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0105.06 Signed Internal Control and Compliance Report  1 INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS The Honorable Mayor and Trustees Village of Alsip, Illinois We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Village of Alsip, Illinois (the “Village”), as of and for the year ended April 30, 2019, and the related notes to the financial statements, which collectively comprise the Village’s basic financial statements, and have issued our report thereon October 25, 2019. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Village's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Village’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Village’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We did identify certain deficiencies in internal control,described below as Finding 2019-001 that we consider to be a significant deficiency. The Honorable Mayor and Trustees Village of Alsip, Illinois 2 Compliance and Other Matters As part of obtaining reasonable assurance about whether the Village's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Village of Alsip’s Response to Findings Village’s response to the finding identified in our audit is described in the accompanying Internal Control Communication letter. Village’s response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Oak Brook,Illinois October 25, 2019 3 VILLAGE OF ALSIP CURRENT FINDINGS –GOVERNMENT AUDITING STANDARDS For the Year Ended April 30, 2019 2019-001. Type of Finding: Significant Deficiency in Internal Control over Financial Reporting Condition: Village of Alsip’s (the Village) has engaged CliftonLarsonAllen LLP (CLA) to propose certain audit entries related to adjusting the Village’s financial statements from a cash basis to a modified accrual basis or to an accrual basis. Criteria:Management should be reviewing and preparing their own statements and ensuring completeness and accuracy. Context: CLA posted several adjust entries over the course of the audit. Effect: This condition, however, increases the possibility that the financial statements may be misstated and management may be basing decisions on inaccurate or incomplete information on an internal basis. CLA will continue to provide this service to the Village as part of the year-end financial audit. Management’s review and approval of the audit entries serves as the Village’s control over the financial reporting process. Cause: The Village has historically engaged CLA to propose certain audit entries related to adjusting the Village’s financial statements from a cash basis to a modified accrual basis or to an accrual basis, as necessary. This has been done both as a matter of convenience for management in completing the year-end financial work as well as to ensure that the reports are presented in compliance with current reporting standards and that all disclosures are complete and accurate. Repeat Finding: This finding is a repeat finding 2018-001. Recommendation We recommend the Village establish controls to ensure review and preparation of the financial statements. Village’s Response The Village’s management agrees and should the Village Board of Trustees decide to change staffing levels, the current practice can be re-examined.