City of Brookport, IllinoisLocal Government

Federal Program: U.S. Department of Agriculture: Water and Waste Disposal Systems for Rural Communities (10.760). Criteria: Per Title 2 CFR 200.512(d), "the data collection form must be submitted within the earlier of 30 calendar days after receipt of the auditor's report, or nine months after the end of the audit period. Condition: The City did not file their Data Collection form for 2024 on time. Cause: The City's April 30, 2024 audit was not completed until August 15, 2025 resulting in the data collection form being filed September 3, 2025. This was the result of changing accounting software and timeliness of audit requests. Effect: The District is not in compliance with Single Audit Act of 1984 and Title 2 U.S. Code of Federal Regulations (CFR) Part 200. Questioned Costs: None. Context: The report was filed as soon as the audit of the financial statements was complete, but this was after the reporting deadline. Repeat Finding: No. Recommendation: We recommend that all required filings be submitted timely according to the Single Audit Act of 1984 and Title 2 U.S. Code of Federal Regulations guidelines. Views of Responsible Officials: We agree with the finding and the Data Collection form will be filed in a timely manner.

Federal Program: Water and Waste Disposal Systems for Rural Communities (10.760). Criteria: The City is required to deposit monthly amounts into debt reserve accounts until the reserve accounts reach a threshold established within the bond agreement. Condition: As of the end of the year the City did not have established debt service and reserve accounts that were in compliance with the bond agreements. Between the water and sewer funds the City was short of the required amount by over $150,000. Cause: The City was not aware of the reserve account requirements. Effect: The City is not in compliance with the USDA Bond agreements. Questioned Costs: None. Context: Annual requirements to fund reserve accounts total $28,572. Repeat Finding: No. Recommendation: The City should make the required deposits and monitor the balance to ensure they are in compliance with the bond agreements. Views of Responsible Officials and Planned Corrective Actions: The City understands the recommendation and will monitor the funding of these accounts more closely.

2021-003 Written Policies and Procedures Federal Program: 10.760 - Water and Waste Disposal Systems for Rural Communities passed through the United States Department of Agriculture Criteria: Uniform Guidance requires policies related to cash management, cost allowability, procurement, and conflict of interest provisions, along with appropriate financial management systems and internal controls over federal awards to safeguard federal funds. Condition: Although no noncompliance with federal grant requirements was noted, the City did not have written policies and procedures over the components of grant administration. Cause: The City had no written policies and relied on each department head receiving grant funding to comply with all applicable compliance requirements. Effect: The federal government believes that not having written policies and procedures for grant administration increases the risk that the City will not comply with applicable compliance requirements. Questioned Costs: None. Context: Total federal grant expenditures totaled $1,372,544 during the year ended April 30, 2021. Repeat Finding: No. Recommendation: We recommend the City develop written policies and procedures related to cash management, cost allowability, procurement, and conflict of interest provisions for federal funds it receives. Views of Responsible Officials and Planned Corrective Actions: The City has already begun to develop the appropriate written policies in order to implement this recommendation.