,372,461 4,180,259
Net position:
Invested in capital assets 1,839,391 1,852,782
Restricted 2,840,927 2,706,760
Unrestricted 2,009,622 1,922,676
Total net position $ 6,689,940 $ 6,482,2185
South Cook County Mosquito Abatement District
Management’s Discussion and Analysis - Continued
June 30, 2025
Management’s Discussion and Analysis - Continued
June 30, 2025
Management’s Discussion and Analysis - Continued
Per the above condensed statement, 53% percent of the District’s assets and deferred outflow of resources
were current and consisted of cash, investments, receivables, prepaid expenses, and inventory. The
remaining 47% was noncurrent assets consisting of net pension asset and capital assets and deferred
outflows of resources related to the District’s participation in the Pension Plan Trust Fund. 3% of liabilities
and deferred inflows of resources were current and consisted of accounts payable and accrued payroll. The
other liabilities were the long-term portion of compensated absences and were equal to 4% of total liabilities
and deferred inflows of resources. The remaining 93% was related to deferred inflows of resources related
to property taxes and the District’s participation in their pension plan. Net investment in capital assets of
$1,839,391 was 27% of total net position and restricted net position of $2,840,927 was 43% of total net
position. The remaining net position was unrestricted in the amount of $2,009,622 and was 30% of total net
position.
The following summarizes the revenue and expenses of the District’s governmental activities for fiscal year
ended June 30, 2025. Governmental activities increased the District’s net position by $207,722.
Table 2
Condensed Statement of Activities
2025 2024
Revenues:
General revenues:
Taxes $ 4,264,712 $ 4,333,090
Interest income and other 65,552 6,709
Total revenue 4,330,264 4,339,799
Expenses:
Operational 3,157,082 2,784,998
General and administrative 965,460 882,242
Total expenses 4,122,542 3,667,240
Change in net position 207,722 672,559
Net Position - Beginning 6,482,218 5,809,659
Net Position - Ending $ 6,689,940 $ 6,482,218
The Statement of Activities shows the nature and source of the changes in net position. The tax levy
collections increased while other income decreased in the current year. Expenses increased only by 12%
in the current year. Increases were noted in relation to pesticides and solvents and other professional
services.6
South Cook County Mosquito Abatement District
Management’s Discussion and Analysis - Continued
June 30, 2025
Management’s Discussion and Analysis - Continued
June 30, 2025
Management’s Discussion and Analysis - Continued
Financial Analysis of District’s Funds
The General Fund’s total revenues of $4,330,264 exceeded total expenditures of $4,294,201 by $36,063 on
the fund financial statements. Property tax revenues increased by $95,663. This increase was offset by a
decrease in replacement taxes of $164,041. The General Fund had a total fund balance of $3,634,632 at June
30, 2025.
Budgetary Highlights
Actual revenues fell below budgeted revenues by $380,920 due primarily to property and replacement tax
receipts falling below budgeted revenue. Actual expenditures were less than budgeted by $1,603,611. Most
notably, capital outlay expenditures were less than budget by $1,033,514 and total general and
administrative were below budget by $910,442. General and administrative costs were lower than budget
due to lower spending for hospitalization and life insurance and employee's retirement fund than initially
anticipated.
Capital Assets
The District’s investment in capital assets, net of accumulated depreciation, was $1,839,391 as of June 30,
2025. This was a decrease of $13,391 from June 30, 2024, and was due to capitalized costs of new additions
exceeding depreciation expense in the current year and disposal of construction in progress. The following
summarizes capital assets.
Table 3
Capital Assets (net of depreciation)
2025 2024
Land $ 55,278 $ 55,278
Construction in progress - 18,121
Land improvements 321,631 268,131
Buildings and improvements 979,947 937,556
Vehicles 1,676,467 1,599,161
Maintenance and lab equipment 181,988 143,610
Office furniture and equipment 60,710 60,710
Total 3,276,021 3,082,567
Less: total accumulated depreciation (1,436,630) (1,229,785)
Net capital assets $ 1,839,391 $ 1,852,782
Additional information regarding capital assets may be found in Note 3 of the accompanying notes to the
financial statements.7
South Cook County Mosquito Abatement District
Management’s Discussion and Analysis - Continued
June 30, 2025
Management’s Discussion and Analysis - Continued
June 30, 2025
Management’s Discussion and Analysis - Continued
Long-Term Liabilities
The District does not currently have any bonds outstanding and is not participating in any long-term lease
agreements or subscription-based information technology arrangements. At year-end, the lone long-term
liability is related to compensated absences in the amount of $181,432, which has an amount of $38,101
considered to be due within one year. Additional information in relation to long-term liabilities can be found
in Note 4 to the financial statements.
Economic Factors Bearing on the District’s Future
The District points out the following items that will have an economic impact on its future:
The District in FY26 enrolled with Illinois Municipal Retirement Fund to convert it Pension Plan from
the current pension plan to the defined benefit pension plan run by Illinois for the purpose of greater
stability and employee benefits.
The District, to better plan for its Capital Improvement process, is hiring a firm to prepare a 5 year
capital improvement plan to better utilized its residual funding and reduce maintenance costs and
unknown large capital expenditures.
The District will expand operations to improve trap density. This will allow for better services and
mosquito abatement to residents of the District. The District will expand the use of mobile
technology to provide real-time data to South Cook County community. The District will implement
technology to help receive and respond to resident’s concerns. The Board will implement an annual
Board calendar to improve the transparency of the District operations and greater planning for the
Districts operations.
