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HomeMy WebLinkAbout2025 Single AuditCITY OF EVANSTON, ILLINOIS Single Audit Report For the Year Ended December 31, 2025 TABLE OF CONTENTS Independent Auditor’s Report on Schedule of Expenditures of Federal Awards 1-2 Schedule of Expenditures of Federal Awards 3-5 Notes to Schedule of Expenditures of Federal Awards 6-8 Independent Auditor’s Report on Compliance for Each Major Program and on Internal Control over Compliance Required by the Uniform Guidance 9-11 Schedule of Findings and Questioned Costs 12-13 1 1837 S. Michigan Ave., Chicago, Illinois 60616 TEL (312) 567-1330 FAX (312) 567-1360 www.pradorenteria.com INDEPENDENT AUDITOR’S REPORT To the Honorable Daniel Biss, Mayor and Members of the City Council Evanston, Illinois Report on the Audit of the Schedule of Expenditures of Federal Awards Opinion We have audited the accompanying Schedule of Expenditures of Federal Awards (“Schedule”) of the City of Evanston, Illinois (“City”) for the year ended December 31, 2025 and the related notes to the Schedule. In our opinion, the accompanying Schedule of Expenditures of Federal Awards presents fairly, in all material respects, the expenditures of federal awards of the City for the year ended December 31, 2025, in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Schedule of Expenditures of Federal Awards section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Responsibilities of Management for the Schedule of Expenditures of Federal Awards Management is responsible for the preparation and fair presentation of the Schedule in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the Schedule that is free from material misstatement, whether due to fraud or error. Auditor’s Responsibilities for the Audit of the Schedule of Expenditures of Federal Awards Our objectives are to obtain reasonable assurance about whether the Schedule as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from 2 error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the Schedule. In performing an audit in accordance with generally accepted auditing standards, we:  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the Schedule, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the Schedule.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the Schedule. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Chicago, Illinois September 22, 2026 Assistance Listing 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 05-016-510P-00 June 30, 2025 - Aug 31, 2025 -$ 64,441$ Passed through the Illinois State Board of Education Summer Food Service Program for Children 10.559 05-016-510P-00 June 30, 2025 - Aug 31, 2025 - 158,964 Passed through GreenLatinos Inflation Reduction Act Urban & Community Forestry Program 10.727 00000016 July 26, 2024 - 151,005 Total Department of Agriculture - 374,410 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Community Development Block Grants/Entitlement Grants Entitlement year 46 14.218 B20MC-170012 August 21, 2020 - 22,403 Entitlement year 47 14.218 B21MC-170012 August 3, 2021 - 6,483 Entitlement year 48 14.218 B22MC-170012 September 8, 2022 42,422 100,000 Entitlement year 49 14.218 B23MC-170012 July 12, 2023 10,703 88,298 Entitlement year 50 14.218 B24MC-170012 September 8, 2024 - 271,930 Entitlement year 51 14.218 B25MC-170012 September 22, 2025 202,584 887,182 Total Community Development Block Grants/Entitlement Grants 255,709 1,376,296 COVID-19 Community Development Block Grants/Entitlement Grants Entitlement year 46 14.218 B20MW170012 July 16, 2020 - 136,207 Emergency Solutions Grant Program 14.231 E25MC170012 September 22, 2025 2,647 13,139 Home Investment Partnerships Program 14.239 M22-MC-170218 September 8, 2022 85,796 85,796 Home Investment Partnerships Program 14.239 M23-MC-170218 July 12, 2023 - 430 Home Investment Partnerships Program 14.239 M24-MC-170218 September 8, 2024 26,929 26,929 Total Home Investment Partnerships Program 112,725 113,156 COVID-19 Home Investment Partnerships Program 14.239 M21MP170218 September 27, 2021 - 22,313 Total Department of Housing and Urban Development 371,081 1,661,111 CITY OF EVANSTON, ILLINOIS SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended December 31, 2025 Federal Grantor/Pass-Through Grantor/ Program Title See Independent Auditor's Report and Notes to Schedule of Expenditures of Federal Awards 3 Assistance Listing 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, 2025 Federal Grantor/Pass-Through Grantor/ Program Title DEPARTMENT OF JUSTICE Equitable Sharing Program 16.922 N/A January 31, 2025 - 120,946 Total Department of Justice - 120,946 DEPARTMENT OF TRANSPORTATION Passed through Illinois Department of Transportation Highway Planning and Construction 20.205 D-91-143-21 March 10, 2022 - 161,273 Passed through Illinois Department of Transportation State and Community Highway Safety 20.600 HS-25-0075 June 1, 2024 - 85,667 State and Community Highway Safety 20.600 HS-26-0040 June 1, 2025 - 4,224 Total State and Community Highway Safety - 89,891 Asset Concessions and Innovative Finance Assistance 20.945 69A6212550011 February 3, 2025 - 148,699 Total Department of Transportation - 399,862 DEPARTMENT OF HOMELAND SECURITY Passed through Illinois Emergency Management Agency Emergency Management Performance Grants 97.042 N/A October 1, 2024 - 28,969 Total Department of Homeland Security - 28,969 DEPARTMENT OF TREASURY COVID-19 CoronaVirus State/Local Fiscal Recovery Funds (CSLFRF)* 21.027 N/A March 11, 2021 1,064,204 3,917,986 Total Department of Treasury 1,064,204 3,917,986 See Independent Auditor's Report and Notes to Schedule of Expenditures of Federal Awards 4 Assistance Listing 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, 2025 Federal Grantor/Pass-Through Grantor/ Program Title DEPARTMENT OF HEALTH AND HUMAN SERVICES Passed through Age Options Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and Senior Centers 93.044 2567-29728 September 10, 2024 - 3,500 Special Programs for the Aging, Title III, Part C, Nutrition Services 93.045 N/A September 30, 2025 - 30,359 Total Special Programs for the Aging Title III - 33,859 Passed through the Illinois Department of Public Health Public Health Emergency Preparedness 93.069 57180011L May 4, 2024 - 62,944 Public Health Emergency Preparedness 93.069 57580003M March 11, 2024 - 65,031 Total Public Health Emergency Preparedness - 127,975 Total Department