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HomeMy WebLinkAbout20-21 SAS Audit Letter    October 14, 2021 To the Mayor and City Council Members City of McHenry McHenry, Illinois We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of McHenry (City) as of and for the year ended April 30, 2021, and have issued our report thereon dated October 14, 2021. Professional standards require that we advise you of the following matters relating to our audit. Our Responsibility in Relation to the Financial Statement Audit As communicated in our engagement letter dated June 28, 2021, our responsibility under generally accepted auditing standards and, if applicable, Government Auditing Standards and Uniform Guidance, is to form and express an opinions about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities. Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. We are also responsible for communicating significant matters related to the audit that are, in our professional judgement, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you. Planned Scope and Timing of the Audit We conducted our audit consistent with the planned scope and timing we previously communicated to you. Qualitative Aspects of the Organization’s Significant Accounting Practices Significant Accounting Policies Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City are included in Note 1 to the financial statements. As described in Note 14 to the financial statements, during the year, the City implemented GASB Statement No. 84, Fiduciary Activities. There have been no changes in existing significant accounting policies or their application during fiscal year 2021. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods     used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus. Significant Accounting Estimates Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgement. Those judgements are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgement. We evaluated the key factors and assumptions used to develop the estimates and determined that they are reasonable in relation to the financial statements taken as a whole and in relation to the applicable opinion units. The most sensitive estimate(s) affecting the financial statements are:  Management’s estimate of depreciation expense is based on estimated useful lives of the capital assets held by the City.  Management’s estimates regarding pension and OPEB liabilities were based on various actuarial assumptions regarding projected salaries, market trends, and expected mortality.  Management’s estimates regarding allowances on receivables were based on historical collection rates. Financial Statement Disclosures Certain financial statement disclosures involve significant judgement and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the City’s financial statements relate to depreciation, pension and OPEB liabilities, and fair value estimates. The financial statement disclosures are neutral, consistent, and clear. Significant Difficulties Encountered during the Audit We encountered no significant difficulties in dealing with management relating to the performance of the audit. Uncorrected and Corrected Misstatements For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. Management has corrected all identified misstatements. In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures. The attached misstatements that we identified as a result of our audit procedures were brought to the attention of, and corrected by, management. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or audit matter, which could be significant to the City’s financial statements or the auditor’s report. No such disagreements arose during the course of the audit.     