FAC Explorer

Audit 327562

FY End
2024-04-30
Total Expended
$9.19M
Findings
8
Programs
14
Organization: City of Carbondale, Illinois (IL)
Year: 2024 Accepted: 2024-11-07
Auditor: Kerber Eck & Braeckel LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
504832 2024-001 Material Weakness - P
504833 2024-002 Material Weakness - P
504834 2024-001 Material Weakness - P
504835 2024-002 Material Weakness - P
1081274 2024-001 Material Weakness - P
1081275 2024-002 Material Weakness - P
1081276 2024-001 Material Weakness - P
1081277 2024-002 Material Weakness - P

Programs

ALN Program Spent Major Findings
20.933 National Infrastructure Investments $5.04M - 0
20.205 Highway Planning and Construction $1.43M Yes 2
21.027 Coronavirus State and Local Fiscal Recovery Funds $761,008 - 0
66.460 Nonpoint Source Implementation Grants $750,000 Yes 2
11.307 Economic Adjustment Assistance $588,210 - 0
16.710 Public Safety Partnership and Community Policing Grants $231,814 - 0
16.835 Body Worn Camera Policy and Implementation $132,000 - 0
81.255 Clean Energy Demonstrations $100,000 - 0
93.575 Child Care and Development Block Grant $57,899 - 0
45.310 Grants to States $32,238 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $26,919 - 0
97.042 Emergency Management Performance Grants $26,236 - 0
32.009 Emergency Connectivity Fund Program $9,983 - 0
16.582 Crime Victim Assistance/discretionary Grants $4,964 - 0

Contacts

Name Title Type
HJBRJKBEKEG5 Jeffrey Davis Auditee
6184573269 Mark Dallas Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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: City of Carbondale, Illinois has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes federal grant activity of City of Carbondale, Illinois under programs of the federal government for the year ended April 30, 2024. The information in this Schedule is presented in accordance with 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 general purpose financial statements.
Title: Subrecipients Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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: City of Carbondale, Illinois has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The City of Carbondale, Illinois received funding through Child Care and Development Block Grant and the American Rescue Plan Act (ARPA) from the Department of Health and Human Services and Department of Treasury, respectively, which they awarded to various small businesses and not-for-profits within the City. In fiscal year ending April 30, 2024, there were 13 grants to a local businesses and not-for-profits from both programs totaling $267,324.
Title: Non-cash assistance, insurance or loans Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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: City of Carbondale, Illinois has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. As required by the Uniform Guidance section 310(b)(6), City of Carbondale, Illinois did not receive or administer any insurance and had no loans or loan guarantees outstanding at year ended April 30, 2024. Non-cash assistance was not received or reported on the Schedule of Expenditures of Federal Awards.

