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HomeMy WebLinkAbout2019 Single AuditCITY OF EVANSTON, ILLINOIS Single Audit Reports For the Year Ended December 31, 2019 TABLE OF CONTENTS Independent Auditors’ 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 Auditors’ Re port on Compliance for Each Major Program and on Internal Control over Compliance Required by the Uniform Guidance 8-9 Schedule of Findings and Questioned Costs 10-11 1 INDEPENDENT AUDITORS’ REPORT The Honorable Stephen H. Hagerty , Mayor and Members of the City Council Evanston, Illinois Report on the Schedule of Expenditures of Federal Awards We have audited the accompanying Schedule of Expenditures of Federal Awards of the City of Evanston, Illinois (City), for the year ended December 31, 2019 and the related notes (the financial statement). Management’s Responsibility 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; this includes 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 Responsibility Our responsibility is to express an opinion on this financial statement 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 the audit requirements of Title 2 U.S.Code of Federal Regulation Part 200,Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statement . The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statement in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statement. 2 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion 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, 2019,in accordance with accounting principles generally accepted in the United States of America. Chicago, Illinois September 11,2020 Federal CFDA Identifying Award Passed-Through Federal Number Number Date to Subrecipients Expenditures DEPARTMENT OF AGRICULTURE Passed through the Illinois State Board of Education Child and Adult Care Food Program 10.558 ISBE 19-4226-00 - 05-016-510P-00 January 1, 2019 N/A 47,972 Passed through the Illinois State Board of Education Summer Food Service Program for Children 10.559 ISBE 19-4225-00 - 05-016-510P-00 June 10, 2019 N/A 149,333 Total Department of Agriculture 197,305 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Community Development Block Grants/Entitlement Grants Entitlement year 40 14.218 B14MC-170012 June 18, 2014 61,306 61,306 Entitlement year 41 14.218 B15MC-170012 June 15, 2015 100,000 Entitlement year 42 14.218 B16MC-170012 July 20, 2016 10,000 Entitlement year 43 14.218 B17MC-170012 October 31, 2017 90,374 118,535 Entitlement year 44 14.218 B18MC-170012 July 31, 2018 9,855 549,436 Entitlement year 45 14.218 B19MC-170012 July 22, 2019 255,225 1,002,516 Total Community Development Block Grants/Entitlement Grants *416,760 1,841,793 Emergency Solutions Grant Program 14.231 E17MC-170012 October 31, 2017 296 3,345 Emergency Solutions Grant Program 14.231 E18MC-170012 July 31, 2018 67,146 72,484 Emergency Solutions Grant Program 14.231 E19MC-170012 July 22, 2019 57,533 57,533 Total Emergency Solutions Grant Program 124,975 133,362 Home Investment Partnerships Program 14.239 M17-MC-170218 October 31, 2017 158,550 158,550 Home Investment Partnerships Program 14.239 M18-MC-170218 July 31, 2018 40,328 76,642 Home Investment Partnerships Program 14.239 M19-MC-170218 July 22, 2019 20,538 24,755 Total Home Investment Partnerships Program 219,416 259,947 ARRA - Neighborhood Stabilization Program 14.256 S10-MC-170012 January 14, 2010 N/A 11,013 Total Department of Housing and Urban Development 2,246,115 DEPARTMENT OF JUSTICE 2017 Bulletproof Vest Partnership Program 16.607 N/A October 26, 2017 N/A 8,527 2018 Bulletproof Vest Partnership Program 16.607 N/A October 3, 2018 N/A 4,740 Total Bulletproof Vest Partnership Program 13,267 Passed through the City of Chicago Department of Police Edward Byrne Memorial Justice Assistance Grant 16.738 2017-DJ-BX-0223 August 20, 2017 N/A 11,846 Total Department of Justice 25,113 DEPARTMENT OF TRANSPORTATION Passed through Illinois Department of Transportation Highway Planning and Construction 20.205 D-91-301-16 August 1, 2018 N/A 391,419 Highway Planning and Construction 20.205 D-91-290-18 March 8, 2019 N/A 162,637 Highway Planning and Construction 20.205 C-91-118-17 April 2, 2017 N/A 5,250 Total Highway Planning and Construction 559,306 Passed through Illinois Department of Transportation