HomeMy Public PortalAboutFY2020 Management Letter
2500 East Lake Avenue · Glenview, IL 60026 · (847) 904-4370 · Fax (847) 724-1518 · www.glenview.il.us
June 10, 2021
Baker Tilly US, LLP
1301 W 22nd Street, Suite 400
Oak Brook, Illinois 60523
Dear Baker Tilly US, LLP:
We are providing this letter in connection with your audit of the financial statements of the Village of Glenview as of
December 31, 2020 and for the year then ended for the purpose of expressing opinions as to whether the financial
statements present fairly, in all material respects, the respective financial position of the governmental activities, the
business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining
fund information of the Village of Glenview and the respective changes in financial position and cash flows, where
applicable, in conformity with accounting principles generally accepted in the United States of America. We confirm
that we are responsible for the fair presentation of the previously mentioned financial statements in conformity with
accounting principles generally accepted in the United States of America. We are also responsible for adopting
sound accounting policies, establishing and maintaining internal control over financial reporting, and preventing and
detecting fraud.
Certain representations in this letter are described as being limited to matters that are material. Items are
considered material, regardless of size, if they involve an omission or misstatement of accounting information that,
in the 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. An omission or misstatement that
is monetarily small in amount could be considered material as a result of qualitative factors.
We confirm, to the best of our knowledge and belief, the following representations made to you during your audit.
Financial Statements
1) We have fulfilled our responsibilities, as set out in the terms of the audit engagement letter.
2) The financial statements referred to above are fairly presented in conformity with accounting principles
generally accepted in the United States of America. We have engaged you to advise us in fulfilling that
responsibility. The financial statements include all properly classified funds of the primary government
and component unit required by accounting principles generally accepted in the United States of America
to be included in the financial reporting entity.
3) We acknowledge 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.
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4) We acknowledge our responsibility for the design, implementation, and maintenance of internal control to
prevent and detect fraud.
5) Significant assumptions we used in making accounting estimates, if any, are reasonable.
6) Related party relationships and transactions, including 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
accounting principles generally accepted in the United States of America.
7) All events subsequent to the date of the financial statements and for which accounting principles
generally accepted in the United States of America require adjustment or disclosure have been adjusted
or disclosed. No other events, including instances of noncompliance, have occurred subsequent to the
financial statement date and through the date of this letter that would require adjustment to or disclosure
in the aforementioned financial statements.
8) All material transactions have been recorded in the accounting records and are reflected in the financial
statements.
9) All known audit and bookkeeping adjustments have been included in our financial statements, and we are
in agreement with those adjustments.
10) The effects of all known actual or possible litigation, claims, and assessments have been accounted for
and disclosed in accordance with accounting principles generally accepted in the United States of
America.
11) Guarantees, whether written or oral, under which the Village is contingently liable, if any, have been
properly recorded or disclosed.
Information Provided
12) We have provided you with:
a) Access to all information, of which we are aware, that is relevant to the preparation and fair
presentation of the financial statements, such as financial records and related data, documentation,
and other matters.
b) Additional information that you have requested from us for the purpose of the audit.
c) Unrestricted access to persons within the entity from whom you determined it necessary to obtain
audit evidence.
d) Minutes of the meetings of Village Board of Trustees and the Library Board of Trustees or summaries
of actions of recent meetings for which minutes have not yet been prepared.
13) We have disclosed to you results of our assessment of the risk that the financial statements may be
materially misstated as a result of fraud.
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14) We have no knowledge of any fraud or suspected fraud that affects the entity and involves:
a) Management,
b) Employees who have significant roles in internal control, or
c) Others where the fraud could have a material effect on the financial statements.
15) We have no knowledge of any allegations of fraud or suspected fraud affecting the entity received in
communications from employees, former employees, regulators, or others.
16)We have no knowledge of known instances of noncompliance or suspected noncompliance with provisions
of laws, regulations, contracts, or grant agreements, or abuse, whose effects should be considered when
preparing financial statements.
17) There are no known related parties or related party relationships and transactions of which we are aware.
Other
18) There have been no communications from regulatory agencies concerning noncompliance with, or
deficiencies in, financial reporting practices.
19) We have a process to track the status of audit findings and recommendations.
20) We have identified to you any previous financial audits, attestation engagements, and other studies
related to the audit objectives and whether related recommendations have been implemented.
21) The Village has no plans or intentions that may materially affect the carrying value or classification of
assets, liabilities, or equity.
22) We are responsible for compliance with federal, state, and local laws, regulations, and provisions of
contracts and grant agreements applicable to us, including tax or debt limits, debt contracts, and IRS
arbitrage regulations; and we have identified and disclosed to you all federal, state, and local 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 audit
objectives, including legal and contractual provisions for reporting specific activities in separate funds.
23) There are no:
a) Violations or possible violations of budget ordinances, federal, state, and local laws or 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, except those already disclosed in the financial statement, if any.
b) Other liabilities or gain or loss contingencies that are required to be accrued or disclosed by
accounting principles generally accepted in the United States of America.
c) Nonspendable, restricted, committed, or assigned fund balances that were not properly authorized and
approved.