Requests for Information
This financial report is designed to provide a general overview of the District’s finances for all those
interested. Questions concerning any of the information provided in this report or requests for additional
financial information should be addressed to the Chief Financial Officer, South Cook County Mosquito
Abatement District, 15500 Dixie Highway, PO Box 1030, Harvey, IL 60426.8
Basic Financial Statements
South Cook County Mosquito Abatement District
Statement of Net Position
June 30, 2025
Statement of Net Position
June 30, 2025
Statement of Net Position
Governmental
Activities
ASSETS
Cash and investments $ 2,720,296
Property tax receivables 2,107,040
Replacement tax receivable 57,583
Due from pension fund 611,089
Prepaid insurance 25,703
Inventory 346,453
Net pension asset 2,840,927
Capital assets (not being depreciated) 55,278
Capital assets (net of accumulated depreciation) 1,784,113
Total Assets 10,548,482
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions 513,919
Total Deferred outflows of resources 513,919
LIABILITIES
Accounts payable 85,653
Accrued payroll 40,839
Noncurrent liabilities
Due within one year
Accrued compensated absences 38,101
Due in more than one year
Accrued compensated absences 143,331
Total Liabilities 307,924
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions 1,957,497
Deferred inflows related to property taxes 2,107,040
Total Deferred inflows of resources 4,064,537
NET POSITION
Net investment in capital assets 1,839,391
Restricted- net pension asset 2,840,927
Unrestricted 2,009,622
Total Net Position $ 6,689,940
The accompanying notes are an integral part of this statement.9
South Cook County Mosquito Abatement District
Statement of Activities
June 30, 2025
Statement of Activities
June 30, 2025
Statement of Activities
Net (Expenses)
Revenues and
Changes in
Net Position
Total
Governmental
Functions/Programs Expenses Activities
Governmental activities:
Operational $ 3,157,082 $ (3,157,082)
General and administrative 965,460 (965,460)
Total governmental activities $ 4,122,542 (4,122,542)
General revenues:
Property taxes 3,930,784
Replacement taxes 333,928
Interest income 1,604
Other income 63,948
Total 4,330,264
Change in net position 207,722
Net position - beginning of year 6,482,218
Net position - end of year $ 6,689,940
The accompanying notes are an integral part of this statement.10
South Cook County Mosquito Abatement District
Balance Sheet - Governmental Fund
June 30, 2025
Balance Sheet - Governmental Fund
June 30, 2025
Balance Sheet - Governmental Fund
GOVERNMENTAL FUND
JUNE 30, 2025
General
Fund
ASSETS
Cash and investments $ 2,720,296
Property tax receivable 2,107,040
Replacement tax receivable 57,583
Due from pension fund 611,089
Prepaid expense 25,703
Inventory 346,453
Total Assets 5,868,164
LIABILITIES
Accounts payable 85,653
Accrued payroll 40,839
Total Liabilities 126,492
DEFERRED INFLOWS OF RESOURCES
Property taxes levied for subsequent year 2,107,040
Total Deferred Inflows of Resources 2,107,040
FUND BALANCE
Nonspendable- inventory and prepaid insurance 372,156
Assigned- due from pension fund 611,089
Unassigned 2,651,387
Total Fund Balances 3,634,632
Total Liabilities, Deferred Inflows of Resources and Fund Balances $ 5,868,164
The accompanying notes are an integral part of this statement.11
South Cook County Mosquito Abatement District
Reconciliation of the Balance Sheet of Governmental Fund to the Statement of Net Position
June 30, 2025
Reconciliation of the Balance Sheet of Governmental Fund to the Statement of Net Position
June 30, 2025
Reconciliation of the Balance Sheet of Governmental Fund to the Statement of Net Position
TO THE STATEMENT OF NET POSITION
JUNE 30, 2025
Total fund balances - governmental fund $ 3,634,632
Amounts reported for governmental activities in the statement of net position
are different because:
Capital assets used in governmental activities are not financial
resources, and therefore, are not reported in the fund. 1,839,391
Net pension assets and liabilities are not due and payable in the current period
and are therefore not reported in the funds.
Net pension asset 2,840,927
Deferred inflows and outflows of resources related to pension
benefits are not reported in governmental fund:
Deferred outflows of resources 513,919
Deferred inflows of resources (1,957,497) (1,443,578)
Long-term liabilities, including bonds payable, are not due and
payable in the current period and therefore are not reported in
the fund:
Compensated absences payable (181,432)
Net position of governmental activities $ 6,689,940
The accompanying notes are an integral part of this statement.12
South Cook County Mosquito Abatement District
Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Fund
June 30, 2025
Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Fund
June 30, 2025
Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Fund
GOVERNMENTAL FUND
FOR THE YEAR ENDED JUNE 30, 2025
General
Fund
REVENUES
Property taxes $ 3,930,784
Replacement taxes 333,928
Interest income 1,604
Other income 63,948
Total Revenues 4,330,264
EXPENDITURES
Operational 3,083,116
General and administrative 984,574
Capital outlay 226,511
Total Expenditures 4,294,201
Net change in fund balance 36,063
Fund balance at beginning of year 3,598,569
Fund balance at end of year $ 3,634,632
The accompanying notes are an integral part of this statement.13
South Cook County Mosquito Abatement District
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Fund to the Statement of Activities
June 30, 2025
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Fund to the Statement of Activities
June 30, 2025
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Fund to the Statement of Activities
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUND TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2025
Net change in fund balances - total governmental funds $ 36,063
Amounts reported for governmental activities in the statement of activities are
different because:
Governmental funds report capital outlay as expenditures; however, they are
are capitalized and depreciated in the statement of activities. Depreciation
expense does not require the use of current financial resources and, therefore,
is not reported as an expenditure in the governmental fund:
Capital outlay $ 193,454
Depreciation expense (206,845) (13,391)
Some items reported in the statement of activities do not require the use of
current financial resources and therefore are not reported as expenditures in
the governmental fund. These activities consist of:
Change in compensated absences 43,635
Change in net pension asset 134,167
Change in deferred inflows/outflows related to pensions 7,248 185,050
Change in net position of governmental activities $ 207,722
The accompanying notes are an integral part of this statement.14
South Cook County Mosquito Abatement District
Statement of Fiduciary Net Position
June 30, 2025
Statement of Fiduciary Net Position
June 30, 2025
Statement of Fiduciary Net Position
Pension Plan
Trust Fund
ASSETS
Cash $ 1,612,817
Investments:
Short-term investments (money market accounts) 306,785
Common stock 4,199,004
Mutual funds 266,077
Bonds 156,782
U.S government obligations 181,625
Annuity 613,253
Accrued interest 12
Total Assets 7,336,355
LIABILITIES
Due to general fund 611,089
Total Liabilities 611,089
NET POSITION RESTRICTED FOR PENSION BENEFITS $ 6,725,266
The accompanying notes are an integral part of this statement.15
South Cook County Mosquito Abatement District
Statement of Changes in Fiduciary Net Position
June 30, 2025
Statement of Changes in Fiduciary Net Position
June 30, 2025
Statement of Changes in Fiduciary Net Position
PENSION TRUST FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
Pension
Trust Funds
ADDITIONS
Contributions
Net investment income $ 704,799
Total additions 704,799
DEDUCTIONS
Distributions 77,697
Total deductions 77,697
Net change in plan net position 627,102
Net position held in trust for pension benefits
at beginning of year 6,098,164
Net position held in trust for pension benefits
at end of year $ 6,725,266
The accompanying notes are an integral part of this statement.16
South Cook County Mosquito Abatement District
Notes to Financial Statements
June 30, 2025
Notes to Financial Statements
June 30, 2025
Notes to Financial Statements
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES REPORTING ENTITY South Cook County Mosquito Abatement District (the “District”) was organized in March of 1953 and became operational in 1955. The District, which is the largest of its kind in Illinois, provides mosquito abatement control in southern Cook County, Illinois in an area from 87 th Street on the northern boundary to the Will County line on the southern boundary, the Indiana line on the eastern boundary to the Will County and DuPage County lines on the western boundary. The District effectively and economically handles the mosquito problem, using modern, scientific, and practical methods of control applied in an orderly and systematic manner while giving due consideration to the rights of property owners, residents, and political subdivisions of the District. The accounting policies of the District conform to accounting principles generally accepted in the United States of America as applicable to governments. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant of the District’s accounting policies are described below. Accounting principles generally accepted in the United States of America require that the financial reporting entity include the primary government, organizations for which the primary government is financially accountable and other organizations for which the nature of significance of their relationship with the primary government are such that exclusion would cause the reporting entity’s financial statements to be misleading or incomplete. Based upon these criteria, there are no agencies or entities whose financial data should be combined with and included in the financial statements of the District. Also, the District is not considered a component unit of any other government entity. BASIS OF PRESENTATION Government-Wide Financial Statements: The statement of net position and the statement of activities display information about the primary government. These statements include the financial activities of the overall government, except for fiduciary activities. Eliminations have been made to minimize the double-counting of internal activities. These statements present governmental activities of the District. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. The statement of activities presents a comparison between direct expenses and program revenues for each function of the District’s governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.
