COUNTY OF LASALLE

Finding 2025-10: Internal Control over SEFA Preparation Condition: During our audit, we noted that an expenditure related to the American Rescue Plan Act (ARPA) program was recorded and included in the prior year SEFA but was subsequently voided after year-end. Management recorded a prior period adjustment to correct fund balance, however, the SEFA for the year ended November 30, 2024, was overstated by $203,554. Criteria: Management is responsible for establishing and maintaining effective internal controls over financial reporting, including the accurate preparation of the Schedule of Expenditures of Federal Awards. This includes ensuring expenditures are recorded in the proper period and that the SEFA is complete and accurate. Cause: The County did not have effective controls in place to ensure adequate review of the SEFA for accuracy and completeness, including identification of post–year-end adjustments impacting reported federal expenditures. Effect: The prior year SEFA included an overstatement of federal expenditures. While the misstatement was not material to the SEFA, it indicates a deficiency in internal control over financial reporting and federal reporting. The misstatement represents approximately 2% of the ARPA program expenditures and total SEFA. Recommendation: Management should increase controls over grant tracking and reporting to ensure the SEFA is accurate. Management’s Response: We agree with the finding and will develop a corrective action plan.

During the course of the audit, we noted that the County could not provide documentation that quarterly expenditure reports had been filed with the Illinois Department of Healthcare and Family Services for the Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) grant. The County also did not file the grant Close-Out Report in a timely manner. The County is required to submit grant expenditure reports to the Illinois Department of Healthcare and Family Services on a quarterly basis and to submit a Close-Out Report no later than 60 calendar days after the end of the period of performance.

The County included unallowable costs on Close-Out Report submitted to the Illinois Department of Healthcare and Family Services for the Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) grant.

Finding 2022 – 001: Financial Reporting Condition: The County and Self Insurance Trust do not provide their own financial statements, notes, required supplementary information. Criteria: The County relies on the audit firm to prepare the modified accrual financial statements due to the lack of staff and training involved in preparing external financial reports. Cause: The County relies on the external auditors to draft the individual fund statements, assist with modified accrual entries, make conversion entries, draft the government-wide statements, and prepare note disclosures. Effect: The financial results of certain funds within the County’s financial statements could be materially misstated. Recommendation: We recommend the County consider providing increased training to accounting staff to prepare the financial statements.

Finding 2022 – 002: Audit Journal Entries Condition: During audit fieldwork, our testing resulted in audit adjustments in order to present materially accurate financial statements. Criteria: A good system of internal controls would provide for accurate representations of adjusted account balances for all County accounts prior to audit fieldwork. Cause: Year-end entries related to various accruals and other items were required in order to accurately present the County’s financial statements. Effect: The County’s financial statements were not fully adjusted prior to audit fieldwork. Recommendation: A vital process of effective internal controls is the review and subsequent adjustment of general ledger balances. This review and adjustment will aid in the appropriate budgeting and management of the County’s financial activities and resources.

Finding 2022 – 003: Grant Management Condition: During audit fieldwork, we noted the County does not have adequate procedures in place for tracking and monitoring grant activities. Criteria: It is the County’s responsibility to track and properly monitor the compliance with grant requirements throughout the year. Cause: A uniform set of policies and procedures for handling grant activities is lacking, creating contrasting ways of processing grants in each department. Effect: Grant compliance with federal grants received in the year cannot be assured when tracking and monitoring grant activity is not clearly delineated. Recommendation: We commend the County develop specific policies and procedures for tracking and monitoring grant activities and to clearly delineate responsibility for monitoring compliance with applicable requirements.

Finding 2021 ? 003: Grant Management Condition: During audit fieldwork, we noted the County does not have adequate procedures in place for tracking and monitoring grant activities. Criteria: It is the County?s responsibility to track and properly monitor the compliance with grant requirements throughout the year. Cause: A uniform set of policies and procedures for handling grant activities is lacking, creating contrasting ways of processing grants in each department. Effect: Grant compliance with federal grants received in the year cannot be assured when tracking and monitoring grant activity is not clearly delineated. Recommendation: We commend the County develop specific policies and procedures for tracking and monitoring grant activities and to clearly delineate responsibility for monitoring compliance with applicable requirements.

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