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A Motion to Accept the Fiscal Year 2024 Annual Comprehensive Annual Financial Report (ACF) and Supporting Documents
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Introduction
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This motion is the formal acceptance of the Fiscal Year (FY) 2024 Audit and related reports by the Village Board.
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Recommended Action
Adopt the motion.
Prior Board Action
There is no prior Board action associated with this item.
Background
Presented for the Board’s review and information is the Village’s annual comprehensive financial report (ACFR) for the calendar year ending December 31, 2024. The audit was performed by Sikich LLP under the direction of Tom Siwicki as the partner-in-charge. Per standard practice, the Auditor Communication Letter and a separate report on Communication of Deficiencies in Internal Controls are also presented.
Pursuant to Section 2-6-3 of the Municipal Code, as soon as practicably possible after the close of the fiscal year, but no later than 6 months into the subsequent year, or a future date with an approved extension, there shall be an independent audit for all accounts of the Village conducted independently of the Village Manager and made by a competent person or firm authorized to serve as an auditor under State of Illinois licensure and law. In addition, acceptance of the audit is required prior to its submission to the State, which has a June 30 deadline (or a future date with an approved extension). The Single Audit must be filed with the Federal Clearinghouse within 30 days after receipt from the auditors or nine months after the fiscal year end (September 30, 2025), whichever occurs first (or a future date with an approved extension).
The overall purpose of the financial audit is to determine if the financial data of the Village is presented fairly in all material respects and whether the Village has complied with applicable laws and regulations. Per the audit opinion letter located within the ACFR document, Sikich LLP has conveyed that the financial statements are presented fairly, in all material respects, and are in accordance with U.S. generally accepted accounting principles.
Of primary importance is the unqualified opinion provided by Sikich to the Village, which is the highest level of confidence a municipality can receive on its financial information under an audit. In addition, staff will apply for the 2024 GFOA Certificate of Achievement Award for Financial Reporting Excellence, as done in previous years.
In addition to the ACFR, the Auditor’s Communication to the Board report includes a description of the audit process and adjusting journal entries determined necessary under the audit. Included as well is the Management Letter, intended to be a direct communication tool to report important findings from the auditor to top management and elected officials. The Management Letter generally identifies matters that the independent auditor believes may assist the organization going forward.
Timing Considerations
There are no specific timing considerations associated with this item except as outlined per the Municipal Code and Generally Accepted Accounting Standards.
Financial Impact
There is no budget impact associated with this item.
Operations Impact
There is no operating impact associated with this item. The item aligns with the department’s core service delivery.
DEI Impact
There is no DEI impact associated with this item.
Community Input
There has been no community input given in relation to this item.
Staff Recommendation
Approve the motion.
Advantages:
• This action will approve the FY2024 Audit.
Disadvantages:
• There are no disadvantages to this action.
Alternatives
The Board can request additional information.
Advantages:
• The Board will be provided with the additional information requested.
Disadvantages:
• There are no disadvantages to this action.
Anticipated Future Actions
There are no anticipated future actions in relation to this item.
Prepared By: Kevin Bueso, CFO, Donna Gayden, Interim CFO
Reviewed By: Jack Malec, Assistant to the Village Manager
Approved By: Kevin J. Jackson, Village Manager
Attachment(s):
1. FY2024 Annual Comprehensive Financial Report
2. FY2024 Auditor’s Communication to the Board of Trustees
3. FY2024 Management Letter