Finding 521040 (2024-001)

Finding 2024 – 001: Restatement to Net Position Condition: During audit fieldwork, our testing resulted in a restatement of net position in order to correct capital assets improperly recorded in prior years. Criteria: A good system of internal controls would provide for accurate recording and reporting of capital assets on a regular basis in order to provide for accurate financial reporting. Cause: Year-end entries related to capital assets were required in order to accurately present the Village’s financial statements. Effect: A material adjustment to the Village’s beginning net position was required to properly state capital assets. Recommendation: We recommend the Village implement effective internal controls in order to provide an accurate assessment of reporting requirements. This implementation of improved controls would result in the appropriate reporting for financial reporting requirements.