FAC Explorer

Audit 292608

FY End
2023-06-30
Total Expended
$15.02M
Findings
4
Programs
6
Organization: El Valor Corporation (IL)
Year: 2023 Accepted: 2024-02-28
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
370986 2023-001 Significant Deficiency - AB
370987 2023-001 Significant Deficiency - AB
947428 2023-001 Significant Deficiency - AB
947429 2023-001 Significant Deficiency - AB

Programs

ALN Program Spent Major Findings
93.600 Head Start $8.18M Yes 1
10.558 Child and Adult Care Food Program $552,056 - 0
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $484,053 - 0
14.195 Section 8 Housing Assistance Payments Program $111,140 - 0
10.684 International Forestry Programs $40,058 - 0
84.425 Education Stabilization Fund $24,640 - 0

Contacts

Name Title Type
Q7TCTBD3YP27 Carmen Ziegler Auditee
3124925948 Thure Ross Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Organization under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). As the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Organization under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). As the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Organization under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). As the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
Title: INDIRECT COST RATE Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Organization under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). As the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Organization has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: OTHER MATTERS Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Organization under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). As the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Amount of noncash assistance None Amount of insurance None Amount of loans None Amount of loan guarantees None

Finding Details

Finding 2023-001
2023-001: Documentation of Payroll Costs Federal Agency: Department of Health and Human Services Federal Program: Head Start Cluster Assistance Listing Number: 93.600 Federal Award Identification Number and Year: 05CH011626/03 – 2022/2023 and 05CH011421 – 2023/2024 Award Period: March 1, 2022 to February 28, 2023 and March 1, 2023 to February 29, 2024 Pass-Through Agency: City of Chicago Department of Family and Support Services Pass-Through Agency Numbers: 180890, 222577, 180493, 181763, 222576, and 223573 Award Period: December 1, 2021 to November 30, 2022 and December 1, 2022 to November 30, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: Under allowable cost/cost principles, an organization in receipt of federal funding is required to have a system of controls in place to safeguard assets and ensure that only allowable costs are charged to federal programs. 2 CFR Part 200 states that charges to awards for salaries and wages are to be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition: In testing payroll transactions, noted nine of 21 items sampled were not supported by an up-to-date payroll authorization notice (PAN) form. Questioned costs: Unknown Context: The Organization completes a PAN form for each employee documenting the approved pay rates and allocation percentage. During our testing of the pay rates and employee personnel files, we noted that the vouchering system was updated with the appropriate information, however, an updated PAN form was not completed for the respective employees' file. Cause: The Organization has not fully complied with established policies and procedures related to federal cost principles for payroll related costs and activities. Effect: Appropriate up-to-date supporting documentation was not maintained for all payroll costs charged to federal programs. Repeat finding: This finding is not a repeat finding. Recommendation: We recommend the Organization emphasize compliance with their established policies and procedures related to maintaining appropriate up-to-date supporting documentation for payroll costs. Views of Responsible Official: There is no disagreement with this finding.
Finding 2023-001
2023-001: Documentation of Payroll Costs Federal Agency: Department of Health and Human Services Federal Program: Head Start Cluster Assistance Listing Number: 93.600 Federal Award Identification Number and Year: 05CH011626/03 – 2022/2023 and 05CH011421 – 2023/2024 Award Period: March 1, 2022 to February 28, 2023 and March 1, 2023 to February 29, 2024 Pass-Through Agency: City of Chicago Department of Family and Support Services Pass-Through Agency Numbers: 180890, 222577, 180493, 181763, 222576, and 223573 Award Period: December 1, 2021 to November 30, 2022 and December 1, 2022 to November 30, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: Under allowable cost/cost principles, an organization in receipt of federal funding is required to have a system of controls in place to safeguard assets and ensure that only allowable costs are charged to federal programs. 