Audit 382217

FY End

2025-04-30

Total Expended

$7.50M

Findings

2

Programs

1

Organization: Christian County Water Reclamation District (IL)

Year: 2025 Accepted: 2026-01-16

Auditor: MCK CPAS & ADVISORS

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
1169253	2025-001	Material Weakness	Yes	P
1169254	2025-002	Material Weakness	Yes	P

ALN	Program	Spent	Major	Findings
66.458	CLEAN WATER STATE REVOLVING FUND	$7.50M	Yes	2

Contacts

Name	Title	Type
RTMUPLAN3Y15	Jeff Waterman	Auditee
2178246833	Cathy Mansur	Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the District under programs of the federal government for the year ended April 30, 2025. The information in this Schedule is presented in accordance with the requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position, changes in net position, or cash flows of the District. Expenditures represent only the federally funded positions of the programs presented.

Basis of Presentation 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 District has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.

The District did not provide federal awards to subrecipients during the year ended April 30, 2025. During the year ended April 30, 2025, the District did not receive any federal awards in the form of noncash assistance, such as federal property, food commodities, or insurance in effect.

Finding Details

Finding 2025-001

Financial Reporting Condition: Management provides the information needed to prepare the financial statements. Regardless, the auditors prepare a complete set of financial statements including required disclosures, with management's oversight and approval. Criteria: Management is responsible for establishing and maintaining adequate internal control over financial reporting. A system of internal control over financial reporting does not stop at the general ledger; rather it includes controls over the preparation of the financial statements and related footnote disclosures. Additionally, having sufficient expertise in selecting and applying accounting principles that are in conformity with generally accepted accounting principles is an aspect of such controls. Cause: During our review of the financial reporting process, we noted that, while the District prepares internal financial reports, the expertise to prepare a complete set of financial statements, including converting fund financial statements to the government-wide presentation and disclosures in conformity with generally accepted accounting principles is deficient. Effect: Without adequate financial reporting expertise, errors and omissions could occur in the financial statements and not be detected by management. Recommendation: We recommend that management assess the financial reporting process and consider implementing additional internal control procedures to ensure the accuracy and completeness of the financial statements. Repeat Finding: This finding is a repeat of a finding reported at April 30, 2024.

Finding 2025-002

Significant Audit Adjustments Condition: During our audit, we recommended several significant audit adjustments to the District's accounts to adjust balances after audit evidence provided material differences. Areas affected by these audit adjustments included prepaid expenses, net pension liability, personal property replacement taxes receivable, sewer and debt fees receivable, and compensated absences. Criteria: Management is responsible for establishing and maintaining adequate internal control over financial reporting. This includes reviewing new accounting standards and determining if the District has activities that fall under the direction of those standards. Cause: The District failed to adjust accruals to actual, recognize certain items in the proper period, and properly adopt new standards due to its lack of financial expertise. Effect: Prior financial statements could have misled users regarding the District's net position and result of operations. Recommendation: We recommend that management implement procedures to reconcile their books in accordance with generally accepted accounting principles all items and apply procedures to adopt new standards when they become required. Repeat Finding: This is a new finding for April 30, 2025.