Finding 1103491 (2022-005)

2022-005 – Drafting Schedules of Expenditures of Federal and State Awards and Related Notes Condition: Like other entities of similar size, the Village requires the assistance of the auditor to prepare the schedules of expenditures of federal and state awards in accordance with the Uniform Guidance and the State Single Audit Guidelines. Criteria: Internal controls over preparation of the schedules of expenditures of federal and state awards should be in place to provide reasonable assurance that a misstatement in the schedules of expenditures of federal and state awards would be prevented or detected. Cause: Management relies on the auditor to assist with the preparation of the schedules of expenditures of federal and state awards. Effect: The Village’s system of internal control may not prevent, detect, or correct misstatements in the financial statements. Auditor’s Recommendation: The auditor will continue to work with the Village, providing information and training when necessary, to make the Village’s personnel more knowledgeable about its responsibility for the schedules of expenditures of federal and state awards. Management’s Response: The control deficiency has been discussed with management and they acknowledge their responsibility for the schedules of expenditures of federal and state awards. The Village accepts responsibility for the schedules of expenditures of federal and state awards. Due to the technical nature of preparing the schedules of expenditures of federal and state awards, and due to the limited resources, the Village does not anticipate the need for this assistance to change in the foreseeable future.