HomeMy WebLinkAbout2005-2006 Single AuditCity of Evanston, Illinois
Single Audit Act
Supplementary Financial
and Compliance Report
Year Ended February 28, 2006
MILLER COOPER & Co., LTD.
CONTENTS
Page
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 3-4
Independent Auditors' Report on Compliance with Requirements Applicable to
Each Major Program and Internal Control over Compliance in Accordance
with OMB Circular A-133 and on the Schedule of Expenditures of Federal
Awards 5-7
Schedule of Expenditures of Federal Awards 8 - 11
Notes to Schedule of Expenditures of Federal Awards 12 - 13
Schedule of Insurance in Force 14
Schedule of Findings and Questioned Costs 15 - 17
Sunvnary Schedule of Prior Audit Findings 18 - 19
Corrective Action Plan 20
MILLER COOPER & Co., LTD.
MILLER
C(OPER
& Co., Ltd
ACCOUNTANTS AND CONSULTANTS
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
GO VERNMENT A UDITING STANDARDS
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 aggregate remaining fund information of the City of Evanston, Illinois, as of and
for the year ended February 28, 2006, which collectively comprise the City's basic financial
statements, and have issued our report thereon dated August 4, 2006. 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 Auditing Standards, issued by the
Comptroller General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the City of Evanston, Illinois', internal control
over financial reporting in order to determine our auditing procedures for the purpose of expressing
our opinions on the financial statements and not to provide an opinion on the internal control over
financial reporting. Our consideration of the internal control over financial reporting would not
necessarily disclose all matters in the internal control over financial reporting that might be material
weaknesses. A material weakness is a reportable condition in which the design or operation of one or
more of the internal control components does not reduce to a relatively low level the risk that
misstatements caused by error or fraud in amounts that would be material in relation to the financial
statements being audited may occur and not be detected within a timely period by employees in the
normal course of performing their assigned functions. We noted no matters involving the internal
control over financial reporting and its operation that we consider to be material weaknesses.
However, we noted certain matters involving the internal control over financial reporting that we have
reported to management of the City of Evanston, Illinois, in a separate letter dated August 4, 2006.
(Continued)
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650 DUNDEE ROAD, SurrE 250 • NORTHBROOK, IL 60062-2767
PHONE 847.205.5000 • FAX 847.205.1400 - e-mail mccltd@millercooper.com
The Honorable Lorraine H. Morton, Mayor, and
Members of the City Council
City of Evanston, Illinois (Continued)
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City of Evanston, Illinois', 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.
This report is intended solely for the information and use of the Mayor, City Council, management,
federal awarding agencies, and pass -through entities and is not intended to be and should not be used
by anyone other than those specified parties.
MILLER, COOPER & CO., LTD.
Certified Public Accountants
Northbrook, Illinois
August 4, 2006
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MILLER COOPER & Co., LTD.
MILLER
CQDPER
& Co., Ltd
ACCOUNTANTS AND CONSULTANTS
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH REQUIREMENTS
APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER
COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 AND
ON THE 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 the City of Evanston, Illinois, 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, 2006. The City of Evanston, Illinois', 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 each of its
major federal programs is the responsibility of the City of Evanston, Illinois', management. Our
responsibility is to express an opinion on the City of Evanston, Illinois', 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 of Evanston, Illinois', 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 of
Evanston, Illinois', compliance with those requirements.
(Continued)
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650 DUNDEE ROAD, SUITE 250 • NORTHBROOK, IL 60062-2767
PHONE 847.205.5000 • FAX 847.205.1400 • e-mail mccltd@millercooper.com
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The Honorable Lorraine H. Morton, Mayor, and
Members of the City Council
e
City of Evanston, Illinois (Continued)
Compliance (Continued)
As described in item 06-1 in the accompanying schedule of findings and questioned costs, the City of
Evanston, Illinois, 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, Illinois, to comply with requirements applicable
to that program.
in our opinion, except for the noncompliance described in the preceding paragraph, the City of
Evanston, Illinois, 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, 2006.
Internal Control Over Comnliance
The management of the City of Evanston, Illinois, 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 the City of
Evanston, Illinois', 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 and to test and report on internal control over compliance in
accordance with OMB Circular A-133.
Our consideration of the internal control over compliance would not necessarily disclose all matters in
the internal control that might be material weaknesses. A material weakness is a reportable condition in
which the design or operation of one or more of the internal control components does not reduce to a
relatively low level the risk that noncompliance with the applicable requirements of laws, regulations,
contracts, and grants caused by error or fraud that would be material in relation to a major federal
program being audited may occur and not be detected within a timely period by employees in the
normal course of performing their assigned functions. We noted no matters involving the internal
control over compliance and its operation that we consider to be material weaknesses.
