The URL can be used to link to this page

Home My WebLink About2023 Single AuditCITY OF EVANSTON, ILLINOIS Single Audit Report For the Year Ended December 31, 2023 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 11-16 Management’s Corrective Action Plan 17 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, 2023 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, 2023,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 27, 2024 Federal 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 ISBE 23-4226-00 - 05-016-510P-00 Dec 29, 2022 - Dec 14, 2023 N/A 58,305$ Passed through the Illinois State Board of Education Summer Food Service Program for Children 10.559 ISBE 23-4225-00 - 05-016-510P-00 Aug 1, 2023 - Sep 18, 2023 N/A 173,741 Passed through Illinois Department of Natural Resources Urban and Community Forestry Program 10.675 0827-02 February 1, 2022 N/A 15,000 Total Department of Agriculture 247,046 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Community Development Block Grants/Entitlement Grants Entitlement year 46 14.218 B20MC-170012 August 21, 2020 500 34,938 Entitlement year 47 14.218 B21MC-170012 August 3, 2021 20,378 214,333 Entitlement year 48 14.218 B22MC-170012 September 8, 2022 N/A 292,369 Entitlement year 49 14.218 B23MC-170012 July 12, 2023 259,117 1,179,673 Total Community Development Block Grants/Entitlement Grants 279,995 1,721,313 COVID-19 Community Development Block Grants/Entitlement Grants Entitlement year 46 14.218 B20MW-170012 December 10, 2020 251,263 295,668 Emergency Solutions Grant Program 14.231 E23MC-170012 July 12, 2023 136,364 154,765 Home Investment Partnerships Program 14.239 M21-MC-170218 August 3, 2021 28,247 28,247 Home Investment Partnerships Program 14.239 M22-MC-170218 September 8, 2022 N/A 25,777 Home Investment Partnerships Program 14.239 M23-MC-170218 July 12, 2023 19,315 22,053 Total Home Investment Partnerships Program 47,562 76,077 COVID-19 Home Investment Partnerships Program 14.239 M21-MP-170218 September 27, 2021 N/A 28,082 Total Department of Housing and Urban Development 715,184 2,275,905 DEPARTMENT OF JUSTICE Bulletproof Vest Partnership Program 16.607 N/A October 18, 2021 N/A 6,236 Equitable Sharing Program 16.922 N/A February 17, 2023 N/A 7,408 Total Department of Justice 13,644 DEPARTMENT OF TRANSPORTATION Passed through Illinois Department of Transportation Highway Planning and Construction 20.205 HSIP # 202001007 August 30, 2019 N/A 56,496 Highway Planning and Construction 20.205 C91-306-91 November 13, 2020 N/A 52,382 Highway Planning and Construction 20.205 D-91-143-21 March 10, 2022 N/A 141,407 Total Highway Planning and Construction 250,285 Passed through Illinois Department of Transportation State and Community Highway Safety 20.600 HS-23-0151 September 12, 2022 N/A 49,790 State and Community Highway Safety 20.600 HS-24-0048 June 20, 2023 N/A 7,095 Total State and Community Highway Safety 56,885 Total Department of Transportation 307,170 DEPARTMENT OF TREASURY COVID-19 Coronavirus State and Local Fiscal Recovery Funds*21.027 N/A March 11, 2021 N/A 1,100,000 COVID-19 Coronavirus State and Local Fiscal Recovery Funds*21.027 N/A March 11, 2021 N/A 1,500,000 COVID-19 Coronavirus State and Local Fiscal Recovery Funds*21.027 N/A March 11, 2021 212,462 4,256,078 COVID-19 Coronavirus State and Local Fiscal Recovery Funds*21.027 N/A March 11, 2021 N/A 577,959 Total Department of Treasury 212,462 7,434,037 *Denotes a major program CITY OF EVANSTON, ILLINOIS SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended December 31, 2023 Federal Grantor/Pass-Through Grantor/ Program Title See Independent Auditor's Report and Notes to Schedule of Expenditures of Federal Awards 3 Federal Assistance Listing Identifying Award Passed-Through Federal Number Number Date to Subreceipients Expenditures DEPARTMENT OF ENVIRONMENTAL PROTECTION AGENCY Passed through Illinois Environmental Protection Agency Capitalization Grants for Drinking Water State Revolving Funds 66.468 L17-5106 December 4, 2023 N/A 21,591 Total Department of Environmental Protection Agency 21,591 DEPARTMENT OF HEALTH AND HUMAN SERVICES Special Programs for the Aging Title III, Part B Grants For Supportive Services & Senior Centers 93.044 CSFA # 402-03-0027 June 14, 2023 N/A 7,500 Passed through the Illinois Department of Public Health Public Health Emergency Preparedness 93.069 3037180027K / 47180027L September 12, 2022 N/A 57,278 Public Health Emergency Preparedness - Cities Readiness Prep 93.069 3037580003K / 47580003L August 1, 2022 N/A 67,471 Total Public Health Emergency Preparedness 124,749 Total Department of Health and Human Services 132,249 DEPARTMENT OF HOMELAND SECURITY Emergency Management Assistance Grant Program 97.042 22EMAEVANS November 19, 2023 N/A 36,282 Total Department of Homeland Security 36,282 INSTITUTE OF MUSEUM & LIBRARY SERVICES Passed through Office of Sec of State - IL State Library Grants to States Project Next Generation ( PNG )45.310 23-3023-PNG July 21, 2022 N/A 39,241 Passed through Califa Group Laura Bush 21st Century Librarian Program 45.313 CAGML-247937-OMLS-20 December 21, 2021 N/A 4,078 Total Institute of Museum & Library Services 43,319 NATIONAL SCIENCE FOUNDATION Passed through Northwestern University STEM Education 47.076 CNC-1827661 October 1, 2018 N/A 398 Total National Science Foundation 398 NATIONAL ENDOWMENT FOR THE ARTS Promotion of the Arts Grants to Organizations and Individuals 45.024 1904440-62-23 February 1, 2023 N/A 11,250 Total National Endowment For The Arts 11,250 Total Expenditures of Federal Awards 927,646$10,522,891$ *Denotes a major program Passed through Age Options CITY OF EVANSTON, ILLINOIS SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended