FAC Explorer

Finding 1241611 (2025-003)

Material Weakness Repeat Finding
Requirement
H
Questioned Costs
-
Year
2025
Accepted
2026-11-03
Audit: 415653
Organization: City of Decatur (IL)
Auditor: SIKICH CPA LLC

AI Summary

  • Core Issue: The City failed to meet the timely spending requirements for Community Development Block Grants, with an unspent balance exceeding the allowable limit.
  • Impacted Requirements: Non-compliance with 24 CFR Section 570.902 regarding the period of performance, which could lead to sanctions and reduced future funding.
  • Recommended Follow-Up: The City should implement procedures to ensure compliance with the CDBG timeliness standards to avoid future issues.

Finding Text

2025-003 Period of Performance - Community Development Block Grants/Entitlement Grants Cluster Assistance Listing Number 14.218 Grant Period - Year Ended December 31, 2025 Criteria: 24 CFR Section 570.902 of the CDBG regulations states that a grantee is in compliance with timely expenditure requirements if, 60 days prior to the end of its program year, there is no more than 1.5 times its annual grant remaining in the line of credit, including any program income on hand. Condition/Context: The City did not meet program timeliness spending requirements. The City’s unexpended balance at December 31, 2025 of $2,435,653 is more than 1.5 times the $1,303,056 entitlement grant for the current year. We consider this to be an instance of non-compliance relating to the Period of Performance Compliance Requirement. This finding is a repeat finding and also reported in Section IV-Prior Year Audit Findings as finding 2024-003. Questioned Costs: $0 Cause: The City experienced delays in projects funded by the grant. Effect: Failure to meet the timeliness standard results in noncompliance with the period of performance requirement and could result in sanctions and reduction of future grant funds. Recommendation: We recommend that the City establish procedures to ensure that it complies with the CDBG timeliness standard specified in 24 CFR Section 570.902. Views of Responsible Officials: Management agrees with the Single Audit finding and a response is included in the Corrective Action Plan.

Corrective Action Plan

2025-003 Period of Performance - Community Development Block Grants/Entitlement Grants Cluster Assistance Listing Number 14.218 Grant Period - Year Ended December 31, 2025 Condition Found The City did not meet program timeliness spending requirements. The City’s unexpended balance at December 31, 2025 of $2,435,653 is more than 1.5 times the $1,303,056 entitlement grant for the current year. We consider this to be an instance of non-compliance relating to the Period of Performance Compliance Requirement. Corrective Action Plan The City of Decatur met CDBG timeliness spending requirements in 2026 and is currently in compliance. To maintain compliance, the Economic & Community Development Department will regularly monitor expenditure rates, unexpended balances, and project schedules; coordinate with staff and subrecipients to address delays; and ensure timely reimbursement processing and drawdowns. These ongoing oversight measures will help identify and resolve spending concerns before future timeliness assessments. Responsible Person for Corrective Action Plan Lacie Elzy, Economic & Community Development Director Implementation Date of Corrective Action Plan September 30, 2026

Categories

Period of Performance Program Income

Other Findings in this Audit

  • 1241604 2025-003
    Material Weakness Repeat
  • 1241605 2025-003
    Material Weakness Repeat
  • 1241606 2025-003
    Material Weakness Repeat
  • 1241607 2025-003
    Material Weakness Repeat
  • 1241608 2025-003
    Material Weakness Repeat
  • 1241609 2025-003
    Material Weakness Repeat
  • 1241610 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
66.458 CAPITALIZATION GRANTS FOR CLEAN WATER STATE REVOLVING FUNDS $3.11M
20.526 BUSES AND BUS FACILITIES FORMULA, COMPETITIVE, AND LOW OR NO EMISSIONS PROGRAMS $1.82M
20.507 COVID-19 FEDERAL TRANSIT_FORMULA GRANTS $1.35M
14.218 COVID-19 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $733,450
66.468 CAPITALIZATION GRANTS FOR DRINKING WATER STATE REVOLVING FUNDS $728,017
20.325 CONSOLIDATED RAIL INFRASTRUCTURE AND SAFETY IMPROVEMENTS $689,674
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $423,009
10.932 REGIONAL CONSERVATION PARTNERSHIP PROGRAM $318,238
20.534 COMMUNITY PROJECT FUNDING CONGRESSIONALLY DIRECTED SPENDING $307,875
10.727 INFLATION REDUCTION ACT URBAN & COMMUNITY FORESTRY PROGRAM $242,196
16.922 EQUITABLE SHARING PROGRAM $140,380
20.205 HIGHWAY PLANNING AND CONSTRUCTION $131,748
20.509 FORMULA GRANTS FOR RURAL AREAS AND TRIBAL TRANSIT PROGRAM $115,722
66.460 NONPOINT SOURCE IMPLEMENTATION GRANTS $85,097
20.507 FEDERAL TRANSIT_FORMULA GRANTS $51,238
16.738 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM $35,584
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $26,327
16.607 BULLETPROOF VEST PARTNERSHIP PROGRAM $19,090
10.935 URBAN AGRICULTURE AND INNOVATIVE PRODUCTION $12,950
66.818 BROWNFIELDS ASSESSMENT AND CLEANUP COOPERATIVE AGREEMENTS $11,577
20.600 STATE AND COMMUNITY HIGHWAY SAFETY $6,914
14.239 COVID-19 HOME INVESTMENT PARTNERSHIPS PROGRAM $2,066