of Health and Human Services - 161,834 INSTITUTE OF MUSEUM & LIBRARY SERVICES Passed through Office of Sec of State - IL State Library Grants to States Project Next Generation ( PNG ) 45.310 25-3040-PNG August 19, 2024 - 19,199 Total Institute of Museum & Library Services - 19,199 NATIONAL ENDOWMENT FOR THE ARTS Promotion of the Arts Grants to Organizations and Individuals 45.024 1920421-52-C-23 May 14, 2024 - 2,500 Total National Endowment For The Arts - 2,500 Total Expenditures of Federal Awards 1,435,285$ 6,686,817$ * Denotes a major program See Independent Auditor's Report and Notes to Schedule of Expenditures of Federal Awards 5 6 CITY OF EVANSTON, ILLINOIS NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended December 31,2025 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). NOTE 2 –BASIS OF PRESENTATION The accounting records for some grant programs are maintained on the modified accrual basis of accounting. Under the modified accrual basis, revenues are recorded when susceptible to accrual, i.e., both measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Expenditures are recorded when the liability is incurred. The accounting records for other grant programs are maintained on the accrual basis, i.e., when the revenue has been earned and the liability is incurred. The information in this schedule is presented in accordance with the requirements of OMB Uniform Guidance.Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in preparation of, the basic financial statements. NOTE 3 –SUBRECIPIENTS Of the federal expenditures presented in the schedule of expenditures of federal awards, the City of Evanston provided federal awards to subrecipients as follows: Program Title Federal Amount Assistance Provided to Listing Subrecipients Number Community Development Block Grants/Entitlement Grants 14.218 $255,709 Emergency Solutions Grant Program 14.231 $2,647 HOME Investment Partnerships Program 14.239 $112,725 COVID-19 Coronavirus State and Local Fiscal Recovery Funds 21.027 $1,064,204 7 CITY OF EVANSTON, ILLINOIS NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended December 31,2025 NOTE 4 –PROGRAM INCOME The City of Evanston received the following program income amounts for the year ended December 31, 2025. NOTE 5 –NOTES RECEIVABLE OUTSTANDING The City of Evanston has several notes receivable outstanding as of December 31,2025. 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. The notes receivable balances are not subject to continuing OMB Uniform Guidance compliance requirements. Program Title Federal Amount Assistance Listing Number Community Development Block Grants/Entitlement Grants 14.218 $82,142 HOME Investment Partnerships Program 14.239 $24,852 Program Title Federal Amount Assistance Listing Number Community Development Block Grants/Entitlement Grants 14.218 $1,568,398 HOME Investment Partnerships Program 14.239 $5,102,186 8 CITY OF EVANSTON, ILLINOIS NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended December 31,2025 NOTE 6 –LOANS PAYABLE OUTSTANDING The City of Evanston has the following loans payable outstanding as of December 31,2025. 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. 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 31,2025. NOTE 8 –FEDERAL INSURANCE The City of Evanston had no federal insurance for the year ended December 31,2025. NOTE 9 –INDIRECT COST RATE The City of Evanston has not elected to use the 10% de minimis indirect cost rate. Program Title Federal Amount Assistance Listing Number Capitalization Grants for Drinking Water State Revolving Funds 66.468 $568,816 Capitalization Grants for Clean Water State Revolving Funds 66.458 $546,413 9 1837 S. Michigan Ave., Chicago, Illinois 60616 TEL (312) 567-1330 FAX (312) 567-1360 www.pradorenteria.com INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE The Honorable Daniel Biss, Mayor and Members of the City Council Evanston, Illinois Report on Compliance for Each Major Federal Program Opinion on Each Major Federal Program We have audited the City of Evanston, Illinois (“City”) compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on the City’s major federal programs for the year ended December 31, 2025. The City’s major federal programs are identified in the summary of auditors’ results section of the accompanying schedule of findings and questioned costs. In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended December 31, 2025. Basis for Opinion on Each Major Federal Program We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above. 10 Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City’s federal programs. Auditor’s Responsibility for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards , and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of the federal program as a whole. In performing an audit in accordance with generally accepted auditing standards , and the Uniform Guidance, we:  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.  Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. 11 Report on 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 a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Chicago, Illinois September 22, 2026 CITY OF EVANSTON, ILLINOIS SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended December 31, 2025 12 SECTION I –SUMMARY OF AUDITOR’S RESULTS Financial Statements 1)Type of report the auditor issued on whether the financial statements audited were prepared in accordance with GAAP:Unmodified 2) Internal control over financial reporting: Material weakness(es) identified?Yes No Significant deficiency(ies) identified?Yes None reported 3) Noncompliance material to financial statements noted?Yes No Federal Awards 1) Internal control over major federal programs: Material weakness(es) identified?Yes No Significant deficiency(ies) identified?Yes None reported 2) Type of auditors’ report issued on compliance for major federal programs:Unmodified 3) Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)?Yes No Identification of major programs: Assistance Listing Number Name of Federal Program or Cluster 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Dollar threshold used to distinguish between type A and type B Programs:$1,000,000 Auditee qualified as low risk auditee?Yes No CITY OF EVANSTON, ILLINOIS SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended December 31, 2025 13 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.