FAC Explorer

Finding 572538 (2024-003)

- Repeat Finding
Requirement
H
Questioned Costs
-
Year
2024
Accepted
2025-08-05
Audit: 363692
Organization: City of Decatur (IL)
Auditor: Sikich CPA LLC

AI Summary

  • Core Issue: The City did not spend grant funds timely, exceeding the allowable balance of $1,319,714 by $2,548,256.
  • Impacted Requirements: This is a repeat finding related to compliance with the CDBG timeliness spending requirements under 24 CFR Section 570.902.
  • Recommended Follow-Up: The City should implement procedures to ensure compliance with the CDBG timeliness standards to avoid future sanctions and funding reductions.

Finding Text

2024-003 Period of Performance - Community Development Block Grants/Entitlement Grants Cluster Assistance Listing Number 14.218 Grant Period - Year Ended December 31, 2024 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, 2024 of $2,548,256 is more than 1.5 times the $1,319,714 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 2023-003. 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

2024-003 Period of Performance - Community Development Block Grants/Entitlement Grants Cluster Assistance Listing Number 14.218 Grant Period - Year Ended December 31, 2024 Condition Found The City did not meet program timeliness spending requirements. The City’s unexpended balance at December 31, 2024 of $2,548,256 is more than 1.5 times the $1,319,714 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 received the 2023 Management Letter on May 15, 2025 with this same instance of non-compliance, after most of the 2024 financial audit was completed and the 2024 fiscal year had ended. The City of Decatur Economic & Community Development Department is under new leadership with Lacie Elzy as Acting Economic & Community Development Director. Director Elzy will be reviewing all grant programs and duties in the department and ensuring that grant requirements are met. As of the date of this letter, timeliness spending requirements have been met and the City is compliant. Responsible Person for Corrective Action Plan Lacie Elzy, Acting Economic & Community Development Director Implementation Date of Corrective Action Plan December 31, 2025

Categories

Period of Performance Program Income

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
20.507 Federal Transit_formula Grants $1.20M
20.507 Covid-19 Federal Transit_formula Grants $838,401
20.325 Consolidated Rail Infrastructure and Safety Improvements $546,699
14.218 Community Development Block Grants/entitlement Grants $241,645
20.205 Highway Planning and Construction $237,870
66.460 Nonpoint Source Implementation Grants $232,262
10.932 Regional Conservation Partnership Program $113,078
66.468 Capitalization Grants for Drinking Water State Revolving Funds $50,000
14.239 Home Investment Partnerships Program $44,968
16.922 Equitable Sharing Program $36,914
16.738 Edward Byrne Memorial Justice Assistance Grant Program $24,407
16.607 Bulletproof Vest Partnership Program $14,880
20.600 State and Community Highway Safety $10,340
14.218 Covid-19 Community Development Block Grants/entitlement Grants $8,564
20.505 Metropolitan Transportation Planning and State and Non-Metropolitan Planning and Research $979
14.239 Covid-19 Home Investment Partnerships Program $119