(Continued)
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MILLER COOPER & Co., LTD.
The Honorable Lorraine H. Morton, Mayor, and
Members of the City Council
City of'Evanston, Illinois
Schedule of Expenditure_ s of Federal Awards
(Continued)
We have audited the financial statements of the governmental activities, the business -type activities,
each major fund, and aggregate remaining fund information of the City of Evanston, Illinois, as of and
for the year ended February 28, 2006, and have issued our report thereon dated August 4, 2006. Our
audit was performed for the purpose of forming an opinion on the basic financial statements taken as a
whole. 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 Mayor, City Council, management,
federal awarding agencies, and pass -through entities and is not intended to be and should not be used by
anyone other than those specified parties.
MILLER, COOPER & CO., LTD.
Certified Public Accountants
Northbrook, Illinois
August 4, 2006
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MILLER COOPER & Co., LTD.
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City of Evanston, Illinois
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the vear ended February 28. 2006
Federal Grantor/
Federal
Pass -Through Entity
Pass -Through Grantor/
CFDA
Identifying
Federal
Program Title
i
Number
Number
Expenditures
Direct Programs - Grants
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
COMMUNITY PLANNING AND DEVELOPMENT
Community Development Block Grant
Entitlement year 22
14,218
B98-MC-17-0012 $
12,859
Entitlement year 24
14.218
BOO-MC-17-0012
2,729
Entitlement year 27
14.218
BO1-MC-17-0013
30,849
Entitlement year 28
14.218
B02-MC-17-00I2
65,921
Entitlement year 29
14.218
B02-MC-17-0012
287,578
Entitlement year 30
14.218
B02-MC-17-0012
140,487
Entitlement year 31
14.218
B03-MC-17-0012
2,282,929
Total Community Development Block Grant
2,823,352
Emergency Shelter Block Grant
14.231
S03-MC-17-0012
1.517
14.231
SO4-MC-)7-0012
348
14.231
S05-MC-17-0012
93,506
Total Emergency Shelter Block Grant 95.371
Home Investment Partnership *
HOME Program
14.239
S95-MC-170218
842
HOME Program
14.239
S97-MC-170218
5.000
HOME Program
14.239
S98-MC-170218
28.146
HOME Program
14.239
M02-MC-170218
406.384
HOME Program
14.239
M03-MC-170218
321.462
HOME Program
14.239
M04-MC-170218
46.323
Total HOME Program 808,157
Total Department of Housing and Urban Development 3,726,880
Denotes a Major Program (Continued)
The accompanying notes are an integral part of this schedule.
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MILLER COOPER & CO., LTD.
City of Evanston, Illinois
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (Continued)
For the vear ended February 28, 2006
Federal Grantor/
Federal
Pass -Through Entity
Pass -Through Grantor/
CFDA
Identifying
Federal
Program Title
Number
Number
Expenditures
DEPARTMENT OF JUSTICE
OFFICE OF COMMUNITY ORIENTED POLICING SERVICES
Title V Delinquency Prevention
16.548
- $
15,000
Law Enforcement Block Grant
16.592
2001-LB-BX-3274
3,478
Law Enforcement Block Grant
16.592
2002-LB-BX
20.152
Law Enforcement Block Grant
16.592
2003-LB-BX
12,000
Justice Assistant Grant
16.592
2205-DI-BX-1256
55,906
Total Department of Justice
106,536
Pass -Through Programs - Grants and Loans
ENVIRONMENTAL PROTECTION AGENCY
OFFICE OF WATER *
Passed through the Illinois Environmental Protection Agency
Water Pollution Control Revolving Loan 66.458 L17I452 10B 4,400,827
Water Pollution Control Revolving Loan 66,458 L170895 10A 1,047,170
Water Pollution Control Revolving Loan 66,458 L170894 9A 73,927
Total Environmental Protection Agency 5,521,924
FEDERAL EMERGENCY MANAGEMENT AGENCY
STATE AND LOCAL PROGRAMS AND SUPPORT
Passed through the Illinois Emergency Services
and Disaster Agency
Community Emergency Response Team 97.054 - 19,677
Emergency Management Assistance Program 83.517 497-58830-440 24,726
Total Federal Emergency Management Agency 44,403
DEPARTMENT OF AGRICULTURE
Summer Lunch Program 10.559 14-016-51 OP-00 70,329
* Denotes a Major Program (Continued)
The accompanying notes are an integral part of this schedule.
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MILLER COOPER & CO., LTD.
