Sangamon, County ofLocal Government

2025 – 003 Period of Performance Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Low-Income Home Energy Assistance Program (LIHEAP) Assistance Listing Number: 93.568 Federal Award Identification Number and Year: G-2402LLIEA 10/1/2023 Pass-Through Agency: Illinois Department of Commerce and Economic Opportunity Pass-Through Numbers: 24-221038; 24-224038 Award Period: October 1, 2023 through August 31, 2025; June 1, 2024 through September 30, 2025 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Uniform Grant Guidance (2 CFR 200.303) requires non-federal entities receiving federal awards to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to ensure that costs charged to federal awards are reviewed and approved for compliance with the allowable period of performance and that documentation evidencing such review is retained. Condition: Although payroll transactions charged to the federal award were reviewed to verify they were incurred within the allowable period of performance, documentation evidencing such review was not retained. Questioned Costs: None Context: 9 of 9 payroll transactions tested lacked documentation of review and approval. Cause: The County does not have a formal process in place to ensure documentation of the review and approval of payroll transactions charged to the federal award is consistently retained. Effect: Without documentation of review and approval, there is an increased risk of unauthorized or inaccurate payroll charges being processed, which could result in noncompliance with federal requirements and potential repayment obligations. Repeat Finding: The finding is a partial repeat of a finding in the prior year. The prior year finding number was 2024-003. Recommendation: We recommend the County review and strengthen its internal controls to ensure that costs charged to federal awards are reviewed and approved for compliance with the allowable period of performance and that documentation evidencing such review is retained. Views of Responsible Officials: There is no disagreement with the audit finding.

2025 – 004 Cash Management Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Low-Income Home Energy Assistance Program (LIHEAP) Assistance Listing Number: 93.568 Federal Award Identification Number and Year: G-2402LLIEA 10/1/2023; 2502ILLIEI 10/1/2024 Pass-Through Agency: Illinois Department of Commerce and Economic Opportunity Pass-Through Numbers: 24-224038; 25-224038; 24-221038 Award Period: October 1, 2023 through August 31, 2025; October 1, 2024 through August 31, 2026; June 1, 2024 through September 30, 2025 Type of Finding: • Significant Deficiency in Internal Control over Compliance AND Other Matter Criteria or Specific Requirement: Uniform Grant Guidance (2 CFR 200.303) requires non-federal entities receiving federal awards to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to ensure reimbursement requests reconcile to documentation of the underlying expenditures incurred and are also reviewed and approved prior to submission. Condition: There were instances in which reimbursement requests did not reconcile to documentation of the underlying expenditures incurred. In addition, reimbursement requests were not reviewed and approved prior to submission to the granting agency. Questioned Costs: None Context: 1 of 6 reimbursement requests tested did not have supporting documentation reconciling to the amount received. 6 of 6 reimbursement requests tested lacked documentation of review and approval prior to submission. Cause: Supporting documentation for reimbursement requests was not retained, in part due to employee turnover. Additionally, the County does not have a formal process in place to ensure documentation of the review and approval of reimbursement requests is consistently retained. Effect: Without proper supporting documentation and documented review, there is an increased risk of over- or under-reimbursement of federal awards, which could result in noncompliance with federal requirements and potential repayment obligations. Repeat Finding: The finding is a partial repeat of a finding in the prior year. The prior year finding number was 2024-004. Recommendation: We recommend that the County design and implement internal controls to ensure accounting records reconcile to reimbursement requests and that supporting documentation is retained. Reimbursement requests should be reviewed and approved by an individual other than the preparer prior to submission, and documentation evidencing such review should be retained. Views of Responsible Officials: There is no disagreement with the audit finding.

2025 – 005 Reporting Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Low-Income Home Energy Assistance Program (LIHEAP) Assistance Listing Number: 93.568 Federal Award Identification Number and Year: G-2402LLIEA 10/1/2023 Pass-Through Agency: Illinois Department of Commerce and Economic Opportunity Pass-Through Numbers: 24-221038; 24-224038 Award Period: October 1, 2023 through August 31, 2025; June 1, 2024 through September 30, 2025 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Uniform Grant Guidance (2 CFR 200.303) requires non-federal entities receiving federal awards to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to ensure grant closeout report packages are reviewed and approved by all required department personnel prior to submission. Condition: There were instances in which grant closeout report packages were not reviewed and approved by all required department personnel prior to submission to the granting agency. Questioned Costs: None Context: 2 of 2 closeout report packages tested lacked documentation of review and approval by all required department personnel prior to submission. Cause: The County's current practice is for the required department personnel to review grant closeout report packages only after the State has approved them, rather than prior to submission. Effect: Without a proper pre-submission review of grant closeout report packages, there is an increased risk of inaccurate or incomplete reporting, which could result in noncompliance with federal requirements. Repeat Finding: The finding is not a repeat of a finding in the prior year. Recommendation: We recommend the County design and implement internal controls to ensure that the grant closeout report packages are reviewed and approved by all required department personnel prior to submission and that documentation evidencing such review is retained. Views of Responsible Officials: There is no disagreement with the audit finding.

