Finding Text
FINDING 2022-002 Qualified Senior Management Condition: Personnel of the Village do not currently possess the skills necessary to draft financial statements and note disclosures in accordance with accounting principles generally accepted in the United States of America. Criteria: Current Government Auditing Standards require the Village to designate a qualified management level individual to be responsible and accountable for overseeing the drafting of the Village?s financial statements and note disclosures in accordance with generally accepted accounting principles (GAAP). Cause: Lack of formal technical training. Effect: The Village?s management may not be able to detect errors or omissions in the application of accounting principles generally accepted in the United States of America with respect to the Village?s financial statements and note disclosures. Repeat Finding: This is a repeat finding of prior year; Finding 2021-002 Recommendation: Since the Current Government Auditing Standards allow the Village to continue to request the auditor to prepare the financial statements and note disclosures; however, the Village is still responsible for having a qualified person capable of overseeing and understanding the complete drafting of the financial statements and note disclosures as well as having the capability of making sure that all adjusting entries, having a material effect on the financial statements, are properly posted to the audit being performed. Views of Responsible Officials: The Village accepts the degree of risk associated with this condition and will continue to have the external auditor assist in the preparation of the financial statements and note disclosures. The Village?s Mayor and Clerk are qualified to oversee and understand the completed draft of the financial statements and note disclosures. The Village Clerk is capable of making sure all adjusting entries, have a material effect on the financial statements, are properly posted prior to the audit being performed. The Village Board, Mayor, and Village Clerk review and approve the draft of the financial statements before the release of the report.