December 31, 2023 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 31,2023 5 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 Federal Assistance Listing Number Amount Provided to Subrecipients Community Development Block Grants/Entitlement Grants 14.218 $279,995 COVID-19 Community Development Block Grants/Entitlement Grants Emergency Solutions Grant Program 14.218 14.231 $251,263 $136,364 CITY OF EVANSTON, ILLINOIS NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended December 31,2023 6 NOTE 3 –SUBRECIPIENTS –Continued HOME Investment Partnerships Program 14.239 $47,562 COVID-19 Coronavirus State and Local Fiscal Recovery Funds 21.027 $212,462 NOTE 4 –PROGRAM INCOME The City of Evanston received the following program income amounts for the year ended December 31, 2023. The balances of receipts are from letter of credit drawdowns for the program. The program expenditures for the year include expenditures of this program income. Program Title Federal Assistance Listing Number Amount Community Development Block Grants/Entitlement Grants 14.218 $163,577 Home Investment Partnerships Program 14.239 $25,227 Neighborhood Stabilization Program 14.256 $6,833 NOTE 5 –NOTES RECEIVABLE OUTSTANDING The City of Evanston has several notes receivable outstanding as of December 31, 2023. 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 Federal Assistance Listing Number Amount Community Development Block Grants/Entitlement Grants 14.218 $1,662,815 Home Investment Partnerships Program 14.239 $5,281,264 The notes receivable balances are not subject to continuing OMB Uniform Guidance compliance requirements. CITY OF EVANSTON, ILLINOIS NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended December 31,2023 7 NOTE 6 –LOANS PAYABLE OUTSTANDING The City of Evanston has the following loans payable outstanding as of December 31, 2023. 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 Federal Assistance Listing Number Amount Capitalization Grants for Drinking Water State Revolving Funds 66.468 $665,847 Capitalization Grants for Clean Water State Revolving Funds 66.458 $655,570 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, 2023. NOTE 8 –FEDERAL INSURANCE The City of Evanston had no federal insurance for the year ended December 31, 2023. NOTE 9 –INDIRECT COST RATE The City of Evanston has not elected to use the 10% de minimis indirect cost rate. 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, 2023. 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, 2023. 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 Awards (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. Other Matters The results of our auditing procedures disclosed instances of noncompliance which are required to be reported in accordance with the Uniform Guidance and which are described in the accompanying schedule of findings and questioned costs as item 2023-001.Our opinion on each major program is not modified with respect to these matters. 10 Report on Internal Control over Compliance 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 and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as discussed below, we did identify certain deficiencies in internal control over compliance that we consider to be significant deficiencies. 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 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. We consider the deficiencies in internal control over compliance described in the accompanying schedule of findings and questioned costs as item 2023-001 to be significant deficiencies. 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 27, 2024 CITY OF EVANSTON, ILLINOIS SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended December 31, 2023 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?X Yes 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)?X Yes No Identification of major programs: Assistance Listing Number Name of Federal Program or Cluster 21.027 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?X Yes No CITY OF EVANSTON, ILLINOIS SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended December 31, 2023 12 SECTION II –FINANCIAL STATEMENT FINDINGS No matters were reported. CITY OF EVANSTON, ILLINOIS SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended December 31, 2023 13 SECTION III –FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS FINDING 2023-001 Procurement, Suspension and Debarment (Repeat Finding 2022-001 and 2021-001) Federal Agency:Department of the Treasury Federal Program:21.027 Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Criteria: The Department of the Treasury’s Final Rule (Effective April 1, 2022) encouraged the use of internal Procurement Policies and Procedures when procuring products and/or services. The Department of the Treasury’s Compliance and Reporting Guidance report (Effective June 24, 2021 through April 30, 2025) required recipients (i.e., City of Evanston) to ensure any procurement using CSLFRF funds to be consistent with the procurement standards set forth in the Uniform Guidance at 2 CFR 200.317 through 2 CFR 200.327 as applicable. Procurement Standards of Title 2 of the Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards (Uniform Guidance) state that all non-federal entities will follow Section 200.318 through Section 200.327. A.Section 200.320 identifies four methods of procurement to be followed, among the methods of procurement the below are three identified thresholds: (a)Informal –micro purchases (any amount up to $10,000) (b)Informal –small purchases ($10,000.01 to $249,999.99) (c)Formal –sealed bids ($250,000 and above) (d)Noncompetitive procurement B.The City of Evanston Purchasing