2025 – 006 Suspension and Debarment Federal Agency: U.S. Department of Transportation – Federal Railroad Administration Federal Program Name: Consolidated Rail Infrastructure and Safety Improvements Program Assistance Listing Number: 20.325 Federal Award Identification Number and Year: 69A36525421690CRSIL FY2023-2024 Pass-Through Agency: City of Springfield, Illinois Pass-Through Numbers: 69A36525421690CRSIL Award Period: May 1, 2025 through January 31, 2029 Type of Finding: • Significant Deficiency in Internal Control over Compliance AND Other Matter Criteria or Specific Requirement: Uniform Grant Guidance (2 CFR 200.303) requires non-federal entities receiving federal awards to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to verify vendors are not suspended or debarred by checking the SAM.gov exclusions list, obtaining a certification from the vendor, or including a clause or condition in the covered transaction with the vendor. Documentation evidencing such verification should be retained. Condition: The County did not retain documentation verifying vendors were not suspended or debarred prior to entering into covered transactions. Questioned Costs: None Context: The County lacked documentation of suspension and debarment verifications for 5 of 13 vendors tested. Cause: The County does not have a formal process in place to ensure vendors are not suspended or debarred prior to entering into covered transactions. Effect: Without documented verification of suspension and debarment status, there is an increased risk of contracting with excluded parties, which could result in noncompliance with federal requirements and potential repayment obligations. Repeat Finding: The finding is not a repeat of a finding in the prior year. Recommendation: We recommend the County design and implement internal controls to ensure proper verification and documentation of suspension and debarment status for vendors prior to entering into contracts or purchases that exceed the covered transaction threshold. Views of Responsible Officials: There is no disagreement with the audit finding.

2024 – 003 Period of Performance Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Low-Income Home Energy Assistance Program (LIHEAP) Assistance Listing Number: 93.568 Federal Award Identification Number and Year: G-2402LLIEA 6/1/2024; 2302ILLIEI 3/1/2023; G 2302ILLIEA 10/1/2022 Pass-Through Agency: Illinois Department of Commerce and Economic Opportunity Pass-Through Numbers: 23-221038; 23-274038; 23-224038 Award Period: June 1, 2024 through September 30, 2025; March 1, 2023 through August 31, 2024; October 1, 2022 through August 31, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or Specific Requirement: Uniform Grant Guidance (2 CFR 200.303) requires non-federal entities receiving federal awards establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Uniform Grant Guidance (2 CFR 200.308, 200.309, and 200.403(h)) requires that only allowable costs incurred during the approved budget period of a federal award’s period of performance be charged to the award. Effective internal controls should include procedures that involve costs charged to federal awards being reviewed and approved for proper period of performance. Condition: The County charged costs to the federal award after the end of the period of performance. Furthermore, although payroll transactions charged to the federal award were reviewed and approved, documentation of such review was not retained. Questioned Costs: $706 Context: 4 of 97 transactions tested were incurred after the period of performance end date. All 18 payroll transactions tested lacked documentation of review and approval. Cause: Costs were inadvertently claimed outside the period of performance. Documentation of review and approval for payroll transactions was also not retained. Effect: Charging costs outside the period of performance can result in unallowable costs being charged to federal awards, which could lead to noncompliance with federal requirements and potential repayment obligations. Repeat Finding: The finding is a repeat of a finding in the prior year. The prior year finding number was 2023-005. Section III – Findings and Questioned Costs – Major Federal Programs (Continued) 2024 – 003 Period of Performance (Continued) Recommendation: We recommend that the County review and strengthen its internal controls to ensure that only costs incurred within the period of performance are charged. Costs charged to federal awards should be reviewed and approved for proper period of performance, and documentation of such review should be retained. Views of Responsible Officials: There is no disagreement with the audit finding.

