FAC Explorer

Audit 26960

FY End
2022-04-30
Total Expended
$3.16M
Findings
2
Programs
7
Organization: City of Crystal Lake, Illinois (IL)
Year: 2022 Accepted: 2022-10-24
Auditor: Sikich LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
36336 2022-002 Material Weakness - A
612778 2022-002 Material Weakness - A

Programs

ALN Program Spent Major Findings
66.468 Capitalization Grants for Drinking Water State Revolving Funds $2.70M Yes 1
21.027 Coronavirus State and Local Fiscal Recovery Funds $315,302 - 0
14.218 Community Development Block Grants/entitlement Grants $75,000 - 0
93.498 Provider Relief Fund $44,876 - 0
20.600 State and Community Highway Safety $15,639 - 0
16.607 Bulletproof Vest Partnership Program $6,269 - 0
16.922 Equitable Sharing Program $2,360 - 0

Contacts

Name Title Type
DX1HNP44F4K5 Jodie Hartman Auditee
8154592020 Dan Berg Auditor
No contacts on file

Notes to SEFA

Title: SUBRECIPIENTS Accounting Policies: The accompanying schedule of expenditures of federal awards is a summary of the activity of theCitys federal award programs presented on the modified accrual basis of accounting in accordancewith generally accepted accounting principles. Accordingly, revenues are recognized when thequalifying expenditure has been incurred and expenditures have been recognized when the fundliability has been incurred. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. There were no subrecipients for the fiscal year ending April 30, 2022.
Title: OTHER INFORMATION Accounting Policies: The accompanying schedule of expenditures of federal awards is a summary of the activity of theCitys federal award programs presented on the modified accrual basis of accounting in accordancewith generally accepted accounting principles. Accordingly, revenues are recognized when thequalifying expenditure has been incurred and expenditures have been recognized when the fundliability has been incurred. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The City did not receive any federal insurance, free rent, or noncash assistance and had no federal loans or loan guarantees outstanding with continuing compliance requirements during the year ended April 30, 2022.

Finding Details

Finding 2022-002
2022-002 Allowable Costs - 66.468 - Capitalization Grants for Drinking Water State Revolving Funds - April 30, 2022 Criteria: The City is responsible for submitting requests for loan disbursements to the Illinois Environmental Protections Agency (IEPA), including eligible expenditures for loan reimbursement. Condition/Context: The City submitted expenditures to IEPA totaling $260,749, that were approved by IEPA. Upon additional review, the City determined these expenditures to be ineligible as they were previously used as bond expenditures related to a previous bond issuance and are therefore ineligible expenditures for loan reimbursement. Cause: The City?s initial review process did not identify ineligible expenditures. Effect: The City provided an entry to retroactively correct the loan proceeds and note payable by reducing the current year loan receivable for the amount of ineligible expenditures. Questioned Costs: $260,749 Recommendation: We recommend the City review its process and procedures related to submitting IEPA loan reimbursements, to ensure all expenditures are eligible for reimbursement. Views of Responsible Officials: The City agrees with the finding above, further information is provided in the Corrective Action Plan.
Finding 2022-002
2022-002 Allowable Costs - 66.468 - Capitalization Grants for Drinking Water State Revolving Funds - April 30, 2022 Criteria: The City is responsible for submitting requests for loan disbursements to the Illinois Environmental Protections Agency (IEPA), including eligible expenditures for loan reimbursement. Condition/Context: The City submitted expenditures to IEPA totaling $260,749, that were approved by IEPA. Upon additional review, the City determined these expenditures to be ineligible as they were previously used as bond expenditures related to a previous bond issuance and are therefore ineligible expenditures for loan reimbursement. Cause: The City?s initial review process did not identify ineligible expenditures. Effect: The City provided an entry to retroactively correct the loan proceeds and note payable by reducing the current year loan receivable for the amount of ineligible expenditures. Questioned Costs: $260,749 Recommendation: We recommend the City review its process and procedures related to submitting IEPA loan reimbursements, to ensure all expenditures are eligible for reimbursement. Views of Responsible Officials: The City agrees with the finding above, further information is provided in the Corrective Action Plan.