City of Evanston, Illinois
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (Continued)
For the year ended February 28.2006
Federal Grantor/ Federal Pass -Through Entity
Pass -Through Grantor/ CFDA Identifying Federal
Program Title Number Number Expenditures
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
93.633
OFFICE OF MENTAL HEALTH SERVICES
Evanston Project - SEED *
98.230
Passed Through State of Illinois Department of Human Services
Family Planning
93.217
Family Planning
93.667
Family Planning
93.994
Family Planning
93.217
Family Planning
93.667
Total Family Planning
Total Public Health Service - I
HEALTH CARE FINANCING ADMINISTRATION
PUBLIC HEALTH SERVICE -11
Passed through State of Illinois Department of Human Services
Teen Pregnancy Prevention
93.994
Teen Pregnancy Prevention
93.994
Total Teen Pregnancy Prevention
* Denotes a Major Program
The accompanying notes are an integral part of this schedule.
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MILLER COOPER & Co., LTD.
A13-119 $
43,109
1 U79 SM53999-03
337,255
61 I G6095350
27,000
611 G6095 3 50
9,800
611G6095350
3,700
511G5095350
3,900
5 ] 1 G5095350
10,900
55,300
435,664
611 G6095230 23,400
5 ].1 G5095230 19,000
42,400
(Continued)
City of Evanston, Illinois
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (Continued)
For the near ended February 28. 2006
Federal Grantor/
Pass -Through Grantor/
Program Title
Federal Pass -Through Entity
CFDA Identifying Federal
Number Number Expenditures
DEPARTMENT OF HEALTH AND HUMAN SERVICES (Continued)
PUBLIC HEALTH SERVICE -II (Continued)
Passed through State of Illinois Department of Public Health
Oral Health Grant 93.994 33480526
Family Case Management Administration Reimbursement 93.778 -
Total Public Health Service - I1
Total Department of Health and Human Services
DEPARTMENT OF HOMELAND SECURITY
2,367
68,231
112,998
548,662
Assistance to Firefighters Grant Program * 97.044 EMW-2003-FG-04561 210,000
Total Federal Financial Assistance S 10,228,734
* Denotes a Major Program
(Concluded)
The accompanying notes are an integral part of this schedule.
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MILLER COOPER & Co., LTD.
City of Evanston, Illinois
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year ended February 28. 2006
NOTE A - 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, 2006, 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 (a) $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 $5,521,924) $ 4,706,810
3% of total federal program expenditures 141,204
Greater of above or $300,000 300,000
NOTE B - 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.
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MILLER COOPER & Co., LTD.
City of Evanston, Illinois
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year ended February 28. 2006
NOTE C - COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) ENTITLEMENT YEAR 30
'The CDBG Entitlement Year 31 receipts include $366,149 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 expenditure of this program income. Program income is not included in
the award amount.
NOTE D - 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, 2006, the Department
advises that the cost of vaccine shipped to the City was $16,592. The vaccine was provided to eligible
patients in the City's public health clinic.
NOTE E - LOANS RECEIVABLE OUTSTANDING
The City had the following loan receivable balances outstanding at February 28, 2006,
Program Federal CFDA Number Amount
Home Program 14.239 S 3.201.381
Community Development
Block Grant 14.218 $ 1.473.105
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MILLER COOPER & Co., LTD.
CITY OF EVANSTON, ILLINOIS
Schedule of Insurance in Force
March 1, 2006
Policy Policy
Name of Company Number Dates
FM Global FC359 3/01/06 - 3/01/07
Hartford Insurance Co. 83MSRZ3857 3/01/06 - 3/01/07
Safety National Casualty Corp. SP8724-IL 3/01/06 - 3/01/07
Western World Insurance NPP970824 3/01/06 - 3/01/07
Illinois National Insurance Co. 76062798 3/01/06 - 3/01/07
Lexington Insurance Co. 006260954 3/01/06 - 3/01/07
Type of
Coverage
Details
All -Risk Property
Actual cash value per Statement
(includes business
of Values each loss/each location
interruption, loss of rents, and fine arts)
in excess of $75,000 deductible
Fine Arts - Noyes, Levy
Per Statement of Values in excess
Center, and
of $250 deductible limits of
Fleetwood/Jourdain
different levels at each property
Theaters
Excess Worker's
Specific excess coverage in excess
Compensation
of $50,000 per occurrence
Ambulance/Paramedic
$1,000,000 per occurrence;
Liability
$1,000,000 aggregate
Excess Liability
$10,000,000 coverage in excess of
$2,000,000 per occurrence (first
$2,000,000 is City's portion)
Crime Policy
Theft of cash in excess of $25,000
deductible, to I im it of $2,000,000
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City of Evanston, Illinois
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the year ended February 28. 2006
I. SUMMARY OF -INDEPENDENT AUDITORS' RESULTS
Financial Statements
Type of auditors' report issued: Unqualified opinion on the basic financial statements of the City of
Evanston. Illinois.
