FAC Explorer

Audit 343019

FY End
2024-05-31
Total Expended
$1.26M
Findings
12
Programs
3
Organization: Village of Bethany (IL)
Year: 2024 Accepted: 2025-02-19
Auditor: McGuire Yuhas Huffman & Buckley PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
523625 2024-003 Significant Deficiency - L
523626 2024-004 Significant Deficiency - L
523627 2024-003 Significant Deficiency - L
523628 2024-004 Significant Deficiency - L
523629 2024-003 Significant Deficiency - L
523630 2024-004 Significant Deficiency - L
1100067 2024-003 Significant Deficiency - L
1100068 2024-004 Significant Deficiency - L
1100069 2024-003 Significant Deficiency - L
1100070 2024-004 Significant Deficiency - L
1100071 2024-003 Significant Deficiency - L
1100072 2024-004 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
10.760 Water and Waste Disposal Systems for Rural Communities $1.08M Yes 2
21.027 Coronavirus State and Local Fiscal Recovery Funds $168,609 - 2
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $11,443 - 2

Contacts

Name Title Type
L8U3C32X4WC8 Jessica Henderson Auditee
2176653351 Kevin Buckley Auditor
No contacts on file

Notes to SEFA

Title: Single Audit Reporting Entity Accounting Policies: Expenditures reported on the Schedule are reported on the modified cash basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. The underlying accounting records for grant programs are maintained on the modified cash basis of accounting. Accordingly, revenues are recognized and recorded in the programs when cash is received. In the same manner, expenditures are recognized and recorded upon the disbursement of cash. De Minimis Rate Used: N Rate Explanation: Not Needed. All costs were direct. The accompanying Schedule of Expenditures of Federal Awards (Schedule) presents the activity of all federal award programs of the Village of Bethany for the year ended May 31, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The Village financial reporting entity, as defined in Note 1 to the financial statements, consists of the activities of the Village of Bethany, which has no component units. The Schedule includes all federal awards received directly from federal agencies as well as federal financial awards passed through other agencies. Because the Schedule presents only a selected portion of the operations of the Village of Bethany, it is not intended to and does not present the financial position, changes in financial position or cash flows of the Village of Bethany.
Title: Basis of Accounting Accounting Policies: Expenditures reported on the Schedule are reported on the modified cash basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. The underlying accounting records for grant programs are maintained on the modified cash basis of accounting. Accordingly, revenues are recognized and recorded in the programs when cash is received. In the same manner, expenditures are recognized and recorded upon the disbursement of cash. De Minimis Rate Used: N Rate Explanation: Not Needed. All costs were direct. Expenditures reported on the Schedule are reported on the modified cash basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. The underlying accounting records for grant programs are maintained on the modified cash basis of accounting. Accordingly, revenues are recognized and recorded in the programs when cash is received. In the same manner, expenditures are recognized and recorded upon the disbursement of cash.
Title: Indirect Cost Rate Accounting Policies: Expenditures reported on the Schedule are reported on the modified cash basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. The underlying accounting records for grant programs are maintained on the modified cash basis of accounting. Accordingly, revenues are recognized and recorded in the programs when cash is received. In the same manner, expenditures are recognized and recorded upon the disbursement of cash. De Minimis Rate Used: N Rate Explanation: Not Needed. All costs were direct. The Village has elected to use the de minimis 10% indirect cost rate allowed under the Uniform Guidance.
Title: Categorization of Expenditures Accounting Policies: Expenditures reported on the Schedule are reported on the modified cash basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. The underlying accounting records for grant programs are maintained on the modified cash basis of accounting. Accordingly, revenues are recognized and recorded in the programs when cash is received. In the same manner, expenditures are recognized and recorded upon the disbursement of cash. De Minimis Rate Used: N Rate Explanation: Not Needed. All costs were direct. The Schedule of Expenditures of Federal Awards reflects federal expenditures for all individual grants which were active during the year. The categorization of expenditures by program included in the schedule is based on the Assistance Listing Numbers. Changes in the categorization of expenditures occur based on revisions to the assistance listing. When preparing the Schedule of Expenditures of Federal Awards, the Village uses the most current information available from grantors and pass-through entities to determine whether funding is state or federal.
Title: USDA Loan Accounting Policies: Expenditures reported on the Schedule are reported on the modified cash basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. The underlying accounting records for grant programs are maintained on the modified cash basis of accounting. Accordingly, revenues are recognized and recorded in the programs when cash is received. In the same manner, expenditures are recognized and recorded upon the disbursement of cash. De Minimis Rate Used: N Rate Explanation: Not Needed. All costs were direct. The Village owed $1,077,000 to the USDA as of May 31, 2024.