17
South Cook County Mosquito Abatement District
Notes to Financial Statements - Continued
June 30, 2025
Notes to Financial Statements - Continued
June 30, 2025
Notes to Financial Statements - Continued
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
BASIS OF PRESENTATION (CONTINUED)
Fund Financial Statements:
The fund financial statements provide information about the District’s funds, including its fiduciary funds.
Separate statements for each fund category – governmental and fiduciary – are presented. The emphasis
of fund financial statements is on major governmental funds; each displayed in a separate column. The
District only has one major fund, the general fund.
Governmental Funds are those through which most governmental functions of the District are financed.
The acquisition, use, and balances of the District's expendable financial resources and the related liabilities
are accounted for through governmental funds.
The General Fund is the general operating fund of the District. It is used to account for all financial
resources except those required to be accounted for in other funds. This fund is primarily used for all
of the operational and administrative aspects of the District’s operations. Revenues consist largely of
local property taxes.
Fiduciary fund types are used to account for assets held by the District in a trustee capacity or as an agent
for individuals, private organizations, other governments, or other funds. The District reports the
following fiduciary fund type:
Pension Plan Trust Fund- The Pension Trust Fund is the operating fund of the South Cook
County Mosquito Abatement District Restated Pension Plan.
MEASUREMENT FOCUS, BASIS OF ACCOUNTING
Government-Wide and Fiduciary Fund Financial Statements
The government-wide and fiduciary fund financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting. Revenues are recorded when earned and
expenses are recorded when a liability is incurred, regardless of the timing of related cash flows.
Nonexchange transactions, in which the District gives (or receives) value without directly receiving (or
giving) equal value in exchange, include property taxes, grants, entitlements, and donations. On an accrual
basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied (i.e.,
intended to finance). Revenue from grants, entitlements, and donations are recognized in the fiscal year
in which all eligibility requirements have been satisfied.
Governmental Fund Financial Statements
Governmental funds are reported using the current financial resources measurement focus and the
modified accrual basis of accounting. Under this method, revenues are recognized when measurable and
available.18
South Cook County Mosquito Abatement District
Notes to Financial Statements - Continued
June 30, 2025
Notes to Financial Statements - Continued
June 30, 2025
Notes to Financial Statements - Continued
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) MEASUREMENT FOCUS, BASIS OF ACCOUNTING (CONTINUED) Governmental Fund Financial Statements (CONTINUED) The District considers all revenues reported in the governmental funds to be available if the revenues are received within sixty days after year-end. Property taxes, grants, tuition, and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt and acquisitions under leases are reported as other financing sources. Under the terms of grant agreements, the District funds certain programs by a combination of specific cost-reimbursement grants, categorical block grants, and general revenues. Thus, when program expenses are incurred, there are both restricted and unrestricted net position available to finance the program. It is the District’s policy to first apply cost-reimbursement grant resources to such programs, followed by categorical block grants, and then by general revenues. CASH AND INVESTMENTS Investments are reported at fair value. INVENTORY Inventory consists primarily of pesticide supplies. It is valued at the lower of cost or market, using the first in, first out (FIFO) method. Inventory costs are recorded as expenditures/expenses when consumed rather than when purchased. Reported inventory is equally offset by a nonspendable fund balance to indicate that it does not constitute “available spendable resources” even though it is a component of total assets. PROPERTY TAXES RECEIVABLE Property taxes receivable represents 2024 and prior net uncollected tax levies. An allowance for estimated collection losses of 5% of the total levy has been provided to reduce the receivable to the estimated amounts collectible. CAPITAL ASSETS Capital assets which include land, buildings, furniture, and equipment, are reported in the applicable governmental activities column in the district-wide financial statements. Capital assets are defined by the District as assets with an initial, individual cost of $2,000 or more and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated cost if purchased or constructed. Donated capital assets are recorded at estimated acquisition value at the date of donation. The costs of
19
South Cook County Mosquito Abatement District
Notes to Financial Statements - Continued
June 30, 2025
Notes to Financial Statements - Continued
June 30, 2025
Notes to Financial Statements - Continued
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
CAPITAL ASSETS (CONTINUED)
normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives
are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are
constructed.
Capital Assets are depreciated using the straight-line method over the following estimated useful lives:
Estimate
Asset Class Useful Life
Land improvements 25 - 55 years
Buildings and improvements 10 - 70 years
Vehicles 10 - 20 years
Maintenance and lab equipment 5 - 20 years
Office furniture and equipment 10-25 years
DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES
The District reports deferred outflows of resources on its Statement of Net Position. Deferred outflows
of resources represent a consumption of net position that applies to future fiscal years, so it will not be
recognized as an outflow of resources (expenditures or expense) on the Statement of Activities until then.
The District only has one item that qualifies for reporting in this category, the outflows related to the
pension, which represents pension items that will be recognized in future periods.
The District also reports deferred inflows of resources on its Governmental Funds Balance Sheet and
Statement of Net Position. Deferred inflows of resources represent an acquisition of net position that
applies to future fiscal years, so it will not be recognized as an inflow of resources (revenue or reduction
of expenditure or expense) on the Governmental Fund Revenues, Expenditures and Changes in Fund
Balances and Statement of Activities until then. The District has two items that qualify for reporting in
this category:
Deferred inflows related to pensions, which represent pension items that will be recognized in
future periods.
Levied property taxes intended to finance the next fiscal year, which will be recognized as revenue
in the next fiscal year.
COMPENSATED ABSENCES
GASB Statement No. 101, Compensated Absences, requires that liabilities be recognized for (1) leave
that has not been used and (2) leave that has been used but not yet paid in cash or settled through
noncash means. A liability should be recognized for leave that has not been used if (a) the leave is
attributable to services already rendered, (b) the leave accumulates, and (c) the leave is more likely than
not to be used for time off or otherwise paid in cash or settled through noncash means. GASB Statement20
South Cook County Mosquito Abatement District
Notes to Financial Statements - Continued
June 30, 2025
Notes to Financial Statements - Continued
June 30, 2025
Notes to Financial Statements - Continued
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
COMPENSATED ABSENCES (CONTINUED)
No. 101 establishes guidance for measuring a liability that has not been used, generally using an
employee’s pay rate as of the date of the financial statements. In addition, certain salary-related
payments that are directly and incrementally associated with the payments for leave should be included
in the measurement of the liability.
The District’s personnel policy permits employees to accumulate earned but unused sick leave. However,
no employees are eligible to be paid out upon retirement or separation from the District. The District
does not provide vacation to their employees.
On the fund financial statements, accrued sick leave is recorded in the General Fund when payable (i.e.
upon resignation or retirement). On the government-wide financial statements, accrued sick leave is
recorded when earned.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the amounts reported in the
financial statements and accompanying notes. Actual results may differ from those estimates.
USE OF RESTRICTED RESOURCES
When both restricted and unrestricted resources are available to use, it is the District’s policy to use
restricted resources first, then unrestricted resources, as they are needed.
NET POSITION/FUND BALANCE
Equity is classified as net position in the government-wide financial statements and displayed in three
components:
Net investment in capital assets – Consists of capital assets including restricted capital
assets, net of accumulated depreciation and reduced by the outstanding balances of any
bonds, mortgages, notes, or other borrowings that are attributable to the acquisition,
construction, or improvement of those assets less any unspent debt proceeds.
Restricted net position – Consists of net position with constraints placed on its use either
by 1) external groups such as creditors, grantors, contributors, or laws or regulations of
other governments or, 2) laws through constitutional provisions or enabling legislation.
