Finding 501890 (2023-001)

Finding 2023 – 001: Restatement to Fund Balance Condition: During audit fieldwork, our testing resulted in a restatement of fund balance in order to correct the recording of GASB 87. Criteria: A good system of internal controls would provide for accurate recording and reporting of GASB 87 in order to provide for accurate financial reporting. Cause: Year-end entries related to GASB 87 Receivables and Deferred Inflows 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 for GASB 87 Agreements. Recommendation: We recommend the Village implement effective internal controls in order to provide an accurate assessment of reporting requirements for GASB 87 purposes. This implementation of improved controls would result in the appropriate recognition for financial reporting requirements. Corrective Action Plan: The Village Finance Director will implement internal controls to review all GASB 87 Agreements and record accordingly prior to audit fieldwork.