None
Internal control over financial reporting: Yes Reported
Material weaknesses identified? X
Reportable conditions identified that are not considered
to be material weaknesses? X
Noncompliance material to financial statements noted? X
Federal Awards
Internal control over major programs:
Material weaknesses identified? X
Reportable conditions identified that are not considered
to be material weaknesses? x
Type of auditors' report issued on compliance for major programs: Qualified
Any audit findings disclosed that are required to be reported
in accordance with section 510(a) of Circular A-133? X
(Continued)
on
MILLER COOPER & CO., LTD.
City of Evanston, Illinois
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued)
For the year ended February 28. 2006
1. SUMMARY OF INDEPENDENT AUDITORS' RESULTS (Continued)
Identification of major programs:
CFDA Number Name of Federal Program or Cluster
14.218 Connnunity Development Block Grants (CDBG)
14.239 Horne Investment Partnership (HOME)
66.458 Water Pollution Control Revolving Loan (EPA)
98.230 Evanston project - SEED
97.044 Assistance to Firefighters Grant
Dollar threshold used to distinguish between
type A and type B programs
Auditee qualified as low -risk auditee?
11. FINANCIAL STATEMENT FINDINGS
A. Reportable Conditions in Internal Control
B. Compliance Findings
m
MILLER COOPER & Co., LTD.
$ 300,000
No
None Reported
None Reported
(Continued)
City of Evanston, Illinois
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued)
For the vear ended Februarv_2_8. 2006
Ill. FINDINGS AND QUESTIONED COSTS FOR FEDERAL AWARDS
Questioned
Finding CFDA # Program Costs
06-1 14.218 Cormnunity Development Block Grant None
Findinv-/Noncomp liance
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.
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MILLER COOPER & Co., LTD.
City of Evanston, Illinois
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
For the year ended February 28.2006
Identifyine Number: 05-1
Audit Findine: 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 seven
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: The City had the same finding occur in the previous year and the plan was to
apply the Davis -Bacon Act to all types of contracts. However, due to a change
in key personnel, there was a deficiency in' the records retention and/or
monitoring process (see finding 06-1). The City recognizes the lack of testing
and is planning to monitor all of the contracts more closely to assure that the
Davis -Bacon Act is applied to all contracts.
Identifyina Number: 05-2
Audit Finding-: Records should be maintained that support the determination of eligibility for
the Medical Assistance Program based upon eligibility criteria specified in the
individual state plan. The City did not maintain a record of the eligible
participants provided by the state of Illinois. This lack of records prohibited us
from testing the eligibility of the participants in the program. The lack of
support makes it possible the ineligible participants were served by the
program. The City should develop formal procedures for record retention (a
minimum of three years) and what information should be included in the files to
support eligibility for the participants.
Corrective Action Taken: The City now maintains records.
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ZIIILLER COOPER & Co., LTD.
City of Evanston, Illinois
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
For the vear ended February 28. 2006
Identifying Number: 05-3
Audit Finding: Records should be maintained that support the determination of which
participants in the Medical Assistance Program received services. The City did
not maintain records supporting who participated in the program. This lack of
records prohibited us from testing the case files to determine that they were in
compliance with the requirements of the Medical Assistance Program. The lack
of support for participation makes it impossible to verify that services were
provided to the proper individuals. The City should develop formal procedures
for record retention (a minimum of three years) and for what information should
be included in the files.
Corrective Action Taken: The City now maintains records.
Identifying Number: 05-4
Audit Finding_: Records should be developed and maintained that support the expenditures of
Medical Assistance Program funds. The City did not develop or maintain
records that support expenditures charged to the Medical Assistance Program.
The lack of support prohibited us from testing that the expenditures were
allowable and in accordance with the pennitted activities. The lack of support
makes it possible that nonallowed and/or nonpermitted expenditures were
charged to the program. The City should develop minimum standards for
support of expenditures charged to a specific program.
Corrective Action Taken: The City now maintains records.
I Us
]MILLER COOPER & CO., LTD.
City of Evanston, Illinois
CORRECTIVE ACTION PLAN
Year ended February 28, 2006
ldentifvin� Number: 06-1
Audit FindinP,: The City did not apply the Davis -Bacon Act to the two 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 contractors for the two items
selected for review in this year's audit stated 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 the timesheets were obtained from the contractors for both
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 findings and corrective action required with the new CDBG
Grants Administrator. The CDBG Grants Administrator has established written
procedures that identify the individual responsible for ensuring tracking that the
requirements of the Davis -Bacon Act are satisfied by project and has
established a new tracking system to document the process. These procedures
will be 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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MILLER COOPER & Co., LTD.