HomeMy Public PortalAboutFY2015 Management Letter
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To the Honorable Village President and Board of Trustees
Village of Glenview
Glenview, Illinois
In planning and performing our audit of the financial statements of the Village of Glenview, Illinois (the
Village) as of and for the year ended December 31, 2015, in accordance with auditing standards
generally accepted in the United States of America, we considered the Village’s internal control over
financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinion 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 deficiency in design exists when (a) a control
necessary to meet the control objective is missing, or (b) an existing control is not properly designed so
that, even if the control operates as designed, the control objective would not be met. A deficiency in
operation exists when a properly designed control does not operate as designed or when the person
performing the control does not possess the necessary authority or competence to perform the control
effectively.
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.
Following are descriptions of other identified deficiencies in internal control that we determined did not
constitute significant deficiencies or material weaknesses:
Finding 2015 – 001: Capital Assets
As also reported in previous audits, we noted during our audit of capital assets the Village does not have
a detailed listing of infrastructure assets for items acquired prior to the implementation of GASB 34
(FY2003).
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Recommendation
As a follow up to our previous recommendations, the Village staff worked with the Community
Development Department and with the Geographic Information System (GIS) for the purposes of
analyzing historical information to compare to the total amount reported for infrastructure assets in the
Village’s financial statements. Based on their analysis, it appears that the total amount reported for
infrastructure assets in the financial statements and the total amount accumulated using GIS shows an
immaterial variance. We recommend the Village continue their efforts with the Community Development
Department, as well as GIS to obtain a detailed inventory of infrastructure assets, including those
acquired/constructed prior to 2003 to accommodate the information needed for accurate preparation of
the financial statements. This will allow the Village to accurately report the value of infrastructure assets
that are replaced or disposed.
Management Response
The Village has invested a significant effort in the last few years entering its historical as-built paper plans
into its electronic Geographic Information System (GIS) for the purposes of managing, tracking, and
planning for infrastructure improvements. Significant progress has been achieved in the process of
updating these asset records with location information and attribute data such as installation year,
material, size, type, and asset class. Due to the large scope of this project, it was broken into two
phases. Phase I was completed in 2014-2015 with a GIS data export of infrastructure data from 1924-
2014. An overall comparison by asset type was confirmed with the capital asset sheets and 2014 was
specifically reconciled. Phase II is scheduled for 2015-2016 and it is continuing with a comparison
between earlier asset data sets and compiling a more detailed inventory of infrastructure assets, including
those acquired and constructed prior to 2003, which will be used to update capital asset sheets.
Integration of these records will insure the accurate reporting of the value of infrastructure assets that are
replaced or disposed.
This communication is intended solely for the information and use of management, the Village President,
the Board of Trustees and others within the organization, and is not intended to be, and should not be,
used by anyone other than these specified parties.
Schaumburg, Illinois
June 14, 2016