State and Community Highway Safety (STEP)20.600 900OP190019 October 6, 2017 N/A 57,072 State and Community Highway Safety (STEP)20.600 900OP190019 November 6, 2018 N/A 44,700 Total State and Community Highway Safety (STEP)101,772 Total Department of Transportation 661,078 DEPARTMENT OF ENVIRONMENTAL PROTECTION AGENCY Passed through the Illinois Department of Public Health Beach Monitoring and Notification Program Implementation Grant 66.472 95380404G September 28, 2018 N/A 14,857 Total Department of Environmental Protection Agency 14,857 CITY OF EVANSTON, ILLINOIS SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended December 31, 2019 Federal Grantor/Pass-Through Grantor/ Program Title * = Denotes as a major program See Accompanying Notes to Schedule of Expenditures of Federal Awards 3 Federal CFDA Identifying Award Passed-Through Federal Number Number Date to Subrecipients Expenditures CITY OF EVANSTON, ILLINOIS SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended December 31, 2019 Federal Grantor/Pass-Through Grantor/ Program Title DEPARTMENT OF HEALTH AND HUMAN SERVICES Passed through AgeOptions Special Programs for the Aging Title III, Part B Library Stipends - Supportive Services 93.044 MG-77-16-0118-16 September 6, 2018 N/A 12,000 Special Programs for the Aging Title VII Ombudsman 93.044 B3 OMB/T3BO Ombudsman August 6, 2018 N/A 55,205 Special Programs for the Aging Title III, Part C Nutrition 93.045 T3C1 September 30, 2019 N/A 42,926 Total Aging Cluster 110,131 Passed through the Illinois of Department of Public Health Public Health Emergency Preparedness 93.074 97180027G May 1, 2017 N/A 36,080 Public Health Emergency Preparedness 93.074 07180027H July 29, 2019 N/A 30,144 Public Health Emergency Preparedness - Cities Readiness Initiative 93.074 97580003G August 1, 2018 N/A 25,363 Public Health Emergency Preparedness - Cities Readiness Initiative 93.074 0758003H September 24, 2019 N/A 13,123 Total Public Health Emergency Preparedness 104,710 Passed through Public Health Institute of Metropolitan Chicago HIV Prevention Activities Health Department Based 93.940 N/A August 12, 2019 5,839 Passed through the Illinois of Department of Human Services Block Grants for Prevention and Treatment of Substance Abuse 93.959 943CWZ03375 June 18, 2018 N/A 3,410 Block Grants for Prevention and Treatment of Substance Abuse 93.959 943CWZ03375 June 20, 2019 N/A 3,630 Total Block Grants for Prevention and Treatment of Substance Abuse 7,040 Total Department of Health and Human Services 227,720 DEPARTMENT OF HOMELAND SECURITY Assistance to Firefighters Grant 97.044 EMW-2017-FR-00378 September 21, 2018 165,590 Total Department of Homeland Security 165,590 INSTITUTE OF MUSEUM AND LIBRARY SERVICES Passed through Loyola University National Leadership Grants 45.312 MG-77-16-0118-16 December 1, 2017 N/A 37,343 Total Institute of Museum and Library Services 37,343 NATIONAL SCIENCE FOUNDATION Passed through Northwestern University Office of Community Education Partnership Education and Human Resources 47.076 1837661 October 2018 N/A 19,704 Total National Science Foundation 19,704 NATIONAL FISH AND WILDLIFE FOUNDATION Migratory Bird Habitat 15.663 NFWF ID2005.16.054554 December 16, 2016 N/A 17,311 Total National Fish and Wildlife Foundation 17,311 Total Expenditures of Federal Awards 3,612,136$ * = Denotes as a major program See Accompanying 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 31,2019 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. 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 Community Development Block Grants/Entitlement Grants 14.218 $416,760 Emergency Solutions Grant Program 14.231 $124,975 HOME Investment Partnerships Program 14.239 $219,416 CITY OF EVANSTON, ILLINOIS NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended December 31,2019 6 NOTE 4 –PROGRAM INCOME The City of Evanston received the following program income amounts for the year ended December 31,2019. 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 CFDA Number Amount Community Development Block Grants/Entitlement Grants 14.218 $105,431 Home Investment Partnership s Program 14.239 $27,384 NOTE 5–NOTES RECEIVABLE OUTSTANDING The City of Evanston has several notes receivable outstanding as of December 31, 2019. 