Audit 357639

2023-002 Reporting - Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number 21.027 Grant Period - Year Ended December 31, 2023 Criteria: In accordance with the grant agreement the City was required to submit quarterly project and expenditure reports to the Illinois Department of Treasury as outlined on the schedule provided within the agreement. Condition/Context: The City failed to submit three quarterly reports in a timely manner. We consider this to be an instance of non-compliance relating to the Reporting Compliance Requirement. Questioned Costs: $0 Effect: The result is that the City did not submit the required information to the Illinois Department of Treasury in a timely fashion. Cause: The condition was an administrative oversight. Recommendation: We recommend the City increase controls over reporting. Views of Responsible Officials: Management agrees with the Single Audit finding and a response is included in the Corrective Action Plan.

2023-003 Period of Performance – Community Development Block Grants/Entitlement Grants Cluster Assistance Listing Number 14.218 Grant Period - Year Ended December 31, 2023 Criteria: 24 CFR Section 570.902 of the CDBG regulations states that a grantee is in compliance with timely expenditure requirements if, 60 days prior to the end of its program year, there is no more than 1.5 times its annual grant remaining in the line of credit, including any program income on hand. Condition/Context: The City did not meet program timeliness spending requirements. The City’s unexpended balance at December 31, 2023 of $2,683,379 is more than 1.5 times the $1,374,790 entitlement grant for the current year. We consider this to be an instance of non-compliance relating to the Period of Performance Compliance Requirement. Questioned Costs: $0 Effect: Failure to meet the timeliness standard results in noncompliance with the period of performance requirement and could result in sanctions and reduction of future grant funds. Cause: The City experienced delays in projects funded by the grant. Recommendation: We recommend that the City establish procedures to ensure that it complies with the CDBG timeliness standard specified in 24 CFR Section 570.902. Views of Responsible Officials: Management agrees with the Single Audit finding and a response is included in the Corrective Action Plan.

2023-003 Period of Performance – Community Development Block Grants/Entitlement Grants Cluster Assistance Listing Number 14.218 Grant Period - Year Ended December 31, 2023 Criteria: 24 CFR Section 570.902 of the CDBG regulations states that a grantee is in compliance with timely expenditure requirements if, 60 days prior to the end of its program year, there is no more than 1.5 times its annual grant remaining in the line of credit, including any program income on hand. Condition/Context: The City did not meet program timeliness spending requirements. The City’s unexpended balance at December 31, 2023 of $2,683,379 is more than 1.5 times the $1,374,790 entitlement grant for the current year. We consider this to be an instance of non-compliance relating to the Period of Performance Compliance Requirement. Questioned Costs: $0 Effect: Failure to meet the timeliness standard results in noncompliance with the period of performance requirement and could result in sanctions and reduction of future grant funds. Cause: The City experienced delays in projects funded by the grant. Recommendation: We recommend that the City establish procedures to ensure that it complies with the CDBG timeliness standard specified in 24 CFR Section 570.902. Views of Responsible Officials: Management agrees with the Single Audit finding and a response is included in the Corrective Action Plan.

2023-003 Period of Performance – Community Development Block Grants/Entitlement Grants Cluster Assistance Listing Number 14.218 Grant Period - Year Ended December 31, 2023 Criteria: 24 CFR Section 570.902 of the CDBG regulations states that a grantee is in compliance with timely expenditure requirements if, 60 days prior to the end of its program year, there is no more than 1.5 times its annual grant remaining in the line of credit, including any program income on hand. Condition/Context: The City did not meet program timeliness spending requirements. The City’s unexpended balance at December 31, 2023 of $2,683,379 is more than 1.5 times the $1,374,790 entitlement grant for the current year. We consider this to be an instance of non-compliance relating to the Period of Performance Compliance Requirement. Questioned Costs: $0 Effect: Failure to meet the timeliness standard results in noncompliance with the period of performance requirement and could result in sanctions and reduction of future grant funds. Cause: The City experienced delays in projects funded by the grant. Recommendation: We recommend that the City establish procedures to ensure that it complies with the CDBG timeliness standard specified in 24 CFR Section 570.902. Views of Responsible Officials: Management agrees with the Single Audit finding and a response is included in the Corrective Action Plan.

