FAC Explorer

Audit 295485

FY End
2022-12-31
Total Expended
$28.71M
Findings
20
Programs
8
Organization: City of Decatur (IL)
Year: 2022 Accepted: 2024-03-18
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
380767 2022-005 Significant Deficiency Yes I
380768 2022-005 Significant Deficiency Yes I
380769 2022-005 Significant Deficiency Yes I
380770 2022-005 Significant Deficiency Yes I
380771 2022-005 Significant Deficiency Yes I
380772 2022-005 Significant Deficiency Yes I
380773 2022-005 Significant Deficiency Yes I
380774 2022-005 Significant Deficiency Yes I
380775 2022-006 Significant Deficiency - L
380776 2022-007 Significant Deficiency - B
957209 2022-005 Significant Deficiency Yes I
957210 2022-005 Significant Deficiency Yes I
957211 2022-005 Significant Deficiency Yes I
957212 2022-005 Significant Deficiency Yes I
957213 2022-005 Significant Deficiency Yes I
957214 2022-005 Significant Deficiency Yes I
957215 2022-005 Significant Deficiency Yes I
957216 2022-005 Significant Deficiency Yes I
957217 2022-006 Significant Deficiency - L
957218 2022-007 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $23.23M Yes 3
20.507 Federal Transit_formula Grants $1.35M Yes 1
14.218 Community Development Block Grants/entitlement Grants $247,314 - 0
20.526 Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs $178,980 Yes 1
20.205 Highway Planning and Construction $100,398 - 0
14.239 Home Investment Partnerships Program $32,365 - 0
20.600 State and Community Highway Safety $20,509 - 0
16.607 Bulletproof Vest Partnership Program $8,160 - 0

Contacts

Name Title Type
HCL3MP6L8XV5 Ruby James Auditee
2174242702 Hope Wheeler Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of City of Decatur, Illinois (the City) and its discretely presented component unit, the Civic Center Authority, under programs of the federal government for the year ended December 31, 2022. 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). The City financial reporting entity, as defined in Note 1 to the basic financial statements, consists of the activities of the City and its discretely presented component unit. Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position or changes in net position of the City. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, which follows criteria determined by the Department of Treasury for allowability of costs. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. The underlying accounting records for some grant programs are maintained on the modified accrual basis of accounting. Under the modified accrual basis, revenues are recorded when susceptible to accrual, i.e., both measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Expenditures are recorded when the liability is incurred. The accounting records for other grant programs are maintained on the accrual basis, i.e., when the revenue has been earned and the liability is incurred. De Minimis Rate Used: N Rate Explanation: Although eligible for, City of Decatur, Illinois has not elected to use the 10% de minimis indirect cost rate.

Finding Details

Finding 2022-005
Federal Agency: U.S. Department of Treasury/U.S. Department of Transportation Federal Program: Coronavirus State & Local Fiscal Recovery Fund/Federal Transit Cluster Assistance Listing Number: 21.027/20.526 & 20.507 Federal Award Identification Number and Year: 21.027: 1505-0271, 12/31/22; 20.526: IL-2019-010, 10/1/18; 20.507: IL-2020-010, 10/1/21; IL-2020-022-01, 10/19/19; IL-2020-022-02, 10/19/19; IL-2021-023-00, 8/29/22; IL-2022-028-05, 7/1/22; IL-2022-015-01, 03/30/22 Award Period: 21.027: March 3, 2021 through December 31, 2024; 20.526 & 20.507: May 17, 2019 through March 30, 2028 Type of Finding • Significant Deficiency in Internal Control over Compliance • Other Matter Criteria or specific requirement: Federal guidelines required the entity to have procedures documented to verify the vendor of a covered transaction (over $25,000) is not debarred, suspended, or are otherwise excluded from participating in the transaction, prior to entering into a covered transaction. Condition: The City did not maintain records showing vendors were not suspended or debarred prior to entering into covered transactions. Questioned costs: None Context: 7 of 7 items tested had no documentation to support that vendors were not suspended or debarred for Coronavirus State & Local Fiscal Recovery Funds. 2 of 5 items tested had no documentation to support that vendors were not suspended or debarred for Federal Transit Cluster. The samples were statistically valid samples. Cause: Policies in place were not followed or monitored. Effect: Lack of internal control procedures can lead to noncompliance with grant requirements and a disallowed cost. Repeat finding: Repeat of finding 2021-002 Recommendation: We recommend ensuring a procedure is in place to verify vendors or contractors are not suspended or debarred from doing business with the government, prior to the purchase, and maintaining documentation of this. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022-005
