FAC Explorer

Audit 379123

FY End
2025-05-31
Total Expended
$2.20M
Findings
3
Programs
1
Organization: Village of Bethany (IL)
Year: 2025 Accepted: 2026-01-05
Auditor: MCGUIRE YUHAS HUFFMAN & BUCKLEY PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1167800 2025-004 Material Weakness Yes L
1167801 2025-005 Material Weakness Yes L
1167802 2025-006 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
10.760 WATER AND WASTE DISPOSAL SYSTEMS FOR RURAL COMMUNITIES $2.20M Yes 3

Contacts

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

Notes to SEFA

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, 2025. 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.
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.
The Village has elected to use the de minimis 10% indirect cost rate allowed under the Uniform Guidance.
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.
The Village owed $3,167,000 to the USDA as of May 31, 2025.

Finding Details

Finding 2025-004
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 2025-005
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 2025-006
Criteria: Compliance with USDA bond funding requirements to fund debt service, debt service reserve, and short-lived assets. Condition: The Village has set up a debt service reserve account and a short-lived assets account, and both received $100 as initial funding. The Village was waiting for project completion to begin funding them the monthly required amounts. However, the bond ordinance states that the accounts should be funded at the earlier of project completion or the end of the interest only period. The interest only period ending during fiscal year 2025 when the bonds became subject to principal repayment. However, as stated above, the monthly funding requirements to the above three accounts did not begin. Additionally, a debt service account has not yet been set up. Cause: Village staff was unaware that the interest only period had ended and that the monthly requirements were in effect. Effect: Accounts are underfund. Recommendation: Begin funding the accounts. Response: The Village will set up a debt service account and begin funding the debt service account, the debt service reserve account, and the short-lived assets account in accordance with the bond ordinance.