Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Audit And Finance topic
No spam. Unsubscribe anytime.
Auditor: IEPA reimbursement was parked in general fund; water fund showed large shortfall
Summary
An auditor told the Shabbona finance committee that about $420,000 in IEPA reimbursement for the Shabbona Road water project was posted to the general account and audit adjustments moved it back to the water fund; the board also discussed a negative general fund balance and mixed accounts.
The Shabbona Village finance committee spent most of its session reviewing audit corrections that moved sizable reimbursements and grant money between funds. Jen Martinson, one of the auditors presenting the draft statements, said a roughly $420,000 reimbursement from the Illinois Environmental Protection Agency intended for the Shabbona Road water project had been "parked in the general account" and was restored to the water fund during audit adjustments.
"The 400,000 was the reimbursement from the IEPA," said a committee member recounting the audit finding; Martinson confirmed the amount and explained the audit adjustment moved the reimbursement from liability in the general account into the water account so the expenses and receipts matched. The auditor emphasized the correction was an accounting posting issue rather than new spending decisions.
Committee members pressed for clearer fund separation after learning the general fund showed a negative balance at the audit snapshot. One member noted the general fund was about $35,000 negative at the end of the audit and that co-mingled deposits had made reconciliations harder. The auditor said the village's accounting software and historical deposit practices contributed to the posting problems and that the audit adjustments corrected the mismatches in reported fund balances.
The committee asked for an updated draft of the financial statements with the adjustments and a reconciliation showing how capital projects and grants were allocated. Martinson told the finance committee she would provide an updated draft "as soon as tomorrow" with the land and capital-asset reclassifications incorporated. The board set a plan to review the revised financial statements at a future finance-committee meeting and to present a high-level summary at the full board meeting in December.
Provenance: topicintro SEG 337 ("$425,000 came out of general to water and took water back to a positive number.") — topfinish SEG 376 (discussion of reimbursement and parking in general fund).
