State releases 2020-21 audit for Village of Leesburg
The Village of Leesburg’s 2020-21 audit, released by the Ohio Auditor’s Office Thursday, May 4, included two findings of material weakness and one finding for recovery.
The finding for recovery, which was repaid under audit, was issued against the village’s former tax administrator, Dorothy Vance, who received a “one-time thank-you bonus of $4,000” that was determined to have been “public monies illegally expended” by the village. Vance repaid the amount in full on Feb. 21, 2023.
In the findings related to the financial statements required to be reported in accordance with Generally Accepted Government Auditing Standards [GAGAS], state auditors found “deficiencies in the Village’s financial statement monitoring and review process” that led to multiple errors in both 2020 and 2021.
That includes understatement and/or overstatement of expenses and revenues in various line items in the General Fund, Special Revenue Fund and Enterprise in 2021 and the General Fund and Enterprise Fund in 2020.
“The Village has corrected the financial statements, notes to the financial statements, and accounting system, where applicable for the errors as identified above,” the audit says. “Failure to accurately post and report transactions could result in material errors in the Village's financial statements and reduces the Village's ability to monitor financial activity and to make sound decisions which effect the overall available cash positions of the Village.
“The Village should implement internal controls to ensure financial transactions are accurately recorded and reported.”
The second finding of material weakness was due to failure to “have procedures in place to accurately post authorized budgetary measures to the accounting system. The appropriation amendments approved by Council were not properly posted to the accounting system. Additionally, the approved Certificate of Estimated Resources and amendments thereof was not posted to the accounting system appropriately.”
This also occurred in both 2020 and 2021, the audit says.
“Amendments to the Original Certificate for 2021 were recorded in amount of $61,152 in General funds, $4,618 in Special Revenue funds, and $106,641 in Enterprise funds but not established by the Village prior to year-end,” according to the finding. “Amendments to the Original Certificate for 2020 were recorded in amount of $20,695 in General funds, $7,799 in Special Revenue funds, and $106,641 in Enterprise funds but not established by the Village prior to year-end.
“Appropriation amendments for 2021 were not recorded in amount of $69,293 in Special Revenue funds and $4,000 in Enterprise funds.”
The audit also noted that both findings of material weakness were related.
“Failure to accurately post the appropriations to the ledgers could result in overspending and negative cash balances,” the second finding says. “This lead [sic] to inaccurate reporting of the budgetary information in the financial statements as noted in Finding Number 2021-001.
“To effectively control the budgetary cycle and to maintain accountability over receipts and expenditures, the Village should post to the ledgers, on a timely basis, estimated resources as certified by the budget commission and appropriations approved by the Council. The Village should then monitor budget versus actual reports to help ensure amended certificates of resources and appropriations have been properly posted to the ledgers.”
Although the errors in the first finding were corrected, the audit says they “did not receive a response from the Village” on a corrective action plan.
The complete audit can be viewed at: https://ohioauditor.gov/auditsearch/Reports/2023/Village_of_Leesburg_21….