Federal Agency: U.S. Department of Treasury/U.S. Department of Transportation Federal Program: Coronavirus State & Local Fiscal Recovery Fund/Federal Transit Cluster Assistance Listing Number: 21.027/20.526 & 20.507 Federal Award Identification Number and Year: 21.027: 1505-0271, 12/31/22; 20.526: IL-2019-010, 10/1/18; 20.507: IL-2020-010, 10/1/21; IL-2020-022-01, 10/19/19; IL-2020-022-02, 10/19/19; IL-2021-023-00, 8/29/22; IL-2022-028-05, 7/1/22; IL-2022-015-01, 03/30/22 Award Period: 21.027: March 3, 2021 through December 31, 2024; 20.526 & 20.507: May 17, 2019 through March 30, 2028 Type of Finding • Significant Deficiency in Internal Control over Compliance • Other Matter Criteria or specific requirement: Federal guidelines required the entity to have procedures documented to verify the vendor of a covered transaction (over $25,000) is not debarred, suspended, or are otherwise excluded from participating in the transaction, prior to entering into a covered transaction. Condition: The City did not maintain records showing vendors were not suspended or debarred prior to entering into covered transactions. Questioned costs: None Context: 7 of 7 items tested had no documentation to support that vendors were not suspended or debarred for Coronavirus State & Local Fiscal Recovery Funds. 2 of 5 items tested had no documentation to support that vendors were not suspended or debarred for Federal Transit Cluster. The samples were statistically valid samples. Cause: Policies in place were not followed or monitored. Effect: Lack of internal control procedures can lead to noncompliance with grant requirements and a disallowed cost. Repeat finding: Repeat of finding 2021-002 Recommendation: We recommend ensuring a procedure is in place to verify vendors or contractors are not suspended or debarred from doing business with the government, prior to the purchase, and maintaining documentation of this. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022-005
Federal Agency: U.S. Department of Treasury/U.S. Department of Transportation Federal Program: Coronavirus State & Local Fiscal Recovery Fund/Federal Transit Cluster Assistance Listing Number: 21.027/20.526 & 20.507 Federal Award Identification Number and Year: 21.027: 1505-0271, 12/31/22; 20.526: IL-2019-010, 10/1/18; 20.507: IL-2020-010, 10/1/21; IL-2020-022-01, 10/19/19; IL-2020-022-02, 10/19/19; IL-2021-023-00, 8/29/22; IL-2022-028-05, 7/1/22; IL-2022-015-01, 03/30/22 Award Period: 21.027: March 3, 2021 through December 31, 2024; 20.526 & 20.507: May 17, 2019 through March 30, 2028 Type of Finding • Significant Deficiency in Internal Control over Compliance • Other Matter Criteria or specific requirement: Federal guidelines required the entity to have procedures documented to verify the vendor of a covered transaction (over $25,000) is not debarred, suspended, or are otherwise excluded from participating in the transaction, prior to entering into a covered transaction. Condition: The City did not maintain records showing vendors were not suspended or debarred prior to entering into covered transactions. Questioned costs: None Context: 7 of 7 items tested had no documentation to support that vendors were not suspended or debarred for Coronavirus State & Local Fiscal Recovery Funds. 2 of 5 items tested had no documentation to support that vendors were not suspended or debarred for Federal Transit Cluster. The samples were statistically valid samples. Cause: Policies in place were not followed or monitored. Effect: Lack of internal control procedures can lead to noncompliance with grant requirements and a disallowed cost. Repeat finding: Repeat of finding 2021-002 Recommendation: We recommend ensuring a procedure is in place to verify vendors or contractors are not suspended or debarred from doing business with the government, prior to the purchase, and maintaining documentation of this. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022-005
Federal Agency: U.S. Department of Treasury/U.S. Department of Transportation Federal Program: Coronavirus State & Local Fiscal Recovery Fund/Federal Transit Cluster Assistance Listing Number: 21.027/20.526 & 20.507 Federal Award Identification Number and Year: 21.027: 1505-0271, 12/31/22; 20.526: IL-2019-010, 10/1/18; 20.507: IL-2020-010, 10/1/21; IL-2020-022-01, 10/19/19; IL-2020-022-02, 10/19/19; IL-2021-023-00, 8/29/22; IL-2022-028-05, 7/1/22; IL-2022-015-01, 03/30/22 Award Period: 21.027: March 3, 2021 through December 31, 2024; 20.526 & 20.507: May 17, 2019 through March 30, 2028 Type of Finding • Significant Deficiency in Internal Control over Compliance • Other Matter Criteria or specific requirement: Federal guidelines required the entity to have procedures documented to verify the vendor of a covered transaction (over $25,000) is not debarred, suspended, or are otherwise excluded from participating in the transaction, prior to entering into a covered transaction. Condition: The City did not maintain records showing vendors were not suspended or debarred prior to entering into covered transactions. Questioned costs: None Context: 7 of 7 items tested had no documentation to support that vendors were not suspended or debarred for Coronavirus State & Local Fiscal Recovery Funds. 