2023-003 Period of Performance – Community Development Block Grants/Entitlement Grants Cluster Assistance Listing Number 14.218 Grant Period - Year Ended December 31, 2023 Criteria: 24 CFR Section 570.902 of the CDBG regulations states that a grantee is in compliance with timely expenditure requirements if, 60 days prior to the end of its program year, there is no more than 1.5 times its annual grant remaining in the line of credit, including any program income on hand. Condition/Context: The City did not meet program timeliness spending requirements. The City’s unexpended balance at December 31, 2023 of $2,683,379 is more than 1.5 times the $1,374,790 entitlement grant for the current year. We consider this to be an instance of non-compliance relating to the Period of Performance Compliance Requirement. Questioned Costs: $0 Effect: Failure to meet the timeliness standard results in noncompliance with the period of performance requirement and could result in sanctions and reduction of future grant funds. Cause: The City experienced delays in projects funded by the grant. Recommendation: We recommend that the City establish procedures to ensure that it complies with the CDBG timeliness standard specified in 24 CFR Section 570.902. Views of Responsible Officials: Management agrees with the Single Audit finding and a response is included in the Corrective Action Plan.

2023-003 Period of Performance – Community Development Block Grants/Entitlement Grants Cluster Assistance Listing Number 14.218 Grant Period - Year Ended December 31, 2023 Criteria: 24 CFR Section 570.902 of the CDBG regulations states that a grantee is in compliance with timely expenditure requirements if, 60 days prior to the end of its program year, there is no more than 1.5 times its annual grant remaining in the line of credit, including any program income on hand. Condition/Context: The City did not meet program timeliness spending requirements. The City’s unexpended balance at December 31, 2023 of $2,683,379 is more than 1.5 times the $1,374,790 entitlement grant for the current year. We consider this to be an instance of non-compliance relating to the Period of Performance Compliance Requirement. Questioned Costs: $0 Effect: Failure to meet the timeliness standard results in noncompliance with the period of performance requirement and could result in sanctions and reduction of future grant funds. Cause: The City experienced delays in projects funded by the grant. Recommendation: We recommend that the City establish procedures to ensure that it complies with the CDBG timeliness standard specified in 24 CFR Section 570.902. Views of Responsible Officials: Management agrees with the Single Audit finding and a response is included in the Corrective Action Plan.

2023-003 Period of Performance – Community Development Block Grants/Entitlement Grants Cluster Assistance Listing Number 14.218 Grant Period - Year Ended December 31, 2023 Criteria: 24 CFR Section 570.902 of the CDBG regulations states that a grantee is in compliance with timely expenditure requirements if, 60 days prior to the end of its program year, there is no more than 1.5 times its annual grant remaining in the line of credit, including any program income on hand. Condition/Context: The City did not meet program timeliness spending requirements. The City’s unexpended balance at December 31, 2023 of $2,683,379 is more than 1.5 times the $1,374,790 entitlement grant for the current year. We consider this to be an instance of non-compliance relating to the Period of Performance Compliance Requirement. Questioned Costs: $0 Effect: Failure to meet the timeliness standard results in noncompliance with the period of performance requirement and could result in sanctions and reduction of future grant funds. Cause: The City experienced delays in projects funded by the grant. Recommendation: We recommend that the City establish procedures to ensure that it complies with the CDBG timeliness standard specified in 24 CFR Section 570.902. Views of Responsible Officials: Management agrees with the Single Audit finding and a response is included in the Corrective Action Plan.

2023-003 Period of Performance – Community Development Block Grants/Entitlement Grants Cluster Assistance Listing Number 14.218 Grant Period - Year Ended December 31, 2023 Criteria: 24 CFR Section 570.902 of the CDBG regulations states that a grantee is in compliance with timely expenditure requirements if, 60 days prior to the end of its program year, there is no more than 1.5 times its annual grant remaining in the line of credit, including any program income on hand. Condition/Context: The City did not meet program timeliness spending requirements. The City’s unexpended balance at December 31, 2023 of $2,683,379 is more than 1.5 times the $1,374,790 entitlement grant for the current year. We consider this to be an instance of non-compliance relating to the Period of Performance Compliance Requirement. Questioned Costs: $0 Effect: Failure to meet the timeliness standard results in noncompliance with the period of performance requirement and could result in sanctions and reduction of future grant funds. Cause: The City experienced delays in projects funded by the grant. Recommendation: We recommend that the City establish procedures to ensure that it complies with the CDBG timeliness standard specified in 24 CFR Section 570.902. Views of Responsible Officials: Management agrees with the Single Audit finding and a response is included in the Corrective Action Plan.

