Audit 380616

Finding 2025-004 - Significant Deficiency and Noncompliance – Written Federal Policies and Procedures Program Information: Congressionally Mandated Projects, U.S. Environmental Protection Agency, 00E04067, 2025, ALN #66.202 Criteria: The Village is required to have in place written federal policies and procedures in compliance with Uniform Guidance 2 CFR 200, which include procurement and suspension/debarment and equipment and real property management. Condition: The Village is lacking written federal policies and procedures in compliance with Uniform Guidance 2 CFR 200. Questioned Costs: None Cause and Effect: The Village has not historically received significant federal funding and therefore federal policies and procedures in compliance with Uniform Guidance 2 CFR 200 were not drafted and approved. This results in noncompliance that is considered a significant deficiency. Recommendation: We recommend that the Village draft and approve federal policies and procedures in compliance with Uniform Guidance 2 CFR 200 to ensure that they are in compliance with laws and regulations related to federal programs. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See attached corrective action plan.

Finding 2025-005 – Material Weakness and Material Noncompliance – Allowable Costs Program Information: Congressionally Mandated Projects, U.S. Environmental Protection Agency, 00E04067, 2025, ALN #66.202 Criteria: Federal revenues and expenses reported on the Schedule of Expenditures of Federal Awards should only include eligible expenses that occurred within the current fiscal year. Condition: A material adjustment was required during the audit to record federal expenses and revenues of the program in the proper period for an invoice that included activity for both fiscal year 2025 and fiscal year 2026. The expenses and revenues were originally improperly recorded only in fiscal year 2025. Questioned Costs: None Cause and Effect: Expenses and revenues were recorded in the improper period resulting in a material audit adjustment to correct the Schedule of Expenditures of Federal Awards. Recommendation: We recommend federal expenses and revenues be reviewed closely to ensure they are recorded in the proper period, especially at year end. This will give management and the Village Council an accurate depiction of federal expenses and revenues, which will also help to ensure that single audits are performed when required. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See attached corrective action plan.