FAC Explorer

Audit 317854

FY End
2023-12-31
Total Expended
$7.75M
Findings
4
Programs
15
Organization: City of Joliet (IL)
Year: 2023 Accepted: 2024-08-26
Auditor: Wermer Rogers Doran & Ruzon LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
485078 2023-003 - - B
485079 2023-002 - - L
1061520 2023-003 - - B
1061521 2023-002 - - L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $3.08M Yes 0
66.468 Capitalization Grants for Drinking Water State Revolving Funds $1.28M - 0
66.458 Capitalization Grants for Clean Water State Revolving Funds $762,913 - 0
20.205 Highway Planning and Construction $220,121 - 0
20.600 State and Community Highway Safety $206,541 - 0
16.745 Criminal and Juvenile Justice and Mental Health Collaboration Program $100,241 - 0
97.074 Ileas Grant $43,239 - 0
14.218 Community Development Block Grants/entitlement Grants $40,500 Yes 0
14.239 Home Investment Partnerships Program $33,526 - 0
15.904 Historic Preservation Fund Grants-in-Aid $32,000 - 0
16.300 Law Enforcement Assistance_fbi Advanced Police Training $22,421 - 0
95.001 High Intensity Drug Trafficking Areas Program $22,088 - 0
16.302 Law Enforcement Assistance_fbi Field Police Training $17,330 - 0
93.667 Social Services Block Grant $11,905 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $785 - 0

Contacts

Name Title Type
UKXHU6SJXLR9 Christine Chinderle Auditee
8157243997 Katie Napier Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Basis of Presentation. The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the City of Joliet, 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the City's financial statements. 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 the City of Joliet, 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the City’s financial statements.
Title: Federal Insurance and Loans Accounting Policies: Basis of Presentation. The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the City of Joliet, 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the City's financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The City did not have any federal insurance in effect during the year. Loans Payable - Illinois EPA The City had twenty loans payable to the Illinois Environmental Protection Agency (IEPA) from the City’s Water and Sewer Fund as of December 31, 2023. The loans were made from the IEPA Revolving Fund which has been funded with both federal and state of Illinois monies. Loan drawdowns in 2023 totaled $40,156,750 of which $2,038,384 was federally funded; the remainder was state of Illinois funded.
Title: De Minimis Cost Rate Accounting Policies: Basis of Presentation. The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the City of Joliet, 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the City's financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The City did not elect to use the 10% de minimis cost rate as covered in Uniform Guidance § 200.414 Indirect Facilities and Administration Costs.
Title: Property Accounting Policies: Basis of Presentation. The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the City of Joliet, 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the City's financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The City will receive and has received property in the form of road/bridge construction projects through the resources provided by the U.S. Department of Transportation. There were two construction projects as listed in the schedule of expenditures of federal awards under CFDA number 20.205, for which the City has recorded federal expenditures related to engineering costs for the construction performed by the state of Illinois with the use of federal funding. The City is the beneficiary of the construction projects upon completion.

Finding Details

Finding 2023-003
Criteria or Specific Requirement: Recipients of the Community Development Block Grant (CDBG) must maintain adequate records and documentation in support of all costs, as set forth in 24 CFR 570.506. Condition: During the course of the audit, it was noted the City failed to retain supporting documentation for CDBG expenditures. Questioned Costs: $4,900. Context: Of the eleven expenses selected for testing, it was noted the City did not retain documentation for one expense totaling $4,900. Effect: Without supporting documentation, the expenditure cannot be sustained as an allowable cost. Cause: The City's review procedures over grant expenses were not operating effectively to ensure that documentation was retained for all grant expenses. Recommendation: We recommend the City take steps to ensure support is retained for all grant expenses. Management’s Response: The City will implement an internal procedure to ensure proper documentation is retained for all grant expenses.
Finding 2023-002
Criteria or Specific Requirement: Recipients of Coronavirus State and Local Fiscal Recovery Funds (SLFRF) are required to provide quarterly project and expenditure reports to the Department of Administrative Services (DAS) who then compile the information and submit it to the U.S. Department of Treasury. Each report contains detailed project information, including current period obligation, cumulative obligation, current period expenditure, and cumulative expenditure. Quarterly reports are due within 30 days of the quarter ending. Condition: During the course of the audit, it was noted the City did not always file quarterly reports within the stated time period for its SLFRF Program. Questioned Costs: None. Context: Two quarters reported for the SLFRF Program were reported past the 30-day following quarter-end time period. For the quarter ended June 30, 2023, the City filed expenditure detail on August 16, 2023. For the quarter ended December 31, 2023, the City filed expenditure detail on March 6, 2024. Effect: The data submitted by recipient is used internally for oversight purposes and to fulfill the U.S. Department of Treasury’s transparency and legal obligations. Late submissions undermine the efficiency and timeliness of these processes. Furthermore, the City was not in compliance with grant regulations over reporting. Cause: The City did not have procedures requiring a formal documented review of the City's compliance with the reporting requirements. Recommendation: We recommend the City take steps to ensure project and expenditure reports are filed to DAS on a timely basis. Management’s Response: The City will implement an internal procedure to ensure proper filing within 30 days of quarter end to be in reporting compliance.
Finding 2023-003
Criteria or Specific Requirement: Recipients of the Community Development Block Grant (CDBG) must maintain adequate records and documentation in support of all costs, as set forth in 24 CFR 570.506. Condition: During the course of the audit, it was noted the City failed to retain supporting documentation for CDBG expenditures. Questioned Costs: $4,900. Context: Of the eleven expenses selected for testing, it was noted the City did not retain documentation for one expense totaling $4,900. Effect: Without supporting documentation, the expenditure cannot be sustained as an allowable cost. Cause: The City's review procedures over grant expenses were not operating effectively to ensure that documentation was retained for all grant expenses. Recommendation: We recommend the City take steps to ensure support is retained for all grant expenses. Management’s Response: The City will implement an internal procedure to ensure proper documentation is retained for all grant expenses.
Finding 2023-002
Criteria or Specific Requirement: Recipients of Coronavirus State and Local Fiscal Recovery Funds (SLFRF) are required to provide quarterly project and expenditure reports to the Department of Administrative Services (DAS) who then compile the information and submit it to the U.S. Department of Treasury. Each report contains detailed project information, including current period obligation, cumulative obligation, current period expenditure, and cumulative expenditure. Quarterly reports are due within 30 days of the quarter ending. Condition: During the course of the audit, it was noted the City did not always file quarterly reports within the stated time period for its SLFRF Program. Questioned Costs: None. Context: Two quarters reported for the SLFRF Program were reported past the 30-day following quarter-end time period. For the quarter ended June 30, 2023, the City filed expenditure detail on August 16, 2023. For the quarter ended December 31, 2023, the City filed expenditure detail on March 6, 2024. Effect: The data submitted by recipient is used internally for oversight purposes and to fulfill the U.S. Department of Treasury’s transparency and legal obligations. Late submissions undermine the efficiency and timeliness of these processes. Furthermore, the City was not in compliance with grant regulations over reporting. Cause: The City did not have procedures requiring a formal documented review of the City's compliance with the reporting requirements. Recommendation: We recommend the City take steps to ensure project and expenditure reports are filed to DAS on a timely basis. Management’s Response: The City will implement an internal procedure to ensure proper filing within 30 days of quarter end to be in reporting compliance.