HomeMy WebLinkAbout2006-2007 Single AuditCITY OF EVANSTON, ILLINOIS
SINGLE AUDIT ACT
SUPPLEMENTARY FINANCIAL
AND COMPLIANCE REPORT
YEAR ENDED FEBRUARY 28, 2007
CITY OF EVANSTON, ILLINOIS
FOR THE FISCAL YEAR ENDED FEBRUARY 28, 2007
TABLE OF CONTENTS
PAGE
n Federal Compliance Section:
Report on Internal Control over Financial Reporting and
On Compliance and Other Matters Based on an Audit of
Financial Statements Performed in Accordance with
GovernmentAuditing Standards...............................................................................................................
2
Report on Compliance with Requirements Applicable to each
Major Program and Internal Control over Compliance
In Accordance with OMB Circular A-133 and
Schedule of Expenditures of Federal Awards...........................................................................................
4
Schedule of Expenditures of Federal Awards...........................................................................................
6
Notes to Schedule of Expenditures of Federal Awards............................................................................
10
Schedule of Findings and Questioned Costs............................................................................................
12
Summary Schedule of Prior Audit Findings..............................................................................................
16
CorrectiveAction Plan...............................................................................................................................
17
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INDEPENDENT AUDITOR'S 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
To the Honorable Lorraine H. Morton, Mayor, and
Members of the City Council
City of Evanston, Illinois
We have audited the financial statements of the governmental activities, the business -type activities, each
major fund, and the aggregate remaining fund information of City of Evanston as of and for the year
ended February 28, 2007, which collectively comprise the City of Evanston's basic financial statements
and have issued our report thereon dated August 27, 2007. We conducted our audit in accordance with
auditing standards generally accepted in the United States of America and the standards applicable to
financial audits contained in Government Auditino Standards, issued by the Comptroller General of the
United States.
Internal Control Over Financial Renortinq
In planning and performing our audit, we considered City of Evanston's internal control over financial
reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on
the financial statements, but not for the purpose of expressing an opinion on the effectiveness of City of
Evanston's internal control over financial reporting. Accordingly, we do not express an opinion on the
effectiveness of the City of Evanston's internal control over financial reporting.
Our consideration of the internal control over financial reporting was for the limited purpose described in
the preceding paragraph and would not necessarily identify all deficiencies in internal control over
financial reporting that might be significant deficiencies or material weaknesses. However, as discussed
below, we identified certain deficiencies in internal control that we consider to be significant deficiencies.
A control deficiency exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent or detect
misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control
deficiencies that adversely affects the City of Evanston's ability to initiate, authorize, record, process, or
report financial data reliably in accordance with generally accepted accounting principals such that there
is more than a remote likelihood that a misstatement of the City of Evanston's financial statements that is
more than inconsequential will not be prevented or detected by the City of Evanston's internal control
over financial reporting. We consider the deficiencies described in the accompanying schedule of
findings and questioned costs to be significant deficiencies in internal control over financial reporting.
These deficiencies are items, 07-01, and 07-02.
Virchow, Krause & Company, LLP
Certified Public Accountants & Consultants • An Independent Member of Baker Tilly International
To the Honorable Lorraine H. Morton, Mayor, and
Members of the City Council
City of Evanston, Illinois
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in
more than a remote likelihood that a material misstatement of the financial statements will not be
prevented or detected by City of Evanston's internal control over financial reporting. Our consideration of
the internal control over financial reporting was for the limited purpose described in the first paragraph of
this section and would not necessarily identify all deficiencies in the internal control that might be
significant deficiencies and, accordingly, would not necessarily disclose all significant deficiencies that are
also considered to be material weaknesses. However, of the significant deficiencies identified above, we
consider items 07-01 and 07-02 to be material weaknesses
Compliance and Other Matters
As part of obtaining reasonable assurance about whether City of Evanston's basic financial statements
are free of material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and material
effect on the determination of financial statement amounts. However, providing an opinion on compliance
with those provisions was not an objective of our audit and, accordingly, we do not express such an
opinion. The results of our tests disclosed no instances of noncompliance or other matters that are
required to be reported under Government Auditing Standards.
