FAC Explorer

Audit 28689

FY End
2022-04-30
Total Expended
$9.01M
Findings
2
Programs
11
Organization: City of Quincy, Illinois (IL)
Year: 2022 Accepted: 2022-12-27
Auditor: Wade Stables PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
32901 2022-002 Significant Deficiency - B
609343 2022-002 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $2.72M Yes 1
66.468 Capitalization Grants for Drinking Water State Revolving Funds $1.18M Yes 0
66.458 Capitalization Grants for Clean Water State Revolving Funds $1.10M - 0
20.509 Formula Grants for Rural Areas and Tribal Transit Program $949,648 Yes 0
20.106 Airport Improvement Program $269,538 - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $159,254 - 0
16.034 Coronavirus Emergency Supplemental Funding Program $44,032 - 0
20.600 State and Community Highway Safety $14,434 - 0
97.067 Homeland Security Grant Program $13,605 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $3,085 - 0
16.607 Bulletproof Vest Partnership Program $1,850 - 0

Contacts

Name Title Type
JEFWHW4MYM55 Sheri Ray Auditee
2172284517 Anita Failor Auditor
No contacts on file

Notes to SEFA

Title: Subrecipients Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City of Quincy, Illinois, and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the 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 this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The City of Quincy, Illinois, did not receive federal awards on behalf of others.
Title: Non-Monetary Federal Awards Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City of Quincy, Illinois, and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the 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 this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. Non-monetary assistance is reported in the schedule of expenditures of federal awards at the fair market value of the commodities received and disbursed. During the year ended April 30, 2022, the City did not receive any non-monetary assistance.
Title: Insurance Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City of Quincy, Illinois, and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the 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 this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. As of and for the year ended April 30, 2022, the City had no federal insurance in effect.
Title: Federal Loans or Loan Guarantees Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City of Quincy, Illinois, and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the 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 this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. As of and for the year ended April 30, 2022, the City had loans with the Illinois EPA Infrastructure Financial Assistance Section Clean Water Revolving Fund and Drinking Water Revolving Fund. The balance of those loans at April 30, 2022 was $15,292,096. A portion of these loans were federally funded in the amount of $3,886,484.

Finding Details

Finding 2022-002
Finding 2022-002 ? Allowable Costs Federal Agency: U.S. Department of Treasury Passthrough Entity: Illinois Department of Revenue Assistance Listing Number and Federal Program: 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Criteria: Internal controls should be in place to reduce the risk of noncompliance with grant requirements. Specifically, costs need to be reviewed and approved by qualified personnel to ensure they are allowable costs. In a memo dated January 24, 2017, and approved by the Council, the City implemented procedures that requires all nonunion, non-exempt personnel to clock in and out for each shift. Police and Fire employees have their own sign-in and sign-out sheets that are to be approved daily by their respective supervisors. Statement of Condition: Salaries paid to essential workers to perform essential work during the COVID-19 public health emergency were used for reimbursement under this grant. Selected employees? timesheets did not have the proper supervisor approval. Statement of Cause: Personnel are not properly following the policy put in place by the above-mentioned memo. Statement of Effect: Without proper review and approval, employees may not be compensated correctly which can lead to erroneous payroll tax documents and additional administrative time to correct misstatements. Additionally, if qualified personnel are not reviewing costs associated with the grant to ensure they are allowable, there is a great possibility that unallowable costs could be claimed for reimbursement. This may lead to the City being responsible for reimbursing the grant funding to the awarding agency. Questioned Costs: No questioned costs were identified.Perspective Information: This appears to be a systemic problem. Payroll for essential workers from the 911, Police, and Fire departments from May 14, 2021 to October 1, 2021 was claimed for reimbursement under this grant. We haphazardly selected 5 employees from the pay periods during that time frame and reviewed the daily timesheets for supervisor approval. There were no supervisor approvals on the 911 timesheets and supervisor approvals were consistently missing for Police and Fire departments. Identification of Repeat Findings: Not a repeat finding. Recommendation: Timesheets need to be approved by the supervisor before submission to Comptroller?s office. If the timesheets do not have the proper approvals, then they should not be processed until the signature is obtained.
Finding 2022-002
Finding 2022-002 ? Allowable Costs Federal Agency: U.S. Department of Treasury Passthrough Entity: Illinois Department of Revenue Assistance Listing Number and Federal Program: 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Criteria: Internal controls should be in place to reduce the risk of noncompliance with grant requirements. Specifically, costs need to be reviewed and approved by qualified personnel to ensure they are allowable costs. In a memo dated January 24, 2017, and approved by the Council, the City implemented procedures that requires all nonunion, non-exempt personnel to clock in and out for each shift. Police and Fire employees have their own sign-in and sign-out sheets that are to be approved daily by their respective supervisors. Statement of Condition: Salaries paid to essential workers to perform essential work during the COVID-19 public health emergency were used for reimbursement under this grant. Selected employees? timesheets did not have the proper supervisor approval. Statement of Cause: Personnel are not properly following the policy put in place by the above-mentioned memo. Statement of Effect: Without proper review and approval, employees may not be compensated correctly which can lead to erroneous payroll tax documents and additional administrative time to correct misstatements. Additionally, if qualified personnel are not reviewing costs associated with the grant to ensure they are allowable, there is a great possibility that unallowable costs could be claimed for reimbursement. This may lead to the City being responsible for reimbursing the grant funding to the awarding agency. Questioned Costs: No questioned costs were identified.Perspective Information: This appears to be a systemic problem. Payroll for essential workers from the 911, Police, and Fire departments from May 14, 2021 to October 1, 2021 was claimed for reimbursement under this grant. We haphazardly selected 5 employees from the pay periods during that time frame and reviewed the daily timesheets for supervisor approval. There were no supervisor approvals on the 911 timesheets and supervisor approvals were consistently missing for Police and Fire departments. Identification of Repeat Findings: Not a repeat finding. Recommendation: Timesheets need to be approved by the supervisor before submission to Comptroller?s office. If the timesheets do not have the proper approvals, then they should not be processed until the signature is obtained.