2024 – 004 Cash Management Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Low-Income Home Energy Assistance Program (LIHEAP) Assistance Listing Number: 93.568 Federal Award Identification Number and Year: G-2302ILLIEA 6/1/2023; G-2302ILLIEA 10/1/2022 Pass-Through Agency: Illinois Department of Commerce and Economic Opportunity Pass-Through Numbers: 23-221038; 23-274038; 23-224038; 24-224038 Award Period: June 1, 2023 through September 30, 2024; October 1, 2022 through August 31, 2024 Type of Finding: • Material Weakness in Internal Control over Compliance • Other Matters Criteria or Specific Requirement: Uniform Grant Guidance (2 CFR 200.303) requires non-federal entities receiving federal awards establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Uniform Grant Guidance (2 CFR 200.305(b)) requires non-federal entities to minimize the time between drawing and disbursing of federal funds; interest should also be calculated on amounts of unearned revenue. Effective internal controls should include procedures that involve reimbursement requests being reviewed and approved prior to submission. Condition: There were instances in which reimbursement requests did not agree to the County’s accounting records or to the amounts reported on the SEFA. The time between receiving and disbursing federal funds was not minimized, and interest on unearned revenue was not calculated. Furthermore, reimbursement requests were not reviewed and approved prior to submission, and documentation of such review was not retained. Questioned Costs: $132,322 Context: 2 of 8 reimbursement requests tested did not have supporting documentation for the exact amount received. All 8 reimbursement requests tested lacked documentation of review and approval prior to submission. Cause: Supporting documentation for reimbursement requests was not complete; specifically, adjustments made to the project accounting records after the reimbursement requests were submitted caused the County to receive more funds than expenditures incurred on specific grants. Documentation of review and approval for reimbursement requests was also not retained. Effect: Lack of proper documentation and reconciliation can result in over- or under-reimbursement of federal grant funds, potentially leading to noncompliance with federal requirements and potential repayment obligations. Section III – Findings and Questioned Costs – Major Federal Programs (Continued) 2024 – 004 Cash Management (Continued) Repeat Finding: The finding is a repeat of a finding in the prior year. The prior year finding number was 2023-006. Recommendation: We recommend that the County design and implement internal controls to ensure accounting records reconcile to reimbursement requests and that supporting documentation is retained. Reconciliations should be reviewed and approved by an individual other than the preparer prior to submission, and documentation of such review should be retained. Views of Responsible Officials: There is no disagreement with the audit finding.

2024 – 005 Reporting Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Low-Income Home Energy Assistance Program (LIHEAP) Assistance Listing Number: 93.568 Federal Award Identification Number and Year: G-2302ILLIEA 6/1/2023; G-2302ILLIEA 10/1/2022 Pass-Through Agency: Illinois Department of Commerce and Economic Opportunity Pass-Through Numbers: 23-221038; 23-224038 Award Period: June 1, 2023 through September 30, 2024; October 1, 2022 through August 31, 2024 Type of Finding: • Material Weakness in Internal Control over Compliance • Other Matters Criteria or Specific Requirement: Uniform Grant Guidance (2 CFR 200.303) requires non-federal entities receiving federal awards establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Uniform Grant Guidance (2 CFR 200.328 and 2 CFR 200.329)) requires non-federal entities to submit performance and financial reports as required by the pass-through entity award and to ensure that the data accumulated and summarized is in accordance with the required criteria and methodology. Effective internal controls should ensure grant closeout reports are supported by documentation of expenditures that have been incurred. Additionally, grant agreements requiring grant closeout reports should be reconciled to the accounting records. Condition: The County did not retain supporting documentation for closeout performance reports. Accounting records supporting the SEFA did not reconcile to the certified cost reported in the closeout financial reports. There were also instances where federal reimbursements did not align with project accounting code records. Questioned Costs: None Context: 2 of 3 closeout performance reports tested lacked supporting documentation. 2 of 3 closeout financial reports tested did not reconcile to the accounting records supporting the SEFA or to the project accounting code records. Cause: Supporting documentation for closeout performance reports was not retained. Additionally, adjustments made to the project accounting records after submission of the closeout financial reports and reconciliations resulted in discrepancies between reported and actual cost. Effect: Lack of proper documentation and reconciliation can result in over- or under-reimbursement of federal grant funds, potentially leading to noncompliance with federal requirements and potential repayment obligations. Section III – Findings and Questioned Costs – Major Federal Programs (Continued) 2024 – 005 Reporting (Continued) Repeat Finding: The finding is a repeat of a finding in the prior year. The prior year finding number was 2023-007. Recommendation: We recommend that the County design and implement internal controls to ensure accounting records reconcile to grant closeout reports and that supporting documentation is retained. A detailed, documented review of all reports should be conducted by someone other than the preparer to ensure completeness and accuracy. No financial activity should be recorded to the project accounting records after grant closeout reports are completed. Views of Responsible Officials: There is no disagreement with the audit finding.