Unrestricted net position – All other net position that does not meet the definition of21
South Cook County Mosquito Abatement District
Notes to Financial Statements - Continued
June 30, 2025
Notes to Financial Statements - Continued
June 30, 2025
Notes to Financial Statements - Continued
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
NET POSITION/FUND BALANCE (CONTINUED)
“restricted” or “net investment in capital assets”.
Fund balance is reported in the fund financial statements in the following five categories:
Nonspendable includes amounts not in spendable form or amounts required to be
maintained intact legally or contractually (principal endowment) (e.g. inventory, prepaid
items).
Restricted: fund balances that are constrained by external parties, constitutional
provisions, or enabling legislation. Restrictions imposed by creditors, grantors, and
contributors.
Committed: fund balances that contain self-imposed constraints of the District from its
highest level of decision-making authority, the Board of Trustees. This formal action (a
resolution) must occur prior to the end of the reporting period, but the amount of the
commitment, which will be subject to the constraints, may be determined in the
subsequent period. Those committed amounts cannot be used for any other purpose
unless the Board of Trustees removes or changes the specified use by taking the same
type of formal action it employed to previously commit those amounts.
Assigned: fund balances that contain self-imposed constraints of the District to be used
for a particular purpose. Intent should be expressed by a) the governing body itself or b)
a body (a budget or finance committee, for example) or official to which the governing
body has delegated the authority to assign amounts to be used for specific purposes.
Unassigned: includes residual positive fund balance within the General Fund which has
not been classified within the other above-mentioned categories. Unassigned fund
balance may also include negative balance for any governmental fund if expenditures
exceed amounts restricted, committed or assigned for those specific purposes.
Unless specifically identified, expenditures act to reduce restricted balances first, then committed
balances, next assigned balances and finally unassigned balances. Expenditures for a specifically identified
purpose will act to reduce the specific classification of fund balance that is identified.22
South Cook County Mosquito Abatement District
Notes to Financial Statements - Continued
June 30, 2025
Notes to Financial Statements - Continued
June 30, 2025
Notes to Financial Statements - Continued
NOTE 2. CASH AND INVESTMENTS
GOVERNMENTAL FUNDS:
Authorized Investments - The District’s investment policy (the “policy”) and state statutes for the General
Fund authorizes the District to invest in the following:
a) Bonds, notes, certificates of indebtedness, treasury bills, treasury strips or other securities
which are guaranteed by the full faith and credit of the United States of America (USA).
b) Bonds, notes, debentures, or other similar obligations of the USA or its agencies.
c) Interest-bearing savings accounts, non-negotiable certificates of deposit, or any other
investment constituting direct obligations of any financial institution as defined by the
Illinois Banking Act and that is FDIC insured or collateralized.
d) Short-term obligations of corporations (commercial paper) organized in the USA with
assets exceeding $500 million and rated at the time of purchase at the highest qualification
by at least two of the standard rating agencies and which mature within 180 days of
purchase.
e) Illinois Public Treasurer’s Investment Pool (Illinois Funds).
f) Illinois Metropolitan Investment Funds (IMIF).
g) Money market mutual funds.
Reconciled cash and investments at June 30, 2025, were as follows and are all permitted by the District’s
investment policy:
Fifth Third Bank - Operating Checking Account $ 2,609,387
Fifth Third Bank - Checking Account 5,751
Fifth Third Bank - CD 105,154
Cash on Hand 4
Total cash and investments $ 2,720,296
The District’s deposits and investments are subject to the following risks:
Custodial credit risk is the risk that, in the event of the failure of the counterparty, the District
will not be able to recover the value of the investments or collateral securities that are in the
possession of an outside party. The District’s investment policy requires the amount of
collateral provided to be at a minimum of 105% of the fair market value of the net amount of
funds secured. As of June 30, 2025, cash and investments were fully collateralized.
Credit risk is the risk that the District’s deposits or investments may not be returned due to
bank/investment failure or other events. The District’s investment policy limits its exposure to
credit risk by only allowing the District to maintain funds with financial institutions that are
members of the FDIC. All deposits in excess of the FDIC limit must be collateralized. Financial
institutions shall provide annually their most recent audited financial statements. The
District’s funds shall not exceed 50% of the institution’s equity capital.23
South Cook County Mosquito Abatement District
Notes to Financial Statements - Continued
June 30, 2025
Notes to Financial Statements - Continued
June 30, 2025
Notes to Financial Statements - Continued
NOTE 2. CASH AND INVESTMENTS (CONTINUED)
GOVERNMENTAL FUNDS (CONTINUED):
Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of
an investment. The District’s investment policy does not limit the District’s investment
portfolio to specific maturities.
Concentration of credit risks is the risk of loss attributed to the magnitude of the District’s
investment in a single issuer. The District investment policy states that U.S. treasury securities
shall not exceed 90% of the investments; U.S. government agency investments shall not
exceed 50% of the investment portfolio with no more than 20% invested in the obligations of
a single agency; certificates of deposit shall not exceed 75% of the portfolio with no more than
50% of the portfolio at a single financial institution; commercial paper shall not exceed 10% of
the portfolio; investments in money market mutual funds shall not exceed 25% of the
portfolio; and deposits with Illinois Funds shall not exceed the effective amount of the fund
balance reserve set aside as approved by the District’s Board.
Investments are measured at fair value on a recurring basis. Recurring fair value measurements are those
that Governmental Accounting Standards Board (GASB) statements require or permit in the Statement of
Net Position at the end of each reporting period. Fair value measurements are categorized based on the
valuation inputs used to measure an asset’s fair value: Level 1 inputs are quoted prices in active markets
for identical assets. There were no Level 2 or 3 inputs. The investments fair value measurements are as
follows at June 30, 2025:
Quoted Prices in
Active Markets for
Identical Assets
Investments by fair value level June 30, 2025 (Level 1)
Certificate of deposits $ 105,154 $ 105,154
Total $ 105,154 $ 105,154
FIDUCIARY FUND:
Authorized Investments – The District’s investment policy (the “policy”) for the Fiduciary Fund authorizes
the District to invest in the following:
a) Bonds, notes, and other direct obligations of the United States government, agency or
instrumentality.
b) Obligations of any state, or of any political subdivision of Illinois.
c) Nonconvertible bonds, debentures, notes and other corporate obligations of any
corporation created or existing under the laws of the United States or any state, district, or
territory thereof.
d) Notes secured by mortgages under Sections 203, 207, 220, and 221 of the National Housing
Act insured by the Federal Housing Commissioner, provided the aggregate investment
shall not exceed 20% of the total investment account of the board at book value.24
South Cook County Mosquito Abatement District
Notes to Financial Statements - Continued
June 30, 2025
Notes to Financial Statements - Continued
June 30, 2025
Notes to Financial Statements - Continued
NOTE 2. CASH AND INVESTMENTS (CONTINUED)
FIDUCIARY FUND (CONTINUED):
e) Loans to veterans guaranteed in whole or part by the United States government.
f) Common and preferred stocks and convertible debt securities authorized for investment
of trust funds under the laws of the State of Illinois.
g) Trading, purchase or sale of listed options on underlying securities owned by the board.
h) Contracts and agreements supplemental thereto providing for investments in the general
account of a life insurance company authorized to do business in Illinois.
i) Conventional mortgage pass-through securities which are evidenced by interests in Illinois
owner-occupied residential mortgages, having not less than an “A” rating from at least
one national securities rating service.
j) Pooled or commingled funds managed by a national or state bank which is authorized to
do a trust business in the State of Illinois.
