Finding 943320 (2022-003)

Finding #2022-003 – Preparation of Financial Statements and schedules of Federal and State Awards Condition: Village staff does not prepare the financial statements and accompanying notes and schedules of federal and state awards. The Village has designated individuals responsible for reviewing and accepting the financial statements and schedules of federal and state awards. Effect: Because Village staff relies on the auditor to assist with the preparation of the financial statements and the schedules of federal and state awards, the Village’s system of internal control may not prevent, detect, or correct misstatements in the financial statements and the schedule of federal and state awards. Cause: The Village does not prepare the financial statements nor the schedules of federal and state awards and related notes. Criteria: Internal controls over preparation of the financial statements, including footnote disclosures, and the schedule of federal and state awards, should be in place to provide reasonable assurance that a misstatements would be prevented or detected. Recommendation: The auditor will work with the Village to make personnel more knowledgeable about its responsibility for the financial statements and schedules of federal and state awards. Response: The auditors prepare the financial statements, but we review them and accept the statements prior to them being issued. We prepare financial reports that are reviewed by management on a monthly basis. Any concerns or questions are addressed throughout the year.