2023 – 003 Procurement and Suspension and Debarment Federal Agency: U.S. Department Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Fund Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP3738 11/30/2021 Award Period: March 3, 2021 through December 31, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matter Criteria or specific requirement: Uniform Grant Guidance (2 CFR 200.303) requires non-federal entities receiving Federal awards establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Uniform Grant Guidance (2 CFR 200.318, 2 CFR 200.319, 2 CFR 200.324, 2 CFR 180.220, and 2 CFR 200.320,) requires a non-federal entity to maintain records sufficient to detail the history of procurement, the providing of full and open competition, the performing of cost or price analysis, and prohibits the non-federal entity to contract or make subawards to parties that are suspended or debarred (covered transactions over $25,000). These records will include the rationale for the method of procurement, selection of contract type, contractor selection or rejection, the basis for the contract price, how full and open competition was provided, the cost or price analysis performed, and verification the vendor is not suspended or debarred through the SAMs exclusion list, collecting of certification from the entity, or by adding a clause or condition to the covered transaction with the entity. Procurement methods used must be appropriate based on the dollar amount and conditions specified. Condition: Procurement methods for certain federal award purchases were not adequately documented or appropriately selected in accordance with the County’s procurement policy. In addition, the County did not maintain records the vendor was not suspended or debarred prior to entering into the transactions. Questioned costs: Unknown Context: 6 of 6 tested for procurement documentation and 6 of 6 tested for suspension and debarment documentation. Cause: With new federal funding opportunities due to the pandemic, and new guidance related to those grants, proper documentation was not retained. County policies have not been updated yet. Effect: May result in a disallowed cost if grant requirements are not followed. Repeat Finding: This is a repeat finding. Prior year finding number was 2022-003. Recommendation: We recommend the County carefully review federal procurement requirements for proper documentation needed. The County should consider use of a Federal procurement checklist. Views of responsible officials: There is no disagreement with the audit finding.

2023 – 004 Reporting Federal Agency: U.S. Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP3738 11/30/2021 Award Period: March 3, 2021 through December 31, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: Uniform Grant Guidance (2 CFR 200.303) requires non-federal entities receiving Federal awards establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Uniform Grant Guidance (2 CFR 200.329) requires non-federal entities submit performance reports required by Federal award and that the data accumulated and summarized is in accordance with the required or stated criteria and methodology. Effective internal controls should include ensuring the reported projects and expenditures accurately reflect what is reported in the expenditure detail and amounts obligated should reflect total procurement amounts awarded. Condition: While the correct expenditures were reported on the schedule of expenditures of federal awards, the expenditure reports filed during the year did not accurately report project details. Cumulative expenditures should report amounts expended through the end of the period and cumulative obligations should report total procurement amounts awarded. Questioned costs: None Context: The County incorrectly reported cumulative expenditures and cumulative obligations in 4 of 4 reports tested. Cause: Total cumulative expenditures were not reconciled to total amounts reported in the ledger. Reported project obligations were based on projects costs that been incurred and not contract sum awarded. Effect: Noncompliance with reporting requirements. Repeat Finding: This finding is a partial repeat of a finding in the prior year. The prior year finding number was 2022-004. Recommendation: We recommend the County strengthen its review procedures over reports. Total cumulative expenditures and total cumulative obligations reported should reconcile to the total amounts reported in the project accounting records used to support the SEFA. Views of responsible officials: There is no disagreement with the audit finding.

