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HomeMy WebLinkAbout2024 Single AuditCITY OF EVANSTON, ILLINOIS Single Audit Report For the Year Ended December 31, 2024 TABLE OF CONTENTS Independent Auditor’s Report on Schedule of Expenditures of Federal Awards 1-2 Schedule of Expenditures of Federal Awards 3-4 Notes to Schedule of Expenditures of Federal Awards 5-7 Independent Auditor’s Report on Compliance for Each Major Program and on Internal Control over Compliance Required by the Uniform Guidance 8-10 Schedule of Findings and Questioned Costs 11-12 1 1837 S. Michigan Ave., Chicago, Illinois 60616 TEL (312) 567-1330 FAX (312) 567-1360 www.pradorenteria.com INDEPENDENT AUDITOR’S REPORT The Honorable Daniel Biss, Mayor and Members of the City Council Evanston, Illinois Report on the Audit of the Schedule of Expenditures of Federal Awards Opinion We have audited the accompanying Schedule of Expenditures of Federal Awards of the City of Evanston, Illinois (City), for the year ended December 31, 2024 and the related notes (the financial statement). In our opinion, the financial statement referred to above presents fairly, in all material respects, the expenditures of federal awards of the City for the year ended December 31, 2024,in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion We conducted our audit in accordance with auditing standards generally accepted in the United States of America.Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Schedule of Expenditures of Federal Awards section of our report. We are required to be independent of the City of Evanston,Illinois and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Responsibilities of Management for the Schedule of Expenditures of Federal Awards Management is responsible for the preparation and fair presentation of this financial statement in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of a financial statement that is free from material misstatement, whether due to fraud or error. Auditor’s Responsibilities for the Audit of the Schedule of Expenditures of Federal Awards Our objectives are to obtain reasonable assurance about whether the financial statement as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of 2 not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards,we: Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statement, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statement. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City of Evanston,Illinois’internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statement. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Chicago, Illinois September 24, 2025 Assistance Listing Identifying Award Passed-Through Federal Number Number Date to Subreceipients Expenditures DEPARTMENT OF AGRICULTURE Passed through the Illinois State Board of Education Child and Adult Care Food Program 10.558 05-016-510P-00 Jan 1, 2024 - Dec 31, 2024 -40,711$ Passed through the Illinois State Board of Education Summer Food Service Program for Children 10.559 05-016-510P-00 June 30, 2024 - Aug 31, 2024 -97,733 Passed through USDA/LINK UP Illinois State Administrative Matching Grants for the Supplemental Nutrition Assistance Program 10.561 12-3505-0-1-605 May 1, 2024 - Nov 30, 2024 -98,317 Total Department of Agriculture 236,761 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Community Development Block Grants/Entitlement Grants * Entitlement year 46 14.218 B20MC-170012 August 21, 2020 -6,470 Entitlement year 47 14.218 B21MC-170012 August 3, 2021 35,928 86,107 Entitlement year 48 14.218 B22MC-170012 September 8, 2022 -216,372 Entitlement year 49 14.218 B23MC-170012 July 12, 2023 -302,912 Entitlement year 50 14.218 B24MC-170012 September 8, 2024 280,558 1,058,842 Total Community Development Block Grants/Entitlement Grants 316,486 1,670,703 COVID-19 Community Development Block Grants/Entitlement Grants * Entitlement year 46 14.218 B20MW170012 July 16, 2020 -8,819 Emergency Solutions Grant Program 14.231 E22MC170012 September 8, 2022 40,676 40,910 Emergency Solutions Grant Program 14.231 E23MC170012 July 12, 2023 127,382 138,561 Total Emergency Solutions Grant Programs 168,058 179,471 Home Investment Partnerships Program 14.239 M21-MC-170218 August 3, 2021 74,050 74,050 Home Investment Partnerships Program 14.239 M22-MC-170218 September 8, 2022 3,312 4,727 Home Investment Partnerships Program 14.239 M23-MC-170218 July 12, 2023 5,331 38,003 Home Investment Partnerships Program 14.239 M24-MC-170218 September 8, 2024 8,103 8,103 Total Home Investment Partnerships Program 90,795 124,883 14.239 M21MP170218 September 27, 2021 -45,012 Total Department of Housing and Urban Development 2,028,888 DEPARTMENT OF JUSTICE Equitable Sharing Program 16.922 N/A January 31, 2024 -105,909 Total Department of Justice 105,909 DEPARTMENT OF TRANSPORTATION Passed through Illinois Department of Transportation Highway Planning and Construction 20.205 D-91-143-21 March 10, 2022 -158,026 Highway Planning and Construction 20.205 C-91-123-22 March 27, 2023 -126,408 Highway Planning and Construction 20.205 P-91-017-24 October 23, 2023 -319,309 Total Highway Planning and Construction 603,743 Passed through Illinois Department of Transportation State and Community Highway Safety 20.600 HS-24-0048 June 20, 2023 -53,315 Total State and Community Highway Safety 53,315 