Finding Text
Criteria: Bank reconciliations will reconcile the ending cash balances from the bank statements to the
general ledger.
Condition: We noted the bank reconciliations did not reconcile the ending cash balances from the bank
statements to the general ledger.
Cause: The Village does not have the resources to hire additional accounting staff to review
reconciliations and journal entries.
Effect: Because of the lack of accounting staff, ending balances of cash accounts did not agree to the
supporting schedules, reconciliations, and supporting documentation.
Recommendation: We recommend a member of the Board of Trustees or management to review the bank
reconciliations for all bank accounts, ensure they agree to the general ledger, and identify unusual items,
such as reconciling items greater than one year old.
Criteria: Payroll liability accounts, including child support payable should only carry a balance of
unremitted payments.
Condition: We noted the child support payable account had a large balance and the remitted payments
made were recorded to reduce accounts payable and not this payroll liability.
Cause: The Village does not have the resources to hire additional accounting staff to review account
balances.
Effect: Because of the lack of accounting staff, ending child support payable was overstated.
Recommendation: We recommend a member of the Board of Trustees or management review the payroll
liability for all bank accounts to determine that they are being properly reduced.
Criteria: Transfer accounts should only include management approved transfers.
Condition: We noted numerous transactions in the transfer account that were reimbursements between
funds and not management approved transfers.
Cause: The Village does not have the resources to hire additional accounting staff to review account
balances.
Effect: Because of the lack of accounting staff, transfers from numerous funds were misstated.
Recommendation: We recommend a member of the Board of Trustees or management review the transfer
accounts to ensure that only management approved transfers are included.