FAC Explorer

Audit 26237

FY End
2022-12-31
Total Expended
$11.86M
Findings
4
Programs
8
Organization: City of Berwyn, Illinois (IL)
Year: 2022 Accepted: 2023-09-28
Auditor: Gw & Associates PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
23221 2022-001 Significant Deficiency - AB
23222 2022-001 Significant Deficiency - AB
599663 2022-001 Significant Deficiency - AB
599664 2022-001 Significant Deficiency - AB

Programs

ALN Program Spent Major Findings
66.458 Capitalization Grants for Clean Water State Revolving Funds $5.30M Yes 1
66.468 Capitalization Grants for Drinking Water State Revolving Funds $3.81M - 1
14.218 Community Development Block Grants/entitlement Grants $1.73M Yes 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $563,709 - 0
20.600 State and Community Highway Safety $181,754 - 0
16.922 Equitable Sharing Program $179,089 - 0
20.616 National Priority Safety Programs $61,656 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $10,018 - 0

Contacts

Name Title Type
DDKNC6RAUSA5 John Wysocki Auditee
7087496539 John J Wysocki Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: NOTE SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESGeneralThe accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal award programs of the City of Berwyn, Illinois (City). The Citys reporting entity is defined in Note 1 to the Citys financial statements.Basis of PresentationThe accompanying Schedule of Expenditures of Federal Awards 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).Basis of AccountingThe accompanying Schedule of Expenditures of Federal Awards is presented using the accrual basis of accounting, which is described in Note 1 to the Citys financial statements. Expenditures are recognized following the cost principles contained in the Uniform Guidance.Non-Cash and Federal InsuranceThe City did not receive non-cash assistance or have Federal insurance in effect during the fiscal year. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS (14.218) - Balances outstanding at the end of the audit period were 1965426.

