Town of Cicero, Illinois

Finding 2023-001 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers 21.027 Cornoavirus State and Local Fiscal Recovery Funds (CSLFRF) Program Federal Agencies U.S. Department of Treasury Award Number/Year 2023 Criteria The Town has grant agreements from Federal and State of Illinois agencies with terms requiring compliance with financial reporting requirements in accordance with Uniform Guidance, the Illinois Grant Accountability and Transparency Act (GATA), and the Illinois Fiscal Responsibility Report Card Act. As such, for the year ended December 31, 2023, the Town is required to submit audited financial statements, a schedule of expenditures of federal awards (SEFA) and single audit reports to the Federal Audit Clearinghouse; the same audit package plus a Consolidated Year End Financial Report (CYEFR) to the GATA portal; and the audited financial statements and Annual Financial Report to the Illinois Comptroller. Required submissions the Illinois Comptroller are due within six (6) months after the Town’s fiscal yearend. The required submissions to the Federal Audit Clearinghouse and the GATA portal were due within nine (9) months after the Town’s fiscal year-end. Section III - Findings and Questioned Costs Relating to Compliance Over Federal Awards (continued) Condition The Town did not make its required submission to the Illinois Comptroller website prior to the due date of June 30, 2024 and did not make its required submissions to the Federal Audit Clearinghouse and GATA portal prior September 30, 2024. This finding also occurred in 2022 (2022-001) 2021, (2021-002), 2020 (2020-002), 2019 (2019-005) and 2017 (2017‐002). Cause The Town experienced a shortage of personnel in the Department of Financial Affairs during 2020. In response to the personnel shortage, the Town outsourced most of its financial accounting functions to a CPA firm, including preparing the Town’s financial statements, SEFA, CYEFR and other supplementary reports, and this transition required time to complete. Effect The effect is that controls over the financial reporting process were significantly weakened thereby increasing the risk that material misstatements could be included in the financial statements, SEFA, CYEFR and other supplementary schedules without management being aware. Additionally, noncompliance with financial reporting deadlines could cause funding sources for the Town to suspend funding until compliance is achieved. Questioned Costs None noted. Recommendation During 2021 the Town hired a CPA firm to which a majority of the accounting function was outsourced including preparing financial statements, SEFA, CYEFR and other supplementary schedules. We recommend that the Town continue to implement this corrective action plan until financial statements are prepared monthly in a timely manner and the SEFA, CYEFR and other supplementary schedules are prepared annually in a timely manner as prescribed in the Town’s accounting policies and procedures. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.

Finding 2022-001 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers 14.218 Community Development Block Grant Program Federal Agencies U.S. Department of Justice Award Number/Year 2022 Criteria The Town has grant agreements from State of Illinois agencies with terms requiring compliance with financial reporting requirements in accordance with Uniform Guidance, the Illinois Grant Accountability and Transparency Act (GATA), and the Illinois Fiscal Responsibility Report Card Act. As such, for the year ended December 31, 2022, the Town is required to submit audited financial statements, a schedule of expenditures of federal awards (SEFA) and single audit reports to the Federal Audit Clearinghouse, the same audit package plus a Consolidated Year End Financial Report (CYEFR) to the GATA portal, and the audited financial statements and Annual Financial Report to the Illinois Comptroller. Required submissions to the GATA portal and the Illinois Comptroller are due within six (6) months after the Town’s fiscal year-end. The required submission to the Federal Audit Clearinghouse was due within nine (9) months after the Town’s fiscal year-end.Condition The Town did not make its required submissions to the GATA portal and Illinois Comptroller prior to the due date of June 30, 2023 and did not make its required submission to the Federal Audit Clearinghouse prior September 30, 2023. This finding also occurred in 2021, (2021-02), 2020 (2020-02), 2019 (2019-005) and 2017 (2017‐002). Cause The Town experienced a shortage of personnel in the Department of Financial Affairs during 2020. In response to the personnel shortage, the Town outsourced most of its financial accounting functions to a CPA firm, including preparing the Town’s financial statements, SEFA, CYEFR and other supplementary reports, and this transition required time to complete. Effect The effect is that controls over the financial reporting process were significantly weakened thereby increasing the risk that material misstatements could be included in the financial statements, SEFA, CYEFR and other supplementary schedules without management being aware. Additionally, noncompliance with financial reporting deadlines could cause funding sources for the Town to suspend funding until compliance is achieved. Questioned Costs None noted.Recommendation During 2021 the Town hired a CPA firm to which a majority of the accounting function was outsourced including preparing financial statements, SEFA, CYEFR and other supplementary schedules. We recommend that the Town continue to implement this corrective action plan until financial statements are prepared monthly in a timely manner and the SEFA, CYEFR and other supplementary schedules are prepared annually in a timely manner as prescribed the Town’s accounting policies and procedures. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.

