Quick Fact – OPALCO Annual Audits
Each year, OPALCO’s finances are examined by an independent third-party auditing firm. For 2025 the Board hired Baker Tilly, a national auditing firm. This kind of independent oversight is one of the most important things a cooperative can offer its members. Each year we hire an auditor and present the results to the Board and public in May.
What Is an Audit, and Why Does It Matter?
An independent audit means an outside firm with no financial relationship to OPALCO comes in, examines our books, tests our internal controls, reviews our accounting practices, and issues a formal opinion on whether our financial statements accurately reflect reality. Baker Tilly auditors spend weeks working alongside OPALCO staff in late March and early April each year, examining everything from utility plant construction projects to federal grant expenditures to how we recognize revenue from electricity and broadband sales. Results are presented to the Board of Directors May of each year.
In May of 2026, the audit included the annual consolidated financial statement audit for the year ended December 31, 2025, a Single Audit covering federal award expenditures, and compliance audits for reporting to the Rural Utilities Service (RUS) and the National Rural Utilities Cooperative Finance Corporation (CFC).
The Result: The Highest Possible Rating
Baker Tilly issued an “unmodified” opinion on OPALCO’s consolidated financial statements, the highest level of opinion an independent auditor can issue. It means our financial statements are presented fairly and in full accordance with generally accepted accounting principles (US GAAP).
The audit also produced a clean report on internal controls and compliance. There were no control findings, no findings of noncompliance, and no issues identified with our loan agreements with RUS or CFC. No significant unusual transactions were identified, and there were no disagreements between Baker Tilly and OPALCO management.
Understanding the Consolidated Statements
The consolidated financial statements represent both OPALCO and its wholly owned subsidiary, Rock Island Communications. Because OPALCO owns 100% of Rock Island, accounting standards require that our audited financial statements be presented on a consolidated basis.
For 2025, total consolidated operating revenues were $52 million, with electricity sales accounting for $40.1 million and broadband sales contributing $11.9 million. Total operating expenses came to $43.7 million, producing net margins for the year of $5 million. Total assets grew to $198 million, reflecting continued investment in our utility infrastructure, and total equities and margins reached $60.8 million. Long-term debt totaled $120.3 million. Consistent with how electric cooperatives are structured, we are a capital-intensive utility that finances infrastructure through long-term, low-cost debt. Our debt primarily supports investments in plant and grid reliability that benefit members for decades. It is also important to note that $21.9 million of the debt balance is related to OPALCO’s member on-bill financing program, Switch It Up, where OPALCO borrows funds from RUS at 0% and relends to members for energy efficiency projects. Over the course of the year the Board approved patronage capital retirements of approximately $1.96 million, including $1.5M returned to members on a 25-year first-in, first-out cycle.
Federal Grant Accountability
Because in 2025, OPALCO spent more than $750k in federal grant funds during 2025, we also were required to engage in a Single Audit. The Single Audit is focused specifically on how federal dollars are spent and compliance with grant contract provisions. In 2025, total federal expenditures were ~$7.2 million, with the primary program being the ARPA Infrastructure Acceleration Grant totaling $6.3 million. Baker Tilly found no material weaknesses or control deficiencies in internal controls over compliance, no instances of noncompliance, and no questioned costs. Rock Island receives $215,000 in annual federal subsidies through 2031 to expand broadband access to roughly 3,800 underserved locations in our service area.
Find more detailed financial reports here.