The City of Evanston's response to the findings identified in our audit is described in the accompanying
schedule of findings and questioned costs. We did not audit the City of Evanston's response and,
accordingly, we express no opinion on it.
This report is intended solely for the information and use of the City of Evanston's management, others
within the entity, federal and state awarding agencies and pass -through entitiesand is not intended to be,
and should not be, used by anyone other than these specified parties.
Oak Brook, Illinois i /L��' � /L ,., le
August 27, 2007 V
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IN
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INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO
EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE
WITH OMB CIRCULAR A-133 AND SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
The Honorable Lorraine H. Morton, Mayor, and
Members of the City Council
City of Evanston, Illinois
Compliance
We have audited the compliance of City of Evanston with the types of compliance requirements described
in the U. S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that are
applicable to each of its major federal programs for the year ended February 28, 2007. City of Evanston's
major federal programs are identified in the summary of auditor's results section of the accompanying
schedule of findings and questioned costs. Compliance with the requirements of laws, regulations,
contracts, and grants applicable to each of its major federal programs is the responsibility of City of
Evanston's management. Our responsibility is to express an opinion on City of Evanston'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 Auditinq
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 City
of Evanston'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 City of Evanston's compliance with
those requirements.
As described in item 07-03 in the accompanying schedule of findings and questioned costs, the City of
Evanston, did not comply with requirements regarding all the compliance requirements that are applicable
to the Community Development Block Grant Program. Compliance with such requirements is necessary,
in our opinion, for the City of Evanston, to comply with the requirements applicable to that program.
In our opinion, except for the noncompliance described in the preceding paragraph, the City of Evanston,
complied, in all material respects, with the requirements referred to above that are applicable to each of
its major federal programs for the year ended February 28, 2007.
Virchow, Krause & Company, LLP
Certified Public Accountants & Consultants - An Independent Member of Baker Tilly International
Honorable Lorraine H. Morton, Mayor, and
Members of the City Council
City of Evanston
Internal Control Over Compliance
The management of City of Evanston is responsible for establishing and maintaining effective internal
control over compliance with requirements of laws, regulations, contracts, and grants applicable to federal
programs. In planning and performing our audit, we considered City of Evanston's internal control over
compliance with requirements that could have a direct and material effect on a major federal program in
order to determine our auditing procedures for the purpose of expressing our opinion on compliance, 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 of Evanston's internal control
over compliance.
A control deficiency in an entity's internal control over compliance exists when the design or operation of
a control does not allow management or employees, in the normal course of performing their assigned
functions, to prevent or detect noncompliance with a type of compliance requirement of a federal program
on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies,
that adversely affects the entity's ability to administer a federal or state program such that there is more
than a remote likelihood that noncompliance with a type of compliance requirement of a federal program
that is more than inconsequential will not be prevented or detected by the entity's internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in
more than a remote likelihood that material noncompliance with a type of compliance requirement of a
federal program will not be prevented or detected by the entity's internal control.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and would not necessarily identify all deficiencies in internal control that might
be 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.
Schedule of Expenditures of Federal Awards,
We have audited the financial statements of the governmental activities, each major fund, and aggregate
remaining fund information of City of Evanston as of and for the year ended February 28, 2007, which
collectively comprise the City of Evanston's basic financial statements and have issued our report thereon
dated August 27, 2007. Our audit was performed for the purpose of forming opinions on the financial
statements that collectively comprise City of Evanston's basic financial statements. The accompanying
schedule of expenditures of federal awards is presented for purposes of additional analysis as required
by OMB Circular A-133 and is not a required part of the basic financial statements. Such information has
been subjected to the auditing procedures applied in the audit of the basic financial statements and, in
our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a
whole.
This report is intended solely for the information and use of the City of Evanston's city council,
management, and 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.