2 of 5 items tested had no documentation to support that vendors were not suspended or debarred for Federal Transit Cluster. The samples were statistically valid samples. Cause: Policies in place were not followed or monitored. Effect: Lack of internal control procedures can lead to noncompliance with grant requirements and a disallowed cost. Repeat finding: Repeat of finding 2021-002 Recommendation: We recommend ensuring a procedure is in place to verify vendors or contractors are not suspended or debarred from doing business with the government, prior to the purchase, and maintaining documentation of this. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022-005
Federal Agency: U.S. Department of Treasury/U.S. Department of Transportation Federal Program: Coronavirus State & Local Fiscal Recovery Fund/Federal Transit Cluster Assistance Listing Number: 21.027/20.526 & 20.507 Federal Award Identification Number and Year: 21.027: 1505-0271, 12/31/22; 20.526: IL-2019-010, 10/1/18; 20.507: IL-2020-010, 10/1/21; IL-2020-022-01, 10/19/19; IL-2020-022-02, 10/19/19; IL-2021-023-00, 8/29/22; IL-2022-028-05, 7/1/22; IL-2022-015-01, 03/30/22 Award Period: 21.027: March 3, 2021 through December 31, 2024; 20.526 & 20.507: May 17, 2019 through March 30, 2028 Type of Finding • Significant Deficiency in Internal Control over Compliance • Other Matter Criteria or specific requirement: Federal guidelines required the entity to have procedures documented to verify the vendor of a covered transaction (over $25,000) is not debarred, suspended, or are otherwise excluded from participating in the transaction, prior to entering into a covered transaction. Condition: The City did not maintain records showing vendors were not suspended or debarred prior to entering into covered transactions. Questioned costs: None Context: 7 of 7 items tested had no documentation to support that vendors were not suspended or debarred for Coronavirus State & Local Fiscal Recovery Funds. 2 of 5 items tested had no documentation to support that vendors were not suspended or debarred for Federal Transit Cluster. The samples were statistically valid samples. Cause: Policies in place were not followed or monitored. Effect: Lack of internal control procedures can lead to noncompliance with grant requirements and a disallowed cost. Repeat finding: Repeat of finding 2021-002 Recommendation: We recommend ensuring a procedure is in place to verify vendors or contractors are not suspended or debarred from doing business with the government, prior to the purchase, and maintaining documentation of this. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022-005
Federal Agency: U.S. Department of Treasury/U.S. Department of Transportation Federal Program: Coronavirus State & Local Fiscal Recovery Fund/Federal Transit Cluster Assistance Listing Number: 21.027/20.526 & 20.507 Federal Award Identification Number and Year: 21.027: 1505-0271, 12/31/22; 20.526: IL-2019-010, 10/1/18; 20.507: IL-2020-010, 10/1/21; IL-2020-022-01, 10/19/19; IL-2020-022-02, 10/19/19; IL-2021-023-00, 8/29/22; IL-2022-028-05, 7/1/22; IL-2022-015-01, 03/30/22 Award Period: 21.027: March 3, 2021 through December 31, 2024; 20.526 & 20.507: May 17, 2019 through March 30, 2028 Type of Finding • Significant Deficiency in Internal Control over Compliance • Other Matter Criteria or specific requirement: Federal guidelines required the entity to have procedures documented to verify the vendor of a covered transaction (over $25,000) is not debarred, suspended, or are otherwise excluded from participating in the transaction, prior to entering into a covered transaction. Condition: The City did not maintain records showing vendors were not suspended or debarred prior to entering into covered transactions. Questioned costs: None Context: 7 of 7 items tested had no documentation to support that vendors were not suspended or debarred for Coronavirus State & Local Fiscal Recovery Funds. 2 of 5 items tested had no documentation to support that vendors were not suspended or debarred for Federal Transit Cluster. The samples were statistically valid samples. Cause: Policies in place were not followed or monitored. Effect: Lack of internal control procedures can lead to noncompliance with grant requirements and a disallowed cost. Repeat finding: Repeat of finding 2021-002 Recommendation: We recommend ensuring a procedure is in place to verify vendors or contractors are not suspended or debarred from doing business with the government, prior to the purchase, and maintaining documentation of this. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022-005
