Village of Alsip-SAS 114-2015
An independent member of Nexia International
CliftonLarsonAllen LLP
CLAconnect.com
Board of Trustees
Village of Alsip, Illinois
Alsip, Illinois
We have audited 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, 2015, and have issued our report thereon dated
December 22, 2015. We have previously communicated to you information about our responsibilities
under auditing standards generally accepted in the United States of America, as well as certain
information related to the planned scope and timing of our audit. Professional standards also require
that we communicate to you the following information related to our audit.
Significant audit findings
Qualitative aspects of accounting practices
Accounting policies
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by the Village are described in Note 1 to the financial statements.
For the year ended April 30, 2015, the financial statements include the impact of adoption of
Governmental Accounting Standards Board statement number 67.
GASB Statement No 67, Financial Reporting for Pension Plans –an amendment of GASB
Statement No. 25. GASB Statement No. 67 impacted financial reporting by improving financial
reporting by state and local governmental pension plans. This Statement results from a
comprehensive review of the effectiveness of existing standards of accounting and financial
reporting for pensions with regard to providing decision-useful information, supporting
assessments of accountability and interperiod equity, and creating additional transparency.
We noted no transactions entered into by the entity during the year for which there is a lack of
authoritative guidance or consensus.All significant transactions have been recognized in the financial
statements in the proper period.
Accounting estimates
Accounting estimates are an integral part of the financial statements prepared by management and are
based on management’s knowledge and experience about past and current events and assumptions
about future events. Certain accounting estimates are particularly sensitive because of their
significance to the financial statements and because of the possibility that future events affecting them
may differ significantly from those expected. The most sensitive estimate affecting the financial
statements was:
Management’s estimate of the pension and other post-employment benefits (OPEB) obligation
is based on actuarial calculations and assumptions. We evaluated the key factors and
assumptions used to develop the Village's pension and OPEB obligations in determining that
they are reasonable in relation to the financial statements taken as a whole.
Village of Alsip, Illinois
Page 2
Financial statement disclosures
Certain financial statement disclosures are particularly sensitive because of their significance to
financial statement users. There were no particularly sensitive financial statement disclosures.
The financial statement disclosures are neutral, consistent, and clear.
Difficulties encountered in performing the audit
We encountered no significant difficulties in dealing with management in performing and completing our
audit.
Uncorrected misstatements
Professional standards require us to accumulate all misstatements identified during the audit, other
than those that are clearly trivial, and communicate them to the appropriate level of management. The
attached Exhibit A summarizes uncorrected misstatements of the financial statements. Management
has determined that their effects are immaterial, both individually and in the aggregate, to the financial
statements taken as a whole.
Corrected misstatements
The following material misstatements detected as a result of audit procedures were corrected by
management:
In order to comply with generally accepted accounting principles, audit adjustments were made
to convert the Village’s financial statements to the accrual or modified accrual basis of reporting.
These audit adjustments bring the Village in compliance with GASB Statements No. 34, Basic
Financial Statements -and Management’s Discussion and Analysis -State and Local
Governments.
Disagreements with management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or
auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial
statements or the auditors’ report. No such disagreements arose during our audit.
Management representations
We have requested certain representations from management that are included in the attached
management representation letter (Exhibit B) dated December 22, 2015.
Management consultations with other independent accountants
In some cases, management may decide to consult with other accountants about auditing and
accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation
involves application of an accounting principle to the entity’s financial statements or a determination of
the type of auditors’ opinion that may be expressed on those statements, our professional standards
require the consulting accountant to check with us to determine that the consultant has all the relevant
facts. We were informed by management that there were no consultations with other accountants.
Village of Alsip, Illinois
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Significant issues discussed with management prior to engagement
We generally discuss a variety of matters, including the application of accounting principles and
auditing standards, with management each year prior to engagement as the entity’s auditors. However,
these discussions occurred in the normal course of our professional relationship and our responses
were not a condition to our engagement.
Other audit findings or issues
We have provided a separate letter to you dated December 22, 2015, communicating internal control
related matters identified during the audit.
Other information in documents containing audited financial statements
With respect to the required supplementary information (RSI) accompanying the financial statements,
we made certain inquiries of management about the methods of preparing the RSI, including whether
the RSI has been measured and presented in accordance with prescribed guidelines, whether the
methods of measurement and preparation have been changed from the prior period and the reasons
for any such changes, and whether there were any significant assumptions or interpretations underlying
the measurement or presentation of the RSI. We compared the RSI for consistency with management’s
responses to the foregoing inquiries, the basic financial statements, and other knowledge obtained
during the audit of the basic financial statements. Because these limited procedures do not provide
sufficient evidence, we did not express an opinion or provide any assurance on the RSI.
