Title
Acceptance of the Fiscal Year 2022 Annual Comprehensive Financial Report
History
The Village of Orland Park Fiscal Year 2022 Annual Comprehensive Financial Report (ACFR) has been completed. This report is management's annual financial report to the taxpayers, Village Board, oversight bodies, investors and creditors of the Village. This report provides a historical picture of the Village’s financial status as of December 31, 2022, and activities for the year (January 1, 2022, to December 31, 2022). Our auditing firm, Sikich, has expressed that the Village’s financial statements present fairly, in all material respects, the financial position of the Village for the fiscal year ended December 31, 2022 (a “clean” opinion, the highest obtainable).
State law (65 ILCS 5/8-8) requires that all general-purpose local governments publish within six months of the close of each fiscal year a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants.
In addition, Public Act 98-0738 requires the auditor to perform the following within sixty days after the issuance of audited financial statements:
• Provide a copy of the management letter and audited financial statements to the Municipality’s Corporate Authorities. If the county or municipality maintains a website, these reports shall be posted to the website.
• Present the information from the audit to the Municipality's Corporate Authorities either in person or by a live phone or web connection during a public meeting.
This memo will provide an overview of three documents prepared or reviewed by Sikich:
• Annual Comprehensive Financial Report,
• Report to the Village Board of Trustees, Results of the 2022 Financial Statement Audit, including Required Communications, and
• Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards.
Upon acceptance, the Annual Comprehensive Financial Report and Management Letter will be published on the Village’s website and distributed to as appropriate.
Annual Comprehensive Financial Report
The Annual Comprehensive Financial Report is a thorough, detailed presentation of the Village’s financial position and activities for the year. The 2022 Annual Comprehensive Financial Report was audited by Sikich. The Village received a “clean” opinion, the highest obtainable.
The Annual Comprehensive Financial Report is a valuable tool that enables Village officials and investors to make financial decisions from sound and timely information. The report provides an independently audited accounting of the financial condition of the Village. The Annual Comprehensive Financial Report contains a set of financial statements comprising the financial report of the Village that complies with the accounting requirements promulgated by the Governmental Accounting Standards Board (GASB). GASB provides standards for the content of an Annual Comprehensive Financial Report in its annually updated publication Codification of Governmental Accounting and Financial Reporting Standards. The Annual Comprehensive Financial Report is composed of three sections: Introductory, Financial and Statistical. It combines the financial information of fund accounting and Enterprise Authorities accounting.
Communication with those Charged with Governance and Management Letter
The Auditor’s Report to the Village Board of Trustees requires the communication of the audit strategy and approach, including scope, auditor responsibilities, inherent limitations to reasonable assurance, extent of auditors communication, independence, Village responsibilities, distribution restriction and additional GAGAS (Accepted Governmental Audit Standards) reporting.
This report also discusses Qualitative Aspects and Significant Accounting Policies and Practices, including:
• Significant Accounting Policies (no matters are reportable),
• Unusual Policies or Methods (no matters are reportable),
• Alternative Accounting Treatments (relating to dissolution of Open Lands Corporation),
• Management Judgements & Accounting Estimates,
• Financial Statement Disclosures,
• Judgement About the Quality of the Village’s Accounting Principles (no matters are reportable).
As discussed, the auditors noted a material weakness on Internal Control over Financial Reporting.
In addition to the required communications, the auditor may communicate other matters to those charged with governance that are not required by US Auditing Standards if the auditor feels such matters are of importance to the local government. These communications may be combined into one report or delivered in separate reports.
Certificate of Achievement for Excellence in Financial Reporting Program (GFOA Annual Comprehensive Financial Report Program)
The Government Finance Officers Association (GFOA) is a professional association of approximately 17,500 state, provincial, and local government finance officers in the United States and Canada. The GFOA established the Certificate of Achievement for Excellence in Financial Reporting Program (Annual Comprehensive Financial Report Program) in 1945 to encourage and assist state and local governments to go beyond the minimum requirements of generally accepted accounting principles to prepare Annual Comprehensive financial reports that evidence the spirit of transparency and full disclosure and then to recognize individual governments that succeed in achieving that goal.
Reports submitted to the Annual Comprehensive Financial Report program are reviewed by selected members of the GFOA professional staff and the GFOA Special Review Committee (SRC), which is comprised of individuals with expertise in public-sector financial reporting and includes financial statement preparers, independent auditors, academics, and other finance professionals.
For over 30 consecutive years, the Village’s financial report has been prepared to comply with the high standards of the GFOA Certificate of Conformance for Excellence in Financial Reporting Award Program criteria. We believe the 2022 Annual Comprehensive Financial Report continues to meet the requirements of the program.
Financial Impact
None
Recommended Action/Motion
I move to accept the Fiscal Year 2022 Annual Comprehensive Financial Report ending December 31, 2022.