2023 – 005 Period of Performance Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Low-Income Home Energy Assistance Program (LIHEAP) Assistance Listing Number: 93.568 Federal Award Identification Number and Year: G-2302ILLIEA 10/1/2022; G-2202ILLIEA 10/1/2021 Pass-Through Agency: Illinois Department of Commerce and Economic Opportunity Pass-Through Numbers: 23-221038; 22-224038 Award Period: June 1, 2023 through September 30, 2024 and October 1, 2021 through June 30, 2023 Type of Finding: • Material Weakness in Internal Control over Compliance • Other Matters Criteria or specific requirement: Uniform Grant Guidance (2 CFR 200.303) requires non-federal entities receiving Federal awards establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Uniform Grant Guidance (2 CFR 200.308, 200.309, and 200.403(h)) requires non-federal entities charge only allowable costs incurred during the approved budget period of a general award’s period of performance. Effective internal controls should include procedures to ensure transactions for costs recorded for the beginning of the period of performance were not incurred prior to the start of the period of performance and transactions for cost recorded for the end of the period of performance were not incurred after the end of the period of performance for Federal awards. Condition: The County allocated costs to federal awards prior to the beginning of the period of performance and after the end of the period of performance. Questioned costs: $31,837 Context: 9 of 10 transactions tested were incurred prior to the period of performance and 1 of 15 transactions tested were incurred after the period of performance end date. Cause: Costs were inadvertently claimed that fell outside the period of performance. Effect: May result in unallowable costs being charged to the Federal program. Repeat Finding: This finding is a partial repeat of a finding in the prior year. The prior year finding number was 2022-005. Recommendation: We recommend the County review its procedures relative to allocating costs to Federal programs, and ensure only cost within the grant period are included. Views of responsible officials: There is no disagreement with the audit finding.

2023 – 006 Cash Management Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Low-Income Home Energy Assistance Program (LIHEAP) Assistance Listing Number: 93.568 Federal Award Identification Number and Year: G-2202ILLIEA 10/1/2021; G-2202ILLIEA 10/1/2021; G-2302ILLIEA 10/1/2022; 2102ILLWCS 5/28/2021 Pass-Through Agency: Illinois Department of Commerce and Economic Opportunity Pass-Through Numbers: 22-221038; 22-224038; 23-224038; 21-233038 Award Period: June 1, 2022 through September 30, 2023, October 1, 2021 through June 30, 2023, October 1, 2022 through June 30, 2024, and September 1, 2021 through August 31, 2023 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: Uniform Grant Guidance (2 CFR 200.303) requires non-federal entities receiving Federal awards establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Uniform Grant Guidance (2 CFR 200.305(b)) requires non-federal entities to minimize the time between drawing and disbursing of federal funds. Effective internal controls should include ensuring the reimbursement request are supported by documentation of expenditures that been incurred. Additionally, the time between receiving and disbursing federal funds should be minimized and interest should be calculated on amounts of unearned revenue. Condition: Supporting documentation for the cash drawdown requests were not maintained. There were instances in which the accounting records did not agree to the grant reimbursement request. The time between receiving and disbursing federal funds was not minimized and interest on unearned revenue was not calculated. Documentation of review and approval of the reimbursement request by an individual other than the preparer was not retained. Questioned costs: $1,237,948 Context: 8 of 8 cash reimbursement requests tested did not have supporting documentation of the exact amount received maintained. Cause: Support for the reimbursement request could not be provided over the individual cash request as it was not retained. Adjustments made to the project accounting records after the cash reimbursement request were made caused the County to receive more funds than expenses incurred on specific grants. Effect: Lack of proper documentation for reported information can lead to an over or under reimbursement of grant funds. Repeat Finding: This is a repeat finding. Prior year finding number was 2022-006. Recommendation: We recommend the County design controls to ensure the accounting records reconcile to the reimbursement request and documentation be retained. Reconciliations should be reviewed and approved by an individual other than the preparer at the time of the request and this documentation should be retained. Views of responsible officials: There is no disagreement with the audit finding.