Reconciled cash and investments at June 30, 2025, were as follows and are all permitted by the District’s
investment policy for the Fiduciary Fund:
Fifth Third Bank - Checking Account $ 1,612,817
U.S. Bank Investment - Money Market 3,525
Stone Wealth Management - Money Market 303,260
Common Stock 4,199,004
Mutual Funds 266,077
Bonds 156,782
US Government Obligations 181,625
Annuity 613,253
Total cash and investments $ 7,336,343
The District’s Fiduciary Fund deposits and investments are subject to the following risks:
Custodial credit risk is the risk that, in the event of the failure of the counterparty, the District
will not be able to recover the value of the investments or collateral securities that are in the
possession of an outside party. The District’s investment policy for the Fiduciary Fund does
not have a policy for custodial credit risk. At June 30, 2025, all funds were fully collateralized.
Credit risk is the risk that the District’s deposits or investments may not be returned due to
bank/investment failure or other events. The District’s investment policy does not limit its
exposure to credit risk.
Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of
an investment. The District’s investment policy does not limit the District’s investment
portfolio to specific maturities.25
South Cook County Mosquito Abatement District
Notes to Financial Statements - Continued
June 30, 2025
Notes to Financial Statements - Continued
June 30, 2025
Notes to Financial Statements - Continued
NOTE 2. CASH AND INVESTMENTS (CONTINUED)
FIDUCIARY FUND (CONTINUED):
Concentration of credit risks is the risk of loss attributed to the magnitude of the District’s
investment in a single issuer. The Fiduciary Fund’s investment policy does not place a limit on
the amount it may invest in any one issue. At June 30, 2025, more than 5% of the District’s
investments in the Fiduciary Fund are in a Jackson National Life Insurance Company annuity
with an ending balance of $613,253 and common stock from Nvidia Corporation in the amount
of $1,216,523.
The following table presents the reported values and maturities (using the segmented time distribution
method) for the Fiduciary Fund as of June 30, 2025:
Investment Maturities
Less than One to Six to More than
Investment Type Credit Rating Fair Value One Year Five Years Ten Years 10 Years
Short term investments NA $ 306,785 $ 306,785 $ - $ - $ -
Annuity A 613,253 - - - 613,253
US Government Obligations NA 181,625 9,968 595 52,117 118,945
Bonds AA-/BBB+ 156,782 60,191 96,591 - -
Total 1,258,445 $ 376,944 $ 97,186 $ 52,117 $ 732,198
Investments not subject to interest rate
Common stock 4,199,004
Mutual Funds 266,077
Total investments $ 5,723,526
Investments are measured at fair value on a recurring basis. Recurring fair value measurements are
those that Governmental Accounting Standards Board (GASB) statements require or permit in the
Statement of Net Position at the end of each reporting period. Fair value measurements are categorized
based on the valuation inputs used to measure an asset’s fair value: Level 1 inputs are quoted prices in
active markets for identical assets; Level 2 inputs are significant other observable inputs. There were no
Level 3 inputs. The investments fair value measurements are as follows at June 30, 2025:
Quoted Prices in
Active Markets Significant
for Identical Other
Assets Inputs
Investments by fair value level June 30, 2025 (Level 1) (Level 2)
Short term investments $ 306,785 $ 306,785 $ -
Annuity 613,253 - 613,253
US Government Obligations 181,625 20,971 160,654
Bonds 156,782 - 156,782
Common stock 4,199,004 4,199,004 -
Mutual Funds 266,077 266,077 -
Total $ 5,723,526 $ 4,792,837 $ 930,68926
South Cook County Mosquito Abatement District
Notes to Financial Statements - Continued
June 30, 2025
Notes to Financial Statements - Continued
June 30, 2025
Notes to Financial Statements - Continued
NOTE 3. CAPITAL ASSETS
A summary of changes in capital asset follows:
Balance Balance
June 30, 2024 Additions Disposals June 30, 2025
Capital assets not being depreciated:
Land $ 55,278 $ - $ - $ 55,278
Construction in Progress 18,121 - (18,121) -
Total capital assets not being depreciated 73,399 - (18,121) 55,278
Capital assets being depreciated:
Land Improvements 268,131 53,500 - 321,631
Buildings and Improvements 937,556 42,391 - 979,947
Vehicles 1,599,161 77,306 - 1,676,467
Maintenance and Equipment 143,610 38,378 - 181,988
Office Furniture and Equipment 60,710 - - 60,710
Total capital assets being depreciated 3,009,168 211,575 - 3,220,743
Less accumulated depreciation for:
A/D Land Improvements (37,232) (8,080) - (45,312)
A/D Buildings and Improvements (429,503) (33,689) - (463,192)
A/D Vehicles (674,371) (143,776) - (818,147)
A/D Maintenance and Equipment (53,567) (13,887) - (67,454)
A/D Office Furniture and Equipment (35,112) (7,413) - (42,525)
Total Accumulated depreciation (1,229,785) (206,845) - (1,436,630)
Total capital assets being depreciated, net 1,779,383 4,730 - 1,784,113
Total capital assets, net $ 1,852,782 $ 4,730 $ (18,121) $ 1,839,391
The total depreciation for the year is $206,845 and is reported on the Statement of Activities and allocated
to operational.
NOTE 4. LONG-TERM LIABILITIES
Activity for long-term liabilities for the year ended June 30, 2025, was as follows:
Balance Balance Due within
June 30, 2024 Additions Deletions June 30, 2025 One Year
Accrued compensated absences* $ 225,067 $ - $ (43,635) $ 181,432 $ 38,101
Total long-term liabilities $ 225,067 $ - $ (43,635) $ 181,432 $ 38,101
*The change in the compensated absences balances liability is presented as a net change.
The General Fund is used to liquidate accrued compensated absences.27
South Cook County Mosquito Abatement District
Notes to Financial Statements - Continued
June 30, 2025
Notes to Financial Statements - Continued
June 30, 2025
Notes to Financial Statements - Continued
NOTE 5. PROPERTY TAXES
The District's property tax is levied each year on all taxable real property located in the District on or
before the last Tuesday in December. Property is appraised by the County Assessor at various percentages
of fair market value and then subjected to equalization by standard of 33-1/3 of fair market value.
Property taxes levied for any year attach as an enforceable lien on property as of January 1 and are due
and payable in the following calendar year. Real estate tax bills are payable in two installments with the
first installment computed at 55% of the prior year’s total tax bill and the second installment is computed
after the assessed valuations for the current year have been determined. Typically, the first installment
of property taxes is due March 1 and the second installment is due August 1. For levy 2024 the first
installment bills were mailed in February with a March 4, 2025, due date and the second installment bills
were mailed in November with a December 15, 2025, due date. Final tax bills are mailed with a penalty
date at least 30 days after the date of mailing. The District receives significant distributions of tax receipts
approximately one month after these due dates. The District considers that the first installment of the
2024 levy is to be used to finance operations in fiscal 2025. The District has determined that the second
installment of the 2024 levy is to be used to finance operations in fiscal 2026.
