FAC Explorer

Audit 10301

FY End
2023-04-30
Total Expended
$3.40M
Findings
4
Programs
5
Organization: City of East Peoria, Illinois (IL)
Year: 2023 Accepted: 2024-01-08
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
7899 2023-003 Significant Deficiency - L
7900 2023-004 Significant Deficiency - I
584341 2023-003 Significant Deficiency - L
584342 2023-004 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
66.458 Capitalization Grants for Clean Water State Revolving Funds $1.68M Yes 0
97.044 Assistance to Firefighters Grant $1.37M Yes 2
21.027 Coronavirus State and Local Fiscal Recovery Funds $308,869 - 0
20.600 State and Community Highway Safety $38,796 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $10,511 - 0

Contacts

Name Title Type
GJC2LPMAUXN7 Jeff Becker Auditee
3096984715 Adam Pulley Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Revenue from federal awards is recognized in the governmental funds when the City has done everything necessary to establish its right to revenue and the revenue meets the available criteria. Expenditures of federal awards are recognized in the accounting period when the liability is incurred and approved for reimbursement. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The City has elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal grant activity of City of East Peoria, Illinois (the City) and is presented on the modified accrual basis of accounting. All federal financial assistance received directly from federal agencies, as well as federal financial assistance passed through other governmental agencies expanded during the year, is included in the schedule. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the schedule may differ from amounts presented in or used in the preparation of the basic financial statements.
Title: OUTSTANDING LOAN BALANCE Accounting Policies: Revenue from federal awards is recognized in the governmental funds when the City has done everything necessary to establish its right to revenue and the revenue meets the available criteria. Expenditures of federal awards are recognized in the accounting period when the liability is incurred and approved for reimbursement. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The City has elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Capitalization Grants for Clean Water State Revolving Loan Funds is a loan program with the U.S. Environmental Protection Agency and passed through the Illinois Environmental Protection Agency. The unpaid balance on the loan is $19,423,150 as of April 30, 2023, of which $4,458,338 was federally funded.

Finding Details

Finding 2023-003
Finding No. 2023-003 — Reporting Federal Agency: Federal Emergency Management Agency Federal Program Title: Assistance to Firefighters Grant Federal Assistance Listing Number: 97.044 Award Period: September 8, 2021 through September 7, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matter Condition: The City did not apply the designed internal control over compliance, as the same person who was preparing reports, was also responsible for submitting the reports. Additionally, it was noted that 1 of 3 reports tested was not submitted. Criteria: The Uniform Grant Guidance requires the City establish and perform an internal control over compliance. Questioned Costs: None. Context: There was no review of reports before submission, which led to 1 of 3 reports tested not being submitted timely. Effect: The submitted reports could be incorrect. Cause: The City does not have proper internal controls in place regarding submission of reports. Repeat Finding: Finding was not repeated in the prior year. Recommendation: We recommend the City establish controls to ensure proper approval of reports before submission. Views of Responsible Officials: Management will meet with the grant Program Manager(s) to review and ensure all of the City’s Federal Grants Management Policies are being adhered to.
Finding 2023-004
Finding No. 2023-004 — Procurement (Continued) Federal Agency: Federal Emergency Management Agency Federal Program Title: Assistance to Firefighters Grant Federal Assistance Listing Number: 97.044 Award Period: September 8, 2021 through September 7, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Condition: During our testing of procurement, we noted certain items were purchased without review and approval. Criteria: The Uniform Grant Guidance requires the City establish and perform an internal control over compliance. Questioned Costs: None. Context: We noted that for 2 of the 8 procurements tested, proper approval was not obtained. Effect: The City did not follow their procurement policies. Cause: The City does not have proper internal controls in place regarding procurement policies. Repeat Finding: Finding was not repeated in the prior year. Recommendation: We recommend the City establish controls to ensure proper approval of procurements before purchases are made. Views of Responsible Officials: Management will meet with the grant Program Manager(s) to review and ensure all of the City’s Federal Grants Management Policies are being adhered to.
Finding 2023-003
Finding No. 2023-003 — Reporting Federal Agency: Federal Emergency Management Agency Federal Program Title: Assistance to Firefighters Grant Federal Assistance Listing Number: 97.044 Award Period: September 8, 2021 through September 7, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matter Condition: The City did not apply the designed internal control over compliance, as the same person who was preparing reports, was also responsible for submitting the reports. Additionally, it was noted that 1 of 3 reports tested was not submitted. Criteria: The Uniform Grant Guidance requires the City establish and perform an internal control over compliance. Questioned Costs: None. Context: There was no review of reports before submission, which led to 1 of 3 reports tested not being submitted timely. Effect: The submitted reports could be incorrect. Cause: The City does not have proper internal controls in place regarding submission of reports. Repeat Finding: Finding was not repeated in the prior year. Recommendation: We recommend the City establish controls to ensure proper approval of reports before submission. Views of Responsible Officials: Management will meet with the grant Program Manager(s) to review and ensure all of the City’s Federal Grants Management Policies are being adhered to.
Finding 2023-004
Finding No. 2023-004 — Procurement (Continued) Federal Agency: Federal Emergency Management Agency Federal Program Title: Assistance to Firefighters Grant Federal Assistance Listing Number: 97.044 Award Period: September 8, 2021 through September 7, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Condition: During our testing of procurement, we noted certain items were purchased without review and approval. Criteria: The Uniform Grant Guidance requires the City establish and perform an internal control over compliance. Questioned Costs: None. Context: We noted that for 2 of the 8 procurements tested, proper approval was not obtained. Effect: The City did not follow their procurement policies. Cause: The City does not have proper internal controls in place regarding procurement policies. Repeat Finding: Finding was not repeated in the prior year. Recommendation: We recommend the City establish controls to ensure proper approval of procurements before purchases are made. Views of Responsible Officials: Management will meet with the grant Program Manager(s) to review and ensure all of the City’s Federal Grants Management Policies are being adhered to.