Finding 975131 (2022-003)

2022-003 Drafting Schedule of Expenditures of Federal Awards and Related Notes Condition: Like other entities of similar size, the Village requires the assistance of the auditor to prepare the schedule of expenditures of federal awards in accordance with the Uniform Guidance. Criteria: Internal controls over preparation of the schedule of expenditures of federal awards should be in place to provide reasonable assurance that a misstatement in the schedule of expenditures of federal awards would be prevented or detected. Cause: Management relies on the auditor to assist with the preparation of the schedule of expenditures of federal awards. Effect: The Village’s system of internal control may not prevent, detect, or correct misstatements in the financial statements. Auditor’s Recommendation: The auditor will continue to work with the Village, providing information and training when necessary, to make the Village’s personnel more knowledgeable about its responsibility for the schedule of expenditures of federal awards. Management Response: The control deficiency has been discussed with management and they acknowledge their responsibility for the schedule of expenditures of federal awards. The Village accepts responsibility for the schedule of expenditures of federal awards. Due to the technical nature of preparing the schedule of expenditures of federal awards, and due to limited resources, the Village does not anticipate the need for this assistance to change in the foreseeable future.