For taxing districts in Cook County, including the District, the tax rate limit is required to be applied to the
equalized assessed valuation (EAV) of property for the levy year prior to the levy year for which taxes are
then being extended. The actual levy rate is stated based on the current EAV of property. As a result, a
tax rate may be at its maximum for the levy year even though it is less than its corresponding limit. The
Board passed the current levy on November 12, 2024.
Reserves for uncollectible property taxes are netted against the receivables as follows:
Total
Receivable - gross $ 2,217,937
Allowance for uncollectible (110,897)
Receivable - net $ 2,107,040
NOTE 6. RISK MANAGEMENT
The District is exposed to various risks of loss through property ownership, employee injury, liability of
employees, actions of elected officials and other risks. The District purchases commercial insurance
policies to overcome these risks. There were no significant reductions in insurance coverage in the year
ended June 30, 2025, compared to the previous fiscal year. Also, claims did not exceed insurance
coverage in the year ended June 30, 2025, or the previous two fiscal years.28
South Cook County Mosquito Abatement District
Notes to Financial Statements - Continued
June 30, 2025
Notes to Financial Statements - Continued
June 30, 2025
Notes to Financial Statements - Continued
NOTE 7. DEFINED BENEFIT PENSION PLAN Plan Description The South Cook County Mosquito Abatement District Restated Pension Plan (the “Plan”) is a single- employer governmental plan as defined in Internal Revenue Code Section 414(d). The District is the plan administrator. An actuarial valuation report of the Plan was prepared by Deloitte Consulting as of January 1, 2025. The report may be obtained from the District. No specific funding standards apply to the Plan under the Employee Retirement Income Security Act (ERISA) of 1974. It simply needs to be able to meet current and anticipated near-future benefit payments. Benefit Provided The Plan provides retirement benefits as well as death and disability benefits. Employees at age 65 with five years of completed services are entitled to receive an annual retirement benefit of 1.61% of the average monthly compensation during the five highest consecutive years multiplied by the years of service plus 0.50% of average compensation in excess of $400 multiplied by years of service not exceeding 35 years. Employees at age 55 with ten years of completed service are entitled to receive an annual retirement benefit of 1.61% of the average monthly compensation during the five highest consecutive years multiplied by the years of service plus 0.50% of average compensation in excess of $400 multiplied by years of service not exceeding 35 years. This benefit will be reduced by ½ percent for each month which retirement precedes age 65 unless the participant retires after age 62. Funding Policy Employees do not contribute to the Plan. The District finances 100% of the Plan as actuarially determined by an enrolled actuary. Basis of Accounting The financial statements are prepared using the accrual basis of accounting. Employer contributions are recognized when due, pursuant to formal commitments, as well as statutory or contractual requirements. Benefits and refunds are recognized when due and payable in accordance with the terms of the Plan. Administrative costs are financed through the District.
29
South Cook County Mosquito Abatement District
Notes to Financial Statements - Continued
June 30, 2025
Notes to Financial Statements - Continued
June 30, 2025
Notes to Financial Statements - Continued
NOTE 7. DEFINED BENEFIT PENSION PLAN (CONTINUED)
Employees Covered by Benefit Terms
As of January 1, 2025, the following employees were covered by the benefit terms:
Retirees and Beneficiaries currently receiving benefits 2
Vested terminated participants 4
Active Plan Members 28
Total 34
Contributions
For the year ended June 30, 2025, the District estimated their annual pension cost to be $66,972 and
actual contributions were $0. The required contribution was determined as part of the January 1, 2025,
actuarial valuation using the entry age normal cost method. The underfunded actuarial accrued liability
as of June 30, 2025, is being funded over 30 years.
Net Pension Liability
The District’s net pension liability was measured as of January 1, 2025. The total pension liability used to
calculate the net pension liability was rolled forward from the valuation date to the plans fiscal year end
June 30, 2025, using generally accepted actuarial principles.
Actuarial Assumptions
The following are the methods and assumptions used to determine total pension liability at June 30, 2025:
The Actuarial Cost Method used was Entry Age Normal.
The Asset Valuation Method used was Market Value of Assets plus receivable contributions.
The Inflation Rate was assumed to be 2.26%.
Salary Increases were expected to be 3.50%, per annum.
The Investment Rate of Return was assumed to be 4.50%, per annum.
Projected Retirement Age attainment of age 65 and the completion of 5 years of service.
The Mortality (for non-disabled retirees) was based on Pub-2010 Public retirement plans.
Mortality tables for males and females without collar or amount adjustments, with
generational mortality improvements are using Scale MP-2021.
Single Discount Rate
A Single Discount Rate of 4.50% was used to measure the total pension liability at June 30, 2025. The single
discount rate was based on the expected rate of return on pension plan investments of 4.50% and a
municipal bond rate of 5.20% (based on the 20-year Bond Buyer GO Index as of the end of June 2025) as
of June 30, 2025. Based on the stated assumptions and the projections of cash flows, the pension plan’s
fiduciary net position and future contributions were sufficient to finance the future benefit payments of
the current plan members for all projection years. Therefore, the long-term expected rate of return on30
South Cook County Mosquito Abatement District
Notes to Financial Statements - Continued
June 30, 2025
Notes to Financial Statements - Continued
June 30, 2025
Notes to Financial Statements - Continued
NOTE 7. DEFINED BENEFIT PENSION PLAN (CONTINUED)
pension plan investments was applied to all projected benefit payments to determine the total pension
liability for each system. The projection of cash flow used to determine the single discount rate for each
fiscal year end assumed that employer contributions will be made based on the current funding policy for
future years.
Changes in the Net Pension Liability
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability (asset)
(A) (B) (A)-(B)
Balances at June 30, 2024 $ 3,391,404 $ 6,098,164 $ (2,706,760)
Charges for the year:
Service Cost 172,756 - 172,756
Interest on the Total Pension Liability 198,814 - 198,814
Differences between Expected and Actual
Experiences of the Total Pension Liability - - -
Changes in Assumptions 199,062 - 199,062
Contributions - Employer - - -
Net Investment Income - 704,799 (704,799)
Benefit Payments, including refunds
of Employee Contribution (77,697) (77,697) -
Net Changes 492,935 627,102 (134,167)
Balances as of June 30, 2025 $ 3,884,339 $ 6,725,266 $ (2,840,927)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the plan’s net pension asset, calculated using a Single Discount Rate of 4.50%, as
well as what the plan’s net pension asset would be if it were calculated using a Single Discount Rate that
is 1% lower or 1% higher:
Current
1% Decrease Discount Rate 1% Increase
3.50% 4.50% 5.50%
Net Pension Liability/(Asset) $ (2,090,462) $ (2,840,927) $ (3,458,290)31
South Cook County Mosquito Abatement District
Notes to Financial Statements - Continued
June 30, 2025
Notes to Financial Statements - Continued
June 30, 2025
Notes to Financial Statements - Continued
NOTE 7. DEFINED BENEFIT PENSION PLAN (CONTINUED)
Pension Expense Deferred Outflows of Resources and Deferred Inflows of Resources Related to
Pensions
For the year ended June 30, 2025, the District’s pension income was $141,415.