2023-002 Reporting - Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number 21.027 Grant Period - Year Ended December 31, 2023 Criteria: In accordance with the grant agreement the City was required to submit quarterly project and expenditure reports to the Illinois Department of Treasury as outlined on the schedule provided within the agreement. Condition/Context: The City failed to submit three quarterly reports in a timely manner. We consider this to be an instance of non-compliance relating to the Reporting Compliance Requirement. Questioned Costs: $0 Effect: The result is that the City did not submit the required information to the Illinois Department of Treasury in a timely fashion. Cause: The condition was an administrative oversight. Recommendation: We recommend the City increase controls over reporting. Views of Responsible Officials: Management agrees with the Single Audit finding and a response is included in the Corrective Action Plan.

2023-003 Period of Performance – Community Development Block Grants/Entitlement Grants Cluster Assistance Listing Number 14.218 Grant Period - Year Ended December 31, 2023 Criteria: 24 CFR Section 570.902 of the CDBG regulations states that a grantee is in compliance with timely expenditure requirements if, 60 days prior to the end of its program year, there is no more than 1.5 times its annual grant remaining in the line of credit, including any program income on hand. Condition/Context: The City did not meet program timeliness spending requirements. The City’s unexpended balance at December 31, 2023 of $2,683,379 is more than 1.5 times the $1,374,790 entitlement grant for the current year. We consider this to be an instance of non-compliance relating to the Period of Performance Compliance Requirement. Questioned Costs: $0 Effect: Failure to meet the timeliness standard results in noncompliance with the period of performance requirement and could result in sanctions and reduction of future grant funds. Cause: The City experienced delays in projects funded by the grant. Recommendation: We recommend that the City establish procedures to ensure that it complies with the CDBG timeliness standard specified in 24 CFR Section 570.902. Views of Responsible Officials: Management agrees with the Single Audit finding and a response is included in the Corrective Action Plan.

2023-003 Period of Performance – Community Development Block Grants/Entitlement Grants Cluster Assistance Listing Number 14.218 Grant Period - Year Ended December 31, 2023 Criteria: 24 CFR Section 570.902 of the CDBG regulations states that a grantee is in compliance with timely expenditure requirements if, 60 days prior to the end of its program year, there is no more than 1.5 times its annual grant remaining in the line of credit, including any program income on hand. Condition/Context: The City did not meet program timeliness spending requirements. The City’s unexpended balance at December 31, 2023 of $2,683,379 is more than 1.5 times the $1,374,790 entitlement grant for the current year. We consider this to be an instance of non-compliance relating to the Period of Performance Compliance Requirement. Questioned Costs: $0 Effect: Failure to meet the timeliness standard results in noncompliance with the period of performance requirement and could result in sanctions and reduction of future grant funds. Cause: The City experienced delays in projects funded by the grant. Recommendation: We recommend that the City establish procedures to ensure that it complies with the CDBG timeliness standard specified in 24 CFR Section 570.902. Views of Responsible Officials: Management agrees with the Single Audit finding and a response is included in the Corrective Action Plan.

2023-003 Period of Performance – Community Development Block Grants/Entitlement Grants Cluster Assistance Listing Number 14.218 Grant Period - Year Ended December 31, 2023 Criteria: 24 CFR Section 570.902 of the CDBG regulations states that a grantee is in compliance with timely expenditure requirements if, 60 days prior to the end of its program year, there is no more than 1.5 times its annual grant remaining in the line of credit, including any program income on hand. Condition/Context: The City did not meet program timeliness spending requirements. The City’s unexpended balance at December 31, 2023 of $2,683,379 is more than 1.5 times the $1,374,790 entitlement grant for the current year. We consider this to be an instance of non-compliance relating to the Period of Performance Compliance Requirement. Questioned Costs: $0 Effect: Failure to meet the timeliness standard results in noncompliance with the period of performance requirement and could result in sanctions and reduction of future grant funds. Cause: The City experienced delays in projects funded by the grant. Recommendation: We recommend that the City establish procedures to ensure that it complies with the CDBG timeliness standard specified in 24 CFR Section 570.902. Views of Responsible Officials: Management agrees with the Single Audit finding and a response is included in the Corrective Action Plan.