2023 – 007 Reporting Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Low-Income Home Energy Assistance Program (LIHEAP) Assistance Listing Number: 93.568 Federal Award Identification Number and Year: G-2202ILLIEA 10/1/2021; G-2202ILLIEA 10/1/2021; G-2302ILLIEA 10/1/2022; 2102ILLWCS 5/28/2021 Pass-Through Agency: Illinois Department of Commerce and Economic Opportunity Pass-Through Numbers: 22-221038; 22-224038; 23-224038; 21-233038 Award Period: June 1, 2022 through September 30, 2023, October 1, 2021 through June 30, 2023, October 1, 2022 through June 30, 2024, and September 1, 2021 through August 31, 2023 Type of Finding: • Material Weakness in Internal Control over Compliance • Other Matters Criteria or specific requirement: Uniform Grant Guidance (2 CFR 200.303) requires non-federal entities receiving Federal awards establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Uniform Grant Guidance (2 CFR 200.329) requires non-federal entities submit financial reports required by the pass through entity award and that the data accumulated and summarized is in accordance with the required or stated criteria and methodology. Effective internal controls should include ensuring the periodic financial reporting be supported by documentation of expenditures that have been incurred. In addition, grant agreements requiring grant close-out reports should reconcile to the accounting records. Condition: Supporting documentation for the periodic financial reporting accounting records were not maintained. Additionally, the accounting records supporting the SEFA did not agree to the grant reconciliation submitted with the grant close-out packages tested, and they were not filed by the due date. Questioned costs: None Context: 5 of 5 periodic financial reports tested did not have supporting documentation retained. 3 of 3 financial close out reports did not reconcile to supporting documentation and were late. Cause: Support for the periodic financial reports could not be provided as it was not retained. Adjustments made to the project accounting records after the close-out report package was submitted caused the report to have inaccurate information. Effect: Lack of proper documentation for reported information can lead to an over or under reporting of grant expenditures. Repeat Finding: This is a repeat finding. Prior year finding number was 2022-007. Recommendation: We recommend the County design controls to ensure the accounting records reconcile to the periodic financial reporting and grant close-out reports and documentation be retained. A detailed, documented review of all reports should occur by someone other than the preparer, to ensure the reports are accurate, supported, and filed timely. No financial activity should be recorded to the project accounting records after the grant close out report package is completed. Views of responsible officials: There is no disagreement with the audit finding.

2022 – 003 Procurement and Suspension and Debarment Federal Agency: U.S. Department Treasury Federal Program Name: Coronavirus State & Local Fiscal Recovery Fund Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP3738 11/30/2021 Award Period: March 3, 2021 through December 31, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matter Criteria or specific requirement: Uniform Grant Guidance (2 CFR 200.318, 2 CFR 200.319, 2 CFR 200.324, 2 CFR 180.220, and 2 CFR 200.320,) requires a non-federal entity to maintain records sufficient to detail the history of procurement, the providing of full and open competition, the performing of cost or price analysis, and prohibits the non-federal entity to contract or make subawards to parties that are suspended or debarred (covered transactions over $25,000). These records will include the rationale for the method of procurement, selection of contract type, contractor selection or rejection, the basis for the contract price, how full and open competition was provided, the cost or price analysis performed, and verification the vendor is not suspended or debarred through the SAMs exclusion list, collecting of certification from the entity, or by adding a clause or condition to the covered transaction with the entity. Procurement methods used must be appropriate based on the dollar amount and conditions specified. Condition: Procurement methods for certain federal award purchases were not adequately documented or appropriately selected in accordance with the County’s procurement policy. In addition, the County did not maintain records the vendor was not suspended or debarred prior to entering into the transactions. Questioned costs: Unknown Context: 3 of 6 tested for procurement documentation and 5 of 5 tested for suspension and debarment documentation. Cause: With new federal funding opportunities due to the pandemic, and new guidance related to those grants, proper documentation was not retained. Effect: May result in a disallowed cost if grant requirements are not followed. Repeat Finding: This is a repeat finding. Prior year finding numbers were 2021-004 and 2021-005. Recommendation: We recommend the County carefully review federal procurement requirements for proper documentation needed. The County should consider use of a Federal procurement checklist. Views of responsible officials: There is no disagreement with the audit finding.

2022 – 004 Reporting Federal Agency: U.S. Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP3738 11/30/2021 Award Period: March 3, 2021 through December 31, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: Uniform Grant Guidance (2 CFR 200.303) requires non-federal entities receiving Federal awards establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include ensuring the reported projects and expenditures accurately reflect what is reported in the expenditure detail. Condition: While the correct expenditures were reported on the schedule of expenditures of federal awards, the expenditure report filed during the year did not accurately report project details, including amounts expended and subrecipient entity types as contractors, beneficiaries, or subrecipients. In addition, there is no formal documentation of the review being completed by the County Administrator in accordance with the County’s internal control procedures. Questioned costs: None Context: The County incorrectly reported current projects and expenditures in 3 of 3 reports tested. Cause: Subaward and subrecipient types were not clearly distinguished. Revenue replacement reported was based on the full $10,000,000 lost revenue election, and not amounts of the revenue replacement used for expenses incurred through the reporting date. These details were inaccurately reported due to unclear instructions. There was no documentation of review and approval by a County Administrator. Effect: Noncompliance with reporting requirements. Repeat Finding: No Recommendation: We recommend the County strengthen its review procedures over reports and ensure the review is documented. The reports should include project expenditures incurred during the period and all applicable data elements. Views of responsible officials: There is no disagreement with the audit finding.