Representations Requested from Management We have requested certain written representations from management, which are included in the attached letter. Management Consultations with Other Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters. Other Significant Matters, Findings, or Issues In the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, operating and regulatory conditions affecting the City, and operating plans and strategies that may affect the risks of material misstatement. However, none of the matters discussed resulted in a condition to our retention as the City’s auditors. Other Matters We applied certain limited procedures to the required information, which is required supplemental information (RSI) that supplement the basic financial statements (as listed on the table of contents in the audit report). Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on supplemental information, except for the Schedule of Expenditures of Federal Awards, which accompany the financial statements but are not RSI. With respect to the supplemental information, except for the Schedule of Expenditures of Federal Awards, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplemental information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. Restriction on Use This report is intended solely for the information and use of the City Council and management of City of McHenry and is not intended to be, and should not be, used by anyone other than these specified parties. Very truly yours, EDER, CASELLA & CO. Certified Public Accountants Client:City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Workpaper:General Fund AJEs Report Account Description Debit Credit Adjusting Journal Entries JE # 1 2100 ACCOUNTS PAYABLE 8,435.00 22-5430 TRAINING 8,435.00 Total 8,435.00 8,435.00 I have reviewed and agree with the adjustments above: Client Signature Date Adjust AP for portion of law enforcement training performed and completed in FY22 7/8/2021 2:33 PM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Trial Balance:200 - Tourism Fund Workpaper:200 - Tourism Fund AJE's Report Account Description W/P Ref Debit Credit None in FY21 I have reviewed and agree with the adjustment(s) above: Client Signature Date 1 of 1 7/8/2021 2:33 PM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Trial Balance:205 - Pageant Fund Workpaper:205 - Pageant Fund AJEs Report Account Description W/P Ref Debit Credit None in FY21 I have reviewed and agree with the adjustment(s) above: Client Signature Date 1 of 1 Client:City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Workpaper:Band Fund Adjusting Entries Report Account Description W/P Ref Debit Credit None in FY21 I have reviewed and agree with the adjustment(s) above: Client Signature Date 7/8/2021 2:39 PM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Trial Balance:215 - McHenry Character Counts Workpaper:215 - McHenry Character Counts AJEs Report Account Description W/P Ref Debit Credit None in FY21 I have reviewed and agree with the adjustment(s) above: Client Signature Date 1 of 1 Client:City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Workpaper:Civil Defense Fund Adjusting Entries Report Account Description W/P Ref Debit Credit None in FY21 I have reviewed and agree with the adjustment(s) above: Client Signature Date 9/15/2021 11:13 AM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Trial Balance:225 - Alarm Board Fund Workpaper:225 - Alarm Board Fund - 2 Account Description W/P Ref Debit Credit 5110 CONTRACTUAL SERVICES 55,084.00 2100 ACCOUNTS PAYABLE 55,084.00 Total 55,084.00 55,084.00 Total Adjusting Journal Entries 55,084.00 55,084.00 Total All Journal Entries 55,084.00 55,084.00 Signature Date Adjusting Journal Entries JE # 1 Adjust accounts payable for missing 25% of revenue payable to McHenry Township FPD 1 of 1 Client:City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Workpaper:Audit Expense Adjusting Entries Report Account Description W/P Ref Debit Credit None in FY21 I have reviewed and agree with the adjustment(s) above: Client Signature Date 7/8/2021 2:41 