Audit 356945

FY End

2024-06-30

Total Expended

$1.81M

Findings

4

Programs

6

Organization: Region 1 Planning Council (IL)

Year: 2024 Accepted: 2025-05-22

Auditor: Lauterbach & Amen LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
561301	2024-001	Material Weakness	-	IL
561302	2024-002	Significant Deficiency	-	IL
1137743	2024-001	Material Weakness	-	IL
1137744	2024-002	Significant Deficiency	-	IL

ALN	Program	Spent	Major
16.609	Project Safe Neighborhoods	$204,405	-
66.460	Nonpoint Source Implementation Grants	$84,540	-
66.818	Brownfields Multipurpose, Assessment, Revolving Loan Fund, and Cleanup Cooperative Agreements	$75,950	-
21.027	Coronavirus State and Local Fiscal Recovery Funds	$73,661	-
20.205	Highway Planning and Construction	$54,440	Yes
20.939	Safe Streets and Roads for All	$45,050	-

Contacts

Name	Title	Type
LUKJGW7HLS34	Kayla Gipson	Auditee
8153194180	Don Shaw	Auditor
No contacts on file

Notes to SEFA

Title: NOTE 4 – SUBRECIPIENT RELATIONSHIPS Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Council under programs of the federal government for the year ended June 30, 2024. 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 Council, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Council. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Pass-through entity identifying numbers are presented on the Schedule where available. De Minimis Rate Used: N Rate Explanation: The Council has selected to use the 10% de minimis indirect cost rate as permitted by 2 CFR Section 200.414. The Council remitted the following funds to subrecipients: City of Rockford – Police Department: $78,649 Children’s Home & Aid: $204,405

Finding Details

Finding 2024-001

Condition: During audit fieldwork, our testing resulted in a restatement of fund balance in order to correct payroll liabilities that were improperly recorded in prior years. Criteria: A good system of internal controls would provide for accurate recording and reporting of payroll liabilities on a regular basis in order to provide for accurate financial reporting. Cause: Year-end entries related to payroll liabilities were required in order to accurately present the District’s financial statements. Effect: A material adjustment to the Council’s beginning fund balance was required to properly state payroll liabilities. Recommendation: We recommend the Council 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 Council and Director of Finance will implement internal controls to properly record payroll liabilities on a timely basis prior to audit fieldwork.

Finding 2024-002

Condition: During audit fieldwork, our testing resulted in significant 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 Council accounts prior to audit fieldwork. Cause: Year-end entries related to various accruals and other items were required in order to accurately present the Council’s financial statements. Effect: The Council’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 Council’s financial activities and resources.

Finding 2024-001

Condition: During audit fieldwork, our testing resulted in a restatement of fund balance in order to correct payroll liabilities that were improperly recorded in prior years. Criteria: A good system of internal controls would provide for accurate recording and reporting of payroll liabilities on a regular basis in order to provide for accurate financial reporting. Cause: Year-end entries related to payroll liabilities were required in order to accurately present the District’s financial statements. Effect: A material adjustment to the Council’s beginning fund balance was required to properly state payroll liabilities. Recommendation: We recommend the Council 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 Council and Director of Finance will implement internal controls to properly record payroll liabilities on a timely basis prior to audit fieldwork.

Finding 2024-002

Condition: During audit fieldwork, our testing resulted in significant 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 Council accounts prior to audit fieldwork. Cause: Year-end entries related to various accruals and other items were required in order to accurately present the Council’s financial statements. Effect: The Council’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 Council’s financial activities and resources.