Federal Agency: U.S. Department of Treasury/U.S. Department of Transportation Federal Program: Coronavirus State & Local Fiscal Recovery Fund/Federal Transit Cluster Assistance Listing Number: 21.027/20.526 & 20.507 Federal Award Identification Number and Year: 21.027: 1505-0271, 12/31/22; 20.526: IL-2019-010, 10/1/18; 20.507: IL-2020-010, 10/1/21; IL-2020-022-01, 10/19/19; IL-2020-022-02, 10/19/19; IL-2021-023-00, 8/29/22; IL-2022-028-05, 7/1/22; IL-2022-015-01, 03/30/22 Award Period: 21.027: March 3, 2021 through December 31, 2024; 20.526 & 20.507: May 17, 2019 through March 30, 2028 Type of Finding • Significant Deficiency in Internal Control over Compliance • Other Matter Criteria or specific requirement: Federal guidelines required the entity to have procedures documented to verify the vendor of a covered transaction (over $25,000) is not debarred, suspended, or are otherwise excluded from participating in the transaction, prior to entering into a covered transaction. Condition: The City did not maintain records showing vendors were not suspended or debarred prior to entering into covered transactions. Questioned costs: None Context: 7 of 7 items tested had no documentation to support that vendors were not suspended or debarred for Coronavirus State & Local Fiscal Recovery Funds. 2 of 5 items tested had no documentation to support that vendors were not suspended or debarred for Federal Transit Cluster. The samples were statistically valid samples. Cause: Policies in place were not followed or monitored. Effect: Lack of internal control procedures can lead to noncompliance with grant requirements and a disallowed cost. Repeat finding: Repeat of finding 2021-002 Recommendation: We recommend ensuring a procedure is in place to verify vendors or contractors are not suspended or debarred from doing business with the government, prior to the purchase, and maintaining documentation of this. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022-005
Federal Agency: U.S. Department of Treasury/U.S. Department of Transportation Federal Program: Coronavirus State & Local Fiscal Recovery Fund/Federal Transit Cluster Assistance Listing Number: 21.027/20.526 & 20.507 Federal Award Identification Number and Year: 21.027: 1505-0271, 12/31/22; 20.526: IL-2019-010, 10/1/18; 20.507: IL-2020-010, 10/1/21; IL-2020-022-01, 10/19/19; IL-2020-022-02, 10/19/19; IL-2021-023-00, 8/29/22; IL-2022-028-05, 7/1/22; IL-2022-015-01, 03/30/22 Award Period: 21.027: March 3, 2021 through December 31, 2024; 20.526 & 20.507: May 17, 2019 through March 30, 2028 Type of Finding • Significant Deficiency in Internal Control over Compliance • Other Matter Criteria or specific requirement: Federal guidelines required the entity to have procedures documented to verify the vendor of a covered transaction (over $25,000) is not debarred, suspended, or are otherwise excluded from participating in the transaction, prior to entering into a covered transaction. Condition: The City did not maintain records showing vendors were not suspended or debarred prior to entering into covered transactions. Questioned costs: None Context: 7 of 7 items tested had no documentation to support that vendors were not suspended or debarred for Coronavirus State & Local Fiscal Recovery Funds. 2 of 5 items tested had no documentation to support that vendors were not suspended or debarred for Federal Transit Cluster. The samples were statistically valid samples. Cause: Policies in place were not followed or monitored. Effect: Lack of internal control procedures can lead to noncompliance with grant requirements and a disallowed cost. Repeat finding: Repeat of finding 2021-002 Recommendation: We recommend ensuring a procedure is in place to verify vendors or contractors are not suspended or debarred from doing business with the government, prior to the purchase, and maintaining documentation of this. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022-006
Federal Agency: U.S. Department of Treasury Federal Program: Coronavirus State & Local Fiscal Recovery Fund Assistance Listing Number: 21.027 Federal Award Identification Number and Year: 1505-0271; 12/31/22 Award Period: March 3, 2021 through December 31, 2024 Type of Finding • Significant Deficiency in Internal Control over Compliance • Other Matter Criteria or specific requirement: Uniform Grant Guidance (UGG) (2 CFR 200.303) requires non-federal entities receiving Federal awards establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include ensuring reports are completed accurately. Condition: The program reporting includes classification of vendors into types, including contractors, beneficiaries, or subrecipients. A total of 12 out of 13 vendors were reported as subrecipients in the reports submitted that did not qualify as subrecipients under UGG. Questioned costs: None Context: In 4 of 4 reports tested, various vendors shown as subrecipients in the vendor classification section were not subrecipients, but rather beneficiaries or contractors. The sample was a statistically valid sample. Cause: Policies in place were not followed or monitored. Effect: Noncompliance with reporting requirements. Repeat finding: No Recommendation: We recommend the City strengthen its review procedures over reports to ensure all applicable data elements are accurate. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022-007