PM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Trial Balance:260 - Annexation Fund Workpaper:260 - Annexation Fund AJE's Report Account Description W/P Ref Debit Credit None in FY21 I have reviewed and agree with the adjustment(s) above: Client Signature Date 1 of 1 7/8/2021 2:42 PM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Trial Balance:270 - Motor Fuel Tax Fund Workpaper:270 - Motor Fuel Tax Adjusting Journal Entries Report Account Description W/P Ref Debit Credit None in FY21 I have reviewed and agree with the adjustment(s) above: Client Signature Date 1 of 1 9/15/2021 10:05 AM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Trial Balance:275 - Municpal Motor Fuel Tax Fund Workpaper:275 - Municipal Motor Fuel Tax Fund AJEs Account Description W/P Ref Debit Credit 1 of 1 None for FY21. __________________________________________ Client Signature _________________________________________ Date 7/8/2021 2:50 PM Client:City of McHenry - City of McHenry Engagement:City of McHenry Trial Balance:280 - Developer Donations Fund Workpaper:280 - Developer Donations Adjusting Journal Entries Report Account Description W/P Ref Debit Credit None in FY21 I have reviewed and agree with the adjustment(s) above: Client Signature Date 1 of 1 9/15/2021 10:25 AM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Trial Balance:290 - TIF Fund Workpaper:290 - TIF AJE's Report Account Description W/P Ref Debit Credit None in FY'21 I have reviewed and agree with the adjustment(s) above: Client Signature Date 1 of 1 7/8/2021 2:55 PM Client:City of McHenry - City of McHenry Engagement:City of McHenry Trial Balance:300 - Debt Service Fund Workpaper:300 - Debt Service Fund Adjusting Journal Entries Report Account Description W/P Ref Debit Credit None in FY21 I have reviewed and agree with the adjustment(s) above: Client Signature Date 1 of 1 7/8/2021 3:25 PM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Trial Balance:400 - Recreation Center Fund Workpaper:400 - Recreation Center Adjusting Journal Entries Report Account Description W/P Ref Debit Credit None in FY21 I have reviewed and agree with the adjustment(s) above: Client Signature Date 1 of 1 Client:City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Workpaper:Special Service Area #1A - Shamrock Adjusting Entries Report Account Description W/P Ref Debit Credit None in FY21 I have reviewed and agree with the adjustment(s) above: Client Signature Date Client:City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Workpaper:Lakewood SSA #4 Account Description W/P Ref Debit Credit None in FY21 I have reviewed and agree with the adjustment(s) above: Client Signature Date 9/15/2021 10:12 AM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Trial Balance:426 - Huntersville SSA #6 Workpaper:426 - Huntersville SSA Adjusting Journal Entries Report Account Description W/P Ref Debit Credit None in FY21 I have reviewed and agree with the adjustments above: Client Signature Date 1 of 1 7/8/2021 3:02 PM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Trial Balance:440 - Capital Improvements Fund Workpaper:440 - Capital Improvements AJES Account Description W/P Ref Debit Credit None in FY21 I have reviewed and agree with the adjustments above: Client Signature Date 1 of 1 7/8/2021 3:03 PM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Trial Balance:450 - Capital Equipment Fund Workpaper:450 - Capital Equipment Fund AJEs Report Account Description W/P Ref Debit Credit None in FY21 I have reviewed and agree with the adjustments above: Client Signature Date 1 of 1 10/1/2021 8:02 AM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Trial Balance:510 - Water/Sewer Fund Workpaper:510 - Water Sewer Adjusting Journal Entries Report Account Description W/P Ref Debit Credit Adjusting Journal Entries JE # 1 31-3610 SALES 149,983.00 31-3615 BASE CHARGE - CAPITAL 9,236.00 32-3610 SALES 170,012.00 32-3615 BASE