FAC Explorer

Audit 372527

FY End
2025-04-30
Total Expended
$13.04M
Findings
1
Programs
12
Organization: City of Carbondale, Illinois (IL)
Year: 2025 Accepted: 2025-11-24
Auditor: KERBER ECK & BRAECKEL LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1162850 2025-001 Material Weakness Yes B

Programs

ALN Program Spent Major Findings
20.933 NATIONAL INFRASTRUCTURE INVESTMENTS $8.83M Yes 0
16.710 PUBLIC SAFETY PARTNERSHIP AND COMMUNITY POLICING GRANTS $579,723 Yes 0
20.205 HIGHWAY PLANNING AND CONSTRUCTION $294,806 Yes 0
20.219 RECREATIONAL TRAILS PROGRAM $129,034 Yes 0
93.596 CHILD CARE MANDATORY AND MATCHING FUNDS OF THE CHILD CARE AND DEVELOPMENT FUND $64,528 Yes 0
16.835 BODY WORN CAMERA POLICY AND IMPLEMENTATION $63,678 Yes 0
45.310 GRANTS TO STATES $31,531 Yes 0
81.128 ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANT PROGRAM (EECBG) $26,215 Yes 0
11.307 ECONOMIC ADJUSTMENT ASSISTANCE $20,000 Yes 0
90.200 DELTA REGIONAL AUTHORITY $11,955 Yes 0
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $5,741 Yes 0
97.042 EMERGENCY MANAGEMENT PERFORMANCE GRANTS $4,426 Yes 0

Contacts

Name Title Type
HJBRJKBEKEG5 Jeff Davis Auditee
6184573269 Mark Dallas Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the Schedule) includes federal grant activity of the City of Carbondale, Illinois under programs of the federal government for the year ended April 30, 2025. The information in this Schedule is presented in accordance with 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 general purpose financial statements.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
The City of Carbondale, Illinois received funding through Child Care and Development Block Grant and the American Rescue Plan Act (ARPA) from the Department of Health and Human Services and Department of Treasury, respectively, which they awarded to various small businesses and not-for-profits within the City. In fiscal year ending April 30, 2025, there were 5 grants to a local businesses and not-for-profits from both programs exceeding $2,600,000.
City of Carbondale, Illinois has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
As required by the Uniform Guidance section 310(b)(6), City of Carbondale, Illinois did not receive or administer any insurance and had no loans or loan guarantees outstanding at year ended April 30, 2025. Non-cash assistance was not received or reported on the Schedule of Expenditures of Federal Awards.

Finding Details

Finding 2025-001
Significant Deficiency Finding number 2025 – 001 Federal Program 21.027 American Rescue Plan Act (ARPA) Criteria Noncompliance finding of IMRF contributions being incorrectly allocated to the grant funds and included in the annual report to the federal agency. Condition and Context The City incorrectly allocated IMRF contributions as a portion of salaries and benefits. This amount was reported on the annual report to the Department of Treasury Cause The City failed to remove the IMRF contributions amounts from total salaries and benefits when reporting that information to the third-party consultant who assists with submitting the annual report. Effect The total allocated to the ARPA funds for the fiscal year was overstated on the initial version of the schedule of expenditures of federal awards. The total salaries and benefits as allocated to the fiscal year on the annual report to the Department of Treasury was overstated. Questioned Costs 21.027 American Rescue Plan Act (ARPA) - $14,921 IMRF contributions are a percentage of eligible salaries as determined by Illinois State Statute and were incorrectly included in the total salaries and benefits for employees performing administrative duties for the federal program.Recommendation We recommended management contact their third-party consultant who assists with the annual report to the Department of Treasury for guidance on self-reporting the unallowable total. The City was advised to remove the questioned allocation from the schedule of expenditures of federal awards and record the amount as deferred revenue on the financial statements. The annual report to the Department of Treasury can not be amended or adjusted after submission, which was due prior to fiscal year ending April 30, 2025. A correction will need to be made on the next annual report, due prior to the end of the next fiscal year. Views of the responsible officials and planned corrective actions Management agreed with the recommendation from the third-party consultant. An entry was made to the financial statements to remove the dollar amount from recognized revenue, and record as deferred revenue, and costs removed from the schedule of expenditures of federal awards. The total amount of questioned costs is immaterial to the program and to the financial statements, however, management decided the entry was in the best interest of the City and should be recognized in a future year. Official Responsible for Ensuring the Corrective Action Plan is Implemented Jeff Davis, City Treasurer/Director of Finance; Stan Reno, City Manager. Planned Completion Date for the Corrective Action Plan Recommendations are considered at the issuance of the report, November 24, 2025.