Audit 405707

FINDING: 2024-004 Suspension and Debarment Policy Deficiencies Federal Agency: U.S. Department Housing and Urban Development Federal Program: Economic Development Initiative, Community Project Funding, and Miscellaneous Grants Assistance Listing # 14.251 Award Period: March 9, 2022 through August 31, 2030 Type of Finding: Material Weakness in Internal Control Over Compliance Criteria: The Village should have a suspension and debarment policy that adheres to the requirements of the Uniform Guidance Condition: The auditors noted during the audit that the Village did not have a suspension and debarment policy that adheres to the requirements of the Uniform Guidance. Questioned Costs: None Context: The Village is currently reviewing its policies and procedures manuals to update according to current regulations. Cause: The condition is due to limited availability of staff and the governing board. Effect: The Village could procure goods or services with federal funds that are not in accordance with requirements of the Uniform Guidance. Repeat Finding: The finding is new in the current year. Recommendation: The Village should continue to evaluate its policies to ensure they are in accordance with Uniform Guidance. Views of Responsible Officials and Planned Corrective Actions: The Village is currently reviewing its policies and procedures to ensure that it follows Uniform Guidance Suspension and Debarment Standards

FINDING: 2024-005 Allowable Costs and Cost Principles; Cash Management Federal Agency: U.S. Department Housing and Urban Development Federal Program: Economic Development Initiative, Community Project Funding, and Miscellaneous Grants Assistance Listing # 14.251 Award Period: March 9, 2022 through August 31, 2030 Type of Finding: Material Weakness in Internal Control Over Compliance Criteria: The Village should have an allowable costs policy that adheres to the requirements of the Uniform Guidance Condition: The Village initially claimed Federal Expenditures for this grant for costs that had already been submitted for a prior FEMA grant. Village subsequently re-submitted vouchers for eligible costs. Questioned Costs: None Context: The Village is reviewing its allowable costs process to ensure they do not double claim federal expenditures for subsequent federal programs. Cause: The Village has not implemented an effective system of internal controls over allowable costs and cash management to ensure costs are not double claimed for Federal Grants. Effect: The Village could be out of compliance for allowable costs claimed and cash management for Federal Grants. Repeat Finding: The finding is new in the current year. Recommendation: The Village should continue to evaluate its process to ensure they are in accordance with Uniform Guidance. Views of Responsible Officials and Planned Corrective Actions: The Village is currently reviewing its policies and procedures to ensure that it follows Uniform Guidance Allowable Costs Standards.

FINDING: 2024-006 Reporting Federal Agency: U.S. Department Housing and Urban Development Federal Program: Economic Development Initiative, Community Project Funding, and Miscellaneous Grants Assistance Listing # 14.251 Award Period: March 9, 2022 through August 31, 2030 Type of Finding: Material Weakness in Internal Control Over Compliance Criteria: The Uniform Guidance requires that an entity establish a system of properly functioning internal controls and that all reporting be submitted accurately and within the time frames prescribed by the grantors. Condition: The Semi-Annual Reports were submitted by the contracted grant coordinator with inaccurate expenditure information, and there was no further review by Village personnel for the semi-annual reports or the HUD draw requests. Questioned Costs: None Context: There was inaccurate expenditure information reported for the semi-annual reports selected for testing. There was also no documented review or approval for these reports. Cause: The Village has not implemented an effective system of internal controls over reporting to ensure that reports reflect actual expenditure activity for the respective period. The Village has not implemented an effective system of internal controls over reporting to ensure that reports are reviewed and approved by someone within the Village, other than the original preparer of the reports Effect: Without an effective review and approval process, the semi-annual reports may contain inaccurate information. Repeat Finding: The finding is new in the current year. Recommendation: The Village should continue to evaluate its process to ensure they are in accordance with Uniform Guidance. Views of Responsible Officials and Planned Corrective Actions: The Village is currently reviewing its policies and procedures to ensure that it follows Uniform Guidance Reporting and Cash Management Standards.