CHARGE - CAPITAL 18,452.00 32-3660 DEBT SERVICE FEE 27,788.00 32-3665 DEBT SERVICE FEE - SEWER CONS LOAN 139,726.00 1280 ACCOUNTS RECEIVABLE-UNBILLED 515,197.00 Total 515,197.00 515,197.00 Adjusting Journal Entries JE # 3 32-7600 LOAN INTEREST 8,237.00 2308 WWTP LOAN PAYABLE 8,237.00 Total 8,237.00 8,237.00 Adjusting Journal Entries JE # 4 2320 ACCRUED INTEREST PAYABLE 16,618.00 32-7091 DEBT SERVICE - ACCRUED INTEREST 16,618.00 Total 16,618.00 16,618.00 Adjusting Journal Entries JE # 5 2101 Accounts Payable 995 Pool 197,748.40 32-8500 UTILITY SYSTEM 197,748.40 Total 197,748.40 197,748.40 Adjusting Journal Entries JE # 6 2449 DEFERRED OUTFLOWS - OPEB 55,779.00 2450 NET OPEB LIABILITY 10,265.00 99-9930 OPEB EXPENSE 9,662.00 2451 DEFERRED INFLOWS - OPEB 63,894.00 99-9940 OPEB CONTRIBUTIONS 11,812.00 Total 75,706.00 75,706.00 ADJ Water/Sewer AR for 6/4/21 billings (PBC) Adjust IEPA Loan Balance to Actual Adjust Accrued Interest Payable (IEPA Adjustment PBC was made backwards) Adjust accounts payable for portion of invoice incorrectly included in AP Record GASB 75 OPEB Activity 1 of 2 10/1/2021 8:02 AM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Trial Balance:510 - Water/Sewer Fund Workpaper:510 - Water Sewer Adjusting Journal Entries Report Account Description W/P Ref Debit Credit Adjusting Journal Entries JE # 7 2443 IMRF NET PENSION LIABILITY 748,064.00 2445 IMRF DEFERRED OUTFLOWS-CONT AFTER 22,241.00 2444 IMRF DEFERRED OUTFLOWS-ACT EVAL 72,979.00 2448 IMRF - DEFERRED INFLOWS 387,114.00 31-4420 EMPLOYER CONTRIBUTION - IMRF 151,719.00 32-4420 EMPLOYER CONTRIBUTION - IMRF 83,732.00 35-4420 EMPLOYER CONTRIBUTION - IMRF 74,761.00 Total 770,305.00 770,305.00 Adjusting Journal Entries JE # 8 31-9510 DEPRECIATION EXPENSE 3,639.00 1388 ACCUM DEPREC - SYSTEM & EQUIPMEN 3,639.00 Total 3,639.00 3,639.00 Adjusting Journal Entries JE # 9 32-9100 AMORTIZATION-BOND DISCOUNT 46,005.00 31-9100 AMORTIZATION-BOND DISCOUNT 46,005.00 Total 46,005.00 46,005.00 Adjusting Journal Entries JE # 10 1388 ACCUM DEPREC - SYSTEM & EQUIPMEN 369,129.00 32-3836 GAIN/LOSS ON SALE 1,249,286.00 1308 SYSTEMS & EQUIPMENT 1,618,415.00 Total 1,618,415.00 1,618,415.00 Adjusting Journal Entries JE # 11 1308 SYSTEMS & EQUIPMENT 291,066.00 32-8500 UTILITY SYSTEM 291,066.00 Total 291,066.00 291,066.00 I have reviewed and agree with the adjustment(s) above: Client Signature Date Record Fixed Asset Addition that wasn't recorded Reclass Bond Premium Amortization Record GASB 68 IMRF Activity Adjust Depreciation to match PBC WPs Record Fixed Asset Deletions 2 of 2 9/15/2021 10:16 AM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Trial Balance:510 - Water/Sewer Fund Workpaper:510 - Water Sewer Adjusting Journal Entries Report Account Description W/P Ref Debit Credit Adjusting Journal Entries JE # 1 31-3610 SALES 149,983.00 31-3615 BASE CHARGE - CAPITAL 9,236.00 32-3610 SALES 170,012.00 32-3615 BASE CHARGE - CAPITAL 18,452.00 32-3660 DEBT SERVICE FEE 27,788.00 32-3665 DEBT SERVICE FEE - SEWER CONS LOAN 139,726.00 1280 ACCOUNTS RECEIVABLE-UNBILLED 515,197.00 Total 515,197.00 515,197.00 Adjusting Journal Entries JE # 3 32-7600 LOAN INTEREST 8,237.00 2308 WWTP LOAN PAYABLE 8,237.00 Total 8,237.00 8,237.00 Adjusting Journal Entries JE # 4 2320 ACCRUED INTEREST PAYABLE 16,618.00 32-7091 DEBT SERVICE - ACCRUED INTEREST 16,618.00 Total 16,618.00 16,618.00 Adjusting Journal Entries JE # 5 2101 Accounts Payable 995 Pool 197,748.40 32-8500 UTILITY SYSTEM 197,748.40 Total 197,748.40 197,748.40 Adjusting Journal Entries JE # 6 2449 DEFERRED OUTFLOWS - OPEB 55,779.00 2450 NET OPEB LIABILITY 6,065.00 99-9930 OPEB EXPENSE 10,980.00 2451 DEFERRED INFLOWS - OPEB 63,894.00 99-9940 OPEB CONTRIBUTIONS 8,930.00 Total 72,824.00 72,824.00 ADJ Water/Sewer AR for 6/4/21 billings (PBC) Adjust IEPA Loan Balance to Actual Adjust Accrued Interest Payable (IEPA Adjustment PBC was made backwards) Adjust accounts payable for