The Number Crunchers
Bolingbrook, Illinois

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The Number Crunchers - Bolingbrook have reviewed the management letter submitted to the Village of Bolingbrook by Seldon Fox, CPA for fiscal year 2010. What we've learned is the Village has struggled with 3 specific problems that appear to be chronic, and ongoing.

According to the management letter, the problems identified can result in "management making business decisions based on inaccurate financial data, and the Finance department reporting info to various outside parties that is not accurate, which could increase overall business risk."

In the management letter for fiscal year 2010, the auditor, Seldon Fox, CPA submitted a list of weaknesses as well as recommendations to the Village of Bolingbrook.

Here's a summary of weaknesses in fiscal year 2010:

ISSUE #1

The Village (Finance Dept.) experience significant delays in its accounting & reporting process, and perform overlapping administrative duties which often take precedence over the accounting duties. This weakness breeds inefficiency and internal control weaknesses.

Recommendation: The Village should hire the equivalent of an Accounting Manager to head up monthly and year-end closing processes, which should free-up the Finance Director to properly do her job more efficiently.

Village Response: They agreed to hire an Accounting Manager to assist the Finance Director.

ISSUE #2

The Village (Finance Dept.) continues to have numerous year-end adjustments after the trial balance is given to the audit team. What's troubling is the fact that this same issue was identified in fiscal years 2005, 2007, and 2008. In fact, it was labelled as a material weakness in fiscal year 2007.

Recommendation: The Finance Director should establish a formal year end closing schedule in order to improve the efficiency of the audit process and reduce both the number and dollar value of the audit adjusting journal entries.

Village Response: The Finance Department will implement year-end closing procedures, and management will work on a timeline to use as a tool to ensure a timely audit report is produced.

ISSUE #3

Bolingbrook Golf Course and Clow International Airport are managed by 3^rd parties, Kemper Management and Joe DePaulo. The 3^rd party submits financial reports and statements to the Village (Finance Dept.) once a month. The Finance department imports that information into a program which consolidates the activity into the chart of accounts used by the Village. There appears to be some difference in the chart of accounts between the Village and 3^rd party. This problem has been an issue for many years.

Recommendation: The Village (Finance Dept.) should modify their chart of accounts to mirror the accounts used by the 3^rd party.

Village Response: In fiscal year 2008 and 2010 the Village (Finance Dept.) agreed to modify its chart of accounts in the Bolingbrook Golf Course and Clow International Airport to mirror the accounts used by the 3^rd parties.

From what we've learned in the 2010 management letter, the Village of Bolingbrook has yet to follow the recommendations provided by the auditor. These are problems that have been ongoing for several years.

Will fiscal year 2011 be any different?

We have one question for the Village of Bolingbrook - now that fiscal year 2011 is closed (April 30, 2011), and the auditor is set to start work on fiscal year 2011, will the Village adhere to the recommendations made by the auditor in fiscal year 2010?

As taxpayers, take a moment to consider the implications of each finding. For example, how can department heads effectively manage its department, and review current cost if the numbers given to them are not accurate? How can the Village really know if the Golf Course or Clow Airport are performing under-budget, or at a net-profit (for the month) if they can't trust the numbers?

It's my hope Mayor Claar, and the Village Trustees will do all that they can to follow the auditor's recommendations, immediately. If they can clear-up the weaknesses from prior years, maybe the public will not have to wait 10 months to get a final audit report.

This leads to one final issue discovered by The Number Crunchers - Bolingbrook.

ISSUE #4:

Why does it take 10 months to get a completed audit report?  In fiscal year 2010 (5/1-09 - 4/30/10), we did not get a completed audit report until February, 2011. That's 10 months into fiscal year 2011.

How can we perform an analysis comparing 2011 actuals with 2012 budget if it takes close to a year to get the final numbers?

Our Recommendation: The Village (Finance Dept.) should work diligently at clearing up the weaknesses identified in the management letter. By doing this, the auditor will be able to complete the audit much quicker, the public will get the final numbers sooner, and it will save taxpayers money.

I hope we don't have to wait until February, 2012 to get answers.