Federal Agency: U.S. Department of Treasury Federal Program: Coronavirus State & Local Fiscal Recovery Fund Assistance Listing Number: 21.027 Federal Award Identification Number and Year: 1505-0271; 12/31/22 Award Period: March 3, 2021 through December 31, 2024 Type of Finding • Significant Deficiency in Internal Control over Compliance • Other Matter Criteria or specific requirement: Uniform Grant Guidance (2 CFR 200.303) requires non-federal entities receiving Federal awards establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include ensuring that expenditures are properly reviewed and the review is documented. Condition: While the expenditures where properly approved during the accounts payable process, our testing noted several instances in which the grant program manager did not document his approval on the expenditures. Questioned costs: None Context: 17 out 26 disbursements tested did not have documented approval of the grant program manager. The sample was a statistically valid sample. Cause: Policies in place were not followed or monitored. Effect: Lack of an adequate review process may result in unallowable costs being charged to the program. Repeat finding: No Recommendation: We recommend the City strengthen its review procedures over expenditures and ensure all reviews are properly documented. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022-005
Federal Agency: U.S. Department of Treasury/U.S. Department of Transportation Federal Program: Coronavirus State & Local Fiscal Recovery Fund/Federal Transit Cluster Assistance Listing Number: 21.027/20.526 & 20.507 Federal Award Identification Number and Year: 21.027: 1505-0271, 12/31/22; 20.526: IL-2019-010, 10/1/18; 20.507: IL-2020-010, 10/1/21; IL-2020-022-01, 10/19/19; IL-2020-022-02, 10/19/19; IL-2021-023-00, 8/29/22; IL-2022-028-05, 7/1/22; IL-2022-015-01, 03/30/22 Award Period: 21.027: March 3, 2021 through December 31, 2024; 20.526 & 20.507: May 17, 2019 through March 30, 2028 Type of Finding • Significant Deficiency in Internal Control over Compliance • Other Matter Criteria or specific requirement: Federal guidelines required the entity to have procedures documented to verify the vendor of a covered transaction (over $25,000) is not debarred, suspended, or are otherwise excluded from participating in the transaction, prior to entering into a covered transaction. Condition: The City did not maintain records showing vendors were not suspended or debarred prior to entering into covered transactions. Questioned costs: None Context: 7 of 7 items tested had no documentation to support that vendors were not suspended or debarred for Coronavirus State & Local Fiscal Recovery Funds. 2 of 5 items tested had no documentation to support that vendors were not suspended or debarred for Federal Transit Cluster. The samples were statistically valid samples. Cause: Policies in place were not followed or monitored. Effect: Lack of internal control procedures can lead to noncompliance with grant requirements and a disallowed cost. Repeat finding: Repeat of finding 2021-002 Recommendation: We recommend ensuring a procedure is in place to verify vendors or contractors are not suspended or debarred from doing business with the government, prior to the purchase, and maintaining documentation of this. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022-005
Federal Agency: U.S. Department of Treasury/U.S. Department of Transportation Federal Program: Coronavirus State & Local Fiscal Recovery Fund/Federal Transit Cluster Assistance Listing Number: 21.027/20.526 & 20.507 Federal Award Identification Number and Year: 21.027: 1505-0271, 12/31/22; 20.526: IL-2019-010, 10/1/18; 20.507: IL-2020-010, 10/1/21; IL-2020-022-01, 10/19/19; IL-2020-022-02, 10/19/19; IL-2021-023-00, 8/29/22; IL-2022-028-05, 7/1/22; IL-2022-015-01, 03/30/22 Award Period: 21.027: March 3, 2021 through December 31, 2024; 20.526 & 20.507: May 17, 2019 through March 30, 2028 Type of Finding • Significant Deficiency in Internal Control over Compliance • Other Matter Criteria or specific requirement: Federal guidelines required the entity to have procedures documented to verify the vendor of a covered transaction (over $25,000) is not debarred, suspended, or are otherwise excluded from participating in the transaction, prior to entering into a covered transaction. Condition: The City did not maintain records showing vendors were not suspended or debarred prior to entering into covered transactions. Questioned costs: None Context: 7 of 7 items tested had no documentation to support that vendors were not suspended or debarred for Coronavirus State & Local Fiscal Recovery Funds. 2 of 5 items tested had no documentation to support that vendors were not suspended or debarred for Federal Transit Cluster. The samples were statistically valid samples. Cause: Policies in place were not followed or monitored. Effect: Lack of internal control procedures can lead to noncompliance with grant requirements and a disallowed cost. Repeat finding: Repeat of finding 2021-002 Recommendation: We recommend ensuring a procedure is in place to verify vendors or contractors are not suspended or debarred from doing business with the government, prior to the purchase, and maintaining documentation of this. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022-005