portion of invoice incorrectly included in AP Record GASB 75 OPEB Activity 1 of 2 9/15/2021 10:16 AM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Trial Balance:510 - Water/Sewer Fund Workpaper:510 - Water Sewer Adjusting Journal Entries Report Account Description W/P Ref Debit Credit Adjusting Journal Entries JE # 7 2443 IMRF NET PENSION LIABILITY 748,064.00 2445 IMRF DEFERRED OUTFLOWS-CONT AFTER 22,241.00 2444 IMRF DEFERRED OUTFLOWS-ACT EVAL 72,979.00 2448 IMRF - DEFERRED INFLOWS 387,114.00 31-4420 EMPLOYER CONTRIBUTION - IMRF 151,719.00 32-4420 EMPLOYER CONTRIBUTION - IMRF 83,732.00 35-4420 EMPLOYER CONTRIBUTION - IMRF 74,761.00 Total 770,305.00 770,305.00 Adjusting Journal Entries JE # 8 31-9510 DEPRECIATION EXPENSE 3,639.00 1388 ACCUM DEPREC - SYSTEM & EQUIPMEN 3,639.00 Total 3,639.00 3,639.00 Adjusting Journal Entries JE # 9 32-9100 AMORTIZATION-BOND DISCOUNT 46,005.00 31-9100 AMORTIZATION-BOND DISCOUNT 46,005.00 Total 46,005.00 46,005.00 Adjusting Journal Entries JE # 10 1388 ACCUM DEPREC - SYSTEM & EQUIPMEN 369,129.00 32-3836 GAIN/LOSS ON SALE 1,249,286.00 1308 SYSTEMS & EQUIPMENT 1,618,415.00 Total 1,618,415.00 1,618,415.00 Adjusting Journal Entries JE # 11 1308 SYSTEMS & EQUIPMENT 291,066.00 32-8500 UTILITY SYSTEM 291,066.00 Total 291,066.00 291,066.00 I have reviewed and agree with the adjustment(s) above: Client Signature Date Record Fixed Asset Addition that wasn't recorded Reclass Bond Premium Amortization Record GASB 68 IMRF Activity Adjust Depreciation to match PBC WPs Record Fixed Asset Deletions 2 of 2 7/8/2021 3:05 PM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Trial Balance:550 - Capital Development Fund Workpaper:550 - Capital Development AJE's Report Account Description W/P Ref Debit Credit None in FY21 I have reviewed and agree with the adjustment(s) above: Client Signature Date 1 of 1 Client:City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Workpaper:Utility Improvements Fund AJEs Account Description W/P Ref Debit Credit None in Fiscal Year 2021 I have reviewed and agree with the adjustment(s) above: Client Signature Date 9/15/2021 10:17 AM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Trial Balance:590 - Marina Operations Fund Workpaper:590 - Marina Fund Adjusting Entries Report Account Description W/P Ref Debit Credit None in FY'21 I have reviewed and agree with the adjustment(s) above: Client Signature Date 1 of 1 7/8/2021 1:43 PM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Trial Balance:600 - Employee Insurance Fund Workpaper:600 - Employee Insurance Fund AJE's Report Account Description W/P Ref Debit Credit None in Fiscal Year 2021 I have reviewed and agree with the adjustment(s) above: Client Signature Date 1 of 1 7/8/2021 1:42 PM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Trial Balance:610 - Risk Management Fund Workpaper:610 - Risk Management Fund AJE's Report Account Description W/P Ref Debit Credit None in Fiscal Year 2021 I have reviewed and agree with the adjustment(s) above: Client Signature Date 1 of 1 10/1/2021 8:03 AM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Trial Balance:620 - Information Technology Fund Workpaper:620 - Information Technology Fund AJE Report Account Description W/P Ref Debit Credit 2449 DEFERRED OUTFLOWS - OPEB 2,532.00 2450 NET OPEB LIABILITY 595.00 9930 OPEB Expense 578.00 2451 DEFERRED INFLOWS - OPEB 3,000.00 9940 OPEB Contributions 705.00 Total 3,705.00 3,705.00 Adjusting Journal Entries JE # 2 2443 IMRF NET PENSION LIABILITY 43,607.00 2445 IMRF DEF OUTFLOWS - CONTR MADE AFTER MEAS 258.00 2444 IMRF DEFERRED OUTLFOWS-ACTUARIAL REPORT 19,650.00 2448 IMRF - DEFFERED INFLOWS 6,876.00 4420 EMPLOYER CONTRIBUTION - IMRF 17,339.00 Total 43,865.00 43,865.00 Adjusting Journal Entries JE # 3 2100 ACCOUNTS PAYABLE 309.00 5110 CONTRACTUAL SERVICES 309.00 Total 309.00 309.00 Adjusting Journal Entries JE # 4 1308 SYSTEMS & EQUIPMENT 72,310.00 2310 Capital