Finding Details

Finding 2024-003
Criteria: Maintain adequate internal controls, including segregation of duties, in order to record, process, summarize and report financial data consistent with the assertions of management in the financial statements. Condition: Lack of segregation of duties. Cause: Due to the size of the organization, there is a limited number of accounting staff. Effect: Could adversely affect the Village’s ability to record, process, summarize and report financial data consistent with the assertions of management in the financial statements. Recommendation: Segregation of duties needs to be increased whenever possible with the personnel available. Response: The Village has segregated as many duties as possible given the small accounting staff.
Finding 2024-004
Criteria: Compliance with required financial reporting and disclosures. Condition: Lack of adequate internal control over financial reporting. Cause: Due to the size of the organization, there is no staff with sufficient expertise to ensure compliance with all required financial reporting and disclosures. Effect: Could adversely affect the Village’s assurance that financial reporting including the preparation of the Schedule of Expenditures of Federal Awards, is in accordance with the modified cash basis of accounting. Recommendation: Obtain necessary expertise. Response: It is not cost effective to do so.
Finding 2024-003
Criteria: Maintain adequate internal controls, including segregation of duties, in order to record, process, summarize and report financial data consistent with the assertions of management in the financial statements. Condition: Lack of segregation of duties. Cause: Due to the size of the organization, there is a limited number of accounting staff. Effect: Could adversely affect the Village’s ability to record, process, summarize and report financial data consistent with the assertions of management in the financial statements. Recommendation: Segregation of duties needs to be increased whenever possible with the personnel available. Response: The Village has segregated as many duties as possible given the small accounting staff.
Finding 2024-004
Criteria: Compliance with required financial reporting and disclosures. Condition: Lack of adequate internal control over financial reporting. Cause: Due to the size of the organization, there is no staff with sufficient expertise to ensure compliance with all required financial reporting and disclosures. Effect: Could adversely affect the Village’s assurance that financial reporting including the preparation of the Schedule of Expenditures of Federal Awards, is in accordance with the modified cash basis of accounting. Recommendation: Obtain necessary expertise. Response: It is not cost effective to do so.
Finding 2024-003
Criteria: Maintain adequate internal controls, including segregation of duties, in order to record, process, summarize and report financial data consistent with the assertions of management in the financial statements. Condition: Lack of segregation of duties. Cause: Due to the size of the organization, there is a limited number of accounting staff. Effect: Could adversely affect the Village’s ability to record, process, summarize and report financial data consistent with the assertions of management in the financial statements. Recommendation: Segregation of duties needs to be increased whenever possible with the personnel available. Response: The Village has segregated as many duties as possible given the small accounting staff.
Finding 2024-004
Criteria: Compliance with required financial reporting and disclosures. Condition: Lack of adequate internal control over financial reporting. Cause: Due to the size of the organization, there is no staff with sufficient expertise to ensure compliance with all required financial reporting and disclosures. Effect: Could adversely affect the Village’s assurance that financial reporting including the preparation of the Schedule of Expenditures of Federal Awards, is in accordance with the modified cash basis of accounting. Recommendation: Obtain necessary expertise. Response: It is not cost effective to do so.
Finding 2024-003
Criteria: Maintain adequate internal controls, including segregation of duties, in order to record, process, summarize and report financial data consistent with the assertions of management in the financial statements. Condition: Lack of segregation of duties. Cause: Due to the size of the organization, there is a limited number of accounting staff. Effect: Could adversely affect the Village’s ability to record, process, summarize and report financial data consistent with the assertions of management in the financial statements. Recommendation: Segregation of duties needs to be increased whenever possible with the personnel available. Response: The Village has segregated as many duties as possible given the small accounting staff.
Finding 2024-004
Criteria: Compliance with required financial reporting and disclosures. Condition: Lack of adequate internal control over financial reporting. Cause: Due to the size of the organization, there is no staff with sufficient expertise to ensure compliance with all required financial reporting and disclosures. Effect: Could adversely affect the Village’s assurance that financial reporting including the preparation of the Schedule of Expenditures of Federal Awards, is in accordance with the modified cash basis of accounting. Recommendation: Obtain necessary expertise. Response: It is not cost effective to do so.
Finding 2024-003
Criteria: Maintain adequate internal controls, including segregation of duties, in order to record, process, summarize and report financial data consistent with the assertions of management in the financial statements. Condition: Lack of segregation of duties. Cause: Due to the size of the organization, there is a limited number of accounting staff. Effect: Could adversely affect the Village’s ability to record, process, summarize and report financial data consistent with the assertions of management in the financial statements. Recommendation: Segregation of duties needs to be increased whenever possible with the personnel available. Response: The Village has segregated as many duties as possible given the small accounting staff.
Finding 2024-004
Criteria: Compliance with required financial reporting and disclosures. Condition: Lack of adequate internal control over financial reporting. Cause: Due to the size of the organization, there is no staff with sufficient expertise to ensure compliance with all required financial reporting and disclosures. Effect: Could adversely affect the Village’s assurance that financial reporting including the preparation of the Schedule of Expenditures of Federal Awards, is in accordance with the modified cash basis of accounting. Recommendation: Obtain necessary expertise. Response: It is not cost effective to do so.
Finding 2024-003
Criteria: Maintain adequate internal controls, including segregation of duties, in order to record, process, summarize and report financial data consistent with the assertions of management in the financial statements. Condition: Lack of segregation of duties. Cause: Due to the size of the organization, there is a limited number of accounting staff. Effect: Could adversely affect the Village’s ability to record, process, summarize and report financial data consistent with the assertions of management in the financial statements. Recommendation: Segregation of duties needs to be increased whenever possible with the personnel available. Response: The Village has segregated as many duties as possible given the small accounting staff.
Finding 2024-004
Criteria: Compliance with required financial reporting and disclosures. Condition: Lack of adequate internal control over financial reporting. Cause: Due to the size of the organization, there is no staff with sufficient expertise to ensure compliance with all required financial reporting and disclosures. Effect: Could adversely affect the Village’s assurance that financial reporting including the preparation of the Schedule of Expenditures of Federal Awards, is in accordance with the modified cash basis of accounting. Recommendation: Obtain necessary expertise. Response: It is not cost effective to do so.