Finding 2022-001 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers 14.218 Community Development Block Grant Program Federal Agencies U.S. Department of Justice Award Number/Year 2022 Criteria The Town has grant agreements from State of Illinois agencies with terms requiring compliance with financial reporting requirements in accordance with Uniform Guidance, the Illinois Grant Accountability and Transparency Act (GATA), and the Illinois Fiscal Responsibility Report Card Act. As such, for the year ended December 31, 2022, the Town is required to submit audited financial statements, a schedule of expenditures of federal awards (SEFA) and single audit reports to the Federal Audit Clearinghouse, the same audit package plus a Consolidated Year End Financial Report (CYEFR) to the GATA portal, and the audited financial statements and Annual Financial Report to the Illinois Comptroller. Required submissions to the GATA portal and the Illinois Comptroller are due within six (6) months after the Town’s fiscal year-end. The required submission to the Federal Audit Clearinghouse was due within nine (9) months after the Town’s fiscal year-end.Condition The Town did not make its required submissions to the GATA portal and Illinois Comptroller prior to the due date of June 30, 2023 and did not make its required submission to the Federal Audit Clearinghouse prior September 30, 2023. This finding also occurred in 2021, (2021-02), 2020 (2020-02), 2019 (2019-005) and 2017 (2017‐002). Cause The Town experienced a shortage of personnel in the Department of Financial Affairs during 2020. In response to the personnel shortage, the Town outsourced most of its financial accounting functions to a CPA firm, including preparing the Town’s financial statements, SEFA, CYEFR and other supplementary reports, and this transition required time to complete. Effect The effect is that controls over the financial reporting process were significantly weakened thereby increasing the risk that material misstatements could be included in the financial statements, SEFA, CYEFR and other supplementary schedules without management being aware. Additionally, noncompliance with financial reporting deadlines could cause funding sources for the Town to suspend funding until compliance is achieved. Questioned Costs None noted.Recommendation During 2021 the Town hired a CPA firm to which a majority of the accounting function was outsourced including preparing financial statements, SEFA, CYEFR and other supplementary schedules. We recommend that the Town continue to implement this corrective action plan until financial statements are prepared monthly in a timely manner and the SEFA, CYEFR and other supplementary schedules are prepared annually in a timely manner as prescribed the Town’s accounting policies and procedures. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.

Compliance Findings Finding 2021-02 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers 14.218 Community Development Block Grant Program Federal Agencies U.S. Department of Justice Award Number/Year 2021 Criteria The Town has grant agreements from State of Illinois agencies with terms requiring compliance with financial reporting requirements in accordance with Uniform Guidance and the State of Illinois Grant Accountability and Transparency Act (GATA). As such, for the year ended December 31, 2021, the Town is required to submit audited financial statements, a schedule of expenditures of federal awards (SEFA) and single audit reports to the Federal Audit Clearinghouse and the same audit package plus a Consolidated Year End Financial Report (CYEFR) to the GATA portal. All items are required to be submitted within nine (9) months after the Town’s fiscal year-end. The Office of Management and Budget (OMB) issued a memorandum granting extensions to the due date for entities affected by the COVID-19 pandemic during 2020. The extended due date was March 31, 2022 for the Town. Illinois’ Grant Accountability and Transparency Act (GATA) has similar reporting deadlines to Uniform Guidance. Condition The Town did not submit its audited financial statements, SEFA and CYEFR and other required information as of and for the year ended December 31, 2021 to the Federal Audit Clearinghouse and GATA portal prior to the extended due date of March 31, 2022. This finding also occurred in 2020 (2020-02), 2019 (2019-005) and 2017 (2017‐002). Cause The Town experienced a shortage of personnel in the Department of Financial Affairs during 2020. In response to the personnel shortage, the Town outsourced most of its financial accounting functions to a CPA firm, including preparing the Town’s financial statements, SEFA, CYEFR and other supplementary reports, and this transition required time to complete. Effect The effect is that controls over the financial reporting process were significantly weakened thereby increasing the risk that material misstatements could be included in the financial statements, SEFA, CYEFR and other supplementary schedules without management being aware. Additionally, noncompliance with financial reporting deadlines could

Finding 2020-02 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers 14.218 Community Development Block Grant Program 21.019 Coronavirus Relief Fund Program Federal Agencies U.S. Department of Treasury U.S. Department of Justice Award Number/Year 2020 Criteria The Town has grant agreements from State of Illinois agencies with terms requiring compliance with financial reporting requirements in accordance with Uniform Guidance and the State of Illinois Grant Accountability and Transparency Act (GATA). As such, for the year ended December 31, 2020, the Town is required to submit audited financial statements, a schedule of expenditures of federal awards (SEFA) and single audit reports to the Federal Audit Clearinghouse and the same audit package plus a Consolidated Year End Financial Report (CYEFR) to the GATA portal. All items are required to be submitted within nine (9) months after the Town?s fiscal year-end. The Office of Management and Budget (OMB) issued a memorandum granting extensions to the due date for entities affected by the COVID-19 pandemic during 2020. The extended due date was March 31, 2022 for the Town. Illinois? Grant Accountability and Transparency Act (GATA) has similar reporting deadlines to Uniform Guidance. Condition The Town did not submit its audited financial statements, SEFA and CYEFR and other required information as of and for the year ended December 31, 2020 to the Federal Audit Clearinghouse and GATA portal prior to the extended due date of March 31, 2022. This finding also occurred in 2019 (2019-005) and 2017 (2017-002). Cause The Town experienced a shortage of personnel in the Department of Financial Affairs during 2020. In response to the personnel shortage, the Town outsourced most of its financial accounting functions to a CPA firm, including preparing the Town?s financial statements, SEFA, CYEFR and other supplementary reports, and this transition required time to complete. Effect The effect is that controls over the financial reporting process were significantly weakened thereby increasing the risk that material misstatements could be included in the financial statements, SEFA, CYEFR and other supplementary schedules without management being aware. Additionally, noncompliance with financial reporting deadlines could cause funding sources for the Town to suspend funding until compliance is achieved. Questioned Costs None noted. Recommendation During 2021 the Town hired a CPA firm to which a majority of the accounting function was outsourced including preparing financial statements, SEFA, CYEFR and other supplementary schedules. We recommend that the Town continue to implement this corrective action plan until financial statements are prepared monthly in a timely manner and the SEFA, CYEFR and other supplementary schedules are prepared annually in a timely manner as prescribed the Town?s accounting policies and procedures. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.

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