FAC Explorer

Audit 328026

FY End
2023-12-31
Total Expended
$1.75M
Findings
2
Programs
3
Organization: City of South Beloit (IL)
Year: 2023 Accepted: 2024-11-12
Auditor: Lauterbach & Amen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
505364 2023-001 Material Weakness - L
1081806 2023-001 Material Weakness - L

Programs

ALN Program Spent Major Findings
66.458 Capitalization Grants for Clean Water State Revolving Funds $1.62M Yes 1
66.818 Brownfields Assessment and Cleanup Cooperative Agreements $73,564 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $39,100 - 0

Contacts

Name Title Type
H5N7HKWLV5N6 Don Elliot Auditee
8153893023 Don Shaw Auditor
No contacts on file

Notes to SEFA

Title: NOTE 4 – SUBRECIPIENT RELATIONSHIPS Accounting Policies: NOTE 1 – BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the City under programs of the federal government for the year ended December 31, 2023. The information in this Schedule is presented in accordance with the requirements of Uniform Guidance, Audits of States, Local Governments, and Non-Profit Organizations. 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, changes in net position, or cash flows of the City. NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures Expenditures reported on the Schedule are reported on the accrual basis of accounting. Pass-Through Entities Pass-through entity identifying numbers are presented on the Schedule where available. De Minimis Rate Used: Y Rate Explanation: The City has selected to use the 10% de minimis indirect cost rate as permitted by 2 CFR Section 200.414. The City did not remit any funds to subrecipients.

Finding Details

Finding 2023-001
Finding 2023 – 001: Restatement to Net Position Condition: During audit fieldwork, our testing resulted in a restatement of Sewage Disposal net position in order to correct the recording of ARPA deferred revenues. Criteria: A good system of internal controls would provide for accurate recording and reporting of ARPA funding in order to provide for accurate financial reporting. Cause: Year-end entries related to ARPA deferred revenues were required in order to accurately present the City’s financial statements. Effect: A material adjustment to the City’s beginning net position was required to properly state for ARPA deferred revenues. Recommendation: We recommend the City implement effective internal controls in order to provide an accurate assessment of reporting requirements for ARPA reporting purposes. This implementation of improved controls would result in the appropriate recognition for financial reporting requirements. Corrective Action Plan: The City Finance Director will implement internal controls to review all ARPA receipts and expenses and record accordingly prior to audit fieldwork.
Finding 2023-001
Finding 2023 – 001: Restatement to Net Position Condition: During audit fieldwork, our testing resulted in a restatement of Sewage Disposal net position in order to correct the recording of ARPA deferred revenues. Criteria: A good system of internal controls would provide for accurate recording and reporting of ARPA funding in order to provide for accurate financial reporting. Cause: Year-end entries related to ARPA deferred revenues were required in order to accurately present the City’s financial statements. Effect: A material adjustment to the City’s beginning net position was required to properly state for ARPA deferred revenues. Recommendation: We recommend the City implement effective internal controls in order to provide an accurate assessment of reporting requirements for ARPA reporting purposes. This implementation of improved controls would result in the appropriate recognition for financial reporting requirements. Corrective Action Plan: The City Finance Director will implement internal controls to review all ARPA receipts and expenses and record accordingly prior to audit fieldwork.