Finding 570520 (2024-001)

Restatement to Fund Balance Condition: During audit fieldwork, our testing resulted in a restatement of net position in order to correct capital assets that were 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 that 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 recognition of financial reporting requirements on capital assets. Corrective Action Plan: The Village and Finance Director will implement internal controls to properly record capital assets on a timely basis prior to audit fieldwork.