FAC Explorer

Audit 352243

FY End
2022-04-30
Total Expended
$1.04M
Findings
4
Programs
4
Organization: City of Pekin (IL)
Year: 2022 Accepted: 2025-04-01
Auditor: Lauterbach & Amen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
553676 2022-001 Material Weakness Yes P
553677 2022-002 Significant Deficiency Yes P
1130118 2022-001 Material Weakness Yes P
1130119 2022-002 Significant Deficiency Yes P

Programs

ALN Program Spent Major Findings
14.218 Community Development Block Grants/entitlement Grants $270,237 Yes 2
20.106 Airport Improvement Program $71,034 - 0
21.019 Coronavirus Relief Fund $63,000 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $10,343 - 0

Contacts

Name Title Type
ECBYN719GLG6 Eric Auditee
3094785381 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 April 30, 2022. 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: N Rate Explanation: The City has selected not 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 2022-001
Condition: During audit fieldwork, our testing resulted in a restatement of fund balance in order to correct retainage payable improperly recorded in prior years. Criteria: A good system of internal controls would provide for accurate recording and reporting of retainage payable on a regular basis in order to provide for accurate financial reporting. Cause: Year-end entries related to retainage payable were required in order to accurately present the City’s financial statements. Effect: A material adjustment to the City’s beginning fund balance was required to properly state retainage payable. Recommendation: We recommend the City implement effective internal controls in order to provide an accurate assessment of reporting requirements. This implementation of improved controls would result in the appropriate recognition for financial reporting requirements. Corrective Action Plan: The City and finance director will implement internal controls to properly record retainage payable on a timely basis prior to audit fieldwork
Finding 2022-002
Condition: Previously and during audit fieldwork, our testing resulted in audit adjustments in order to present materially accurate financial statements. Criteria: A good system of internal controls would provide for accurate representations of adjusted account balances for all City accounts prior to audit fieldwork. Cause: Year-end entries related to various accruals and other items were required in order to accurately present the City’s financial statements. Effect: The City’s financial statements were not fully adjusted prior to audit fieldwork. Recommendation: A vital process of effective internal controls is the review and subsequent adjustment of general ledger balances. This review and adjustment will aid in the appropriate budgeting and management of the City’s financial activities and resources. Corrective Action Plan: The City and finance director will implement internal controls to properly record year-end adjustments on a timely basis prior to audit fieldwork.
Finding 2022-001
Condition: During audit fieldwork, our testing resulted in a restatement of fund balance in order to correct retainage payable improperly recorded in prior years. Criteria: A good system of internal controls would provide for accurate recording and reporting of retainage payable on a regular basis in order to provide for accurate financial reporting. Cause: Year-end entries related to retainage payable were required in order to accurately present the City’s financial statements. Effect: A material adjustment to the City’s beginning fund balance was required to properly state retainage payable. Recommendation: We recommend the City implement effective internal controls in order to provide an accurate assessment of reporting requirements. This implementation of improved controls would result in the appropriate recognition for financial reporting requirements. Corrective Action Plan: The City and finance director will implement internal controls to properly record retainage payable on a timely basis prior to audit fieldwork
Finding 2022-002
Condition: Previously and during audit fieldwork, our testing resulted in audit adjustments in order to present materially accurate financial statements. Criteria: A good system of internal controls would provide for accurate representations of adjusted account balances for all City accounts prior to audit fieldwork. Cause: Year-end entries related to various accruals and other items were required in order to accurately present the City’s financial statements. Effect: The City’s financial statements were not fully adjusted prior to audit fieldwork. Recommendation: A vital process of effective internal controls is the review and subsequent adjustment of general ledger balances. This review and adjustment will aid in the appropriate budgeting and management of the City’s financial activities and resources. Corrective Action Plan: The City and finance director will implement internal controls to properly record year-end adjustments on a timely basis prior to audit fieldwork.