Finding 2023-001: Restatement to Fund Balance
Condition: During audit fieldwork, our testing resulted in a restatement of fund balance in order to correct
prior year accruals and deferrals related to property taxes, accounts payable, grant receivables, etc. that
were not included on the unadjusted trial balances.
Criteria: A good system of internal controls would provide for accurate recording of accruals and deferrals
on a regular basis in order to provide for accurate financial reporting.
Cause: Year-end entries related to property taxes, accounts payable, grant receivables, etc. were required
in order to accurately present the City’s financial statements.
Effect: A material adjustment to the City’s beginning fund balance was required to properly state the
City’s prior year end accruals and deferrals.
Recommendation: We recommend that the City implement effective internal controls in order to provide
an accurate assessment of reporting requirements for year-end accruals and deferrals. This implementation
of improved controls would result in the appropriate recognition of financial reporting requirements.
Corrective Action Plan: The City should implement internal controls to properly record necessary accruals
and deferrals on a timely basis prior to audit fieldwork. Additionally, the City Comptroller should provide
monthly reviews of the financial statements.
Finding 2023-002: Material Journal Entries
Condition: During audit fieldwork, our testing resulted in material journal entries to be posted in order to
properly state the City’s financial statements.
Criteria: A good system of internal controls would provide for accurate recording of necessary journal
entries on a regular basis in order to provide for accurate financial reporting.
Cause: Year-end accrual entries along with correcting entries to properly reclassify necessary revenues
and expenses into the proper ledger accounts were required in order to accurately present the City’s
financial statements.
Effect: Material adjustments to the City’s ledger accounts were required to properly state the City’s
financial statements as of fiscal year ended April 30, 2023.
Recommendation: We recommend that the City implement effective internal controls in order to provide
an accurate assessment of reporting requirements for year-end accruals and deferrals and necessary
reclassification adjustment for proper classification in the City’s financial statements.
Corrective Action Plan: The City Comptroller, along with staff, will review year-end adjustments as part
of the audit preparation process and work to reduce the number of entries proposed by the auditors and
prepare fully adjusted financial statements prior to audit fieldwork
Finding 2023-003: Grant Reporting, Reconciliation, and Monitoring
Condition: During audit fieldwork, we noted that the City does not reconcile grants throughout the fiscal
year, thus requiring many journal entries to properly adjust revenues and record grant accruals and
deferrals at year-end.
Criteria: A good system of internal controls would provide for accurate representation of grant activity for
all City accounts prior to audit fieldwork.
Cause: Year-end preparation of grant lead sheets and detailed schedules were required to be completed by
the auditors to correctly and accurately reflect the City’s grant activity for the fiscal year.
Effect: The City’s financial statements were not correctly reconciled and adjusted prior to fieldwork as a
result of the unreconciled grant activity.
Recommendation: A vital process of effective internal controls is to review grant activity throughout the
fiscal year and adjust as necessary for any receivables that are outstanding and to include any payable for
invoices incurred during the year but paid after fiscal year end in order to properly state the City’s grant
expenditures and revenue activity for the fiscal year.
Corrective Action Plan: We recommend that the City Comptroller’s Office and the Treasurer’s Office act
together as a central location for grant activity. As it stands currently, each department is responsible for
the grant application, authorization, and reporting of grant activity. This has led to a breakdown in
communication between the departments and the Treasurer and Comptroller’s Offices, where information
was recorded to the ledger, but reconciliations were not being performed throughout the year to properly
display the City’s grant expenditure and revenue activity. While Departments may manage their own
grants, it is important that a consistent reconciliation is completed monthly and is reviewed by the
Comptroller and Treasurer’s Office for use in preparation of monthly and year-end financial statements.
Finding 2023-004: Reporting Compliance
Federal Agency: U.S. Department of Transportation
Passthrough Entity: Illinois Department of Transportation
Assistance Listing Number and Federal Program: 20.106 – Airport Improvement Program
Condition: During our compliance procedures, we noted that the City was not completing, reviewing, and
submitting the necessary reports outlined in the Compliance Requirements shown in Uniform Guidance
(2 CFR Part 200) for the Airport Improvement Program.
Criteria: A good system of internal controls should be put in place to reduce any risk of noncompliance
with the outlined grant requirements. Specifically, reports should be completed and reviewed on time prior
to submission and should be reconciled against the City’s grant ledger activity.
Cause: The City’s personnel are not properly following the policies and procedures required by the
granting agency and included in the Uniform Guidance (2 CFR Part 200).
Effect: Without proper completion, review, and approval, the City is at risk of losing grant funding as a
result of the necessary reports not being completed and submitted in a timely fashion.
Recommendation: We recommend that the City Comptroller’s Office works with the Airport Department
and Airport Director to review and approve the necessary Airport Improvement Program reports prior to
their submission.
Corrective Action Plan: The City Comptroller should meet with the Airport Director regularly to discuss
the necessary reports required to be submitted in order to stay in compliance with the federal funding
agency’s grant requirements. Prior to submission, the reports should be reviewed by the City Comptroller
and submitted and filed by the Airport Director.
