Audit 295632

Federal agency: U.S. Department of Treasury Federal program title: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Period: March 3, 2021 – December 31, 2026 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Nonfederal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services awarded under a nonprocurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220). Condition: The Village did not complete the suspension and debarment procedures prior to entering into the transactions. Questioned costs: None Context: The Village’s suspension and debarment policy has not been completely followed per the Uniform Grant Guidance. This was noted in the 2 out of 2 items tested. Cause: The processes for suspension and debarment where updated and approved near the end of the current fiscal year as a result of the prior year finding. However, the updated procedures were not implemented for the full year which resulted in the majority of the current year’s transactions following the old procedures. Effect: A lack of internal control procedures can lead to noncompliance with grant requirements. Repeat finding: No Recommendation: We recommend following the requirements for suspension and debarment per the Uniform Guidance, including the date performed and retain required documentation. Views of responsible officials: The Village recognizes and accepts the audit finding as presented

Federal agency: U.S. Department of Treasury Federal program title: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Period: March 3, 2021 – December 31, 2026 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Uniform Grant Guidance (2 CFR 200.303) requires nonfederal 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 supporting calculations are accurate. Condition: The Village could not provide proper support summarizing/reconciling its allowable costs totaling $15,281, when reporting the funds, it spent under COVID-19 State and Local Fiscal Recovery Funds during the fiscal year. In addition, there is no formal documentation of the review being completed. Questioned costs: $15,281 Context: The Village errors on the amounts reported in 1 out of 1 report tested, with $15,281 lacking proper support during the fiscal year. Cause: Costs were paid accurately to vendors, but the Village could not provide proper support for the amount charged to the grant. Effect: May result in unallowable costs being charged to Federal programs. Repeat finding: No. Recommendation: We recommend the Village review its procedures relative to allocating costs and reviewing support provided for reporting to Federal programs. Views of responsible officials: The Village recognizes and accepts the audit finding as presented.

Federal agency: U.S. Department of Treasury Federal program title: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Period: March 3, 2021 – December 31, 2026 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Nonfederal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services awarded under a nonprocurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220). Condition: The Village did not complete the suspension and debarment procedures prior to entering into the transactions. Questioned costs: None Context: The Village’s suspension and debarment policy has not been completely followed per the Uniform Grant Guidance. This was noted in the 2 out of 2 items tested. Cause: The processes for suspension and debarment where updated and approved near the end of the current fiscal year as a result of the prior year finding. However, the updated procedures were not implemented for the full year which resulted in the majority of the current year’s transactions following the old procedures. Effect: A lack of internal control procedures can lead to noncompliance with grant requirements. Repeat finding: No Recommendation: We recommend following the requirements for suspension and debarment per the Uniform Guidance, including the date performed and retain required documentation. Views of responsible officials: The Village recognizes and accepts the audit finding as presented

Federal agency: U.S. Department of Treasury Federal program title: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Period: March 3, 2021 – December 31, 2026 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Uniform Grant Guidance (2 CFR 200.303) requires nonfederal 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 supporting calculations are accurate. Condition: The Village could not provide proper support summarizing/reconciling its allowable costs totaling $15,281, when reporting the funds, it spent under COVID-19 State and Local Fiscal Recovery Funds during the fiscal year. In addition, there is no formal documentation of the review being completed. Questioned costs: $15,281 Context: The Village errors on the amounts reported in 1 out of 1 report tested, with $15,281 lacking proper support during the fiscal year. Cause: Costs were paid accurately to vendors, but the Village could not provide proper support for the amount charged to the grant. Effect: May result in unallowable costs being charged to Federal programs. Repeat finding: No. Recommendation: We recommend the Village review its procedures relative to allocating costs and reviewing support provided for reporting to Federal programs. Views of responsible officials: The Village recognizes and accepts the audit finding as presented.