[read complete report - pdf]

Audit Objective

Determine whether the Board and Village officials appropriately managed the Village’s financial condition.

Key Findings

The Board did not adequately manage the Village’s financial condition.

• The Board used unrealistic revenue estimates during the budget process.
• The Village’s overall fund balance decreased by $642,000 (63 percent) from 2014-15 to 2018-19.
• The general and sewer funds experienced operating deficits during the past five years, and the water fund had an operating deficit in 2019.
• Village officials did not develop a fund balance policy, multiyear financial plan or capital plan.

Key Recommendations

• Develop reasonable revenue estimates and monitor and adjust budgeted revenues when warranted.
• Ensure adequate fund balance is available before appropriating it to finance operations.
• Develop and adopt a fund balance policy, multiyear financial plan and a capital plan.

Village officials agreed with our recommendations and have initiated or indicated they planned to initiate corrective action.

Subsequent Event

Our audit fieldwork was completed prior to the COVID-19 pandemic (pandemic). The Village’s 2020 projections and our audit work do not factor in the pandemic’s financial effects.