[read complete report - pdf]

Audit Objective

Determine whether:

• The Board provided adequate oversight and management of the Village’s water and sewer finances.
• Village officials adequately safeguarded information technology (IT) assets.

Key Findings

• The water and sewer infrastructure are in disrepair and the Board did not develop a comprehensive, written multiyear financial or capital plan to address needed repairs.
• We estimate that, for residents with both water and sewer services, rates would initially increase from a combined $320 per year to about $950 per year to finance new debt for infrastructure repairs and continuing operational expenses.
• The Board did not develop proper IT controls.

Key Recommendations

• Develop comprehensive multiyear financial and capital plans that project operating and capital needs and financing sources for a minimum three-to five-year period.
• Review water and sewer rates to ensure they generate sufficient revenues to finance expenditures and pay for maintenance and infrastructure improvement costs.
• Develop and implement written IT policies and procedures.

Village officials agreed with our findings and indicated they plan to initiate corrective action.