Audit 399426

2023 – 005 Suspension & Debarment Federal agency: U.S. Treasury Department Federal program title: COVID-19 Coronavirus State and Local Fiscal Recovery Funds FALN Number: 21.027 Federal Award Identification Number: CPAP000000381538 Award Period: March 2021 through December 2024 Type of Finding: • Material Weakness in Internal Control Over Compliance • Other Matters Condition: During our testing, we noted the County did not have internal controls designed to ensure compliance with federal suspension and debarment requirements. Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of suspension and debarment. The County should have internal controls designed to ensure compliance with those provisions. The County is also required to verify an entity is not suspended or debarred. Questioned costs: None Context: During our testing, it was noted that the County did not follow suspension and debarment requirements for 5 of 5 items tested. Cause: The County does not have a policy in place that clearly addresses compliance with federal grant requirements per the Uniform Guidance. Effect: The County lacked reasonable assurance of compliance with suspension and debarment requirements; however, no instances of awards to suspended or debarred parties were identified during audit testing. Repeat finding: Yes, 2022-005 Recommendation: We recommend the County review the federal procurement requirements outlined in the federal Uniform Guidance and create a written policy to address federal compliance requirements. Additionally, we recommend a designated individual at the County ensures purchases made with federal grant funding comply with federal procurement requirements by type of procurement (micropurchase, small purchase, sole-source, etc.) and also suspension and debarment requirements. Views of responsible officials: The Menard County Treasurer will provide appropriate in-house training for federal procurement requirements as relayed in the Uniform Guidance. A written policy will be created and adhered to addressing federal compliance requirements with suspension and debarment requirements.

2023 – 006 Procurement Federal agency: U.S. Treasury Department Federal program title: COVID-19 Coronavirus State and Local Fiscal Recovery Funds FALN Number: 21.027 Federal Award Identification Number: CPAP000000381538 Award Period: March 2021 through December 2024 Type of Finding: • Significant Deficiency in Internal Control Over Compliance • Other Matters Condition: During our testing, we noted the County did not have internal controls designed to ensure compliance with federal procurement requirements. Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement. The County should have internal controls designed to ensure compliance with those provisions. The County is required to have documentation and follow procurement requirements including obtaining price or rate quotations from an adequate number of qualified sources for small purchases and sealed bids. Questioned costs: None Context: During our testing, it was noted that the County did not follow procurement requirements for 1 of 5 procurements (1 of 1 small purchases) tested. Additionally, the County does not have a policy to specifically adhere to federal grant requirements. Cause: The County does not have a written procurement policy in place that clearly addresses compliance with federal grant requirements per the Uniform Guidance. Effect: Internal controls over procurement were not adequately designed or implemented, increasing the risk that procurement decisions were inconsistent, inadequately documented, or not in compliance with federal requirements. Repeat finding: Yes, 2022-005 Recommendation: We recommend the County review the federal procurement requirements outlined in the federal Uniform Guidance and create a written policy to address federal compliance requirements. Additionally, we recommend a designated individual at the County ensures purchases made with federal grant funding comply with federal procurement requirements by type of procurement (micropurchase, small purchase, sole-source, etc.) and also suspension and debarment requirements. Views of responsible officials: The Menard County Treasurer will provide appropriate in-house training for federal procurement requirements as relayed in the Uniform Guidance. A written policy will be created and adhered to addressing federal compliance requirements with procurement requirements.

2023 – 004 Reporting Federal agency: U.S. Treasury Department Federal program title: COVID-19 Coronavirus State and Local Fiscal Recovery Funds (SLFRF) FALN Number: 21.027 Federal Award Identification Number: CPAP000000381538 Pass Through Agency: Illinois Department of Healthcare and Family Services Pass Through Entity Identifying Number: ARPA230282 Award Period: March 2021 through December 2024 Type of Finding: • Significant Deficiency in Internal Control Over Compliance • Other Matters Criteria or specific requirement: For the SLFRF program, the County is required to submit certain financial and performance reports. Condition: During our testing, we noted the County, specifically the Sunny Acres Nursing Home, was not able to provide documentation that their reports were reviewed and approved prior to submission. Also, it was noted that the County did not submit a required report. Questioned costs: None Context: During our testing, we noted the County was not able to provide documentation that their reports were reviewed and approved prior to submission. Also, it was noted that the County did not submit 2 of 4 required reports tested. Cause: The County could not provide documentation that their reports were reviewed and approved prior to submission. Also, the required quarterly performance reports due February 15, 2023 and May 15, 2023 were not submitted. The County was unaware of these requirements related to the grant. Repeat finding: Yes, 2022-004 Effect: Internal controls over federal program reporting were not operating effectively, increasing the risk that required federal reports were inaccurate, incomplete, or not submitted in accordance with federal requirements. Recommendation: We recommend that the County review and approve reports prior to submission, with that review documented, and submit all required reports on a timely basis. Views of responsible officials: Effective 4/17/2026, the Menard County Board of Commissioners will review and approve all financial and performance reports prior to submission to both State and Federal funding sources.