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