Finding Text
2022-002 Allowable Costs - 66.468 - Capitalization Grants for Drinking Water State Revolving Funds - April 30, 2022 Criteria: The City is responsible for submitting requests for loan disbursements to the Illinois Environmental Protections Agency (IEPA), including eligible expenditures for loan reimbursement. Condition/Context: The City submitted expenditures to IEPA totaling $260,749, that were approved by IEPA. Upon additional review, the City determined these expenditures to be ineligible as they were previously used as bond expenditures related to a previous bond issuance and are therefore ineligible expenditures for loan reimbursement. Cause: The City?s initial review process did not identify ineligible expenditures. Effect: The City provided an entry to retroactively correct the loan proceeds and note payable by reducing the current year loan receivable for the amount of ineligible expenditures. Questioned Costs: $260,749 Recommendation: We recommend the City review its process and procedures related to submitting IEPA loan reimbursements, to ensure all expenditures are eligible for reimbursement. Views of Responsible Officials: The City agrees with the finding above, further information is provided in the Corrective Action Plan.