Finding Details

Finding 2022-001
Finding 2022-001: Allowable Costs/Activities Allowed Federal Award and Specific Award Identification: U.S. Environmental Protection Agency Clean Water State Revolving Fund Cluster - Assistance Listing # 66.458 Drinking Water State Revolving Fund Cluster - Assistance Listing # 66.468 Criteria: Proper internal controls over allowable costs and allowable activities include the maintenance of detailed records that provide for easy reconciliation of supporting invoices to amounts reported as expenditures of federal awards for each federal program. Statement of Condition: The City received awards under two federal programs - the Clean Water State Revolving Fund Cluster and the Drinking Water State Revolving Fund Cluster ? both of which were passed through the Illinois Environmental Protection Agency (?IEPA?). The funds were to be used for two projects occurring simultaneously. One was the replacement of water mains and lead service lines in the City and the other was for sewer system improvements. While supporting invoices and other necessary documentation, which we examined, were provided to the IEPA who approved disbursement under the specific federal programs, the City was unable to provide us with a detailed listing of which invoices related to which project. Cause The recordkeeping issues were a result of the City not summarizing and organizing the detailed information provided to the State of Illinois for reimbursement purposes in a manner that was readily auditable by federal program. Effect The specific invoices comprising federal expenditures under each of the two federal programs could not be readily determined from the documentation maintained by the City. While invoices supported the total expenditures of the two federal programs, there is a risk that costs intended to be paid for by one federal program could be paid for by the other in error. Questioned Costs None identified. Recommendation We recommend that the City make the necessary changes with their existing accounting system and procedures to ensure that expenditures for each award are supported by a detailed listing of invoices that total the program expenditures reported on the schedule of expenditures of federal awards. Management Response See corrective action plan.
Finding 2022-001
Finding 2022-001: Allowable Costs/Activities Allowed Federal Award and Specific Award Identification: U.S. Environmental Protection Agency Clean Water State Revolving Fund Cluster - Assistance Listing # 66.458 Drinking Water State Revolving Fund Cluster - Assistance Listing # 66.468 Criteria: Proper internal controls over allowable costs and allowable activities include the maintenance of detailed records that provide for easy reconciliation of supporting invoices to amounts reported as expenditures of federal awards for each federal program. Statement of Condition: The City received awards under two federal programs - the Clean Water State Revolving Fund Cluster and the Drinking Water State Revolving Fund Cluster ? both of which were passed through the Illinois Environmental Protection Agency (?IEPA?). The funds were to be used for two projects occurring simultaneously. One was the replacement of water mains and lead service lines in the City and the other was for sewer system improvements. While supporting invoices and other necessary documentation, which we examined, were provided to the IEPA who approved disbursement under the specific federal programs, the City was unable to provide us with a detailed listing of which invoices related to which project. Cause The recordkeeping issues were a result of the City not summarizing and organizing the detailed information provided to the State of Illinois for reimbursement purposes in a manner that was readily auditable by federal program. Effect The specific invoices comprising federal expenditures under each of the two federal programs could not be readily determined from the documentation maintained by the City. While invoices supported the total expenditures of the two federal programs, there is a risk that costs intended to be paid for by one federal program could be paid for by the other in error. Questioned Costs None identified. Recommendation We recommend that the City make the necessary changes with their existing accounting system and procedures to ensure that expenditures for each award are supported by a detailed listing of invoices that total the program expenditures reported on the schedule of expenditures of federal awards. Management Response See corrective action plan.
Finding 2022-001
Finding 2022-001: Allowable Costs/Activities Allowed Federal Award and Specific Award Identification: U.S. Environmental Protection Agency Clean Water State Revolving Fund Cluster - Assistance Listing # 66.458 Drinking Water State Revolving Fund Cluster - Assistance Listing # 66.468 Criteria: Proper internal controls over allowable costs and allowable activities include the maintenance of detailed records that provide for easy reconciliation of supporting invoices to amounts reported as expenditures of federal awards for each federal program. Statement of Condition: The City received awards under two federal programs - the Clean Water State Revolving Fund Cluster and the Drinking Water State Revolving Fund Cluster ? both of which were passed through the Illinois Environmental Protection Agency (?IEPA?). The funds were to be used for two projects occurring simultaneously. One was the replacement of water mains and lead service lines in the City and the other was for sewer system improvements. While supporting invoices and other necessary documentation, which we examined, were provided to the IEPA who approved disbursement under the specific federal programs, the City was unable to provide us with a detailed listing of which invoices related to which project. Cause The recordkeeping issues were a result of the City not summarizing and organizing the detailed information provided to the State of Illinois for reimbursement purposes in a manner that was readily auditable by federal program. Effect The specific invoices comprising federal expenditures under each of the two federal programs could not be readily determined from the documentation maintained by the City. While invoices supported the total expenditures of the two federal programs, there is a risk that costs intended to be paid for by one federal program could be paid for by the other in error. Questioned Costs None identified. Recommendation We recommend that the City make the necessary changes with their existing accounting system and procedures to ensure that expenditures for each award are supported by a detailed listing of invoices that total the program expenditures reported on the schedule of expenditures of federal awards. Management Response See corrective action plan.
Finding 2022-001
Finding 2022-001: Allowable Costs/Activities Allowed Federal Award and Specific Award Identification: U.S. Environmental Protection Agency Clean Water State Revolving Fund Cluster - Assistance Listing # 66.458 Drinking Water State Revolving Fund Cluster - Assistance Listing # 66.468 Criteria: Proper internal controls over allowable costs and allowable activities include the maintenance of detailed records that provide for easy reconciliation of supporting invoices to amounts reported as expenditures of federal awards for each federal program. Statement of Condition: The City received awards under two federal programs - the Clean Water State Revolving Fund Cluster and the Drinking Water State Revolving Fund Cluster ? both of which were passed through the Illinois Environmental Protection Agency (?IEPA?). The funds were to be used for two projects occurring simultaneously. One was the replacement of water mains and lead service lines in the City and the other was for sewer system improvements. While supporting invoices and other necessary documentation, which we examined, were provided to the IEPA who approved disbursement under the specific federal programs, the City was unable to provide us with a detailed listing of which invoices related to which project. Cause The recordkeeping issues were a result of the City not summarizing and organizing the detailed information provided to the State of Illinois for reimbursement purposes in a manner that was readily auditable by federal program. Effect The specific invoices comprising federal expenditures under each of the two federal programs could not be readily determined from the documentation maintained by the City. While invoices supported the total expenditures of the two federal programs, there is a risk that costs intended to be paid for by one federal program could be paid for by the other in error. Questioned Costs None identified. Recommendation We recommend that the City make the necessary changes with their existing accounting system and procedures to ensure that expenditures for each award are supported by a detailed listing of invoices that total the program expenditures reported on the schedule of expenditures of federal awards. Management Response See corrective action plan.