Finding Text
Restatement to Fund Balance
Condition: During audit fieldwork, our testing resulted in a restatement of fund balance in order to correct prior year property tax revenues.
Criteria: A good system of internal controls would provide for accurate recording and reporting of revenues and receivables on a regular basis in order to provide for accurate financial reporting.
Cause: Year-end entries related to property taxes 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 Property Taxes.
Recommendation: We recommend the Village implement effective internal controls in order to provide an accurate assessment of reporting requirements for revenues and receivables. This implementation of improved controls would result in the appropriate recognition for financial reporting requirements.
Corrective Action Plan: The Village will implement internal controls to properly record property tax revenue, receivables, and deferred on a timely basis prior to audit fieldwork. Additionally, the Village Finance Director will provide monthly reviews of the financial statements.