FAC Explorer

Audit 339645

FY End
2023-12-31
Total Expended
$3.82M
Findings
4
Programs
5
Organization: Village of Villa Park (IL)
Year: 2023 Accepted: 2025-01-24
Auditor: Lauterbach & Amen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
520093 2023-001 Material Weakness - L
520094 2023-002 Significant Deficiency - L
1096535 2023-001 Material Weakness - L
1096536 2023-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
97.047 Pre-Disaster Mitigation $2.31M Yes 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.46M Yes 2
20.600 State and Community Highway Safety $24,188 - 0
16.607 Bulletproof Vest Partnership Program $16,605 - 0
93.959 Block Grants for Prevention and Treatment of Substance Abuse $5,737 - 0

Contacts

Name Title Type
TGAEKG77EJE1 Chuck Howard Auditee
6305926064 Don Shaw Auditor
No contacts on file

Notes to SEFA

Title: NOTE 4 – SUBRECIPIENT RELATIONSHIPS Accounting Policies: NOTE 1 – BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Village under programs of the federal government for the year ended December 31, 2023. The information in this Schedule is presented in accordance with the requirements of Uniform Guidance, Audits of States, Local Governments, and Non-Profit Organizations. Because the Schedule presents only a selected portion of the operations of the Village, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Village. NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures Expenditures reported on the Schedule are reported on the accrual basis of accounting. Pass-Through Entities Pass-through entity identifying numbers are presented on the Schedule where available. De Minimis Rate Used: N Rate Explanation: NOTE 3 – 10% DE MINIMIS INDIRECT COST RATE The Village did not elected to use the 10% de minimis indirect cost rate as permitted by 2 CFR Section 200.414. The Village did not remit any funds to subrecipients.

Finding Details

Finding 2023-001
Finding 2023 – 001: Restatement to Fund Balance Condition: During audit fieldwork, our testing resulted in a restatement of fund balance in order to correct insurance expenses improperly recorded in prior years. Criteria: A good system of internal controls would provide for accurate recording and reporting of insurance expenses on a regular basis in order to provide for accurate financial reporting. Cause: Year-end entries related to prepaid insurance were required in order to accurately present the Village’s financial statements. Effect: A material adjustment to the Village’s beginning fund balance was required to properly state insurance expense. Recommendation: We recommend the Village implement effective internal controls in order to provide an accurate assessment of reporting requirements. This implementation of improved controls would result in the appropriate recognition for financial reporting requirements. Corrective Action Plan: The Village and finance director will implement internal controls to properly record insurance expenses, payables, and prepaid expenses on a timely basis prior to audit fieldwork.
Finding 2023-002
Finding 2023 – 002: Audit Journal Entries Condition: During audit fieldwork, our testing resulted in audit adjustments in order to present materially accurate financial statements. Criteria: A good system of internal controls would provide for accurate representations of adjusted account balances for all Village accounts prior to audit fieldwork. Cause: Year-end entries related to various accruals and other items were required in order to accurately present the Village’s financial statements. Effect: The Village’s financial statements were not fully adjusted prior to audit fieldwork. Recommendation: A vital process of effective internal controls is the review and subsequent adjustment of general ledger balances. This review and adjustment will aid in the appropriate budgeting and management of the Village’s financial activities and resources. Corrective Action Plan: The Finance Director, 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 2023-001
Finding 2023 – 001: Restatement to Fund Balance Condition: During audit fieldwork, our testing resulted in a restatement of fund balance in order to correct insurance expenses improperly recorded in prior years. Criteria: A good system of internal controls would provide for accurate recording and reporting of insurance expenses on a regular basis in order to provide for accurate financial reporting. Cause: Year-end entries related to prepaid insurance were required in order to accurately present the Village’s financial statements. Effect: A material adjustment to the Village’s beginning fund balance was required to properly state insurance expense. Recommendation: We recommend the Village implement effective internal controls in order to provide an accurate assessment of reporting requirements. This implementation of improved controls would result in the appropriate recognition for financial reporting requirements. Corrective Action Plan: The Village and finance director will implement internal controls to properly record insurance expenses, payables, and prepaid expenses on a timely basis prior to audit fieldwork.
Finding 2023-002
Finding 2023 – 002: Audit Journal Entries Condition: During audit fieldwork, our testing resulted in audit adjustments in order to present materially accurate financial statements. Criteria: A good system of internal controls would provide for accurate representations of adjusted account balances for all Village accounts prior to audit fieldwork. Cause: Year-end entries related to various accruals and other items were required in order to accurately present the Village’s financial statements. Effect: The Village’s financial statements were not fully adjusted prior to audit fieldwork. Recommendation: A vital process of effective internal controls is the review and subsequent adjustment of general ledger balances. This review and adjustment will aid in the appropriate budgeting and management of the Village’s financial activities and resources. Corrective Action Plan: The Finance Director, 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.