With respect to the supplementary information and the tax increment finance fund compliance report
accompanying the financial statements, on which we were engaged to report in relation to the financial
statements as a whole, we made certain inquiries of management and evaluated the form, content, and
methods of preparing the information to determine that the information complies with accounting
principles generally accepted in the United States of America, the method of preparing it has not
changed from the prior period or the reasons for such changes, and the information is appropriate and
complete in relation to our audit of the financial statements. We compared and reconciled the
supplementary information and the tax increment finance fund compliance report to the underlying
accounting records used to prepare the financial statements or to the financial statements themselves.
We have issued our report thereon dated December 22, 2015.
The schedule of insurance coverage accompanying the financial statements, which is the responsibility
of management, was prepared for the purposes of additional analysis and is not a required part of the
financial statements. Such information was not subjected to the auditing procedures applied in the audit
of the financial statements, and, accordingly, we did not express an opinion or provide any assurance
on it.
Our auditors’ opinion, the audited financial statements, and the notes to financial statements should
only be used in their entirety. Inclusion of the audited financial statements in a document you prepare,
such as an annual report, should be done only with our prior approval and review of the document.
Village of Alsip, Illinois
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This communication is intended solely for the information and use of the board of trustees and
management of the Village and is not intended to be,and should not be,used by anyone other than
these specified parties.
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CliftonLarsonAllen LLP
Oak Brook, Illinois
December 22, 2015
Description Assets Liabilities Fund Balance
Change in Fund
Balance
1) To record revenue received within 60 days of year-end.
-$ (18,275)$ -$ 18,275$
Net prior year misstatements - - 13,421 (13,421)
Total misstatements -$ (18,275)$ 13,421$ 4,854$
Effect of misstatements on:
PASSED ADJUSTMENT SUMMARY
Village of Alsip
Year Ended April 30, 2015
General Fund
Description Assets Liabilities Fund Balance
Change in Fund
Balance
1) To record revenue received within 60 days of year-end.-$ (5,776)$ -$ 5,776$
PASSED ADJUSTMENT SUMMARY
Village of Alsip
Special Tax Allocation Fund
Year Ended April 30, 2015
Effect of misstatements on:
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Clifton LarsonAllen LLP
1301 W. 22nd Street, Suite 1i-00
Oak Brook, lL 60523
This representation letter is provided in connection with your audit of the financial statements of the Village of
Alsip, lllinois ("Village"), which comprise the respective financial position of the governmental activities, the
business-type activities, each major fund, and the aggregate remaining fund information as of April 30, ZOLS,
and the respective changes in financial position and, where applicable, cash flows for the year then ended, and
the related notes to the financial statements, for the purpose of expressing opinions on whether the financial
statements are presented fairly, in all material respects, in accordance with accounting principles generally
accepted in the United States of America (U.S. GAAP).
Certain representations in this letter are described as being limited to matters that are material. ltems are
considered material, regardless of size, if they involve an omission or misstatement of accounting information
that, in light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying
on the information would be changed or influenced by the omission or misstatement.
We confirm, to the best of our knowledge and beliel as of December 22,2015, the following representations
made to you during your audit.
Financial Statements
o We have fulfilled our responsibilities, as set out in the terms of the audit engagement letter dated April
8,20t5, for the preparation and fair presentation of the financial statements in accordance with U.S.
GAAP. The financial statements include all properly classified funds and other financial information of
the primary government and all component units required by generally accepted accounting principles
to be included in the financial reporting entity.
We acknowledge and have fulfilled our responsibility for the design, implementation, and maintenance
of internal control relevant to the preparation and fair presentation of financial statements that are free
from material misstatement, whether due to fraud or error.
We acknowledge our responsibility for the design, implementation, and maintenance of internal control
to prevent and detect fraud.
We have identified all accounting estimates that could be material to the financial statements, including
the key factors and significant assumptions used in making those estimates, and we believe the
estimates and the significant assumptions used in making those accounting estimates are reasonable.
Significant estimates have been appropriately accounted for and disclosed in accordance with the
requirements of U.S. GAAP. Significant estimates are estimates at the financial statement date that
could change materially within the next year,
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45tlO West 123rcl Street . Alsip,Illinois 60803-2599 Phone 7O8-355-6902 x318 . Fax 708-385-9561
Exhibit B
December 22,201,5
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revenues,
expenditures/expenses, loans, transfers, leasing arrangements, and guarantees, and amounts receivable
from or payable to related parties have been appropriately accounted for and disclosed in accordance
with the requirements of U.S. GAAP.
