Publisher's summary
Because the Board did not adopt realistic budgets, the sewer fund incurred operating deficits and a decline in its overall financial health. 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 also did not annually review contractual revenues, resulting in potential unrealized revenue totaling approximately $295,000. Finally, the Board did not document a basis for, or adequately monitor, shared service costs, resulting in possible sewer fund inequities. However, with rate increases in effect and the adoption of more realistic revenue estimates in 2018-19 and 2019-20, there has been marked improvement.
Text · page 2 of 14
Contents
Report Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Sewer Financial Operations. . . . . . . . . . . . . . . . . . . . . . . . 2
What Is Effective Financial Condition Management?. . . . . . . . . . 2
The Board Did Not Effectively Manage Revenues. . . . . . . . . . . . 2
The Board Did Not Allocate Shared Service Costs Equitably . . . . . . 4
The Sewer Fund’s Financial Condition Is Improving. . . . . . . . . . . 6
What Do We Recommend? . . . . . . . . . . . . . . . . . . . . . . . 7
Appendix A – Response From Village Officials . . . . . . . . . . . . . 8
Appendix B – Audit Methodology and Standards . . . . . . . . . . . . 9
Appendix C – Resources and Services. . . . . . . . . . . . . . . . . 11