Audit 316174

FY End
2023-12-31
Total Expended
$20.90M
Findings
2
Programs
17
Organization: City of Peoria, Illinois (IL)
Year: 2023 Accepted: 2024-07-29

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
479601 2023-002 Significant Deficiency - I
1056043 2023-002 Significant Deficiency - I

Contacts

Name Title Type
K6UKNLP5HVS3 Kyle Cratty Auditee
3094948500 Adam Pulley Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Revenue from federal awards is recognized in the governmental funds when the City has done everything necessary to establish its right to revenue and the revenue meets the available criteria. Expenditures of federal awards are recognized in the accounting period when the liability is incurred and approved for reimbursement. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards includes the federal grant activity of City of Peoria, Illinois (the City) and is presented on the modified accrual basis of accounting. All federal financial assistance received directly from federal agencies, as well as federal financial assistance passed through other governmental agencies expanded during the year, is included in the schedule. 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). Therefore, some amounts presented in the schedule may differ from amounts presented in or used in the preparation of the basic financial statements.
Title: Significant Accounting Policies Accounting Policies: Revenue from federal awards is recognized in the governmental funds when the City has done everything necessary to establish its right to revenue and the revenue meets the available criteria. Expenditures of federal awards are recognized in the accounting period when the liability is incurred and approved for reimbursement. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Revenue from federal awards is recognized in the governmental funds when the City has done everything necessary to establish its right to revenue and the revenue meets the available criteria. Expenditures of federal awards are recognized in the accounting period when the liability is incurred and approved for reimbursement. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Noncash Assistance and Loans Outstanding Accounting Policies: Revenue from federal awards is recognized in the governmental funds when the City has done everything necessary to establish its right to revenue and the revenue meets the available criteria. Expenditures of federal awards are recognized in the accounting period when the liability is incurred and approved for reimbursement. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The City had $1,059,260 of loan balances outstanding as of December 31, 2023, related to the EDA Revolving Loan Fund (Assistance Listing Number 11.307). The current year $888,588 EDA Revolving Loan Fund expenditures, included in the schedule of expenditures of federal awards, represent the 65% federal portion of the outstanding loan balances plus related cash and investment balances. The City also had loan balances outstanding of $804,139 related to the CARES Act Revolving Loan Fund (Assistance Listing Number 11.307).
Title: Indirect Cost Rate Accounting Policies: Revenue from federal awards is recognized in the governmental funds when the City has done everything necessary to establish its right to revenue and the revenue meets the available criteria. Expenditures of federal awards are recognized in the accounting period when the liability is incurred and approved for reimbursement. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The City has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

2023-002 - Suspension and Debarment Federal Agency: U.S. Department of Treasury Federal Program/Cluster Title: COVID 19 - Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Period: March 3, 2021, through December 31, 2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Matter Condition: Vendor contracted by the City was not checked for suspended or debarred status before engaging. Criteria or Specific Requirement: Vendors must be checked for suspension or debarment before engaging in contract. Context: We noted that 1 of 6 vendors tested were not checked for suspension and debarment before engaging in contract. Effect: The City did not comply with the compliance requirements for suspension and debarment set forth in the Uniform Guidance. Cause: Management informed us staff oversight lead to vendor not being properly checked. Recommendation: To ensure compliance, we recommend strengthening of internal control by training multiple staff how to complete vendor checks required by the Uniform Guidance. Views of Responsible Officials: The vendor status was not properly checked due to staff oversight and unfamiliarity with compliance requirements. The City has educated staff entering contracts that will use grant funding on the importance of checking for suspended or debarred status before engaging. Training of staff on procedures to check suspended or debarred status will also be implemented.
2023-002 - Suspension and Debarment Federal Agency: U.S. Department of Treasury Federal Program/Cluster Title: COVID 19 - Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Period: March 3, 2021, through December 31, 2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Matter Condition: Vendor contracted by the City was not checked for suspended or debarred status before engaging. Criteria or Specific Requirement: Vendors must be checked for suspension or debarment before engaging in contract. Context: We noted that 1 of 6 vendors tested were not checked for suspension and debarment before engaging in contract. Effect: The City did not comply with the compliance requirements for suspension and debarment set forth in the Uniform Guidance. Cause: Management informed us staff oversight lead to vendor not being properly checked. Recommendation: To ensure compliance, we recommend strengthening of internal control by training multiple staff how to complete vendor checks required by the Uniform Guidance. Views of Responsible Officials: The vendor status was not properly checked due to staff oversight and unfamiliarity with compliance requirements. The City has educated staff entering contracts that will use grant funding on the importance of checking for suspended or debarred status before engaging. Training of staff on procedures to check suspended or debarred status will also be implemented.