FAC Explorer

Audit 290635

FY End
2022-12-31
Total Expended
$4.14M
Findings
8
Programs
2
Organization: Waukegan Port District (IL)
Year: 2022 Accepted: 2024-02-15
Auditor: Sikich LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
369442 2022-004 Material Weakness - P
369443 2022-004 Material Weakness - P
369444 2022-004 Material Weakness - P
369445 2022-004 Material Weakness - P
945884 2022-004 Material Weakness - P
945885 2022-004 Material Weakness - P
945886 2022-004 Material Weakness - P
945887 2022-004 Material Weakness - P

Programs

ALN Program Spent Major Findings
20.106 Airport Improvement Program $47,854 Yes 1
20.106 Covid-19 Airport Improvement Program $34,218 Yes 1

Contacts

Name Title Type
YWYJBJM73BN7 Robert B. Hamilton Auditee
8472443133 Jim Savio Auditor
No contacts on file

Notes to SEFA

Title: Note B- Subrecipients Accounting Policies: The accompanying schedule of expenditures of federal awards is a summary of the activity of the District’s federal award programs presented on the accrual basis of accounting in accordance with generally accepted accounting principles. Accordingly, revenues are recognized when the qualifying expenditure has been incurred and expenditures have been recognized when the liability has been incurred. De Minimis Rate Used: Y Rate Explanation: The District has elected to use the 10% de minimis indirect cost rate as permitted by 2 CFR Section 200.414. There were no subrecipients for the fiscal year ending December 31, 2022.
Title: Note C - Other Information Accounting Policies: The accompanying schedule of expenditures of federal awards is a summary of the activity of the District’s federal award programs presented on the accrual basis of accounting in accordance with generally accepted accounting principles. Accordingly, revenues are recognized when the qualifying expenditure has been incurred and expenditures have been recognized when the liability has been incurred. De Minimis Rate Used: Y Rate Explanation: The District has elected to use the 10% de minimis indirect cost rate as permitted by 2 CFR Section 200.414. The District did not receive any federal insurance or free rent, and had no federal loans or loan guarantees outstanding with continuing compliance requirements during the year ended December 31, 2022.
Title: Note E - Noncash Federal Awards Accounting Policies: The accompanying schedule of expenditures of federal awards is a summary of the activity of the District’s federal award programs presented on the accrual basis of accounting in accordance with generally accepted accounting principles. Accordingly, revenues are recognized when the qualifying expenditure has been incurred and expenditures have been recognized when the liability has been incurred. De Minimis Rate Used: Y Rate Explanation: The District has elected to use the 10% de minimis indirect cost rate as permitted by 2 CFR Section 200.414. $3,420,505 of the Airport Improvement program (ALN# 20.106) expenses on the schedule of expenditures of federal awards are noncash contributions.

Finding Details

Finding 2022-004
2022-004 Noncash Federal Awards Criteria: Organizations are responsible for adjusting their financial statements, including recording grant related noncash contributed capital assets. Condition/Context: During the audit process, we noted the contributed capital for noncash federal awards was not recorded as revenue. We consider the deficiency described to be a material weakness. Effect: During our audit, we posted material adjusting journal entries to correct misstatements. With regular and timely review, management can maintain up-to-date records of account balances and detail. Recommendation: We recommend the District develop procedures to review the project status for IDOT let projects at least annually and record the related contributed capital revenue and capital asset as of year-end. Views of Responsible Officials: Management agrees with this finding and a response is included in the Corrective Action Plan.
Finding 2022-004
2022-004 Noncash Federal Awards Criteria: Organizations are responsible for adjusting their financial statements, including recording grant related noncash contributed capital assets. Condition/Context: During the audit process, we noted the contributed capital for noncash federal awards was not recorded as revenue. We consider the deficiency described to be a material weakness. Effect: During our audit, we posted material adjusting journal entries to correct misstatements. With regular and timely review, management can maintain up-to-date records of account balances and detail. Recommendation: We recommend the District develop procedures to review the project status for IDOT let projects at least annually and record the related contributed capital revenue and capital asset as of year-end. Views of Responsible Officials: Management agrees with this finding and a response is included in the Corrective Action Plan.
Finding 2022-004
2022-004 Noncash Federal Awards Criteria: Organizations are responsible for adjusting their financial statements, including recording grant related noncash contributed capital assets. Condition/Context: During the audit process, we noted the contributed capital for noncash federal awards was not recorded as revenue. We consider the deficiency described to be a material weakness. Effect: During our audit, we posted material adjusting journal entries to correct misstatements. With regular and timely review, management can maintain up-to-date records of account balances and detail. Recommendation: We recommend the District develop procedures to review the project status for IDOT let projects at least annually and record the related contributed capital revenue and capital asset as of year-end. Views of Responsible Officials: Management agrees with this finding and a response is included in the Corrective Action Plan.
Finding 2022-004
2022-004 Noncash Federal Awards Criteria: Organizations are responsible for adjusting their financial statements, including recording grant related noncash contributed capital assets. Condition/Context: During the audit process, we noted the contributed capital for noncash federal awards was not recorded as revenue. We consider the deficiency described to be a material weakness. Effect: During our audit, we posted material adjusting journal entries to correct misstatements. With regular and timely review, management can maintain up-to-date records of account balances and detail. Recommendation: We recommend the District develop procedures to review the project status for IDOT let projects at least annually and record the related contributed capital revenue and capital asset as of year-end. Views of Responsible Officials: Management agrees with this finding and a response is included in the Corrective Action Plan.
Finding 2022-004
2022-004 Noncash Federal Awards Criteria: Organizations are responsible for adjusting their financial statements, including recording grant related noncash contributed capital assets. Condition/Context: During the audit process, we noted the contributed capital for noncash federal awards was not recorded as revenue. We consider the deficiency described to be a material weakness. Effect: During our audit, we posted material adjusting journal entries to correct misstatements. With regular and timely review, management can maintain up-to-date records of account balances and detail. Recommendation: We recommend the District develop procedures to review the project status for IDOT let projects at least annually and record the related contributed capital revenue and capital asset as of year-end. Views of Responsible Officials: Management agrees with this finding and a response is included in the Corrective Action Plan.
Finding 2022-004
2022-004 Noncash Federal Awards Criteria: Organizations are responsible for adjusting their financial statements, including recording grant related noncash contributed capital assets. Condition/Context: During the audit process, we noted the contributed capital for noncash federal awards was not recorded as revenue. We consider the deficiency described to be a material weakness. Effect: During our audit, we posted material adjusting journal entries to correct misstatements. With regular and timely review, management can maintain up-to-date records of account balances and detail. Recommendation: We recommend the District develop procedures to review the project status for IDOT let projects at least annually and record the related contributed capital revenue and capital asset as of year-end. Views of Responsible Officials: Management agrees with this finding and a response is included in the Corrective Action Plan.
Finding 2022-004
2022-004 Noncash Federal Awards Criteria: Organizations are responsible for adjusting their financial statements, including recording grant related noncash contributed capital assets. Condition/Context: During the audit process, we noted the contributed capital for noncash federal awards was not recorded as revenue. We consider the deficiency described to be a material weakness. Effect: During our audit, we posted material adjusting journal entries to correct misstatements. With regular and timely review, management can maintain up-to-date records of account balances and detail. Recommendation: We recommend the District develop procedures to review the project status for IDOT let projects at least annually and record the related contributed capital revenue and capital asset as of year-end. Views of Responsible Officials: Management agrees with this finding and a response is included in the Corrective Action Plan.
Finding 2022-004
2022-004 Noncash Federal Awards Criteria: Organizations are responsible for adjusting their financial statements, including recording grant related noncash contributed capital assets. Condition/Context: During the audit process, we noted the contributed capital for noncash federal awards was not recorded as revenue. We consider the deficiency described to be a material weakness. Effect: During our audit, we posted material adjusting journal entries to correct misstatements. With regular and timely review, management can maintain up-to-date records of account balances and detail. Recommendation: We recommend the District develop procedures to review the project status for IDOT let projects at least annually and record the related contributed capital revenue and capital asset as of year-end. Views of Responsible Officials: Management agrees with this finding and a response is included in the Corrective Action Plan.