Finding Details

Finding 2024-001
Criteria Eight journal entries were made during the audit process from information obtained as audit evidence. A ninth entry was made to agree actuarial reports to various funds, which the audit routinely assists with during the audit process. Condition and Context Eight journal entries were made during the audit process to correct various sections and agree to supporting documentation. Cause The City’s internal control process for review and approval of journal entries, reconciliations and other documentation did not adequately prevent or detect and correct misstatements to the financial statements. Effect It’s imperative that internal control processes, especially those of review and approval, are properly performed to provide accurate financial statement information to the users of the financial statements. As a result of the review and approval process not being performed properly, several transactions were recorded incorrectly or not at all. Recommendation We recommend that management continuously improve the review and approval process and determine if and where problems persist. Views of the responsible officials and planned corrective actions Management agrees that the review and approval process may need to be examined and refined to ensure financial information is properly recorded. Official Responsible for Ensuring the Corrective Action Plan is Implemented Jeff Davis, City Treasurer/Director of Finance; Stan Reno, Interim-City Manager. Planned Completion Date for the Corrective Action Plan Recommendations are considered at the issuance of the report, October 24, 2024.
Finding 2024-002
Federal Program Impacts all programs presented on the Schedule of Expenditures of Federal Awards (SEFA). Criteria Lack of procedures to track and reconcile federal programs to the financial statements. Condition and Context The SEFA initially provided was incomplete and had not been reconciled to capital assets, general ledger data or other supporting documentation. Cause The City does not have adequate procedures to track federal awards in a centralized location. Effect The SEFA required multiple updates during the audit as a result of questions and testing in other areas. • The dollar amount of the final SEFA was more than $3.2 million greater than the dollar amount presented on the initial SEFA. • Programs that were necessary for testing as determined by the final SEFA were not included on the original SEFA. There were also two journal entries necessary to reconcile the SEFA and the general ledger. • Construction in progress and capital assets placed into service (completed projects) required an adjustment to correct expenses related to projects funded by federal grants. • Revenue and accounts receivable were also adjusted to record a federal grant reimbursement that had been placed into service during the fiscal year. Management indicated that while each individual department may have procedures to track their grants, capital assets and projects, there is not a centralized location or process to reconcile those records to the general ledger or other information as obtained from the Finance Department. As a result, the Finance Department was unaware of the progress of certain projects and could not adequately reconcile the financial statement information or the SEFA in preparation for the financial statement audit or single audit. Recommendation We recommend that management establish a centralized system for tracking all federal programs entered into by the City, that includes reconciling such information to the general ledger. We also recommend that reconciliations of federal programs be performed during month-end procedures, instead of performing those procedures while fieldwork is being conducted for the audit. Views of the responsible officials and planned corrective actions Management agrees that a centralized reconciliation control process should be in place, given the large amount of grants that the City has been awarded and will continue to apply for in the future. Management will work to develop those procedures and communicate with other departments. Official Responsible for Ensuring the Corrective Action Plan is Implemented Jeff Davis, City Treasurer/Director of Finance; Stan Reno, Interim-City Manager. Planned Completion Date for the Corrective Action Plan Recommendations are considered at the issuance of the report, October 24, 2024.
Finding 2024-001
Criteria Eight journal entries were made during the audit process from information obtained as audit evidence. A ninth entry was made to agree actuarial reports to various funds, which the audit routinely assists with during the audit process. Condition and Context Eight journal entries were made during the audit process to correct various sections and agree to supporting documentation. Cause The City’s internal control process for review and approval of journal entries, reconciliations and other documentation did not adequately prevent or detect and correct misstatements to the financial statements. Effect It’s imperative that internal control processes, especially those of review and approval, are properly performed to provide accurate financial statement information to the users of the financial statements. As a result of the review and approval process not being performed properly, several transactions were recorded incorrectly or not at all. Recommendation We recommend that management continuously improve the review and approval process and determine if and where problems persist. Views of the responsible officials and planned corrective actions Management agrees that the review and approval process may need to be examined and refined to ensure financial information is properly recorded. Official Responsible for Ensuring the Corrective Action Plan is Implemented Jeff Davis, City Treasurer/Director of Finance; Stan Reno, Interim-City Manager. Planned Completion Date for the Corrective Action Plan Recommendations are considered at the issuance of the report, October 24, 2024.
Finding 2024-002
Federal Program Impacts all programs presented on the Schedule of Expenditures of Federal Awards (SEFA). Criteria Lack of procedures to track and reconcile federal programs to the financial statements. Condition and Context The SEFA initially provided was incomplete and had not been reconciled to capital assets, general ledger data or other supporting documentation. Cause The City does not have adequate procedures to track federal awards in a centralized location. Effect The SEFA required multiple updates during the audit as a result of questions and testing in other areas. • The dollar amount of the final SEFA was more than $3.2 million greater than the dollar amount presented on the initial SEFA. • Programs that were necessary for testing as determined by the final SEFA were not included on the original SEFA. There were also two journal entries necessary to reconcile the SEFA and the general ledger. • Construction in progress and capital assets placed into service (completed projects) required an adjustment to correct expenses related to projects funded by federal grants. • Revenue and accounts receivable were also adjusted to record a federal grant reimbursement that had been placed into service during the fiscal year. Management indicated that while each individual department may have procedures to track their grants, capital assets and projects, there is not a centralized location or process to reconcile those records to the general ledger or other information as obtained from the Finance Department. As a result, the Finance Department was unaware of the progress of certain projects and could not adequately reconcile the financial statement information or the SEFA in preparation for the financial statement audit or single audit. Recommendation We recommend that management establish a centralized system for tracking all federal programs entered into by the City, that includes reconciling such information to the general ledger. We also recommend that reconciliations of federal programs be performed during month-end procedures, instead of performing those procedures while fieldwork is being conducted for the audit. Views of the responsible officials and planned corrective actions Management agrees that a centralized reconciliation control process should be in place, given the large amount of grants that the City has been awarded and will continue to apply for in the future. Management will work to develop those procedures and communicate with other departments. Official Responsible for Ensuring the Corrective Action Plan is Implemented Jeff Davis, City Treasurer/Director of Finance; Stan Reno, Interim-City Manager. Planned Completion Date for the Corrective Action Plan Recommendations are considered at the issuance of the report, October 24, 2024.