Manual requires the collection of three written quotes for any purchase between $2,500 and $25,000 purchased with federal grant funds, a formal bid process (Bid, RFP, RFQ) for any purchase $25,000 or above purchased with federal grant funds, and a justification memo for a sole source purchase for any amount above $2,500 purchased with federal grant funds. C.The City of Evanston Purchasing Manual requires that for purchases above $2,500 but less than $10,000, approval signature must be obtained from the Department Director. All purchases above $10,000 require approval signature from the City Manager. Purchases above $25,000 must also be approved by the City Council. D.Per Title 2 CFR section 180.300, participant entering into a covered transaction must verify that the person with whom it intends to do business is not excluded or disqualified by: CITY OF EVANSTON, ILLINOIS SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended December 31, 2023 14 SECTION III –FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS – Continued FINDING 2023-001 Procurement, Suspension and Debarment (Repeat Finding 2022-001 and 2021-001)–Continued (a)Checking SAM Exclusions; or (b)Collecting a certification from that person; or (c)Adding a clause or condition to the covered transaction with that person. E.Title 2 CFR section 200.303 states the following regarding internal control: “The auditee shall maintain internal control over Federal programs that provides reasonable assurance that the auditee is managing Federal awards in compliance with law, regulations, and the provisions of contracts or grant agreements that could have a material effect on each of its Federal programs.” Condition/Context: 1.We tested two purchase orders totaling $208,832.12. Our procedures revealed the following: a.Dated documentation that demonstrates suspension and debarment searches were performed prior to entering into a covered transaction were not retained in the respective procurement files. b.Documentation supporting multiple source solicitations was not available. Cause: 1.At the time these services were procured, the City of Evanston’s procurement policies requiring suspension and debarment checks were not implemented. 2.The City of Evanston’s procurement policies in relation to single source do not meet federal requirements. Effect: City of Evanston was not in compliance with Title 2 of the Code of Federal Regulations (CFR) Part 200 and the requirements outlined in the City of Evanston Purchasing Manual as it relates to purchases above $25,000. Additionally, the effect of noncompliance can result in questioned costs. Recommendation: We recommend that City of Evanston: a.Date or time stamp suspension and debarment searches when performed. b.Revise procurement policies to mirror federal guidelines and requirements in relation to single and sole source purchases. CITY OF EVANSTON, ILLINOIS SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended December 31, 2023 15 FINDING 2023-001 Procurement, Suspension and Debarment (Repeat Finding 2022-001 and 2021-001)–Concluded c.Communicate and re-enforce its procurement policies and procedures to ensure compliance with applicable requirements. d.Ensure all departments are following applicable procedure in a uniform manner. Views of Responsible Officials: The purchases in question were made in the Equipment Replacement Fund where debarment searches are not required. ARPA funds were transferred to the Equipment Replacement Fund after the vehicles were delivered. We supplied the list of exclusions issued by the Office of Inspector General, which, from a compliance standpoint, demonstrates that the vendors are not suspended or debarred before entering a covered transaction. The list covers a one-month window and does not provide an exact date for when the list is retrieved from the Office of Inspector General website.When performing debarment searches in SAM.gov, if a vendor opts not to register or does not complete full registration process, the search results will display no matches, rendering it inconclusive to determine their standing. To prevent any potential deficiencies in control procedures, we intend to adopt the supplementary risk-based assessments proposed by the firm. CITY OF EVANSTON, ILLINOIS SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended December 31, 2023 16 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: 2022-001 and 2021-001 – Procurement, Suspension and Debarment X The City had not corrected this finding during the current year. 17 City Manager’s Office Accounting 2100 Ridge Ave Evanston, Illinois 60201 T 847.448.8082 TTY 847.866.5095 www.cityofevanston.org MANAGEMENT’S CORRECTIVE ACTION PLAN CITY OF EVANSTON, ILLINOIS FOR THE YEAR ENDED DECEMBER 31, 2023 Finding 2023-001 Procurement, Suspension and Debarment (Repeat Finding 2022-001 and 2021-001) Federal Agency:U.S. Department of the Treasury Federal Program:21.027 Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Questioned Cost:N/A Corrective Action: a.The Purchasing Manual was revised in 2023 to incorporate procedures relating to suspension and debarment checks.Purchasing will communicate and reinforce its procurement policies and procedures to ensure compliance with applicable requirements by:Provide revised Purchasing Manual to staff with yearly reminder from Purchasing and Community Development Federal Grants Manager. b.City staff will work with the City’s Purchasing Department to follow and adhere to applicable Procurement procedures. c.Ensure all departments are following applicable procedure in a uniform manner. Contact Person:Hitesh Desai, Chief Financial Officer Anticipated Completion Date:December 31, 2024