Audit 371741

FY End
2024-12-31
Total Expended
$81.43M
Findings
1
Programs
17
Organization: City of Joliet (IL)
Year: 2024 Accepted: 2025-11-04

Organization Exclusion Status:

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Contacts

Name Title Type
UKXHU6SJXLR9 Rebecca Degroate Auditee
8157243906 Katie Napier Auditor
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Notes to SEFA

The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the City of Joliet, Illinois (City) and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of 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 City’s financial statements.
The City did not have any federal insurance in effect during the year. Loans Payable - Illinois EPA The City had twenty-four loans payable to the Illinois Environmental Protection Agency (IEPA) from the City’s Water and Sewer Fund as of December 31, 2024. The loans were made from the IEPA Revolving Fund which has been funded with both federal and state of Illinois monies. Loan drawdowns in 2024 totaled $41,552,454 of which $17,717,139 was federally funded; the remainder was state of Illinois funded. Loans Payable – Water Infrastructure Finance and Innovation (WIFIA) The City had two loans payable to the United States Environmental Protection Agency (EPA) from the City’s Water and Sewer Fund as of December 31, 2024. The City received funding through the Water Infrastructure Finance and Innovation Act (WIFIA) Program administered by the U.S. Environmental Protection Agency. Loan proceeds of $55,115,000 were drawn down in a prior year but were not expended on eligible project costs until the current fiscal year.
The City did not elect to use the 10% de minimis cost rate as covered in Uniform Guidance § 200.414 Indirect Facilities and Administration Costs.
The City will receive and has received property in the form of road/bridge construction projects through the resources provided by the U.S. Department of Transportation. There were two construction projects as listed in the schedule of expenditures of federal awards under CFDA number 20.205, for which the City has recorded federal expenditures related to engineering costs for the construction performed by the state of Illinois with the use of federal funding. The City is the beneficiary of the construction projects upon completion.

Finding Details

Criteria or Specific Requirement: Recipients of Coronavirus State and Local Fiscal Recovery Funds (SLFRF) are required to provide quarterly project and expenditure reports to the Department of Administrative Services (DAS) who then compile the information and submit it to the U.S. Department of Treasury. Each report contains detailed project information, including current period obligation, cumulative obligation, current period expenditure, and cumulative expenditure. Quarterly reports are due within 30 days of the quarter ending. Condition: During the course of the audit, it was noted the City did not always file quarterly reports within the stated time period for its SLFRF Program. Questioned Costs: None. Context: Two quarters reported for the SLFRF Program were reported past the 30-day following quarter-end time period. For the quarter ended September 30, 2024, the City filed expenditure detail on November 1, 2024. For the quarter ended December 31, 2024, the City filed expenditure detail on February 11, 2025. Effect: The data submitted by recipient is used internally for oversight purposes and to fulfill the U.S. Department of Treasury’s transparency and legal obligations. Late submissions undermine the efficiency and timeliness of these processes. Furthermore, the City was not in compliance with grant regulations over reporting. Cause: The City did not have procedures requiring a formal documented review of the City's compliance with the reporting requirements. Recommendation: We recommend the City take steps to ensure project and expenditure reports are filed on a timely basis. Management’s Response: The City will implement an internal procedure to ensure proper filing within 30 days of quarter end to be in reporting compliance.