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 CFDA Number Amount Community Development Block Grants/Entitlement Grants 14.218 $1,844,287 Home Investment Partnerships Program 14.239 $4,964,924 The notes receivable balances are not subject to continuing OMB Uniform Guidance compliance requirements. NOTE 6–LOANS PAYABLE OUTSTANDING The City of Evanston has the following loans payable outstanding as of December 31, 2019. 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. CITY OF EVANSTON, ILLINOIS NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended December 31,2019 7 NOTE 6–LOANS PAYABLE OUTSTANDING -Continued Program Title Federal CFDA Number Amount Capitalization Grants for Drinking Water State Revolving Funds 66.468 $849,329 Capitalization Grants for Clean Water State Revolving Funds 66.458 $861,697 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 31,2019. NOTE 8 –FEDERAL INSURANCE The City of Evanston had no federal insurance for the year ended December 31, 2019. NOTE 9 –INDIRECT COST RATE The City of Evanston has not elected to use the 10% de minim is indirect cost rate. 8 INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE The Honorable Stephen H. Hagerty , Mayor and Members of the City Council Evanston,Illinois Report on Compliance for Each Major Federal Program We have audited the City of Evanston, Illinois (City ) compliance with the types of compliance requirements described 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, 2019. The City’s major federal programs are identified in the summary of auditors’results section of the accompanying schedule of findings and questioned costs. Management’s Responsibility Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. Auditor’s Responsibility Our responsibility is to express an opinion on compliance for the City’s major federal programs based on our audit of the types of compliance requirements referred to above. 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 the audit requirements of Title 2 U.S.Code of Federal Regulation Part 200,Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).Those standards and the Uniform Guidance 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 on compliance for each major federal program. However, our audit does not provide a legal determination of the City’s compliance. 9 Opinion on Each Major Federal Program 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, 201 9. Report on Internal Control over Compliance Management of the City is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program 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 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. 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. 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 material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 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 11,2020 CITY OF EVANSTON, ILLINOIS SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended December 31, 2019 10 SECTION I –SUMMARY OF AUDITORS’ RESULTS Financial Statements 1)Type of report the auditor issued on whether the financial statements audited were prepared in accordance with GAAP:Unmodified 2) Internal control over financial reporting: ·Material weakness(es) identified?Yes X No ·Significant deficiency(ies) identified?Yes X None reported 3) Noncompliance material to financial statements noted?Yes X No Federal Awards 1) Internal control over major federal programs: ·Material weakness(es) identified?Yes X No ·Significant deficiency(ies) identified?Yes X None reported 2) Type of auditors’ report issued on compliance for major federal programs:Unmodified 3) Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)?Yes X No Identification of major programs: CFDA Number Name of Federal Program or Cluster 14.218 Community Development Blo ck Grants/Entitlement Grants Dollar threshold used to distinguish between type A and type B Programs:$750,000 Auditee qualified as low risk auditee?Yes X No CITY OF EVANSTON, ILLINOIS SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended December 31, 2019 11 SECTION II –FINANCIAL STATEMENT FINDINGS No matters were reported. SECTION III –FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS No matters were reported. SECTION IV –PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS None.