Finding Text
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.