Village audit report released

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A financial audit of the Village of Pemberville for the years 2022 and 2021 found no incidences of missing funds but did find material weaknesses in some of the village’s financial statements.
The Ohio Auditor’s office released its report of the audit last week.
Three errors were noted and required adjustments to the statements:
-In 2022 and 2021, the village made reimbursements for sewer tap fees in the amount of $20,000 and $5,000 respectively. The reimbursements were incorrectly recorded as principal payments in the Enterprise fund but should have been posted as Other Financing Uses.
-In 2022, other debt proceeds in the amount of $186,588 paid to the village by the Ohio Water Development Authority were incorrectly recorded as special assessment revenue in the Enterprise fund.
-In 2022, Ohio Department of Development State Fiscal Recovery grant proceeds in the amount of $283,649 were incorrectly recorded as special assessment revenue in the Enterprise fund. This should have been posted as intergovernmental revenue.
“These errors were the result of inadequate policies and procedures in reviewing the financial statements,” the report says. “The accompanying financial statements have been adjusted to correct these errors, In addition to the adjustments noted above, we also identified additional misstatements ranging from $83 to $6,653 that we have brought to the village’s attention.”
The audit also found the village hasn’t complied with provisions in the Ohio Municipal Electric Generation Agency Joint Venture 5 (OMEGA JV5) agreement.
The village is a financing participant with an ownership percentage of 0.92 percent along with 41 other jurisdictions in the venture.
Under the agreement, each participant is required to collect rates, fees and charges at least sufficient to provide revenues equal to OMEGA JV5 operation and maintenance expenses and debt service.
“Due to the village’s failure to properly increase rates sufficient to meet the required coverage ratio, the village failed to meet their O&M and debt coverage obligation in either year of the audit period,” the report says. “Failure to set sufficient rates, could lead to the village’s inability to make payment due by the due date, constituting a default. This could result in OMEGA JV5 taking certain actions including the termination of the village’s entitlement to project power.
“The village should perform a rate study and increase rates to ensure that they are sufficient to meet and maintain the village’s O&M and debt coverage…”