Finding 2024-001
Criteria Eight journal entries were made during the audit process from information obtained as audit evidence. A ninth entry was made to agree actuarial reports to various funds, which the audit routinely assists with during the audit process. Condition and Context Eight journal entries were made during the audit process to correct various sections and agree to supporting documentation. Cause The City’s internal control process for review and approval of journal entries, reconciliations and other documentation did not adequately prevent or detect and correct misstatements to the financial statements. Effect It’s imperative that internal control processes, especially those of review and approval, are properly performed to provide accurate financial statement information to the users of the financial statements. As a result of the review and approval process not being performed properly, several transactions were recorded incorrectly or not at all. Recommendation We recommend that management continuously improve the review and approval process and determine if and where problems persist. Views of the responsible officials and planned corrective actions Management agrees that the review and approval process may need to be examined and refined to ensure financial information is properly recorded. Official Responsible for Ensuring the Corrective Action Plan is Implemented Jeff Davis, City Treasurer/Director of Finance; Stan Reno, Interim-City Manager. Planned Completion Date for the Corrective Action Plan Recommendations are considered at the issuance of the report, October 24, 2024.
Finding 2024-002
Federal Program Impacts all programs presented on the Schedule of Expenditures of Federal Awards (SEFA). Criteria Lack of procedures to track and reconcile federal programs to the financial statements. Condition and Context The SEFA initially provided was incomplete and had not been reconciled to capital assets, general ledger data or other supporting documentation. Cause The City does not have adequate procedures to track federal awards in a centralized location. Effect The SEFA required multiple updates during the audit as a result of questions and testing in other areas. • The dollar amount of the final SEFA was more than $3.2 million greater than the dollar amount presented on the initial SEFA. • Programs that were necessary for testing as determined by the final SEFA were not included on the original SEFA. There were also two journal entries necessary to reconcile the SEFA and the general ledger. • Construction in progress and capital assets placed into service (completed projects) required an adjustment to correct expenses related to projects funded by federal grants. • Revenue and accounts receivable were also adjusted to record a federal grant reimbursement that had been placed into service during the fiscal year. Management indicated that while each individual department may have procedures to track their grants, capital assets and projects, there is not a centralized location or process to reconcile those records to the general ledger or other information as obtained from the Finance Department. As a result, the Finance Department was unaware of the progress of certain projects and could not adequately reconcile the financial statement information or the SEFA in preparation for the financial statement audit or single audit. Recommendation We recommend that management establish a centralized system for tracking all federal programs entered into by the City, that includes reconciling such information to the general ledger. We also recommend that reconciliations of federal programs be performed during month-end procedures, instead of performing those procedures while fieldwork is being conducted for the audit. Views of the responsible officials and planned corrective actions Management agrees that a centralized reconciliation control process should be in place, given the large amount of grants that the City has been awarded and will continue to apply for in the future. Management will work to develop those procedures and communicate with other departments. Official Responsible for Ensuring the Corrective Action Plan is Implemented Jeff Davis, City Treasurer/Director of Finance; Stan Reno, Interim-City Manager. Planned Completion Date for the Corrective Action Plan Recommendations are considered at the issuance of the report, October 24, 2024.
Finding 2024-001
Criteria Eight journal entries were made during the audit process from information obtained as audit evidence. A ninth entry was made to agree actuarial reports to various funds, which the audit routinely assists with during the audit process. Condition and Context Eight journal entries were made during the audit process to correct various sections and agree to supporting documentation. Cause The City’s internal control process for review and approval of journal entries, reconciliations and other documentation did not adequately prevent or detect and correct misstatements to the financial statements. Effect It’s imperative that internal control processes, especially those of review and approval, are properly performed to provide accurate financial statement information to the users of the financial statements. As a result of the review and approval process not being performed properly, several transactions were recorded incorrectly or not at all. Recommendation We recommend that management continuously improve the review and approval process and determine if and where problems persist. Views of the responsible officials and planned corrective actions Management agrees that the review and approval process may need to be examined and refined to ensure financial information is properly recorded. Official Responsible for Ensuring the Corrective Action Plan is Implemented Jeff Davis, City Treasurer/Director of Finance; Stan Reno, Interim-City Manager. Planned Completion Date for the Corrective Action Plan Recommendations are considered at the issuance of the report, October 24, 2024.
Finding 2024-002
Federal Program Impacts all programs presented on the Schedule of Expenditures of Federal Awards (SEFA). Criteria Lack of procedures to track and reconcile federal programs to the financial statements. Condition and Context The SEFA initially provided was incomplete and had not been reconciled to capital assets, general ledger data or other supporting documentation. Cause The City does not have adequate procedures to track federal awards in a centralized location. Effect The SEFA required multiple updates during the audit as a result of questions and testing in other areas. • The dollar amount of the final SEFA was more than $3.2 million greater than the dollar amount presented on the initial SEFA. • Programs that were necessary for testing as determined by the final SEFA were not included on the original SEFA. There were also two journal entries necessary to reconcile the SEFA and the general ledger. • Construction in progress and capital assets placed into service (completed projects) required an adjustment to correct expenses related to projects funded by federal grants. • Revenue and accounts receivable were also adjusted to record a federal grant reimbursement that had been placed into service during the fiscal year. Management indicated that while each individual department may have procedures to track their grants, capital assets and projects, there is not a centralized location or process to reconcile those records to the general ledger or other information as obtained from the Finance Department. As a result, the Finance Department was unaware of the progress of certain projects and could not adequately reconcile the financial statement information or the SEFA in preparation for the financial statement audit or single audit. Recommendation We recommend that management establish a centralized system for tracking all federal programs entered into by the City, that includes reconciling such information to the general ledger. We also recommend that reconciliations of federal programs be performed during month-end procedures, instead of performing those procedures while fieldwork is being conducted for the audit. Views of the responsible officials and planned corrective actions Management agrees that a centralized reconciliation control process should be in place, given the large amount of grants that the City has been awarded and will continue to apply for in the future. Management will work to develop those procedures and communicate with other departments. Official Responsible for Ensuring the Corrective Action Plan is Implemented Jeff Davis, City Treasurer/Director of Finance; Stan Reno, Interim-City Manager. Planned Completion Date for the Corrective Action Plan Recommendations are considered at the issuance of the report, October 24, 2024.