At June 30, 2025, the District’s deferred outflows of resources and deferred inflows of resources related
to pensions were from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience $ 343,374 $ 600,253
Changes of assumptions 170,545 558,165
Net difference between projected and actual
earnings on pension plan investment - 799,079
Total deferred amounts to be recognized in
pension expense in future periods $ 513,919 $ 1,957,497
Deferred outflows and inflows of resources by year to be recognized in future pension expenses:
Year Ending Net Deferred Outflows
June 30 (Inflows) of Resources
2026 $ (177,893)
2027 (413,617)
2028 (327,191)
2029 (150,486)
2030 (74,363)
Thereafter (300,028)
Total $ (1,443,578)
NOTE 8. DUE TO/DUE FROM
The District has paid pension distributions out of the General Fund instead of the Pension Fund for the
past three fiscal years. As of June 30, 2025, the General Fund will reflect a due from the pension fund as
an asset and the pension fund will reflect a due to general fund of a payable in the amount of $611,089.32
South Cook County Mosquito Abatement District
Notes to Financial Statements - Continued
June 30, 2025
Notes to Financial Statements - Continued
June 30, 2025
Notes to Financial Statements - Continued
NOTE 9. NEW ACCOUNTING PRONOUNCEMENTS GASB Statement No. 103, Financial Reporting Model Improvements, is effective for the District for fiscal year ended June 30, 2026. The Statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability. The Statement also addresses certain application issues. GASB Statement No. 104, Disclosure of Certain Capital Assets, is effective for the District for fiscal year ended June 30, 2026. The Statement requires certain types of capital assets to be disclosed separately in the capital assets note disclosures required by Statement 34 such as lease assets, intangible right-to-use assets, and subscription assets. Additionally, the Statement requires additional disclosures for capital assets held for sale and that such assets be evaluated each reporting period. Governments should disclose the ending balance of capital assets held for sale, with separate disclosures for historical cost and accumulated depreciation by major class of asset and the carrying amount of debt for which the capital assets held for sale are pledged as collateral for each major class of asset. GASB Statement No. 105, Subsequent Events, is effective for the District for fiscal year ended June 30, 2027. The Statement defines subsequent events as transactions or other events that occur after the date of the financial statements but before the date the financial statements are available to be issued. The Statement describes the date the financial statements are available to be issued as the date at which the financial statements are complete in form and format that complies with generally accepted accounting principles and that approvals necessary for issuance have been obtained. The Statement clarifies the subsequent events that constitute recognized and nonrecognized events and establishes specific note disclosure requirements for nonrecognized events. NOTE 10. SUBSEQUENT EVENTS Beginning in January 2026, full-time employees will be eligible to participate in the Illinois Municipal Retirement Fund, an agent multiple-employer public pension plan.
33
Required Supplementary Information
South Cook County Mosquito Abatement District
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
June 30, 2025
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
June 30, 2025
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2025
2025
Variance with
Original and Final Budget
Final Budget Actual Over/(Under)
REVENUES
Property taxes $ 4,200,000 $ 3,930,784 $ (269,216)
Replacement taxes 503,217 333,928 (169,289)
Interest income 7,967 1,604 (6,363)
Other income - 63,948 63,948
Total Revenues 4,711,184 4,330,264 (380,920)
EXPENDITURES
Operational:
Laboratory salaries 167,664 124,894 (42,770)
Maintenance and seasonal salaries 1,516,854 1,289,132 (227,722)
Social security - 108,174 108,174
Hospitalization and life insurance - 311,757 311,757
Employee's retirement fund - - -
Unemployment insurance - 10,950 10,950
Disability insurance - 3,656 3,656
Medical services, physicals, & emergency care - 465 465
Workman's compensation insurance 42,884 42,923 39
Insurance 87,440 132,556 45,116
Telephone 21,308 41,364 20,056
Electric 16,465 15,172 (1,293)
Heat 10,187 12,275 2,088
Water 2,967 2,757 (210)
Maintenance of buildings and grounds 44,954 76,872 31,918
Maintenance of equipment and vehicles 57,029 1,998 (55,031)
Trash removal 4,993 6,062 1,069
Uniform rental and purchases 27,776 10,421 (17,355)
Modification of equipment 29,418 27,438 (1,980)
Miscellaneous Apparatus 1,504 2,792 1,288
Licenses and inspection fees 5,975 2,837 (3,138)
Light trap operations 2,138 - (2,138)
Janitorial supplies 2,775 799 (1,976)
Pesticides and solvents 525,000 725,355 200,355
Automotive parts and supplies 13,197 12,686 (511)
Motor fuel and oil/lubricants 100,050 74,133 (25,917)
Laboratory supplies 46,800 25,965 (20,835)
Expendable supplies 15,393 19,683 4,290
Total Operational 2,742,771 3,083,116 340,345
See independent auditor's report and accompanying notes to required supplementary information.34
South Cook County Mosquito Abatement District
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Continued
June 30, 2025
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Continued
June 30, 2025
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Continued
GENERAL FUND (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2025
2025
Variance with
Original and Final Budget
Final Budget Actual Over/(Under)
EXPENDITURES (CONTINUED)
General and administrative:
Salaries $ 290,788 $ 278,709 $ (12,079)
Social security 137,127 19,089 (118,038)
Hospitalization and life insurance 663,000 189,198 (473,802)
Employee's retirement fund 400,000 9,738 (390,262)
Unemployment insurance 11,516 1,932 (9,584)
Disability insurance 22,000 402 (21,598)
Attorney for the board 45,233 40,044 (5,189)
Audit and accounting 52,107 116,538 64,431
Other professional services 136,098 222,649 86,551
Technology 13,059 19,324 6,265
Telephone 8,591 23,631 15,040
Service contracts 4,057 1,060 (2,997)
Office supplies 11,773 23,924 12,151
Printing annual reports 8,624 510 (8,114)
Legal notices 1,611 - (1,611)
Technical subscriptions 1,733 6,204 4,471
Personnel training and travel - 338 338
Miscellaneous 6,749 2,604 (4,145)
Membership and conferences 80,950 28,680 (52,270)
Total General and administrative 1,895,016 984,574 (910,442)
Capital outlay:
Plant and equipment 180,000 176,341 (3,659)
Capital improvements 1,080,025 50,170 (1,029,855)
Total Capital outlay 1,260,025 226,511 (1,033,514)
Total Expenditures 5,897,812 4,294,201 (1,603,611)
Net change in fund balance (1,186,628) 36,063 1,222,691
Fund balance at beginning of year 3,598,569
Fund balance at end of year $ 3,634,632
See independent auditor's report and accompanying notes to required supplementary information.35
South Cook County Mosquito Abatement District
Schedule of Changes in the Employer’s Net Pension Liability and Related Ratios
June 30, 2025
Schedule of Changes in the Employer’s Net Pension Liability and Related Ratios
June 30, 2025
Schedule of Changes in the Employer’s Net Pension Liability and Related Ratios
LAST TEN FISCAL YEARS
June 30,
2025 2024 2023 2022 2021
