Township audit: outside auditor reports 'solid year' and minor year-end adjustments

The Township of Riverside Board of Trustees heard the annual audit report from SeldenFAX partner Ed Tracy, who told trustees the township had a “solid year financially” and that the overall control structure was sound.

Tracy said auditors reviewed transactions and internal controls and recorded five adjustments to the fund financial statements — primarily to recognize accounts payable, accrued payroll and property tax revenue that related to the audit year but were received or recorded shortly after year end. "Overall, we felt the control structure was good," Tracy said.

The audit found positive fund balances in all three reported funds. Tracy reported the general town fund ended the year with revenues over expenses of about $195,696; the community mental health fund reported revenues over expenses of about $29,497; and the general assistance fund ran expenses in excess of revenues by $42,858, which Tracy said had been planned and was supported by existing reserves. He told the board the net effect of the audit adjustments was under $20,000 and did not require budget transfers.

Tracy explained the audit process includes two sets of financial statements: the fund financial statements (the monthly view used for operations) and government-wide financial statements (full-accrual accounting). He summarized conversion adjustments — for example, capital assets such as computer equipment are treated as expenses in fund statements but capitalized and depreciated in government-wide reporting. He also noted liabilities such as IMRF net pension obligations appear differently on the government-wide statements.

Trustees asked procedural questions about the adjustments and public availability of the report. Tracy confirmed the journal entries the auditors made do not require budget transfers and that hard copies were included in trustee packets and the report is available for public review. He recommended continued use of an outside accounting firm to supplement the township’s limited personnel and help with monthly closings and reconciliations.

Supervisor Wilt and multiple trustees thanked Tracy and staff for the work. The board did not take separate formal action on the audit at the meeting beyond receiving the report; Tracy said the items identified were typical year-end adjustments and constituted no material control deficiencies.

The audit presentation ran roughly eight minutes and generated several clarifying questions from trustees about budget process and controls. The audit partner praised the township staff and the use of an outside accounting firm as a second set of eyes to maintain segregation of duties in a small organization.

Ending: The board will receive a formal written audit report for the record; Tracy said he appreciated the cooperation of township management and staff during the audit.