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Audit Objective

Determine whether the Board adopted realistic budgets and effectively managed fund balance based on accurate financial records and reports.

Key Findings

• The water and sewer funds maintained excessive unrestricted fund balance levels, as a result of unrealistic budgets.
• Village officials have not developed multiyear financial or capital plans or a fund balance policy.
• The Board did not audit the Clerk-Treasurer’s records and reports or identify and address improper budgeting and accounting practices that resulted in inaccurate accounting records and reports.

Key Recommendations

• Adopt realistic budgets and reduce excessive fun and a fund balance policy.
• Annually audit the Clerk-Treasurer’s records and reports to ensure they are accurate.

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