Federal Agency: U.S. Department of Treasury/U.S. Department of Transportation Federal Program: Coronavirus State & Local Fiscal Recovery Fund/Federal Transit Cluster Assistance Listing Number: 21.027/20.526 & 20.507 Federal Award Identification Number and Year: 21.027: 1505-0271, 12/31/22; 20.526: IL-2019-010, 10/1/18; 20.507: IL-2020-010, 10/1/21; IL-2020-022-01, 10/19/19; IL-2020-022-02, 10/19/19; IL-2021-023-00, 8/29/22; IL-2022-028-05, 7/1/22; IL-2022-015-01, 03/30/22 Award Period: 21.027: March 3, 2021 through December 31, 2024; 20.526 & 20.507: May 17, 2019 through March 30, 2028 Type of Finding • Significant Deficiency in Internal Control over Compliance • Other Matter Criteria or specific requirement: Federal guidelines required the entity to have procedures documented to verify the vendor of a covered transaction (over $25,000) is not debarred, suspended, or are otherwise excluded from participating in the transaction, prior to entering into a covered transaction. Condition: The City did not maintain records showing vendors were not suspended or debarred prior to entering into covered transactions. Questioned costs: None Context: 7 of 7 items tested had no documentation to support that vendors were not suspended or debarred for Coronavirus State & Local Fiscal Recovery Funds. 2 of 5 items tested had no documentation to support that vendors were not suspended or debarred for Federal Transit Cluster. The samples were statistically valid samples. Cause: Policies in place were not followed or monitored. Effect: Lack of internal control procedures can lead to noncompliance with grant requirements and a disallowed cost. Repeat finding: Repeat of finding 2021-002 Recommendation: We recommend ensuring a procedure is in place to verify vendors or contractors are not suspended or debarred from doing business with the government, prior to the purchase, and maintaining documentation of this. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022-005
Federal Agency: U.S. Department of Treasury/U.S. Department of Transportation Federal Program: Coronavirus State & Local Fiscal Recovery Fund/Federal Transit Cluster Assistance Listing Number: 21.027/20.526 & 20.507 Federal Award Identification Number and Year: 21.027: 1505-0271, 12/31/22; 20.526: IL-2019-010, 10/1/18; 20.507: IL-2020-010, 10/1/21; IL-2020-022-01, 10/19/19; IL-2020-022-02, 10/19/19; IL-2021-023-00, 8/29/22; IL-2022-028-05, 7/1/22; IL-2022-015-01, 03/30/22 Award Period: 21.027: March 3, 2021 through December 31, 2024; 20.526 & 20.507: May 17, 2019 through March 30, 2028 Type of Finding • Significant Deficiency in Internal Control over Compliance • Other Matter Criteria or specific requirement: Federal guidelines required the entity to have procedures documented to verify the vendor of a covered transaction (over $25,000) is not debarred, suspended, or are otherwise excluded from participating in the transaction, prior to entering into a covered transaction. Condition: The City did not maintain records showing vendors were not suspended or debarred prior to entering into covered transactions. Questioned costs: None Context: 7 of 7 items tested had no documentation to support that vendors were not suspended or debarred for Coronavirus State & Local Fiscal Recovery Funds. 2 of 5 items tested had no documentation to support that vendors were not suspended or debarred for Federal Transit Cluster. The samples were statistically valid samples. Cause: Policies in place were not followed or monitored. Effect: Lack of internal control procedures can lead to noncompliance with grant requirements and a disallowed cost. Repeat finding: Repeat of finding 2021-002 Recommendation: We recommend ensuring a procedure is in place to verify vendors or contractors are not suspended or debarred from doing business with the government, prior to the purchase, and maintaining documentation of this. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022-005
