Audit 406333

Finding 2023 – 001: Audit Journal Entries Condition: During audit fieldwork, our testing resulted in significant 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 Village Clerk, 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 – 002: Grant Policy Condition: Previously and during our current year-end audit procedures, we noted that the Village does not have a formalized Grant Policy that documents their grant procedures. Any department within the Village may apply for, and be awarded, grant funding from a variety of State and Federal sources. Criteria: A Grant Policy should document the procedures in place for ensuring grant requirements are being monitored for Single Audit & Grant Accountability Transparency Act (GATA). The formalized policy will help ensure that each department will follow these procedures and safeguard against the Village not being in compliance. Cause: A uniform set of policies and procedures for handling grant activities is lacking, creating contrasting ways of processing, and tracking grants in each department. Effect: Grant compliance with federal grants received in the year cannot be assured when tracking and monitoring grant activity is not clearly delineated. Recommendation: We recommend the Village develop specific policy and procedures for tracking and monitoring grant activities and to clearly delineate responsibility for monitoring compliance with applicable requirements. Corrective Action Plan: Management acknowledges this finding and will work to correct it in the coming year.