2022 – 005 Period of Performance Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Low-Income Home Energy Assistance Program (LIHEAP) Assistance Listing Number: 93.568 Federal Award Identification Number and Year: 2102ILLIEA 10/1/2020; 2102ILE5C6 03/22/2021 Pass-Through Agency: Illinois Department of Commerce and Economic Opportunity Pass-Through Numbers: 21-221038; 21-274038 Award Period: June 1, 2021 through September 30, 2022 and July 1, 2021 through September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: Uniform Grant Guidance (2 CFR 200.303) requires non-federal entities receiving Federal awards establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to ensure transactions for costs recorded for the end of the period of performance were not incurred after the period of performance for Federal awards. Additionally, manual journal entries should be supported by documentation for transactions that occurred during the period of performance. Condition: The County allocated costs to federal awards after the end of the period of performance. Documentation for manual adjusting journal entries was not maintained to ascertain transactions occurred during the period of performance. Questioned costs: $519,076 Context: 4 of 20 transactions tested were incurred after the period of performance end date. All 36 manual journal entries recorded to the programs did not have supporting documentation available. Cause: Costs were inadvertently claimed that fell outside the period of performance. Support for the accounting records could not be provided for the manual adjusting entries. Effect: May result in unallowable costs being charged to the Federal program. Repeat Finding: No Recommendation: We recommend the County review its procedures relative to allocating costs to Federal programs, and ensure only cost within the grant period are included. Supporting accounting records for manual adjusting journal entries should be maintained to support transactions incurred, with a documented approval process. Views of responsible officials: There is no disagreement with the audit finding.

2022 – 006 Cash Management Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Low-Income Home Energy Assistance Program (LIHEAP) Assistance Listing Number: 93.568 Federal Award Identification Number and Year: 2102ILLIEA 10/1/2020; 2102ILE5C6 03/22/2021 Pass-Through Agency: Illinois Department of Commerce and Economic Opportunity Pass-Through Numbers: 21-221038; 21-274038 Award Period: June 1, 2021 through September 30, 2022 and July 1, 2021 through September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: Uniform Grant Guidance (2 CFR 200.303) requires non-federal entities receiving Federal awards establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include ensuring the draw down request are supported by documentation of expenditures that been incurred. Additionally, the time between drawing and disbursing federal funds should be minimized and interest should be calculated on amounts of unearned revenue. Condition: Supporting documentation for the cash drawdown requests were not maintained. There were instances in which the accounting records did not agree to the grant cash draw request. The time between drawing and disbursing federal funds was not minimized and interest on unearned revenue was not calculated. Documentation of review and approval by an individual other than the preparer was not retained. Questioned costs: $198,122 Context: 5 of 5 cash draw down requests tested did not have supporting documentation of the exact amount drawn down maintained. Cause: Support for the draw down request could not be provided over the individual cash draw down request as it was not retained. Adjustments made to the project accounting records after the cash draw request were made caused the County to receive more funds than expenses incurred. Effect: Lack of proper documentation for reported information can lead to an over or under reimbursement of grant funds. Repeat Finding: No Recommendation: We recommend the County design controls to ensure the accounting records reconcile to the draw request and documentation be retained. Reconciliations should be reviewed and approved by an individual other than the preparer at the time of the request and this documentation should be retained. Views of responsible officials: There is no disagreement with the audit finding.