TOTAL PENSION LIABILITY
Service Cost $ 172,756 $ 170,283 $ 194,483 $ 221,267 $ 213,673
Interest 198,814 191,779 199,798 187,493 169,422
Differences between expected
and actual experience 199,062 106,899 (704,771) (113,432) 48,398
Changes in assumptions - (519,144) (167,933) 89,505 67,660
Benefit payments, including
refunds of employee contributions (77,697) (594,167) (635,003) (28,124) (21,640)
Net change in total pension liability 492,935 (644,350) (1,113,426) 356,709 477,513
Total pension liability - beginning 3,391,404 4,035,754 5,149,180 4,792,471 4,314,958
Total pension liability - ending (A) $ 3,884,339 $ 3,391,404 $ 4,035,754 $ 5,149,180 $ 4,792,471
PLAN FIDUCIARY NET POSITION
Contributions- employer $ - $ 150,000 $ 360,000 $ 300,000 $ 390,000
Net investment income 704,799 1,126,664 628,074 (869,943) 693,031
Benefit payments, including
refunds of employee contributions (77,697) (594,167) (635,003) (28,124) (21,640)
Net change in plan fiduciary net position 627,102 682,497 353,071 (598,067) 1,061,391
Plan fiduciary net position - beginning 6,098,164 5,415,667 5,062,596 5,660,663 4,599,272
Plan fiduciary net position - ending (B) $ 6,725,266 $ 6,098,164 $ 5,415,667 $ 5,062,596 $ 5,660,663
NET PENSION LIABILITY (ASSET)
- ENDING (A) - (B) $ (2,840,927) $ (2,706,760) $ (1,379,913) $ 86,584 $ (868,192)
Plan fiduciary net position as a
of the total pension liability 173.14% 179.81% 134.19% 98.32% 118.12%
Covered payroll $ 1,411,171 $ 1,101,545 $ 952,382 $ 1,078,404 $ 1,047,628
Net pension liability as a percentage
of covered payroll -201.32% -245.72% -144.89% 8.03% -82.87%
See independent auditor's report and accompanying notes to required supplementary information.36
South Cook County Mosquito Abatement District
Schedule of Changes in the Employer’s Net Pension Liability and Related Ratios - Continued
June 30, 2025
Schedule of Changes in the Employer’s Net Pension Liability and Related Ratios - Continued
June 30, 2025
Schedule of Changes in the Employer’s Net Pension Liability and Related Ratios - Continued
LAST TEN FISCAL YEARS
June 30,
2020 2019 2018 2017 2016
TOTAL PENSION LIABILITY
Service Cost $ 182,251 $ 194,161 $ 177,838 $ 149,443 $ 165,013
Interest 167,205 168,341 186,575 245,259 257,941
Differences between expected
and actual experience 895 86,998 (22,398) 17,217 95,736
Changes in assumptions 58,211 16,406 58,883 399,476 288,292
Benefit payments, including
refunds of employee contributions (733,542) (239,586) (1,715,793) (758,908) (572,580)
Net change in total pension liability (324,980) 226,320 (1,314,895) 52,487 234,402
Total pension liability - beginning 4,639,938 4,413,618 5,728,513 5,676,026 5,441,624
Total pension liability - ending (A) $ 4,314,958 $ 4,639,938 $ 4,413,618 $ 5,728,513 $ 5,676,026
PLAN FIDUCIARY NET POSITION
Contributions- employer $ 730,000 $ 830,000 $ 961,652 $ 1,079,821 $ 534,821
Net investment income 319,046 188,957 194,204 111,969 13,343
Benefit payments, including
refunds of employee contributions (733,542) (239,586) (1,715,793) (758,908) (572,580)
Net change in plan fiduciary net position 315,504 779,371 (559,937) 432,882 (24,416)
Plan fiduciary net position - beginning 4,283,768 3,504,397 4,064,334 3,631,452 3,655,868
Plan fiduciary net position - ending (B) $ 4,599,272 $ 4,283,768 $ 3,504,397 $ 4,064,334 $ 3,631,452
NET PENSION LIABILITY (ASSET)
- ENDING (A) - (B) $ (284,314) $ 356,170 $ 909,221 $ 1,664,179 $ 2,044,574
Plan fiduciary net position as a
of the total pension liability 106.59% 92.32% 79.40% 70.95% 63.98%
Covered payroll $ 939,578 $ 805,104 $ 863,725 $ 922,474 $ 928,419
Net pension liability as a percentage
of covered payroll -30.26% 44.24% 105.27% 180.40% 220.22%
See independent auditor's report and accompanying notes to required supplementary information.37
South Cook County Mosquito Abatement District
Schedule of Employer Contributions
June 30, 2025
Schedule of Employer Contributions
June 30, 2025
Schedule of Employer Contributions
Contributions in
Relation to the
Actuarially Actuarially Contributions as a
Determined Determined Contribution Percentages of
Fiscal Year Contribution Contribution Deficiency (Excess) Covered Payroll Covered Payroll
6/30/2025 $ 66,972 $ - $ 66,972 $ 1,411,171 0.00%
6/30/2024 86,772 150,000 (63,228) 1,120,656 13.39%
6/30/2023 125,754 360,000 (234,246) 968,905 37.16%
6/30/2022 156,438 300,000 (143,562) 1,097,114 27.34%
6/30/2021 201,096 390,000 (188,904) 1,065,804 36.59%
6/30/2020 228,948 730,000 (501,052) 955,879 76.37%
6/30/2019 261,102 830,000 (568,898) 819,072 101.33%
6/30/2018 293,088 961,652 (668,564) 878,710 109.44%
6/30/2017 302,736 1,079,821 (777,085) 938,478 115.06%
6/30/2016 295,500 534,821 (239,321) 944,527 56.62%
Valuation date:
Actuarially determined contribution rates are calculated as of June 30 each year.
Methods and assumptions used to determine 2025 contribution rates:
Actuarial cost method: Normal entry age
Amortization method: Level percentage of payroll, closed
Remaining amortization period: 30-year open period.
Asset valuation method: Market value of assets plus receivable contributions
Salary growth: 3.50%
Investment rate of return: 4.50%
Inflation rate: 2.26%
Retirement age: Attainment of age 65 and the completion of 5 years of service
Mortality: Mortality rates used to calculate lump sum amounts are
based on the table published by the IRS in Notice 2024-42
for the 2025 plan year and projected IRC §417(e)(3)(B)
applicable mortality tables developed according to IRS Reg
§1.430(h)(3)-1 and Revenue Ruling 2007-67 from the base
2012 mortality tables specified in §1.430(h)(3)-1(d) and
using IRS 2024 Adjusted Scale MP-2021 cumulative
mortality improvement factors for years after 2025.
Other information:
Notes There were no benefit changes during the year.
See independent auditor's report and accompanying notes to required supplementary information.38
South Cook County Mosquito Abatement District
Notes to Required Supplementary Information
June 30, 2025
Notes to Required Supplementary Information
June 30, 2025
Notes to Required Supplementary Information
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2025
NOTE 1. BUDGET AND BUDGETARY ACCOUNTING
Budgets are adopted on a basis consistent with accounting principles generally accepted in the United
States of America.
The District follows these procedures in establishing the budgetary data reflected in the financial
statements:
(a) The District’s Business Manager submits a proposed operating budget to the Board of Trustees
for approval.
(b) The Board of Trustees makes any adjustments to the budget deemed necessary and approved the
proposed budget and appropriations ordinance.
(c) Notice is published in a newspaper that the tentative Annual Budget and Appropriation Ordinance
of the District is available for inspection and then is subsequently presented at a public hearing.
(d) The District’s Board of Trustees adopts the Annual Budget and Appropriation Ordinance after the
public hearing.
Expenditures may not legally exceed the budgeted appropriations at the fund level. The budget may be
amended by the District’s Board of Trustees. There were no amendments to the budget for the year ended
June 30, 2025. The Board approved the Annual Budget and Appropriation Ordinance on October 15, 2024.
NOTE 2. PENSION PLAN
The actuarial methods and assumptions used to calculate the total pension liability is described in Note 7
to the financial statements.39