Oak Brook, Illinois
August 27, 2007
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CITY OF EVANSTON, ILLINOIS
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED FEBRUARY 28, 2007
FEDERAL GRANTOR
Direct Programs - Grants
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
COMMUNITY PLANNING AND DEVELOPMENT
Community Development Block Grant
Entitlement year 21
Entitlement year 22
Entitlement year 27
Entitlement year 28
Entitlement year 29
Entitlement year 30
Entitlement year 31
Entitlement year 32
Total Community Development Block Grant
Emergency Shelter Block Grant
Total Emergency Shelter Block Grant
Home Investment Partnership
HOME Program
HOME Program
HOME Program
HOME Program
HOME Program
HOME Program
Total HOME Program
Total Department of Housing and Urban Development
* Denotes a Major Program
The accompanying notes are an integral part of this schedule.
FEDERAL PASS -THROUGH EXPENDITURES
CFDA IDENTIFYING FOR THE
NUMBER NUMBER FISCAL YEAR
14.218
B95-MC-17-0012 $
21,777
14.218
B96-MC-17-0012
724
14.218
B01-MC-17-0013
16,498
14.218
B02-MC-17-0012
65,250
14.218
803-MC-17-0012
72,981
14.218
B04-MC-17-0012
247,475
14.218
B05-MC-17-0012
475,909
14.218
B06-MC-17-0012
1,945,789
2,846,403
14.231 S07-MC-17-0012 86,423
86,423
14.239
M00-MC-17-0218
84,843
14.239
M01-MC-17-0218
6,189
14.239
M03-MC-17-0218
11,271
14.239
M04-MC-17-0218
169,118
14.239
M05-MC-17-0218
17,924
14.239
M06-MC-17-0218
38,881
328,226
3,261,052
(Continued)
Im
CITY OF EVANSTON, ILLINOIS
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED FEBRUARY 28, 2007
FEDERAL GRANTOR
DEPARTMENT OF JUSTICE
OFFICE OF COMMUNITY ORIENTED POLICING SERVICES
Title V Delinquency Program*
Justice Assistant Grant
Justice Assistant Grant
Law Enforcement Prosecutor Based Victim Assistance Grant
Community Service Prog Grant
Total Department of Justice
Pass -Through Programs - Grants and Loans
ENVIRONMENTAL PROTECTION AGENCY
OFFICE OF WATER *
Passed through the Illinois Environmental Protection Agency
Water Pollution Control Revolving Loan
Total Environmental Protection Agency
FEDERAL EMERGENCY MANAGEMENT AGENCY
STATE AND LOCAL PROGRAMS AND SUPPORT
Passed through the Illinois Emergency Services
and Disaster Agency
Emergency Management Assistance Program
Total Federal Emergency Management Agency
DEPARTMENT OF AGRICULTURE
Summer Lunch Program
* Denotes a Major Program
The accompanying notes are an integral part of this schedule.
FEDERAL PASS -THROUGH EXPENDITURES
CFDA IDENTIFYING FOR THE
NUMBER NUMBER FISCAL YEAR
16.548 - $
303,841
16.592 2005-DJ-BX-1256
(5)
16.592 2006-DJ-BX-0689
34,535
16.575 -
40,765
16.523 -
13,000
392,136
66.458 - 1.378.688
1,378,688
83.517 497-58830-440 27,114
27,114
10.559 14-016-51 OP-00 71,622
(Continued)
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CITY OF EVANSTON, ILLINOIS
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED FEBRUARY 28, 2007
FEDERAL GRANTOR
DEPARTMENT OF HEALTH AND HUMAN SERVICES
PUBLIC HEALTH SERVICE - I
OFFICE OF HUMAN DEVELOPMENT SERVICES
Passed through Suburban Area Agency on Aging
Ombudsman (Older Americans Act Title III B)
Special Programs for the Aging
-- OFFICE OF MENTAL HEALTH SERVICES
Evanston Project - SEED
Passed through State of Illinois Department of Human Services
Family Planning
Family Planning
Family Planning
Family Planning
Family Planning
Family Planning
Total Family Planning
Total Public Health Service - I
HEALTH CARE FINANCING ADMINISTRATION
PUBLIC HEALTH SERVICE - II
Passed through State of Illinois Department of Human Services
Family Case Management
Family Case Management
Family Case Management
Total Family Case Management
Passed through State of Illinois Department of Human Services
Teen Pregnancy Prevention
Teen Pregnancy Prevention
Total Teen Pregnancy Prevention
Passed through State of Illinois Department of Human Services
Teen Parent Services
Teen Parent Services
Total Teen Parent Services
Denotes a Major Program
The accompanying notes are an integral part of this schedule.
