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Home My WebLink About2011 Single Audit CITY OF EVANSTON, ILLINOIS Single Audit Reports For the Ten Months Ended December 31, 2011 TABLE OF CONTENTS Independent Auditors’ Report on Schedule of Expenditures of Federal Awards 1 Schedule of Expenditures of Federal Awards 2-3 Notes to Schedule of Expenditures of Federal Awards 4-5 Independent Auditors’ Report on Compliance with Requirements that Could Have a Direct and Material Effect on Each Major Program and on Internal Control over Compliance in Accordance with OMB Circular A-133 6-7 Schedule of Findings and Questioned Costs 8-9 1 INDEPENDENT AUDITORS’ REPORT ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS The Honorable Elizabeth B. Tisdahl, Mayor and Members of the City Council Evanston, Illinois We have audited the accompanying Schedule of Expenditures of Federal Awards (Schedule) of the City of Evanston, Illinois (City), for the ten months ended December 31, 2011. This Schedule is the responsibility of the City’s management. Our responsibility is to express an opinion on the Schedule based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and U.S. Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments and Non- Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether the Schedule is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the Schedule. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall Schedule presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the Schedule referred to above presents fairly, in all material respects, the respective expenditures of federal awards of the City for the ten months ended December 31, 2011 in conformity with accounting principles generally accepted in the United States of America. In accordance with the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement, we have also issued a report dated August 20, 2012 on our consideration of the City’s compliance with requirements that could have a direct and material effect on each major program and on internal control over compliance in accordance with OMB Circular A-133. That report is an integral part of an audit performed in accordance with U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement and should be read in conjunction with this report. Chicago, Illinois August 20, 2012 CITY OF EVANSTON, ILLINOIS SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Ten Months Ended December 31, 2011 * Denotes a major program See Accompanying Notes to Schedule of Federal Awards 2 Federal CFDA Identifying Federal Number Number Expenditures DEPARTMENT OF AGRICULTURE Child and Adult Care Food Program 10.558 05016510P00 13,649$ Summer Food Service Program for Children 10.559 05016510P00 112,623 Passed Through State of Illinois Department of Public Health Summer Food Inspection Program 10.559 600 Total Summer Food Service Program for Children 113,223 Total Department of Agriculture 126,872 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Community Development Block Grants/Entitlement Grants Entitlement year 27 14.218 B01-MC-170013 4,446 Entitlement year 33 14.218 B07-MC-170012 15,301 Entitlement year 36 14.218 B10-MC-170012 72,461 Entitlement year 37 14.218 B11-MC-170012 1,862,084 Total Community Development Block Grants 1,954,292 Emergency Solutions Grant Program 14.231 E11-MC-170012 84,885 Home Investment Partnerships Program 14.239 M05-MC-170218 44,349 Home Investment Partnerships Program 14.239 M06-MC-170218 61,146 Home Investment Partnerships Program 14.239 M09-MC-170218 21,804 Home Investment Partnerships Program 14.239 M10-MC-170218 56,849 Home Investment Partnerships Program 14.239 M11-MC-170218 11,068 Total Home Investment Partnerships Program 195,216 ARRA - Neighborhood Stabilization Program *14.256 B-09-LN-IL-0026 5,409,752 ARRA - Homeless Prevention and Rapid Pre-Housing Program *14.257 S09-MY-170012 195,943 Total Department of Housing and Urban Development 7,840,088 DEPARTMENT OF JUSTICE Juvenile Accountability Block Grants 16.523 507029 12,917 Crime Victim Assistance 16.575 210045 29,604 Crime Victim Assistance 16.575 211045 14,800 Total Crime Victim Assistance 44,404 Public Safety Partnership and Community Policing Grants 16.710 2008CKWX0591 26,578 Public Safety Partnership and Community Policing Grants 16.710 2008CKWX0593 111,626 Total Public Safety Partnership and Community Policing Grants 138,204 Justice Assistance Grant 16.710 37,221 Total Department of Justice 232,746 DEPARTMENT OF TRANSPORTATION Highway Planning and Construction 20.205 HPP-0299 (106)5,458 Highway Planning and Construction 20.205 102121 2,892 Total Highway Planning and Construction 8,350 Total Department of Transportation 8,350 ENVIRONMENTAL PROTECTION AGENCY Passed through the Illinois Environmental Protection Agency ARRA- Capitalization Grants for Drinking Water State Revolving Funds * 66.468 L17-3382 535,278 Passed through the Illinois Department of Public Health Beach Monitoring and Notification Program Implementation Grants 66.472 25380321 12,001 Total Environmental Protection Agency 547,279 Federal Grantor/Pass-Through Grantor/ Program Title CITY OF EVANSTON, ILLINOIS SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Ten Months Ended December 31, 2011 * Denotes a major program See Accompanying Notes to Schedule of Federal Awards 3 Federal CFDA Identifying Federal Number Number Expenditures Federal Grantor/Pass-Through Grantor/ Program Title DEPARTMENT OF ENERGY ARRA- Energy Efficiency and Conservation Grant Program * ARRA EECBG-Water Plant Solar Program 81.128 DE-SC0002447 9,356 ARRA EECBG-Refuse Collect and Disposal 81.128 DE-SC0002447 399 ARRA EECBG-Business District Recycling Cans 81.128 DE-SC0002447 89,875 ARRA EECBG-Interior Lighting Upgrade 81.128 DE-SC0002447 8,731 ARRA EECBG-Street Lighting Upgrade 81.128 DE-SC0002447 188,603 ARRA EECBG-Exterior Lighting Upgrade 81.128 DE-SC0002447 74,065 ARRA EECBG-Water Plant HVAC System 81.128 DE-SC0002447 600 Total ARRA- Energy Efficiency and Conservation Grant Program 371,629 Total Department of Energy 371,629 DEPARTMENT OF HEALTH AND HUMAN SERVICES Passed through Suburban Area Agency on Aging Special Programs for the Aging Title III Part D Disease Prevention and Health Promotion Services 93.043 B119 11,459 Special Programs for the Aging Title III Part B Grants for Supportive Services and Senior Centers 93.044 B119 21,293 Passed through State of Illinois Department of Public Health Centers for Disease Control and Prevention Investigations and Technical Assistance 93.283 15380028 1,500 Passed through State of Illinois Department of Human Services Social Services Block Grant 93.667 11GM095000 15,740 Maternal and Child Health Services Block Grant to the States 93.994 11GM095000 27,178 Total Department of Health and Human Services 77,170 DEPARTMENT OF HOMELAND SECURITY Disaster Grants- Public Assistance (Presidentially Declared Disasters) 2011 Severe Winter Storms 97.036 18000312458200 164,434 Assistance to Firefighters Grant *97.044 EMW-2009-FV-039334 600,000 Passed through the Illinois Emergency Services and Disaster Agency Homeland Security Grant Program- Citizen Corps Program 97.067 4,382 Homeland Security Grant Program- Terrorism Prepared and Training 97.067 8,245 Total Homeland Security Grant Program 12,627 Total Department of Homeland Security 777,061 Total Expenditures of Federal Awards 9,981,195$ CITY OF EVANSTON, ILLINOIS NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Ten Months Ended December 31, 2011 4 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. The City of Evanston is the primary government according to GASB criteria, while the Town of the City of Evanston (Township) is a component unit. Federal awards received directly by the Township are not included in this report since the Township’s maintains a different fiscal year end. Those amounts, if any, are audited in conjunction with that fiscal year end and reported in a separate report. 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 Circular A-133, Audits of States, Local Governments, and Non-profit Organizations. 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 CFDA Number Amount Provided to Subrecipients Emergency Solutions Grant Program 14.231 $80,645 Community Development Block Grants/Entitlement Grants (CDBG) 14.218 $370,146 ARRA- Homeless Prevention and Rapid Pre- Housing Program (HPRP) 14.257 $177,421 CITY OF EVANSTON, ILLINOIS NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Ten Months Ended December 31, 2011 5 NOTE 4 – PROGRAM INCOME The City of Evanston received the following program income amounts for ten months ended December 31, 2011. The balances of receipts are from letter of credit drawdowns for the program. The program expenditures for the ten months include expenditures of this program income. Program Title Federal CFDA Number Amount Community Development Block Grants/Entitlement Grants (CDBG) 14.218 $166,908 Home Investment Partnerships Program (HOME) 14.239 $22,820 NOTE 5– LOANS RECEIVABLE OUTSTANDING The City of Evanston had the following loan receivable balances outstanding at December 31, 2011: Program Title Federal CFDA Number Amount Community Development Block Grants/Entitlement Grants (CDBG) 14.218 $1,976,421 Home Investment Partnerships Program (HOME) 14.239 $2,670,863 NOTE 6 – IEPA LOANS PAYABLE ARRA-Loan #L17-3382 was awarded to the City. The loan provides for construction of water main and street restoration along Dempster, Dodge and McDaniel Streets and a heated intake system. The maximum loan amount is $1,933,862. ARRA funds of $966,931 were exhausted as of February 28, 2011. A total of $535,278 in federal funds was disbursed by the IEPA during the ten months ended December 31, 2011. 