Lease Payable 72,310.00 Total 72,310.00 72,310.00 Adjusting Journal Entries JE # 5 2310 Capital Lease Payable 24,103.00 8300 EQUIPMENT 24,103.00 Total 24,103.00 24,103.00 Adjusting Journal Entries JE # 6 9510 DEPRECIATION EXPENSE 10,847.00 1388 ACCUM DEPREC - SYSTEM & EQUIPMEN 10,847.00 Total 10,847.00 10,847.00 Record Depreciation on Capital Lease Record IMRF GASB 68 Activity Adjust AP to match PBC Document Adjusting Journal Entries JE # 1 Record GASB 75 OPEB Activity Record Capital Lease Reclass payment made on capital lease 1 of 2 10/1/2021 8:03 AM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Trial Balance:620 - Information Technology Fund Workpaper:620 - Information Technology Fund AJE Report Account Description W/P Ref Debit Credit Adjusting Journal Entries JE # 7 2310 Capital Lease Payable 24,103.00 2309 Current Portion of Capital Lease Payable 24,103.00 Total 24,103.00 24,103.00 I have reviewed and agree with the adjustment(s) above: Client Signature Date Adjust Current Portion of Capital Lease Payable 2 of 2 9/15/2021 10:20 AM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Trial Balance:620 - Information Technology Fund Workpaper:620 - Information Technology Fund AJE Report Account Description W/P Ref Debit Credit 2449 DEFERRED OUTFLOWS - OPEB 2,532.00 2450 NET OPEB LIABILITY 344.00 9930 OPEB Expense 657.00 2451 DEFERRED INFLOWS - OPEB 3,000.00 9940 OPEB Contributions 533.00 Total 3,533.00 3,533.00 Adjusting Journal Entries JE # 2 2443 IMRF NET PENSION LIABILITY 43,607.00 2445 IMRF DEF OUTFLOWS - CONTR MADE AFTER MEAS 258.00 2444 IMRF DEFERRED OUTLFOWS-ACTUARIAL REPORT 19,650.00 2448 IMRF - DEFFERED INFLOWS 6,876.00 4420 EMPLOYER CONTRIBUTION - IMRF 17,339.00 Total 43,865.00 43,865.00 Adjusting Journal Entries JE # 3 2100 ACCOUNTS PAYABLE 309.00 5110 CONTRACTUAL SERVICES 309.00 Total 309.00 309.00 Adjusting Journal Entries JE # 4 1308 SYSTEMS & EQUIPMENT 72,310.00 2310 Capital Lease Payable 72,310.00 Total 72,310.00 72,310.00 Adjusting Journal Entries JE # 5 2310 Capital Lease Payable 24,103.00 8300 EQUIPMENT 24,103.00 Total 24,103.00 24,103.00 Adjusting Journal Entries JE # 6 9510 DEPRECIATION EXPENSE 10,847.00 1388 ACCUM DEPREC - SYSTEM & EQUIPMEN 10,847.00 Total 10,847.00 10,847.00 I have reviewed and agree with the adjustment(s) above: Client Signature Date Record Depreciation on Capital Lease Record IMRF GASB 68 Activity Adjust AP to match PBC Document Adjusting Journal Entries JE # 1 Record GASB 75 OPEB Activity Record Capital Lease Reclass payment made on capital lease 1 of 1 Client:City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Workpaper:Employee Flex Fund Adjusting Entries Report Account Description W/P Ref Debit Credit None in Fiscal Year 2021 I have reviewed and agree with the adjustment(s) above: Client Signature Date Client:City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Workpaper:Developmental Escrow Fund AJEs Account Description W/P Ref Debit Credit None in Fiscal Year 2021 I have reviewed and agree with the adjustment(s) above: Client Signature Date 7/8/2021 1:38 PM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Trial Balance:740 - Retained Personnel Escrow Fund Workpaper:740 - Retained Personnel Escrow AJEs Report Account Description W/P Ref Debit Credit None in Fiscal Year 2021 I have reviewed and agree with the adjustment(s) above: Client Signature Date 1 of 1 Client:City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Workpaper:Revolving Loan Fund Adjusting Entries Report Account Description W/P Ref Debit Credit None in Fiscal Year 2021 I have reviewed and agree with the adjustment(s) above: Client Signature Date 9/15/2021 10:23 AM Client:City of McHenry - City of McHenry Engagement:City of McHenry Period Ending:4/30/2021 Trial Balance:760 - Police Pension Fund Workpaper:760 - Police Pension AJE's Report Account Description W/P Ref Debit Credit None in FY21 Client Signature Date 1 of 1