FEDERAL PASS -THROUGH EXPENDITURES
CFDA IDENTIFYING FOR THE
NUMBER NUMBER FISCAL YEAR
93.633
A13-119 $
46,592
98.230
1 U79 SM53999-03
139,869
93.217
611 G7095000
27,000
93.667
611 G7095000
5,300
93.994
611 G7095000
3,700
93.217
611 G6095350
3,900
93.667
611 G6095350
6,400
93.994
611 G6095350
3.700
236,461
93.667 611 G6095300 11,500
93.994 611G6095300 19,700
93.994 511 G5095300 83,200
114,400
93.994
611 G7095000
20,800
93.994
611 G6095230
7.200
28,000
93.667
611 G6095000
8,900
93.667
611 G7095000
24,550
33,450
(Continued)
It-0
CITY OF EVANSTON, ILLINOIS
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED FEBRUARY 28, 2007
FEDERAL PASS -THROUGH EXPENDITURES
CFDA IDENTIFYING FOR THE
FEDERAL GRANTOR NUMBER NUMBER FISCAL YEAR
DEPARTMENT OF HEALTH AND HUMAN SERVICES (Continued)
PUBLIC HEALTH SERVICE - II (Continued)
Passed through State of Illinois Department of Public Health
Oral Health Grant
Family Case Management Administration Reimbursement
Total Public Health Service - II
Total Department of Health and Human Services
Passed through State of Illinois Department of Public Health
Bio Terrorism Grants
Bio Terrorism Preparedness
Cities Readiness Initiative (CRI)
Pandemic Flu Preparedness
Total Bio Terrorism Grants
Passed through State of Illinois Department of Public Health
Public Health Program
Total Public Health Program
Passed through State of Illinois Department of Public Health
Summer Food Inspection Program
Total Summer Food Inspection Grant
Passed through State of Illinois Department of Public Health
Vector Prevention Grant
Total Vector Prevention Grant
Passed through State of Illinois Department of Public Health
Beachwater Testing
Total Department of Health and Human Services
DEPARTMENT OF HOMELAND SECURITY
Assistance to Firefighters Grant Program
Citizen Corps Grant Program
Total Homeland Security
Total Federal Financial Assistance
* Denotes a Major Program
93.994 63481083/73480151$ 4,183
93.778 - 166,613
346,646
583,107
93.283 67181028/77181027
103,142
93.283 67081020
41,766
93.283 67181124/77181122
26,511
171,419
93.006 -
2,318
2,318
10.559 -
800
800
93.283 75380119 3,000
3,000
66.472 75380151 12,525
773,169
97.004 EMW-2004-FG-12728 58,957
97.067 - 21,487
80,444
$ 5,9841225
(Concluded)
The accompanying notes are an integral part of this schedule.
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CITY OF EVANSTON, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
FEBRUARY 28, 2007
NOTE 1 — SCOPE OF REVIEW
The City of Evanston, Illinois, (City) is a governmental entity established under Illinois State Statutes. The
City has had a single audit performed for its fiscal year ended February 28, 2007, pursuant to the Single
Audit Act of 1984, as amended. The Environmental Protection Agency has been designated as the City's
oversight agency for this single audit.
Programs Subject To Single Audit
All federal financial awards have been included in the Schedule of Expenditures of Federal Awards.
The City also receives grant awards solely funded by the state of Illinois or private sources. These funds are
not included in the Schedule of Expenditures of Federal Awards.
Pursuant to the Single Audit Act, a major federal program is one whereby the total expenditures are equal
to the larger of $300,000 or (b) 3% of the City's total federal program expenditures (less loans received). All
programs for the City with expenditures greater than $300,000 were considered Type A programs.
Total federal program expenditures (less loan received of $1,378,688) $ 4,605,537
3% of total federal program expenditures 138,167
Greater of above or $300,000 300,000
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying Schedule of Expenditures of Federal Awards has been prepared using the modified
accrual basis of accounting. Revenue is recognized either when received or once reimbursable expenditures
have been incurred. Expenditures are recognized when incurred.