Federal Agency: U.S. Department of Treasury/U.S. Department of Transportation Federal Program: Coronavirus State & Local Fiscal Recovery Fund/Federal Transit Cluster Assistance Listing Number: 21.027/20.526 & 20.507 Federal Award Identification Number and Year: 21.027: 1505-0271, 12/31/22; 20.526: IL-2019-010, 10/1/18; 20.507: IL-2020-010, 10/1/21; IL-2020-022-01, 10/19/19; IL-2020-022-02, 10/19/19; IL-2021-023-00, 8/29/22; IL-2022-028-05, 7/1/22; IL-2022-015-01, 03/30/22 Award Period: 21.027: March 3, 2021 through December 31, 2024; 20.526 & 20.507: May 17, 2019 through March 30, 2028 Type of Finding • Significant Deficiency in Internal Control over Compliance • Other Matter Criteria or specific requirement: Federal guidelines required the entity to have procedures documented to verify the vendor of a covered transaction (over $25,000) is not debarred, suspended, or are otherwise excluded from participating in the transaction, prior to entering into a covered transaction. Condition: The City did not maintain records showing vendors were not suspended or debarred prior to entering into covered transactions. Questioned costs: None Context: 7 of 7 items tested had no documentation to support that vendors were not suspended or debarred for Coronavirus State & Local Fiscal Recovery Funds. 2 of 5 items tested had no documentation to support that vendors were not suspended or debarred for Federal Transit Cluster. The samples were statistically valid samples. Cause: Policies in place were not followed or monitored. Effect: Lack of internal control procedures can lead to noncompliance with grant requirements and a disallowed cost. Repeat finding: Repeat of finding 2021-002 Recommendation: We recommend ensuring a procedure is in place to verify vendors or contractors are not suspended or debarred from doing business with the government, prior to the purchase, and maintaining documentation of this. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022-005
Federal Agency: U.S. Department of Treasury/U.S. Department of Transportation Federal Program: Coronavirus State & Local Fiscal Recovery Fund/Federal Transit Cluster Assistance Listing Number: 21.027/20.526 & 20.507 Federal Award Identification Number and Year: 21.027: 1505-0271, 12/31/22; 20.526: IL-2019-010, 10/1/18; 20.507: IL-2020-010, 10/1/21; IL-2020-022-01, 10/19/19; IL-2020-022-02, 10/19/19; IL-2021-023-00, 8/29/22; IL-2022-028-05, 7/1/22; IL-2022-015-01, 03/30/22 Award Period: 21.027: March 3, 2021 through December 31, 2024; 20.526 & 20.507: May 17, 2019 through March 30, 2028 Type of Finding • Significant Deficiency in Internal Control over Compliance • Other Matter Criteria or specific requirement: Federal guidelines required the entity to have procedures documented to verify the vendor of a covered transaction (over $25,000) is not debarred, suspended, or are otherwise excluded from participating in the transaction, prior to entering into a covered transaction. Condition: The City did not maintain records showing vendors were not suspended or debarred prior to entering into covered transactions. Questioned costs: None Context: 7 of 7 items tested had no documentation to support that vendors were not suspended or debarred for Coronavirus State & Local Fiscal Recovery Funds. 2 of 5 items tested had no documentation to support that vendors were not suspended or debarred for Federal Transit Cluster. The samples were statistically valid samples. Cause: Policies in place were not followed or monitored. Effect: Lack of internal control procedures can lead to noncompliance with grant requirements and a disallowed cost. Repeat finding: Repeat of finding 2021-002 Recommendation: We recommend ensuring a procedure is in place to verify vendors or contractors are not suspended or debarred from doing business with the government, prior to the purchase, and maintaining documentation of this. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022-005
Federal Agency: U.S. Department of Treasury/U.S. Department of Transportation Federal Program: Coronavirus State & Local Fiscal Recovery Fund/Federal Transit Cluster Assistance Listing Number: 21.027/20.526 & 20.507 Federal Award Identification Number and Year: 21.027: 1505-0271, 12/31/22; 20.526: IL-2019-010, 10/1/18; 20.507: IL-2020-010, 10/1/21; IL-2020-022-01, 10/19/19; IL-2020-022-02, 10/19/19; IL-2021-023-00, 8/29/22; IL-2022-028-05, 7/1/22; IL-2022-015-01, 03/30/22 Award Period: 21.027: March 3, 2021 through December 31, 2024; 20.526 & 20.507: May 17, 2019 through March 30, 2028 Type of Finding • Significant Deficiency in Internal Control over Compliance • Other Matter Criteria or specific requirement: Federal guidelines required the entity to have procedures documented to verify the vendor of a covered transaction (over $25,000) is not debarred, suspended, or are otherwise excluded from participating in the transaction, prior to entering into a covered transaction. Condition: The City did not maintain records showing vendors were not suspended or debarred prior to entering into covered transactions. Questioned costs: None Context: 7 of 7 items tested had no documentation to support that vendors were not suspended or debarred for Coronavirus State & Local Fiscal Recovery Funds. 2 of 5 items tested had no documentation to support that vendors were not suspended or debarred for Federal Transit Cluster. The samples were statistically valid samples. Cause: Policies in place were not followed or monitored. Effect: Lack of internal control procedures can lead to noncompliance with grant requirements and a disallowed cost. Repeat finding: Repeat of finding 2021-002 Recommendation: We recommend ensuring a procedure is in place to verify vendors or contractors are not suspended or debarred from doing business with the government, prior to the purchase, and maintaining documentation of this. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022-005