2022 – 007 Reporting Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Low-Income Home Energy Assistance Program (LIHEAP) Assistance Listing Number: 93.568 Federal Award Identification Number and Year: 2102ILLIEA 10/1/2020; 2102ILE5C6 03/22/2021 Pass-Through Agency: Illinois Department of Commerce and Economic Opportunity Pass-Through Numbers: 21-221038; 21-274038 Award Period: June 1, 2021 through September 30, 2022 and July 1, 2021 through September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Other Matters Criteria or specific requirement: Uniform Grant Guidance (2 CFR 200.303) requires non-federal entities receiving Federal awards establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include ensuring the quarterly financial reporting be supported by documentation of expenditures that have been incurred. In addition, grant agreements requiring grant close-out reports should reconcile to the accounting records. Condition: Supporting documentation for the quarterly financial reporting accounting records were not maintained. There was in instance in which the accounting records did not agree to the grant reconciliation submitted with the grant close-out package. Questioned costs: None Context: 3 of 4 quarterly financial reports tested did not have supporting documentation retained. 1 of 2 financial close out reports tested had accounting records that did not agree to the amounts reported. Cause: Support for the quarterly financial reports could not be provided as it was not retained. Adjustments made to the project accounting records after the close out report package was submitted caused the report to have inaccurate information. Effect: Lack of proper documentation for reported information can lead to an over or under reporting of grant expenditures. Repeat Finding: No Recommendation: We recommend the County design controls to ensure the accounting records reconcile to the quarterly financial reporting and grant close-out reports and documentation be retained. No financial activity should be recorded to the project accounting records after the grant close out report package is completed. Views of responsible officials: There is no disagreement with the audit finding.

2022 – 008 Eligibility Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Low-Income Home Energy Assistance Program (LIHEAP) Assistance Listing Number: 93.568 Federal Award Identification Number and Year: 2102ILE5C6 03/22/2021 Pass-Through Agency: Illinois Department of Commerce and Economic Opportunity Pass-Through Number: 21-274038 Award Period: July 1, 2021 through September 30, 2022 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Uniform Grant Guidance (2 CFR 200.303) requires non-federal entities receiving Federal awards establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include that participant file documentation and applications be reviewed for eligibility and this review should be documented. Condition: Participant files documents and application was reviewed by the intake coordinator for eligibility requirements but this review was not documented. Questioned costs: None Context: 1 of 60 tested did not have the application that was documented as reviewed by the intake coordinator. Cause: Management oversight. Effect: Lack of proper review over eligibility requirements could lead to ineligible participants receiving benefits. Repeat Finding: No Recommendation: We recommend the County strengthen internal controls over the review process of participant applications. A review process over the eligibility requirements should occur and be documented, to ensure eligibility requirements are being met. Views of responsible officials: There is no disagreement with the audit finding.

Uniform Grant Guidance (2 CFR 200.303) requires a non-federal entity receiving federal awards establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to ensure transactions for costs recorded for the beginning of the period of performance were not incurred prior to the start of the period of performance. The County allocated costs to federal awards that were incurred prior to the beginning of the period of performance.

Uniform Grant Guidance (2 CFR 200.318) requires a non-federal entity to maintain records sufficient to detail the history of procurement. These records will include the rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. This may include documentation a vendor is a sole source provider or an emergency purchase. Procurement methods for certain federal award purchases were not adequately documented.

When a non-federal entity enters into a covered transaction (over $25,000) with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR section 180.995, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by checking the SAMs, collecting of certificate from entity, or by adding a clause or condition to the covered transaction with that entity. Verification of vendor suspension and debarment procedures was not adequately completed.

The County compiles personnel costs for the month and uses a third party to assist in the monthly cost allocation to specific programs for grant reporting. For two months of the fiscal year, the wrong month's hours and wages were used and expenses reported for the Mass Vaccination program were overstated.

Cash draw down requests should be reviewed by an individual separate than the preparer. During our cash management testing, we noted that for a period of time during the fiscal year, the cash draw down requests were not being reviewed by a person other than the preparer. 3 of the 5 cash draw down requests tested did not have a separate preparer and reviewer. The Community Resources Executive Director position was vacant during a period of time during the fiscal year. During this time the Fiscal Manager was appointed as Interim Executive Director and was performing the duties of both the Fiscal Manager and the Executive Director. Inaccurate review of expenditures and related drawdowns for reimbursement can lead to noncompliance with grant requirements. We recommend the County enhance its internal controls over the cash draw down requests review process so that the cash draw down requests are reviewed and documented as reviewed by an individual other than the preparer.

Employee timesheets should be reviewed by the employee?s supervisor and this review should be documented. In our allowable activities and cost testing, we noted an employee timesheet which was not documented as reviewed by the employee?s supervisor. 1 of 25 payroll disbursements tested did not have a timesheet that was documented as reviewed by the supervisor. Any potential error made on an employees? time recording may not be found on a timely basis which could lead to unallowable activities or cost being reporting to the granting agency. We recommend the County strengthen internal controls over the review process of the employee timesheets. A review process over these timesheets should occur and be documented, to ensure the allowability of these activities and cost.

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