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Village of Alsip-SAS 114-2017Board 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, 2017, and have issued our report thereon dated February 19, 2018. 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. The Village implemented GASB Statement No. 72, Fair Value Measurement and Application and GASB 77, Tax Abatement Disclosures, by adding the required disclosures for investments and tax abatements. 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: The Village engages actuaries to perform actuarial studies to determine Village liabilities related to net pension liability and other postemployment benefit costs and liabilities. Based on certain assumptions developed with Village management, annual required contributions, value of assets, actuarial accrued liabilities, and unfunded actuarial accrued liabilities are computed by the actuaries and used by Village management to determine assets and liabilities to be reported in the Village’s financial statements. We evaluated the key factors and assumptions used to develop the Net Pension Liabilities and Liabilities for Postemployment Benefits Other Than Pensions in determining that it is reasonable in relation to the financial statements taken as a whole.       CliftonLarsonAllen LLP CLAconnect.com Board of Trustees Village of Alsip, Illinois Page 2  Management’s estimate of the allowance for doubtful accounts is based on historical sales, historical loss levels, and an analysis of the collectibility of individual accounts. We evaluated the key factors and assumptions used to develop the allowance in determining that it is reasonable in relation to the financial statements taken as a whole. 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. Management did not identify and we did not notify them of any uncorrected financial statements misstatements. Corrected misstatements The following material misstatements detected as a result of audit procedures were corrected by management:  Cash to Accrual Basis: Several cash to accrual basis adjustments were made during the audit of the April 30, 2017 financial statements. The adjustments were necessary in order for the financial presentation to conform with accounting principles generally accepted in the United States of America. 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 dated February 19, 2018. 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. Board of Trustees Village of Alsip, Illinois Page 3 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 February 19, 2018, 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 February 19, 2018. The introductory section, schedules of insurance coverage, property tax levies, and collections extended by funds and assessed valuation accompanying the financial statements, and statistical section, which is the responsibility of management, were prepared for the purposes of additional analysis and are 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. Board of Trustees Village of Alsip, Illinois Page 4 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. a CliftonLarsonAllen LLP Oak Brook, Illinois February 19, 2018 John D. RyanMayorSusan M. PetzelClerþ and Collector** ALFebruary 19,2OI8CliftonLarsonAllen LLPL3O1W. 22nd Street, Suite LL00Oak Brook, lL 60523This representation letter is provided in connection with your audit of the financial statements of the Village ofAlsip, lllinois ("Village"), which comprise the respective financial position of the governmentalactivities, thebusiness-type activities, each major fund, and the aggregate remaining fund information as of April 30, 2016,and the respective changes in financial position and, where applicable, cash flows for the year then ended, andthe related notes to the financial statements, for the purpose of expressing opinions on whether the financialstatements are presented fairly, in all material respects, in accordance with accounting principles generallyaccepted 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 areconsidered material, regardless of size, if they involve an omission or misstatement of accounting informationthat, in light of surrounding circumstances, makes it probable that the judgment of a reasonable person relyingon the information would be changed or influenced by the omission or misstatement.We confirm, to the best of our knowledge and belief, as of Februa ry Ig,2O!8, the following representationsmade to you during your audit.Financial Statementso We have fulfilled our responsibilities, as set out in the terms of the audit engagement letter dated May12,2OL7 , 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 ofthe primary government and all component units required by generally accepted accounting principlesto be included in the financial reporting entity.We acknowledge and have fulfilled our responsibility for the design, implementation, and maintenanceof internal control relevant to the preparation and fair presentation of financial statements that are freefrom material misstatement, whether due to fraud or error.We acknowledge our responsibility for the design, implementation, and maintenance of internal controlto prevent and detect fraud.We have identified all accounting estimates that could be material to the financial statements, includingthe key factors and significant assumptions used in making those estimates, and we believe