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d) Rates being charged to customers other than the rates as authorized by the applicable authoritative
body.
e) Violations of restrictions placed on revenues as a result of bond resolution covenants such as revenue
distribution or debt service funding.
24) In regards to the nonattest services performed by you listed below, we have 1) accepted all management
responsibility; 2) designated an individual with suitable skill, knowledge, or experience to oversee the
services; 3) evaluated the adequacy and results of the services performed, and 4) accepted responsibility
for the results of the services.
a) Financial statement preparation
b) Compiled regulatory reports
None of these nonattest services constitute an audit under generally accepted auditing standards,
including Government Auditing Standards.
25) The Village of Glenview 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.
26) The Village of Glenview has complied with all aspects of contractual agreements that would have a
material effect on the financial statement in the event of noncompliance.
27) The financial statements include all component units as well as joint ventures with an equity interest, and
properly disclose all other joint ventures and other related organizations, if any. Component units have
been properly presented as either blended or discrete.
28) The financial statements properly classify all funds and activities.
29) All funds that meet the quantitative criteria in GASB Statement No. 34 and No. 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.
30) Components of net position (net investment in capital assets; restricted; and unrestricted) and
components of fund balance (nonspendable, restricted, committed, assigned and unassigned) are
properly classified and, if applicable, approved.
31) The Village of Glenview has no derivative financial instruments such as contracts that could be assigned
to someone else or net settled, interest rate swaps, collars or caps.
32) Provisions for uncollectible receivables, if any, have been properly identified and recorded.
33) 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.
34) Revenues are appropriately classified in the statement of activities within program revenues and general
revenues.
35) Interfund, internal, and intra-entity activity and balances have been appropriately classified and reported.
36) Deposits and investments are properly classified, valued, and disclosed (including risk disclosures,
collateralization agreements, valuation methods, and key inputs, as applicable).
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37) Capital assets, including infrastructure and intangible assets, are properly capitalized, reported, and, if
applicable, depreciated/amortized. Any known impairments have been recorded and disclosed.
38) Tax-exempt bonds issued have retained their tax-exempt status.
39) We have appropriately disclosed the Village of Glenview's policy regarding whether to first apply
restricted or unrestricted resources when an expense is incurred for purposes for which both restricted
and unrestricted net position are available and have determined that net position were properly
recognized under the policy. We have also disclosed our policy regarding which resources (that is,
restricted, committed, assigned or unassigned) are considered to be spent first for expenditures for which
more than one resource classification is available.
40) We acknowledge our responsibility for the required supplementary information (RSI). 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 RSI.
41) With respect to the supplementary information, (SI):
a) We acknowledge our responsibility for presenting the SI in accordance with accounting principles
generally accepted in the United States of America, and we believe the SI, including its form and
content, is fairly presented in accordance with accounting principles generally accepted in the United
States of America. The methods of measurement and presentation of the SI 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.
b) If the SI is not presented with the audited financial statements, we will make the audited financial
statements readily available to the intended users of the supplementary information no later than the
date we issue the supplementary information and the auditor's report thereon.
42) We assume responsibility for, and agree with, the findings of specialists in evaluating the net pension
liabilities, total OPEB liability, and related deferred inflows/outflows and have adequately considered the
qualifications of the specialists in determining the amounts and disclosures used in the financial
statements and underlying accounting records. We did not give or cause any instructions to be given to
specialists with respect to the values or amounts derived in an attempt to bias their work, and we are not
otherwise aware of any matters that have had impact on the independence or objectivity of the
specialists.
43) We assume responsibility for, and agree with, the information provided by the Illinois Municipal
Retirement Fund as audited by RSM US, LLP relating to the net pension asset/liability and related
deferred outflows and deferred inflows and have adequately considered the reasonableness of the
amounts and disclosures used in the financial statements and underlying accounting records. We also
assume responsibility for the census data that has been reported to the plan.
44) We are responsible for the estimation methods and assumptions used in measuring assets and liabilities
reported or disclosed at fair value, including information obtained from brokers, pricing services or third
parties. Our valuation methodologies have been consistently applied from period to period. The fair
value measurements reported or disclosed represent our best estimate of fair value as the measurement
date in accordance with the requirements of GASB 72 – Fair Value Measurement. In addition our
disclosures related to fair value measurements are consistent with the objectives outlined in GASB
72. We have evaluated the fair value information provided to us by brokers, pricing services or other
parties that has been used in the financial statements and believe this information to be reliable and
consistent with the requirements.
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45)We acknowledge our responsibility for presenting the Consolidated Year-End Financial Report (CYEFR)
in accordance with the standards set forth by the Grant Accountability and Transparency Act, and we
believe the CYEFR, including its form and content, is fairly presented in accordance with accounting
principles generally accepted in the United States of America. We have disclosed to you any significant
assumptions or interpretations underlying the measurement and presentation of the CYEFR.
Sincerely,
Village of Glenview
Signed: _______________________________
Matthew Formica, Village Manager
Signed: _______________________________
Erika Smith, Finance Director