Federal Agency: U.S. Department of Treasury/U.S. Department of Transportation Federal Program: Coronavirus State & Local Fiscal Recovery Fund/Federal Transit Cluster Assistance Listing Number: 21.027/20.526 & 20.507 Federal Award Identification Number and Year: 21.027: 1505-0271, 12/31/22; 20.526: IL-2019-010, 10/1/18; 20.507: IL-2020-010, 10/1/21; IL-2020-022-01, 10/19/19; IL-2020-022-02, 10/19/19; IL-2021-023-00, 8/29/22; IL-2022-028-05, 7/1/22; IL-2022-015-01, 03/30/22 Award Period: 21.027: March 3, 2021 through December 31, 2024; 20.526 & 20.507: May 17, 2019 through March 30, 2028 Type of Finding • Significant Deficiency in Internal Control over Compliance • Other Matter Criteria or specific requirement: Federal guidelines required the entity to have procedures documented to verify the vendor of a covered transaction (over $25,000) is not debarred, suspended, or are otherwise excluded from participating in the transaction, prior to entering into a covered transaction. Condition: The City did not maintain records showing vendors were not suspended or debarred prior to entering into covered transactions. Questioned costs: None Context: 7 of 7 items tested had no documentation to support that vendors were not suspended or debarred for Coronavirus State & Local Fiscal Recovery Funds. 2 of 5 items tested had no documentation to support that vendors were not suspended or debarred for Federal Transit Cluster. The samples were statistically valid samples. Cause: Policies in place were not followed or monitored. Effect: Lack of internal control procedures can lead to noncompliance with grant requirements and a disallowed cost. Repeat finding: Repeat of finding 2021-002 Recommendation: We recommend ensuring a procedure is in place to verify vendors or contractors are not suspended or debarred from doing business with the government, prior to the purchase, and maintaining documentation of this. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022-006
Federal Agency: U.S. Department of Treasury Federal Program: Coronavirus State & Local Fiscal Recovery Fund Assistance Listing Number: 21.027 Federal Award Identification Number and Year: 1505-0271; 12/31/22 Award Period: March 3, 2021 through December 31, 2024 Type of Finding • Significant Deficiency in Internal Control over Compliance • Other Matter Criteria or specific requirement: Uniform Grant Guidance (UGG) (2 CFR 200.303) requires non-federal entities receiving Federal awards establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include ensuring reports are completed accurately. Condition: The program reporting includes classification of vendors into types, including contractors, beneficiaries, or subrecipients. A total of 12 out of 13 vendors were reported as subrecipients in the reports submitted that did not qualify as subrecipients under UGG. Questioned costs: None Context: In 4 of 4 reports tested, various vendors shown as subrecipients in the vendor classification section were not subrecipients, but rather beneficiaries or contractors. The sample was a statistically valid sample. Cause: Policies in place were not followed or monitored. Effect: Noncompliance with reporting requirements. Repeat finding: No Recommendation: We recommend the City strengthen its review procedures over reports to ensure all applicable data elements are accurate. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022-007
Federal Agency: U.S. Department of Treasury Federal Program: Coronavirus State & Local Fiscal Recovery Fund Assistance Listing Number: 21.027 Federal Award Identification Number and Year: 1505-0271; 12/31/22 Award Period: March 3, 2021 through December 31, 2024 Type of Finding • Significant Deficiency in Internal Control over Compliance • Other Matter Criteria or specific requirement: Uniform Grant Guidance (2 CFR 200.303) requires non-federal entities receiving Federal awards establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include ensuring that expenditures are properly reviewed and the review is documented. Condition: While the expenditures where properly approved during the accounts payable process, our testing noted several instances in which the grant program manager did not document his approval on the expenditures. Questioned costs: None Context: 17 out 26 disbursements tested did not have documented approval of the grant program manager. The sample was a statistically valid sample. Cause: Policies in place were not followed or monitored. Effect: Lack of an adequate review process may result in unallowable costs being charged to the program. Repeat finding: No Recommendation: We recommend the City strengthen its review procedures over expenditures and ensure all reviews are properly documented. Views of responsible officials: There is no disagreement with the audit finding.