Audit 14899

Finding Number: 2023-001 Internal Control Over Allowable Costs Repeat Finding: No Questioned Costs: $19,854 Funding Agency: Illinois Department of Health and Human Services Title: Coronavirus State and Local Fiscal Recovery AL Numbers: 21.027 Award Year: 7/1/2022 - 6/30/2023 Condition - A monitoring visit from a grantor which passes through federal funds to the Association noted unsupported costs and questioned costs related to federal funding as part of the grantor's monitoring. Criteria - Uniform Guidance 200.403 requires federally funded organizations spend federal dollars on allowable costs. Cause - Two primary areas of unallowable costs were noted: 1) the Association made a clerical error when calculating a voucher which resulted in a cost reimbursement that exceeded actual expenses, 2) the Association did not have a board approved policy in place for a bonus that was paid with federal dollars. Effect - The Association is being required to pay back approximately $19,000 in disallowed costs to the Illinois Department of Health and Human Services. Recommendations - Wipfli recommends that the Association implement a procedure to ensure that year to date expenses on a grant are tied to grant funds drawn on a monthly basis as grant draws are requested. Wipfli also recommends that a formal policy related to incentive pay is developed, approved by the Board of Directors and implemented by the Association. The Association should also review grantor budget requirements to ensure that all expenses are property categorized in the budget. View of Responsible Officials - Management agrees with the finding and has committed to a corrective action plan.

Finding Number: 2023-001 Internal Control Over Allowable Costs Repeat Finding: No Questioned Costs: $19,854 Funding Agency: Illinois Department of Health and Human Services Title: Coronavirus State and Local Fiscal Recovery AL Numbers: 21.027 Award Year: 7/1/2022 - 6/30/2023 Condition - A monitoring visit from a grantor which passes through federal funds to the Association noted unsupported costs and questioned costs related to federal funding as part of the grantor's monitoring. Criteria - Uniform Guidance 200.403 requires federally funded organizations spend federal dollars on allowable costs. Cause - Two primary areas of unallowable costs were noted: 1) the Association made a clerical error when calculating a voucher which resulted in a cost reimbursement that exceeded actual expenses, 2) the Association did not have a board approved policy in place for a bonus that was paid with federal dollars. Effect - The Association is being required to pay back approximately $19,000 in disallowed costs to the Illinois Department of Health and Human Services. Recommendations - Wipfli recommends that the Association implement a procedure to ensure that year to date expenses on a grant are tied to grant funds drawn on a monthly basis as grant draws are requested. Wipfli also recommends that a formal policy related to incentive pay is developed, approved by the Board of Directors and implemented by the Association. The Association should also review grantor budget requirements to ensure that all expenses are property categorized in the budget. View of Responsible Officials - Management agrees with the finding and has committed to a corrective action plan.