Finding 2023-001: Restatement to Fund Balance
Condition: During audit fieldwork, our testing resulted in a restatement of fund balance in order to correct
prior year accruals and deferrals related to property taxes, accounts payable, grant receivables, etc. that
were not included on the unadjusted trial balances.
Criteria: A good system of internal controls would provide for accurate recording of accruals and deferrals
on a regular basis in order to provide for accurate financial reporting.
Cause: Year-end entries related to property taxes, accounts payable, grant receivables, etc. were required
in order to accurately present the City’s financial statements.
Effect: A material adjustment to the City’s beginning fund balance was required to properly state the
City’s prior year end accruals and deferrals.
Recommendation: We recommend that the City implement effective internal controls in order to provide
an accurate assessment of reporting requirements for year-end accruals and deferrals. This implementation
of improved controls would result in the appropriate recognition of financial reporting requirements.
Corrective Action Plan: The City should implement internal controls to properly record necessary accruals
and deferrals on a timely basis prior to audit fieldwork. Additionally, the City Comptroller should provide
monthly reviews of the financial statements.
Finding 2023-002: Material Journal Entries
Condition: During audit fieldwork, our testing resulted in material journal entries to be posted in order to
properly state the City’s financial statements.
Criteria: A good system of internal controls would provide for accurate recording of necessary journal
entries on a regular basis in order to provide for accurate financial reporting.
Cause: Year-end accrual entries along with correcting entries to properly reclassify necessary revenues
and expenses into the proper ledger accounts were required in order to accurately present the City’s
financial statements.
Effect: Material adjustments to the City’s ledger accounts were required to properly state the City’s
financial statements as of fiscal year ended April 30, 2023.
Recommendation: We recommend that the City implement effective internal controls in order to provide
an accurate assessment of reporting requirements for year-end accruals and deferrals and necessary
reclassification adjustment for proper classification in the City’s financial statements.
Corrective Action Plan: The City Comptroller, along with staff, will review year-end adjustments as part
of the audit preparation process and work to reduce the number of entries proposed by the auditors and
prepare fully adjusted financial statements prior to audit fieldwork
Finding 2023-003: Grant Reporting, Reconciliation, and Monitoring
Condition: During audit fieldwork, we noted that the City does not reconcile grants throughout the fiscal
year, thus requiring many journal entries to properly adjust revenues and record grant accruals and
deferrals at year-end.
Criteria: A good system of internal controls would provide for accurate representation of grant activity for
all City accounts prior to audit fieldwork.
Cause: Year-end preparation of grant lead sheets and detailed schedules were required to be completed by
the auditors to correctly and accurately reflect the City’s grant activity for the fiscal year.
Effect: The City’s financial statements were not correctly reconciled and adjusted prior to fieldwork as a
result of the unreconciled grant activity.
Recommendation: A vital process of effective internal controls is to review grant activity throughout the
fiscal year and adjust as necessary for any receivables that are outstanding and to include any payable for
invoices incurred during the year but paid after fiscal year end in order to properly state the City’s grant
expenditures and revenue activity for the fiscal year.
Corrective Action Plan: We recommend that the City Comptroller’s Office and the Treasurer’s Office act
together as a central location for grant activity. As it stands currently, each department is responsible for
the grant application, authorization, and reporting of grant activity. This has led to a breakdown in
communication between the departments and the Treasurer and Comptroller’s Offices, where information
was recorded to the ledger, but reconciliations were not being performed throughout the year to properly
display the City’s grant expenditure and revenue activity. While Departments may manage their own
grants, it is important that a consistent reconciliation is completed monthly and is reviewed by the
Comptroller and Treasurer’s Office for use in preparation of monthly and year-end financial statements.
Finding 2023-004: Reporting Compliance
Federal Agency: U.S. Department of Transportation
Passthrough Entity: Illinois Department of Transportation
Assistance Listing Number and Federal Program: 20.106 – Airport Improvement Program
Condition: During our compliance procedures, we noted that the City was not completing, reviewing, and
submitting the necessary reports outlined in the Compliance Requirements shown in Uniform Guidance
(2 CFR Part 200) for the Airport Improvement Program.
Criteria: A good system of internal controls should be put in place to reduce any risk of noncompliance
with the outlined grant requirements. Specifically, reports should be completed and reviewed on time prior
to submission and should be reconciled against the City’s grant ledger activity.
Cause: The City’s personnel are not properly following the policies and procedures required by the
granting agency and included in the Uniform Guidance (2 CFR Part 200).
Effect: Without proper completion, review, and approval, the City is at risk of losing grant funding as a
result of the necessary reports not being completed and submitted in a timely fashion.
Recommendation: We recommend that the City Comptroller’s Office works with the Airport Department
and Airport Director to review and approve the necessary Airport Improvement Program reports prior to
their submission.
Corrective Action Plan: The City Comptroller should meet with the Airport Director regularly to discuss
the necessary reports required to be submitted in order to stay in compliance with the federal funding
agency’s grant requirements. Prior to submission, the reports should be reviewed by the City Comptroller
and submitted and filed by the Airport Director.