theestimates and the significant assumptions used in making those accounting estimates are reasonable.Significant estimates have been appropriately accounted for and disclosed in accordance with therequirements of U.S. GAAP. Significant estimates are estimates at the financial statement date thatcould change materially within the next year.stÞTrusteesSheila B. McGrealRichard S. DalzellMichael J. PierceMonica M. JuarezMichael ZielinskiChristine Mclawhorntaaaa4500'West l23rd. StreetaAlsip, Illinois 60803-2599aPhone 708-385-6902aFax 708-385-9561 February 19, 2018CliftonLarsonAllen LLPPage 2aRelated party relationships and transactions, including, but not limited to, revenues,expenditures/expenses, loans, transfers, leasing arrangements, and guarantees, and amounts receivablefrom or payable to related parties have been appropriately accounted for and disclosed in accordancewith the requirements of U.S. GAAP.All events occurring subsequent to the date of the financial statements and for which U.S. GAAPrequires adjustment or disclosure have been adjusted or disclosed.We have not identified or been notified or any uncorrected financial statement misstatementsYou have proposed adjusting journal entries that have been posted to the entity's accounts, includingadjusting journal entries to convert our cash basis records to the accrual basis. We have reviewed andapproved those adjusting journal entries and understand the nature of the changes and their impact onthe financial statements. We are in agreement with those adjustments and accept responsibility forthem.The effects of all known actualor possible litigation, claims, and assessments have been accounted forand disclosed in accordance with U.S. GAAP.Guarantees, whether written or oral, under which the entity is contingently liable, if any, have beenproperly recorded or disclosed in accordance with U.S. GAAP.Receivables recorded in the financial statements represent valid claims against debtors for transactionsarising on or before the financial statement date and have been reduced to their estimated netrealizable value.We have no plans or intent'ions 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 otherpostemployment benefits (OPEB) liabilities and costs for financial accounting purposes are appropriatein 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 increasein pension benefits.¡ We do not plan to make frequent amendments to our pension or other postretirement benefit plans.lnformation Providedo We have provided you with:Access to all information, of which we are aware, that is relevant to the preparation and fairpresentation of the financial statements such as records, documentation, and other matters.oooaaaaaaU February 19, 20L8CliftonLarsonAllen LLPPage 3oAdditional information that you have requested from us for the purpose of the audit.Unrestricted access to persons within the entity from whom you determined it necessary toobtain audit evidence.o Complete minutes of the meetings of the governing board and related committees, orsummaries of actions of recent meetings for which minutes have not yet been preparedAll transactions have been recorded in the accounting records and are reflected in the financialstatements.We have disclosed to you the results of our assessment of the risk that the financial statements may bematerially misstated as a result of fraud.We have no knowledge of any fraud or suspected fraud that affects the entity and involveso Management;o Employees who have significant roles in internal control; oro Others when the fraud could have a material effect on the financial statements.We have no knowledge of any allegations of fraud, or suspected fraud, affecting the entity's financialstatements communicated by employees, former employees, grantors, regulators, or others.We have no knowledge of any instances of noncompliance or suspected noncompliance with laws andregulations and provisions of contracts and grant agreements, or abuse whose effects should beconsidered when preparing financial statements.We have disclosed to you all known actual or possible litigation, claims, and assessments whose effectsshould be considered when preparing the financial statements.There are no other material liabilities or gain or loss contingencies that are required to be accrued ordisclosed in accordance with U.S. GAAP.We have disclosed to you the identity of the entity's related parties and allthe related partyrelationships and transactions of which we are aware.The entity has satisfactory title to all owned assets, and there are no liens or encumbrances on suchassets, nor has any asset been pledged as collateral, except as made known to you and disclosed in thefinancial 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 tothe audit objectives and whether related recommendations have been implemented.oUoaaaaaaaao February 19,2018CliftonLarsonAllen LLPPage 4aaoaOWe have provided ourviewson reported findings, conclusions, and recommendations, aswellasourplanned corrective act¡ons, for the report.We are responsible for compliance with the laws, regulations, and provisions of contracts and grantagreements applicable to the Village, including tax or debt limits and debt contracts; and we haveidentified and disclosed to you all laws, regulations, and provisions of contracts and grant agreementsthat we believe have a direct and material effect on the determination of financial