All events occurring subsequent to the date of the financial statements and for which U.S. GAAP
requires adjustment or disclosure have been adjusted or disclosed.
The effects of uncorrected misstatements are immaterial, both individually and in the aggregate, to the
financial statements for each opinion unit. A list of the uncorrected misstatements is attached to the
representation letter. ln addition, you have proposed adjusting journal entries that have been posted to
the entity's accounts, including adjusting journal entr¡es to convert our cash basis records to the accrual
basis. We have reviewed and approved those adjusting journal entries and understand the nature of the
changes and their impact on the financial statements. We are in agreement with those adjustments and
accept responsibility for them.
The effects of all known actualor possible litigation, claims, and assessments have been accounted for
and disclosed in accordance with U.S. GAAP.
Guarantees, whether written or oral, under which the entity is contingently liable, if any, have been
properly recorded or disclosed in accordance with U.S. GAAP.
Receivables recorded in the financial statements represent valid claims against debtors for transactions
arising on or before the financial statement date and have been reduced to their estimated net
realizable value.
We have no plans or intentions that may materially affect the carrying value or classification of assets,
liabilities, or equity.
We believe that the actuarial assumptions and methods used to measure pension and other
postemployment benefits (OPEB) liabilities and costs for financial accounting purposes are appropriate
in the circumstances.
We are unable to determine the possibility of a withdrawal liability in a multiple-employer benefit plan
We do not intend to compensate for the elimination of postretirement benefits by granting an increase
in pension benefits.
o We do not plan to make frequent amendments to our pension or other postretirement benefit plans
lnformation Provided
o We have provided you with:
Access to all information, of which we are aware, that is relevant to the preparation and fair
presentation of the financial statements such as records, documentation, and other matters.
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4500 West l23rd Street . Alsip, Illinois 60803-2599 Phone 708-385-6902 x318 . Fax 708-385-9561
December 22,2015
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Unrestricted access to persons within the entity from whom you determined it necessary to
obta¡n audit evidence.
o Complete minutes of the meetings of the governing board and related committees, or
summaries of actions of recent meet¡ngs for which minutes have not yet been prepared
All transactions have been recorded in the accounting records and are reflected in the financial
statements.
We have disclosed to you the results of our assessment of the risk that the financial statements may be
materially misstated as a result of fraud.
We have no knowledge of any fraud or suspected fraud that affects the entity and involves:
o Management;
o Employees who have significant roles in internal control; or
o Others when the fraud could have a mater¡al effect on the financial statements.
We have no knowledge of any allegations of fraud, or suspected fraud, affecting the entity's financial
statements communicated by employees, former employees, grantors, regulators, or others.
We have no knowledge of any instances of noncompliance or suspected noncompliance with laws and
regulations and provisions of contracts and grant agreements, or abuse whose effects should be
considered when preparing financial statements.
We have disclosed to you all known actual or possible litigation, claims, and assessments whose effects
should be considered when preparing the financial statements.
There are no other material liabilities or gain or loss contingencies that are required to be accrued or
disclosed in accordance with U,S. GAAP.
We have disclosed to you the identity of the entity's related parties and allthe related party
relationships and transactions of which we are aware.
The entity has satisfactory title to all owned assets, and there are no liens or encumbrances on such
assets, nor has any asset been pledged as collateral, except as made known to you and disclosed in the
financial statements.
we have a process to track the status of audit findings and recommendations.
We have identified to you any previous audits, attestation engagements, and other studies related to
the audit objectives and whether related recommendations have been implemented.
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450o West 123rd Street . Alsip,Illinois 60Í103-2599 Phone 708-385-6902 x318. Fax 708-385-9561
December 22,2015
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We have provided
planned corrective
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ns, as well as our
actions, for the report,
We are responsible for compliance with the laws, regulations, and provisions of contracts and grant
agreements applicable to the Village, including tax or debt limits and debt contracts; and we have
identified and disclosed to you all laws, regulations, and provisions of contracts and grant agreements
that we believe have a direct and material effect on the determination of financial statement amounts
or other financial data significant to the a.rdit objectives, including legal and contractual provisions for
reporting specific activities in separate funds.
There are no violations or possible violations of budget ordinances, laws and regulations (including those
pertaining to adopting, approving, and amending budgets), provisions of contracts and grant
agreements, tax or debt limits, and any related debt covenants whose effects should be considered for
disclosure in the financial statements, or as a basis for recording a loss contingency, or for reporting on
noncompliance.
The entity has complied with all aspects of contractual or grant agreements that would have a material
effect on the financial statements in the s¡ent of noncompliance.
