Audit 292377

Accounting Policies: 1. Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the City of Macomb, Illinois (City) and is presented on the accrual basis of accounting. 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).2. Significant Accounting Policies Revenue from federal awards is recognized when the City has incurred certain qualifying costs to establish its right to revenue. Accordingly, expenditures are recognized when the fund liability has been incurred and revenues are recognized when the qualifying expenditure has been incurred. 4. Subrecipients, Insurance, and Loans The City provided federal awards to subrecipients as indicated on the schedule of expenditures of federal awards. The City did not have any federal insurance in effect during the year. Loans Payable - Illinois EPA – The City had four loans payable to the Illinois Environmental Protection Agency (IEPA) from the City’s Water Fund as of April 30, 2023. The loans relate to projects as follows: Loan Number Interest Rate Principal Phase L17-2199 2.500% $ 1 28,639 Repayment L17-2947 0.000% 261,369 Repayment L17-5138 2.210% 681,043 Repayment L17-5197 1.860% 2,219,498 Repayment $ 3,290,549 4. Subrecipients, Insurance, and Loans The loans were made from the IEPA Revolving Fund which has been funded with both federal and state of Illinois monies. There were no loan drawdowns during the fiscal year 2023. Total loans outstanding on April 30, 2023, were $3,290,549. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.