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 ten months ended December 31, 2011. NOTE 8 – FEDERAL INSURANCE The City of Evanston had no federal insurance for the ten months ended December 31, 2011. 6 INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 The Honorable Elizabeth B. Tisdahl, Mayor and Members of the City Council Evanston, Illinois Compliance We have audited the City of Evanston, Illinois (City), compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the ten months ended December 31, 2011. The City’s major federal programs are identified in the summary of auditors’ results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to its major federal program is the responsibility of the City’s management. Our responsibility is to express an opinion on the City’s compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on the City’s compliance with those requirements. In our opinion, the City complied in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the ten months ended December 31, 2011. 7 Internal Control Over Compliance Management of the City is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts and grants applicable to federal programs. In planning and performing our audit, we considered the City’s internal control over compliance with the requirements that could have a direct and material effect on a major federal program to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City’s 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 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. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. This report is intended solely for the information and use of management, City Council, others within the entity, federal awarding agencies, and pass-through entities and is not intended to be, and should not be, used by anyone other than these specified parties. Chicago, Illinois August 20, 2012 CITY OF EVANSTON, ILLINOIS SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Ten Months Ended December 31, 2011 8 SECTION I – SUMMARY OF AUDITORS’ RESULTS Financial Statements 1) Type of auditors’ report issued: Unqualified 2) Internal control over financial reporting: • Material weakness(es) identified? X Yes No • Significant deficiency(s) identified? X Yes No 3) Noncompliance material to financial statements noted? Yes X No Federal Awards 1) Internal control over major programs: • Material weakness(es) identified? Yes X No • Significant deficiency(s) identified? Yes X No 2) Type of auditors’ report issued on compliance for major programs: Unqualified 3) Any audit findings disclosed that are required to be reported in accordance with section 510(a) of Circular A-133? Yes X No Identification of major programs: CFDA Number Name of Federal Program or Cluster 14.256 ARRA- Neighborhood Stabilization Program (NSP2) 14.257 ARRA- Homeless Prevention and Rapid Pre-Housing Program (HPRP) 66.468 ARRA- Capitalization Grants for Drinking Water State Revolving Funds 81.128 ARRA- Energy Efficiency and Conservation Grant Program (EECBG) 97.044 Assistance to Firefighters Grant Dollar threshold used to distinguish between type A and type B Programs: $300,000 Auditee qualified as low risk auditee? Yes X No CITY OF EVANSTON, ILLINOIS SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Ten Months Ended December 31, 2011 9 SECTION II – FINANCIAL STATEMENT FINDINGS See findings 2011-1, 2011-2, 2011-3 and 2011-4 in the separate report titled “Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based On an Audit of Financial Statements Performed in Accordance with Government Auditing Standards”. SECTION III – FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS No matters were reported. SECTION IV – PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Finding 2011-5 (CFDA 14.256) Corrective action taken. Finding 2011-6 (CFDA 14.256) Corrective action taken. Finding 2011-7 (CFDA 14.257) Corrective action taken.