Total Department of Transportation 657,058 * Denotes a major program COVID-19 Home Investment Partnerships Program CITY OF EVANSTON, ILLINOIS SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended December 31, 2024 Federal Grantor/Pass-Through Grantor/ Program Title See Independent Auditor's Report and Notes to Schedule of Expenditures of Federal Awards 3 Assistance Listing Identifying Award Passed-Through Federal Number Number Date to Subreceipients Expenditures DEPARTMENT OF TREASURY COVID-19 CoronaVirus State/Local Fiscal Recovery Funds (CSLFRF) *21.027 N/A March 11, 2021 793,380 9,172,527 Total Department of Treasury 9,172,527 DEPARTMENT OF HEALTH AND HUMAN SERVICES Passed through Age Options Special Programs for the Aging Title III, Part B, Grants for Supportive Services and Senior Centers 93.044 402-03-0027 June 14, 2023 -6,517 Special Programs for the Aging Title III, Part B, Grants for Supportive Services and Senior Centers 93.044 2567-29728 September 10, 2024 -1,011 Total Special Programs for the Aging Title III, Part B, Grants for Supportive Services and Senior Centers 7,528 Passed through the Illinois Department of Public Health Public Health Emergency Preparedness 93.069 37580003K April 19, 2023 -62,944 Public Health Emergency Preparedness 93.069 47580003L July 28, 2023 -64,841 Total Public Health Emergency Preparedness 127,785 Total Department of Health and Human Services 135,313 INSTITUTE OF MUSEUM & LIBRARY SERVICES Passed through Office of Sec of State - IL State Library Grants to States Project Next Generation ( PNG )45.310 24-3019-PNG July 18, 2023 -30,555 Project Next Generation ( PNG )45.310 25-3040-PNG August 19, 2024 -5,204 Total Institute of Museum & Library Services 35,759 NATIONAL ENDOWMENT FOR THE ARTS FY24-25 Grants For Arts Program 45.024 2023NEA01GAP2 April 15, 2024 -22,900 FY24-25 Big Read 45.024 1920421-52-C-23 May 14, 2024 -10,500 Promotion of the Arts Grants to Organizations and Individuals 45.024 #1904440-62-23 February 1, 2023 -50,000 Total National Endowment For The Arts 83,400 Total Expenditures of Federal Awards 1,368,720$12,455,615$ * Denotes a major program CITY OF EVANSTON, ILLINOIS SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended December 31, 2024 Federal Grantor/Pass-Through Grantor/ Program Title See Independent Auditor's Report and Notes to Schedule of Expenditures of Federal Awards 4 CITY OF EVANSTON, ILLINOIS NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended December 31, 2024 NOTE 1 – REPORTING ENTITY This report on Federal Awards includes the federal awards of the City of Evanston, Illinois. The reporting entity for the city is based upon criteria established by the Governmental Accounting Standards Board (GASB). The City of Evanston is the primary government according to GASB criteria. On April 30, 2014, the Township was discontinued and dissolved following the March 18, 2014 general election vote taken by the registered voters of the Evanston Township. Pursuant to 60 ILCS 1/27-15 and 1/27-20, effective 12:00 a.m. May 1, 2014, the City of Evanston assumed all rights, powers, assets, property, obligations and duties of the Evanston Township, including the responsibilities of providing the services that were previously provided by the Township. Beginning May 1, 2014, the functions of the Township are reported along with the City. NOTE 2 – BASIS OF PRESENTATION The accounting records for some grant programs are maintained on the modified accrual basis of accounting. Under the modified accrual basis, revenues are recorded when susceptible to accrual, i.e., both measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Expenditures are recorded when the liability is incurred. The accounting records for other grant programs are maintained on the accrual basis, i.e., when the revenue has been earned and the liability is incurred. The information in this schedule is presented in accordance with the requirements of OMB Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in preparation of, the basic financial statements. NOTE 3 – SUBRECIPIENTS Of the federal expenditures presented in the schedule of expenditures of federal awards, the City of Evanston provided federal awards to subrecipients as follows: Program Title Community Development Block Grants/Entitlement Grants Emergency Solutions Grant Program 5 Federal Assistance Listing Number 14.218 14.231 Amount Provided to Subrecipients $316,486 $168,058 CITY OF EVANSTON, ILLINOIS NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended December 31, 2024 NOTE 3 – SUBRECIPIENTS – Continued HOME Investment Partnerships Program COVID-19 Coronavirus State and Local Fiscal Recovery Funds NOTE 4 – PROGRAM INCOME 14.239 21.027 $90,795 $793,380 The City of Evanston received the following program income amounts for the year ended December 31, 2024. NOTE 5 – NOTES RECEIVABLE OUTSTANDING The City of Evanston has several notes receivable outstanding as of December 31, 2024. These loans are for various uses. The Community Development Block Grants/Entitlement Grants Loan funds a number of programs to make decent housing available and affordable to low- and moderate-income families, and to help low- and moderate-income residents maintain their property. The Home Investment Partnerships Program Loan provides loans to housing developers to acquire, rehab or construct housing for low and moderate income households. Program Title Community Development Block Grants/Entitlement Grants Home Investment Partnerships Program Federal Assistance Listing Number 14.218 14.239 Amount $1,766,805 $5,221,483 The notes receivable balances are not subject to continuing OMB Uniform Guidance compliance requirements. 