We are responsible for determining whether we have received, expended, or otherwise been the
beneficiary of any federal awards during the period of this audit. No federal award, received directly
from federal agencies or indirectly as a subrecipient, was expended in an amount that cumulatively
totals from all sources 5500,000 or more. For this representation, "award" means financial assistance
and federal cost-reimbursement contracts that non-federal entities receive directly from federal
awarding agencies or indirectly from pass-through entities. lt does not include procurement contracts,
user grants, or contracts used to buy goods or services from vendors.
We have followed all applicable laws and regulations in adopting, approving, and amending budgets.
The financial statements properly classify all funds and activities.
All funds that meet the quantitative criteria in GASB Statement Nos. 34 and 37 for presentation as major
are identified and presented as such and all other funds that are presented as major are particularly
important to financial statement users,
Components of net position (net investment in capital assets; restricted; and unrestricted) and equity
amounts are properly classified and, if applicable, approved.
Provisions for uncollectible receivables har¿e been properly identified and recorded.
Expenses have been appropriately classified in or allocated to functions and programs in the statement
of activities, and allocations have been made on a reasonable basis.
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4500 Vest 123rd Street . Alsip,Illinois 60803-2599 Phone 708-385-6902 x318 . Fax 708-385-9561
December 22,201,5
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revenues, contributions to term or permanent endowments, or contr¡butions to permanent fund
pr¡ncipal.
lnterfund, internal, and intra-entity activity and balances have been appropriately classified and
reported.
Deposits and investment securities and derivative instruments are properly classified as to risk and are
properly valued and disclosed.
Capitalassets, including infrastructure and intangible assets, are properly capitalized, reported, and, if
applicable, depreciated.
We have appropriately disclosed the entily's policy regarding whether to first apply restricted or
unrestr¡cted resources when an expense b incurred for purposes for which both restricted and
unrestricted net position is available and have determined that net position is properly recognized under
the policy.
We acknowledge our responsibility for the required supplementary information (RSl). The RSI is
measured and presented within prescribed guidelines and the methods of measurement and
presentation have not changed from those used in the prior period. We have disclosed to you any
significant assumptions and interpretations underlying the measurement and presentation of the RSl,
We acknowledge our responsibility for presenting the combining and individual fund statements and
supporting schedules and other supporting schedules and tax increment finance fund compliance report
(the supplementary information) in accordance with U.S. GAAP, and we believe the supplementary
information, including its form and content, is fairly presented in accordance with U.S. GAAP. The
methods of measurement and presentation of the supplementary information have not changed from
those used in the prior period, and we have disclosed to you any significant assumptions or
interpretations underlying the measurement and presentation of the supplementary information. lf the
supplementary information is not presented with the audited financial statements, we will make the
aud¡ted financial statements readily available to the intended users of the supplementary information
no later than the date we issue the supplementary information and the auditors' report thereon.
As part of your audit, you prepared the draft financial statements and related notes. We have
designated an individual who possesses suitable skill, knowledge, and/or experience to understand and
oversee your services; have made all management judgments and decisions; and have assumed all
management responsibilities. We have er,raluated the adequacy and results of the service. We have
reviewed, approved, and accepted responsibility for those financial statements and related notes.
We understand that as part of your audit, you prepared the adjusting journal entries necessary to
convert our cash basis records to the accr.lal basis of accounting and acknowledge that we have
reviewed and approved those entries and accepted responsibility for them.
4500 West 123rd Street . Alsip,Illinois 60803-2599 Phone 708-385-6902 x318 . Fax 708-385-9561
December 22,2015
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Signature
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Patfick E. Kitching
Mayor
Title:Mavor
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Signature:Title: Finance Director
45oowest l23rd Street . Alsip,Illinois 60803-2599 Phone 708-385-6902 x318 . Fax 708-385-9561
Description Assets Liabilities Fund Balance
Change in Fund
Balance
1) To record revenue received within 60 days of year-end.
-$(18,275)$ -$18,275$
Net prior year misstatements --13,421 (13,421)
Total misstatements -$(18,275)$ 13,421$ 4,854$
Effect of misstatements on:
PASSED ADJUSTMENT SUMMARY
Village of Alsip
Year Ended April 30, 2015
General Fund
Description Assets Liabilities Fund Balance
Change in Fund
Balance
1) To record revenue received within 60 days of year-end.-$ (5,776)$ -$ 5,776$
PASSED ADJUSTMENT SUMMARY
Village of Alsip
Special Tax Allocation Fund
Year Ended April 30, 2015
Effect of misstatements on: