Finding 1160345 (2024-002)

Material Weakness Repeat Finding
Requirement
Activities Allowed/Unallowed
Questioned Costs
-
Year
2024
Accepted
2025-10-13
Audit: 370718
Organization: Village of Thornton (IL)

AI Summary

  • Core Issue: Significant audit adjustments were needed to ensure accurate financial statements.
  • Impacted Requirements: Internal controls should ensure all account balances are accurately represented before audits.
  • Recommended Follow-Up: The Village team must review and adjust general ledger balances to improve financial management and reduce audit adjustments.

Finding Text

Finding 2024 – 002: 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 Administrator and Treasurer, 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.

Corrective Action Plan

Condition: During audit fieldwork, our testing resulted in significant audit adjustments in order to present materially accurate financial statements. Plan: The Village Administrator and Treasurer, 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. Anticipated Date of Completion: Fiscal Year 2025 Name of Contact Person: Vivian Payne, Village Administrator and Arlette Frye, Treasurer Management Response: Most audit adjustments were identified by Village staff during the audit process. The timing of the audit and audit preparation was greatly affected by several unusual events during this fiscal year, a cyber-attack and retirement of key department heads to name a few. This resulted in delayed audit preparation. For fiscal year 2025, the Village is moving from a part-time, remote treasurer position to a full-time in-theoffice treasurer. This move along with the stabilization of staff will greatly improve efficiency and timeliness of all functions.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1160344 2024-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
66.468 Capitalization Grants for Drinking Water State Revolving Funds $927,259
21.027 Coronavirus State and Local Fiscal Recovery Funds $282,540
14.218 Community Development Block Grants/entitlement Grants $155,000