6 Program Title Federal Assistance Listing Number Amount Community Development Block Grants/Entitlement Grants 14.218 $8,813 Home Investment Partnerships Program 14.239 $42,384 Neighborhood Stabilization Program 14.256 $6,555 CITY OF EVANSTON, ILLINOIS NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended December 31, 2024 NOTE 6 – LOANS PAYABLE OUTSTANDING The City of Evanston has the following loans payable outstanding as of December 31, 2024. These loans are from The Capitalization Grants for Drinking Water and Clean Water State Revolving Funds. Projects funded were the sewer lining at Emerson and Davis streets, rehab of large diameter sewers and rehab of the Cleveland street sewer. Program Title Capitalization Grants for Drinking Water State Revolving Funds Capitalization Grants for Clean Water State Revolving Funds Federal Assistance Listing Number 66.468 66.458 Amount $617,787 $601,515 The loan payable balances are not subject to continuing OMB Uniform Guidance compliance requirements. NOTE 7 – NONCASH ASSISTANCE Of the federal expenditures presented in the schedule of expenditures of federal awards, the City of Evanston did not receive any noncash assistance during the year ended December 31, 2024. NOTE 8 – FEDERAL INSURANCE The City of Evanston had no federal insurance for the year ended December 31, 2024. NOTE 9 – INDIRECT COST RATE The City of Evanston has not elected to use the 10% de minimis indirect cost rate. 7 8 1837 S. Michigan Ave., Chicago, Illinois 60616 TEL (312) 567-1330 FAX (312) 567-1360 www.pradorenteria.com INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE The Honorable Daniel Biss, Mayor and Members of the City Council Evanston, Illinois Report on Compliance for Each Major Federal Program Opinion on Each Major Federal Program We have audited the City of Evanston, Illinois’(City) compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on the City’s major federal programs for the year ended December 31, 2024. The City’s major federal programs are identified in the summary of auditors’results section of the accompanying schedule of findings and questioned costs. In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended December 31, 2024. Basis for Opinion on Each Major Federal Program We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; and the audit requirements of Title 2 U.S.Code of Federal Regulations Part 200,Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award (Uniform Guidance).Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above. Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to City’s federal programs. 9 Auditor’s Responsibility for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of the federal program as a whole. In performing an audit in accordance with generally accepted auditing standards, and the Uniform Guidance, we: Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Report on Internal Control over Compliance A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance 10 requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses,as defined above.However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Chicago, Illinois September 24,2025 CITY OF EVANSTON, ILLINOIS SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended December 31, 2024 11 SECTION I –SUMMARY OF AUDITOR’S RESULTS Financial Statements 1)Type of report the auditor issued on whether the financial statements audited were prepared in accordance with GAAP:Unmodified 2) Internal control over financial reporting: Material weakness(es) identified?Yes X No Significant deficiency(ies) identified?Yes X None reported 3) Noncompliance material to financial statements noted?Yes X No Federal Awards 1) Internal control over major federal programs: Material weakness(es) identified?Yes X No Significant deficiency(ies) identified?Yes X None reported 2) Type of auditors’ report issued on compliance for major federal programs:Unmodified 3) Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)?Yes X No Identification of major programs: CFDA Number Name of Federal Program or Cluster 14.218 14.218 21.027 Community Development Block Grants/Entitlement Grants COVID-19 Community Development Block Grants/Entitlement Grants COVID-19 Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Dollar threshold used to distinguish between type A and type B Programs:$750,000 Auditee qualified as low risk auditee?Yes X No CITY OF EVANSTON, ILLINOIS SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended December 31, 2024 12 SECTION II –FINANCIAL STATEMENT FINDINGS No matters were reported. SECTION III –FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS No matters were reported. SECTION IV –PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS TYPE OF FINDINGS FINDING NUMBER/ DESCRIPTION Financial Statement Federal Award STATUS Coronavirus State and Local Fiscal Recovery Funds,AL 21.027: 2023-001, 2022-001 and 2021-001 –Procurement, Suspension and Debarment X The City has corrected this finding during the current year.