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2. Village OF HAZEL CREST, IL
April 30, 2016 Audit Presentation
Title page to include presentation title/topic, speaker, date etc.
December 13, 2016

3. Financial Report Highlights TIF Reports and Other Compliance Reporting
Presentation Outline
Audit Process
Financial Report Highlights
TIF Reports and Other Compliance Reporting
Report to Board of Trustees and Control Deficiencies
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4. Audit Process
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5. Audit Process
Some delays in the current audit year due to accounting department turnover and completion of new pension standards
Despite difficulties, management was proactive and helpful throughout the audit process
Regular communication with the Illinois Comptroller’s office and extension was filed
Final reports will be filed after December 15th (open for compiling some statistical section information)

6. Audit Timeline
Planning discussions in May and June – maintained regular contact with the finance staff and Village manager
Preliminary fieldwork – week of May 30th
Final Fieldwork – weeks of July 18 and July 25
Significant open items
– police pension actuary report – received September 22
- Grant support and single audit determination for 183rd Street Grant
Presentation to Board, December 13

7. Financial Report Highlights
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8. Financial Report Highlights
Opinion (pages 1 and 2)
Unmodified (clean) opinion
Management is responsible for preparation of financial statements. Our responsibility is to express an opinion.
Emphasis of Matter
Adopted Governmental Accounting Standards Board (GASB) Statement No. 68, accounting and Financial Reporting for Pensions, an Amendment of GASB Statement No. 27, and Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date
Resulted in beginning net position restatements to record the net pension liability associated with IMRF (regular and SLEP), police pension, and fire pension plans

9. Financial Report Highlights
Management’s Discussion and Analysis (pages 3 – 11)
High level overview of what occurred at the Village during the year
Government-Wide Financial Statements (pages 12 – 13)
Full accrual

10. Financial Report Highlights
2016
2015
Change
% Change
Significant Changes
From the Statement of Net Position (pages 12-13):
Governmental Activities – Assets and Deferred Outflows
30,723,394
27,188,155
3,535,239
13.0%
GASB 68 implementation increases deferred outflows by $4.4 million, capital assets decrease $1.2 million
Governmental Activities – Liabilities and Deferred Inflows
44,524,631
12,852,978
31,671,653
246.4%
GASB 68 implementation added $30.7 million of net pension liabilities and $.8 million of deferred inflows
Governmental Activities - Net Position
14,335,277
(2,247,474)
-13.6%
Business Type Activities - Assets
4,945,287
4,841,069
104,218
2.1%
Business Type Activities - Liabilities
1,243,471
372,951
870,520
233.4%
GASB 68 implementation added $.8 million of net pension liability
Business Type Activities - Net Position
3,701,816
4,468,118
(766,302)
-17.1%

11. Financial Report Highlights
2016
2015
Change
% Change
Significant Changes
From Statement of Activities (Page 14):
Governmental Activities - total Revenue
16,139,234
13,960,917
2,178,317
15.6%
Additional public works grants of $2.3 million, increase of both revenues and expenses
Governmental Activities - total Expenses
19,390,972
16,208,391
3,182,581
19.6%
Governmental Activities - Change in Net Position
(3,251,738)
(2,247,474)
(1,004,264)
44.6%
Business Type Activities - Total Revenue
3,862,009
4,204,740
(342,731)
-8.2%
Village did not receive any operating grants for water fund
Business Type Activities - Total Expenses
4,054,471
3,676,342
(378,126)
-10.3%
Additional operating expenses in the water fund
Business Type Activities - Change in Net Position
(192,462)
528,398
(720,860)

12. Financial Report Highlights
2016
2015
Change
% Change
Significant Changes
Balance Sheet - Governmental Funds (page 15):
Total Assets
15,710,251
15,221,012
489,239
3.2%
Property tax receivable increased $.5 million
Total Liabilities
5,266,172
4,172,173
1,093,999
26.2%
Additional payables at year end, deferred property taxes increased by $.5 million
Total Fund Balance
10,444,079
11,048,839
(604,759)
5.5%
Statement of Revenues and Expenditures - Governmental Funds (page 17):
Total Revenues
16,158,634
14,098,494
2,060,140
14.6%
MFT Grant funds increased intergovernmental revenue by approximately $1.7 million
Total Expenditures
16,763,393
14,042,981
2,670,412
19.0%
MFT expenditures increased for grant related projects
Other financing sources
12,472
n/a
Change in Fund Balance
67,985
(349,370)

13. Financial Report Highlights
Reconciliations between government-wide and fund financial statements on pages 15-18
New Pension Information:
Restatement of beginning net position of $25.0 million, covered in note 1 (page 32)
Pension footnotes (pages 39-58) and pension required supplementary information (pages 64-70)
Net pension liabilities of the Village by plan:
IMRF, regular – $3.5 million
IMRF, SLEP - $.1 million
Police pension – $20.5 million
Fire pension – $7.4 million
Net pension liability by opinion unit:
Governmental Activities – $30.7 million
Business Activities (water/sewer fund) - $.8 million
Additional Supplementary schedules start of page 67 focusing on budget vs. actual information

14. TIF Reports
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15. TIF Reports and Other Compliance Reporting
4 separate TIF financial and compliance reports
167th Street TIF
183rd Street TIF
Hazel Crest Proper TIF
Cherry Creek TIF
No compliance findings
No single audit required as federal funds expended were under $500,000
Management confirmed with the State of Illinois that significant street improvement grants received in FY16 were administered by the State and did not require a single audit

16. Report to Board of Trustees
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17. Report to Board of Trustees
Significant new accounting policies –adoption of GASB 68 and GASB 71
12 Audit adjustments proposed by auditors
Significant entries required to properly record grant revenue and expenses for “on-behalf” services received
Additional accounts payable identified during testing
Entry recorded to record property tax refunds
13 client adjustments were received after start of the audit

18. Report to Board of Trustees
Significant items discussed with management
Significant cash balances in the TIF funds
Grant reporting requirements for grant administered by the State of Illinois
Pension reporting and implementation of GASB 68 and 71
Significant accounting estimates
Pension Liabilities
Other Postemployment benefits (OPEB)
Fair value of investments
Depreciation expense

19. 3 levels of control deficiencies reported:
Separate letter which communicates control deficiencies during the year ended April 30, 2016
Items may be addressed during or subsequent to year, but are still reported
3 levels of control deficiencies reported:
Material weakness
Significant deficiency
Control deficiency

20. Significant deficiency Control deficiency
Control Deficiencies
Material weaknesses
Grant monitoring and reporting
Year end financial reporting (repeat)
Significant deficiency
Completion of bank reconciliations (repeat)
Control deficiency
Policy on manual checks (new)
Retention of invoices (new)

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