Audit 12612

Funding Years(s): 7/1/2022 – 6/31/2023 Financial Assistance Listing Number: Coronavirus State and Local Fiscal Recovery Funds (CFDA 21.027) Contract Number: 21-417039 Pass-Through Agency: The State of Illinois, Department of Human Services Federal Agency: U.S. Department of the Treasury Type of Finding: Internal Control (Material Weakness) Repeat Finding: No Criteria: In accordance with Part 6 of the 2023 Compliance Supplement and as stipulated by the 2 CFR Section 200.303, recipients of Federal Awards are required to establish and maintain an internal control environment that complies with either the guidance in “Standards for Internal Control in the Federal Government” (the “Green Book”) issued by the Comptroller General of the United States or the “Internal Control Integrated Framework” (revised in 2013), issued by the Committee of Sponsoring Organization of the Treadway Commission (“COSO”) for the federal funding streams it administers. Condition: We selected a non-statistical sample of nineteen (19) employee payroll expenses to test compliance for Activities Allowed and Unallowed and Allowable Costs for the grant and found that for the passthrough award received for Job Training & Economic Development (JTED), the Lighthouse did not maintain sufficient and timely documentation regarding the review and approval of time spent by personnel working on the program that was charged to the grant. Cause: Lighthouse has a process in place to review and ensure expenditures charged to the grant do not exceed budget. We were not able to obtain evidence that these payroll expenditures were reviewed by someone knowledgeable about the grant and its compliance requirements, such as the Assistant Director for Grants and Contracts. Effect: The lack of timely application of the review of the data on the hours worked used in the determination of payroll expense charged to the grant could result to the entity charging cost to the grant that have not yet been incurred. Questions Costs: None Recommendation: We recommend that management establish a control to timely review the actual time worked by each personnel assigned to the program prior to charges being submitted to the grantor for reimbursement. Views of Responsible Official: Management notes the details of this finding and will implement procedures to mitigate the outlined issues as described in our Corrective Action Plan.

Funding Years(s): 7/1/2022 – 6/31/2023 Financial Assistance Listing Number: Coronavirus State and Local Fiscal Recovery Funds (CFDA 21.027) Contract Number: 21-417039 Pass-Through Agency: The State of Illinois, Department of Human Services Federal Agency: U.S. Department of the Treasury Type of Finding: Internal Control (Material Weakness) Repeat Finding: No Criteria: In accordance with Part 6 of the 2023 Compliance Supplement and as stipulated by the 2 CFR Section 200.303, recipients of Federal Awards are required to establish and maintain an internal control environment that complies with either the guidance in “Standards for Internal Control in the Federal Government” (the “Green Book”) issued by the Comptroller General of the United States or the “Internal Control Integrated Framework” (revised in 2013), issued by the Committee of Sponsoring Organization of the Treadway Commission (“COSO”) for the federal funding streams it administers. Condition: We selected a non-statistical sample of nineteen (19) employee payroll expenses to test compliance for Activities Allowed and Unallowed and Allowable Costs for the grant and found that for the passthrough award received for Job Training & Economic Development (JTED), the Lighthouse did not maintain sufficient and timely documentation regarding the review and approval of time spent by personnel working on the program that was charged to the grant. Cause: Lighthouse has a process in place to review and ensure expenditures charged to the grant do not exceed budget. We were not able to obtain evidence that these payroll expenditures were reviewed by someone knowledgeable about the grant and its compliance requirements, such as the Assistant Director for Grants and Contracts. Effect: The lack of timely application of the review of the data on the hours worked used in the determination of payroll expense charged to the grant could result to the entity charging cost to the grant that have not yet been incurred. Questions Costs: None Recommendation: We recommend that management establish a control to timely review the actual time worked by each personnel assigned to the program prior to charges being submitted to the grantor for reimbursement. Views of Responsible Official: Management notes the details of this finding and will implement procedures to mitigate the outlined issues as described in our Corrective Action Plan.