2023-003 Period of Performance – Community Development Block Grants/Entitlement Grants Cluster Assistance Listing Number 14.218 Grant Period - Year Ended December 31, 2023 Criteria: 24 CFR Section 570.902 of the CDBG regulations states that a grantee is in compliance with timely expenditure requirements if, 60 days prior to the end of its program year, there is no more than 1.5 times its annual grant remaining in the line of credit, including any program income on hand. Condition/Context: The City did not meet program timeliness spending requirements. The City’s unexpended balance at December 31, 2023 of $2,683,379 is more than 1.5 times the $1,374,790 entitlement grant for the current year. We consider this to be an instance of non-compliance relating to the Period of Performance Compliance Requirement. Questioned Costs: $0 Effect: Failure to meet the timeliness standard results in noncompliance with the period of performance requirement and could result in sanctions and reduction of future grant funds. Cause: The City experienced delays in projects funded by the grant. Recommendation: We recommend that the City establish procedures to ensure that it complies with the CDBG timeliness standard specified in 24 CFR Section 570.902. Views of Responsible Officials: Management agrees with the Single Audit finding and a response is included in the Corrective Action Plan.

2023-003 Period of Performance – Community Development Block Grants/Entitlement Grants Cluster Assistance Listing Number 14.218 Grant Period - Year Ended December 31, 2023 Criteria: 24 CFR Section 570.902 of the CDBG regulations states that a grantee is in compliance with timely expenditure requirements if, 60 days prior to the end of its program year, there is no more than 1.5 times its annual grant remaining in the line of credit, including any program income on hand. Condition/Context: The City did not meet program timeliness spending requirements. The City’s unexpended balance at December 31, 2023 of $2,683,379 is more than 1.5 times the $1,374,790 entitlement grant for the current year. We consider this to be an instance of non-compliance relating to the Period of Performance Compliance Requirement. Questioned Costs: $0 Effect: Failure to meet the timeliness standard results in noncompliance with the period of performance requirement and could result in sanctions and reduction of future grant funds. Cause: The City experienced delays in projects funded by the grant. Recommendation: We recommend that the City establish procedures to ensure that it complies with the CDBG timeliness standard specified in 24 CFR Section 570.902. Views of Responsible Officials: Management agrees with the Single Audit finding and a response is included in the Corrective Action Plan.

2023-003 Period of Performance – Community Development Block Grants/Entitlement Grants Cluster Assistance Listing Number 14.218 Grant Period - Year Ended December 31, 2023 Criteria: 24 CFR Section 570.902 of the CDBG regulations states that a grantee is in compliance with timely expenditure requirements if, 60 days prior to the end of its program year, there is no more than 1.5 times its annual grant remaining in the line of credit, including any program income on hand. Condition/Context: The City did not meet program timeliness spending requirements. The City’s unexpended balance at December 31, 2023 of $2,683,379 is more than 1.5 times the $1,374,790 entitlement grant for the current year. We consider this to be an instance of non-compliance relating to the Period of Performance Compliance Requirement. Questioned Costs: $0 Effect: Failure to meet the timeliness standard results in noncompliance with the period of performance requirement and could result in sanctions and reduction of future grant funds. Cause: The City experienced delays in projects funded by the grant. Recommendation: We recommend that the City establish procedures to ensure that it complies with the CDBG timeliness standard specified in 24 CFR Section 570.902. Views of Responsible Officials: Management agrees with the Single Audit finding and a response is included in the Corrective Action Plan.

2023-003 Period of Performance – Community Development Block Grants/Entitlement Grants Cluster Assistance Listing Number 14.218 Grant Period - Year Ended December 31, 2023 Criteria: 24 CFR Section 570.902 of the CDBG regulations states that a grantee is in compliance with timely expenditure requirements if, 60 days prior to the end of its program year, there is no more than 1.5 times its annual grant remaining in the line of credit, including any program income on hand. Condition/Context: The City did not meet program timeliness spending requirements. The City’s unexpended balance at December 31, 2023 of $2,683,379 is more than 1.5 times the $1,374,790 entitlement grant for the current year. We consider this to be an instance of non-compliance relating to the Period of Performance Compliance Requirement. Questioned Costs: $0 Effect: Failure to meet the timeliness standard results in noncompliance with the period of performance requirement and could result in sanctions and reduction of future grant funds. Cause: The City experienced delays in projects funded by the grant. Recommendation: We recommend that the City establish procedures to ensure that it complies with the CDBG timeliness standard specified in 24 CFR Section 570.902. Views of Responsible Officials: Management agrees with the Single Audit finding and a response is included in the Corrective Action Plan.