NOTE 3 — COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) ENTITLEMENT YEAR 32
The CDBG Entitlement Year 32 receipts include $148,618 of program income generated through collection
of prior years' loans. The balance of receipts are from letter of credit drawdowns. The CDBG expenditures
for the year include expenditures of this program income. Program income is not included in the award
amount.
NOTE 4 — HOME INVESTMENT PARTNERSHIP — MC04-MCI70218
The Home Investment Partnership receipts include $43,725 of program income generated through
collection of prior years' loans. The balance of receipts are from letter of credit drawdowns. The Home
Investment Partnership expenditures for the year include expenditures of this program income. Program
income is not included in the award amount.
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CITY OF EVANSTON, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
FEBRUARY 28, 2007
NOTE 5 — FEDERALLY PURCHASED COMMODITIES
The City receives federally purchased vaccine passed through the Illinois Department of Public Health.
The approximate cost of the vaccine provided to eligible patients is included in the Schedule of
Expenditures of Federal Awards. For the State of Illinois fiscal year ended June 30, 2007, the
Department advises that the cost of vaccine shipped to the City was $23,039. The vaccine was
provided to eligible patients in the City's public health clinic.
NOTE 6— LOANS RECEIVABLE OUTSTANDING
The city had the following loan receivable balances outstanding at February 28, 2007.
Program
Home Program
Community Development
Block Grant
Federal CFDA Number
14.239
14.218
Amount
$ 2,690,489
$ 1,470,889
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CITY OF EVANSTON, ILLINOIS
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED FEBRUARY 28, 2007
Section I -Summary of Auditor's Results
Financial Statements
Type of auditor's report issued: unqualified
Internal control over financial reporting:
Material weakness(es) identified? X yes
no
Significant deficiency(s) identified
not considered to be material weaknesses? X yes
none reported
Noncompliance material to financial statements noted? yes X
no
Federal Awards
Internal Control over major programs:
Material weakness(es) identified? yes X
no
Significant deficiency(s) identified
not considered to be material weaknesses? yes X
none reported
Type of auditor's report issued on compliance
for major programs: Qualified
Any audit findings disclosed that are required
to be reported in accordance with
Circular A-133, Section .510(a)? X yes
no
Identification of major programs:
Name of Federal Program or Cluster CFDA Number
Community Development Block Grants (CDBG) 14.218
Capitalization Grants For Clean Water State Revolving Funds 66.458
Title V Delinquency Program 16.548
Dollar threshold used to distinguish
between Type A and Type B programs: $300,000
Auditee qualified as low -risk auditee? yes X
no
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CITY OF EVANSTON, ILLINOIS
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED FEBRUARY 28, 2007
Section II -Financial Statement Findings
Finding number: 07-01
Criteria: The City must have functioning internal controls over external financial reporting.
Condition: Material audit entries were required for the financial statements to be properly
stated as of February 28, 2007.
Context: During the course of our audit, it was necessary to make material adjustments to
the financial statements in relation to the sale of an asset within the Sherman
Avenue Garage Fund, and the transfer of that asset from Governmental
Activities to the Sherman Avenue Garage Fund.
Effect: Management was unaware of material errors to their financial statements.
Cause: This finding was caused by insufficient internal controls over the external financial reporting
process. The material transaction was not researched for the proper accounting
of the intra-entity transfer.
Recommendation: We recommend that management evaluate their internal controls over financial reporting
and develop controls to prevent and detect material misstatements in the financial records.
Management might consider seeking additional training in this area.
Management Response: We concur that the asset for the Sherman Garage should have been presented in the
Sherman Garage Fund. During the construction in process phase of the garage, the asset
was correctly accounted for in the Washington National Tax Increment Capital Projects
Fund and categorized under the governmental activities section for financial reporting
purposes. After the completion of the garage, a transfer of the completed asset became
necessary which was inadvertently incorrectly recorded.
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CITY OF EVANSTON, ILLINOIS
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED FEBRUARY 28, 2007
Section II -Financial Statement Findings
Finding number: 07-02
Criteria: The City must have written policies and procedures over internal controls.