statement amountsor other financial data significant to the audit objectives, including legal and contractual provisions forreporting specific activities in separate funds.There are no violations or possible violations of budget ordinances, laws and regulations (including thosepertaining to adopting, approving, and amending budgets), provisions of contracts and grantagreements, tax or debt limits, and any related debt covenants whose effects should be considered fordisclosure in the financial statements, or as a basis for recording a loss contingency, or for reporting onnoncompliance.The entity has complied with all aspects of contractual or grant agreements that would have a materialeffect on the financial statements in the event of noncompliance.We are responsible for determining whether we have received, expended, or otherwise been thebeneficiary of any federal awards during the period of this audit. No federal award, received directlyfrom federal agencies or indirectly as a subrecipient, was expended in an amount that cumulativelytotals from all sources 5750,000 or more. For this representation, "award" means financial assistanceand federal cost-reimbursement contracts that non-federal entities receive directly from federalawarding 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 budgetsThe 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 majorare identified and presented as such and all other funds that are presented as major are particularlyimportant to financial statement users.Components of net position (net investment in capital assets; restricted; and unrestricted) and equityamounts are properly classified and, if applicable, approved.Provisions for uncollectible receivables have been properly identified and recordedExpenses have been appropriately classified in or allocated to functions and programs in the statementof activities, and allocations have been made on a reasonable basis.aaoaaa February 19,201.8CliftonLarsonAllen LLPPage 5aoaaRevenues are appropriately classified in the statement of activities within program revenues, generalrevenues, contributions to term or permanent endowments, or contributions to permanent fundprincipal.lnterfund, internal, and intra-entity activity and balances have been appropriately classified andreported.Deposits and investment securities and derivative instruments are properly classified as to risk and areproperly valued and disclosed.Capitalassets, including infrastructure and intangible assets, are properly capitalized, reported, and, ifapplica ble, depreciatedWe have appropriately disclosed the entity's policy regarding whether to first apply restricted orunrestricted resources when an expense is incurred for purposes for which both restricted andunrestricted net position is available and have determined that net position is properly recognized underthe policy.We acknowledge our responsibility for the required supplementary information (RSl). The RSI ismeasured and presented within prescribed guidelines and the methods of measurement andpresentation have not changed from those used in the prior period. We have disclosed to you anysignificant assumptions and interpretations underlying the measurement and presentation of the RSl.We acknowledge our responsibility for presenting the combining and individual fund statements and taxincrement 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 presentedin accordance with U.S. GAAP. The methods of measurement and presentation of the supplementaryinformation have not changed from those used in the prior period, and we have disclosed to you anysignificant assumptions or interpretat¡ons underlying the measurement and presentation of thesupplementary information. lf the supplementary information is not presented with the auditedfinancial statements, we will make the audited financial statements readily available to the intendedusers of the supplementary information no later than the date we issue the supplementary informationand the auditors' report thereon.We acknowledge our responsibility for preparing the introductory section, management's discussionand analysis, schedule of insurance coverage, property tax levies and collections extended by funds andassessed valuation, and the statistical section (the other information). The other information ispresented for purposes of additional analysis and is not a required part of the basic financial statementsin which you were engaged to report on. We acknowledge that the other information is theresponsibility of management, has not been subjected to auditing procedures in relation to the basicfinancial statements, and that you are not expressing an opinion or any assurance on it.As part of your audit, you prepared the draft financial statements and related notes. We havedesignated an individual who possesses suitable skill, knowledge, and/or experience to understand andoversee your services; have made all management judgments and decisions; and have assumed allaaaaa February 19, 20i"8CliftonLa rsonAllen LLPPage 6aSignaturemanagement responsibilities. We have evaluated the adequacy and results of the service. We havereviewed, 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 toconvert our cash basis records to the accrual basis of accounting and acknowledge that we havereviewed and approved those entries and accepted responsibility for them.Title: Mavor(.Signature:ítTitle: Finance Director