Chicago Executive AirportLocal Government

Condition: During audit fieldwork, our testing resulted in a restatement of net position in order to correct accounts payable that were improperly recorded in prior years. Criteria: A good system of internal controls would provide for accurate recording and reporting of accounts payable on a regular basis in order to provide for accurate financial reporting. Cause: Year-end entries related to accounts payable were required in order to accurately present the Airport’s financial statements. Effect: A material adjustment to the Airport’s beginning fund balance was required to properly state accounts payable. Recommendation: We recommend the Airport implement effective internal controls in order to providean accurate assessment of reporting requirements. This implementation of improved controls would result in the appropriate recognition for financial reporting requirements. Corrective Action Plan: The Airport and Director of Finance will implement internal controls to properly record accounts payable on a timely basis prior to audit fieldwork.

Condition: During audit fieldwork, our testing resulted in a restatement of net position in order to correct capital assets and lease receivables that were improperly recorded in prior years. Criteria: A good system of internal controls would provide for accurate recording and reporting of capital assets and lease receivables on a regular basis in order to provide for accurate financial reporting. Cause: Year-end entries related to capital assets and lease receivables were required in order to accurately present the District’s financial statements. Effect: A material adjustment to the Airport’s beginning fund balance was required to properly state capital assets and lease receivables. Recommendation: We recommend the Airport implement effective internal controls in order to provide an accurate assessment of reporting requirements. This implementation of improved controls would result in the appropriate recognition for financial reporting requirements.Corrective Action Plan: The Airport and Director of Finance will implement internal controls to properly record capital assets and lease receivables on a timely basis prior to audit fieldwork.

Condition: During audit fieldwork, our testing resulted in significant audit adjustments in order to present materially accurate financial statements, including grant receivables. Criteria: A good system of internal controls would provide for accurate representations of adjusted account balances for all Airport accounts prior to audit fieldwork. Cause: Year-end entries related to various accruals and other items were required in order to accurately present the Airport’s financial statements, including grants. Effect: The Airport’s financial statements were not fully adjusted prior to audit fieldwork. Recommendation: A vital process of effective internal controls is the review and subsequent adjustment of general ledger balances. This review and adjustment will aid in the appropriate budgeting and management of the Airport’s financial activities and resources. Corrective Action Plan: The Director of Finance, along with staff, will review year-end adjustments as part of the audit preparation process and work to reduce the number of entries proposed by the auditors and prepare fully adjusted financial statements prior to audit fieldwork.