Condition: The City did not have adequate documentation of internal control policies
and procedures.
Context: During the course of our audit, it was noted that there were no written policies
and procedures over internal control for each major financial transaction
areas of the City.
Effect: Lack of documentation of internal controls contributes to the risk that loss of
key employees would lose key business processes. Without written policies
and procedures, there is also a lack of continuity and effectiveness of operations.
This could lead to possible misstatements of the financial records.
Cause: This was caused by incomplete documentation of internal controls over the major
financial transaction areas.
Recommendation: We recommend that management document the internal control policies and
procedures for the major financial transaction areas.
Management Response: We concur that written detailed procedures are needed for each responsibility
involving a major financial transaction area. It is our intent that policies and
procedures will be developed over time for key areas.
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CITY OF EVANSTON, ILLINOIS
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED FEBRUARY 28, 2007
Section II -Financial Statement Findings
B. Compliance Findings
None Reported
Section III -Federal Award Findings and Questioned Costs
Finding CFDA# Program Questioned Costs
07-03 14.218 Community Development Block Grant None
Finding / Noncompliance
Wages should be monitored to insure that the provisions of the Davis -Bacon Act are met. The City could
not locate support for three of the thirty two disbursements tested to show that Davis -Bacon Act monitoring
took place and that the wage requirements were met. Subsequent testing determined that prevailing wage
rates were met or exceeded in all instances tested. Support for the monitoring should be maintained for at
least three years. The City should develop standard procedures for record retention that include the
amount of time to keep the files (a minimum of three years) and what information should be maintained
in those files.
Management Response Due to personnel turnover in the CDBG division, there were some
Davis -Bacon records which were not in the City's possession. This
will be corrected in future years.
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CITY OF EVANSTON, ILLINOIS
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
FOR THE YEAR ENDED FEBRUARY 28, 2007
Finding CFDA# Program Questioned Costs
06-01 14.218 Community Development Block Grant None
Finding/Noncompliance
Wages should be monitored to insure that the provisions of the Davis -Bacon Act are met. The City could
not locate support for two of the thirteen disbursements tested to show that Davis -Bacon Act monitoring
took place and that the wage requirements were met. Subsequent testing determined that prevailing wage
rates were met or exceeded in all instances tested. Support for the monitoring should be maintained for at
least three years. The City should develop standard procedures for record retention that include the
amount of time to keep the files (a minimum of three years) and what information should be maintained
in those files.
Corrective Action Taken: Documents are now retained in accordance with corrective action plan
described in 07-01.
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CITY OF EVANSTON, ILLINOIS
CORRECTIVE ACTION PLAN
FOR THE YEAR ENDED FEBRUARY 28, 2007
Identifying Number: 07-01
Audit Finding: The City did not apply the Davis -Bacon Act to three items selected for testing
which required the Davis -Bacon Act.
Corrective Action Taken: After last year's finding, the City put procedures in place to ensure that the City is in
compliance with the Davis -Bacon Act. The items selected for testing and could not be
located, were incurred before the 06-01 corrective action plan was enacted. The
contractors for the three items selected for review in this year's audit state that copies
of certified timesheets and worker compensation were provided to the City as required;
however, those documents could not be located in the City's files when requested by
the auditor. The City believes that the documents were received and reviewed for
compliance, but is unable to verify this as the staff person who created and
implemented the procedure is no longer employed by the City of Evanston. Duplicate
copies of invoices and relevant timesheets were obtained by the contracts for the three
items in question and were found to be in compliance with the appropriate wage
decisions. The City Finance staff has discussed the importance of reviewing
timesheets and retaining the required documentation as well as any documents of
finding and corrective action required with the new CDBG Grants Administrator. The
CDBG Grants Administrator has established written procedures that identify individual
responsible for ensuring tracking that the requirements of the Davis -Bacon Act are
satisfied by project and has established a new system to document the process.
These procedures were incorporated in the CDBG Grants Administration Procedure
Manual to ensure continuity of Davis -Bacon Compliance processes and provide
transparency in the event of future staffing changes.
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