[read complete report - pdf]

Audit Objective

Determine whether the Board and Village officials properly accounted for and effectively managed the financial operations of the sewer fund.

Key Findings

• The Board overestimated revenues by $379,000 in fiscal years 2014-15 through 2018-19, resulting in net operating deficits in the sewer fund totaling $144,000.
• The Board did not annually review contractual revenues, resulting in potential unrealized revenue totaling approximately $295,000.
• The Board did not document a basis for, or adequately monitor, shared service costs, resulting in possible sewer fund inequities.

Key Recommendations

• Adopt budgets that include realistic revenue estimates.
• Review rates and contractual revenues annually and revise them, as needed, to generate sufficient revenues to cover expenditures.
• Develop an equitable basis for shared service costs and adjust it, as needed, based on actual expenditures.

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