2 CFR Part 200 states that charges to awards for salaries and wages are to be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition: In testing payroll transactions, noted nine of 21 items sampled were not supported by an up-to-date payroll authorization notice (PAN) form. Questioned costs: Unknown Context: The Organization completes a PAN form for each employee documenting the approved pay rates and allocation percentage. During our testing of the pay rates and employee personnel files, we noted that the vouchering system was updated with the appropriate information, however, an updated PAN form was not completed for the respective employees' file. Cause: The Organization has not fully complied with established policies and procedures related to federal cost principles for payroll related costs and activities. Effect: Appropriate up-to-date supporting documentation was not maintained for all payroll costs charged to federal programs. Repeat finding: This finding is not a repeat finding. Recommendation: We recommend the Organization emphasize compliance with their established policies and procedures related to maintaining appropriate up-to-date supporting documentation for payroll costs. Views of Responsible Official: There is no disagreement with this finding.
Finding 2023-001
2023-001: Documentation of Payroll Costs Federal Agency: Department of Health and Human Services Federal Program: Head Start Cluster Assistance Listing Number: 93.600 Federal Award Identification Number and Year: 05CH011626/03 – 2022/2023 and 05CH011421 – 2023/2024 Award Period: March 1, 2022 to February 28, 2023 and March 1, 2023 to February 29, 2024 Pass-Through Agency: City of Chicago Department of Family and Support Services Pass-Through Agency Numbers: 180890, 222577, 180493, 181763, 222576, and 223573 Award Period: December 1, 2021 to November 30, 2022 and December 1, 2022 to November 30, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: Under allowable cost/cost principles, an organization in receipt of federal funding is required to have a system of controls in place to safeguard assets and ensure that only allowable costs are charged to federal programs. 2 CFR Part 200 states that charges to awards for salaries and wages are to be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition: In testing payroll transactions, noted nine of 21 items sampled were not supported by an up-to-date payroll authorization notice (PAN) form. Questioned costs: Unknown Context: The Organization completes a PAN form for each employee documenting the approved pay rates and allocation percentage. During our testing of the pay rates and employee personnel files, we noted that the vouchering system was updated with the appropriate information, however, an updated PAN form was not completed for the respective employees' file. Cause: The Organization has not fully complied with established policies and procedures related to federal cost principles for payroll related costs and activities. Effect: Appropriate up-to-date supporting documentation was not maintained for all payroll costs charged to federal programs. Repeat finding: This finding is not a repeat finding. Recommendation: We recommend the Organization emphasize compliance with their established policies and procedures related to maintaining appropriate up-to-date supporting documentation for payroll costs. Views of Responsible Official: There is no disagreement with this finding.
Finding 2023-001
2023-001: Documentation of Payroll Costs Federal Agency: Department of Health and Human Services Federal Program: Head Start Cluster Assistance Listing Number: 93.600 Federal Award Identification Number and Year: 05CH011626/03 – 2022/2023 and 05CH011421 – 2023/2024 Award Period: March 1, 2022 to February 28, 2023 and March 1, 2023 to February 29, 2024 Pass-Through Agency: City of Chicago Department of Family and Support Services Pass-Through Agency Numbers: 180890, 222577, 180493, 181763, 222576, and 223573 Award Period: December 1, 2021 to November 30, 2022 and December 1, 2022 to November 30, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: Under allowable cost/cost principles, an organization in receipt of federal funding is required to have a system of controls in place to safeguard assets and ensure that only allowable costs are charged to federal programs. 2 CFR Part 200 states that charges to awards for salaries and wages are to be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition: In testing payroll transactions, noted nine of 21 items sampled were not supported by an up-to-date payroll authorization notice (PAN) form. Questioned costs: Unknown Context: The Organization completes a PAN form for each employee documenting the approved pay rates and allocation percentage. During our testing of the pay rates and employee personnel files, we noted that the vouchering system was updated with the appropriate information, however, an updated PAN form was not completed for the respective employees' file. Cause: The Organization has not fully complied with established policies and procedures related to federal cost principles for payroll related costs and activities. Effect: Appropriate up-to-date supporting documentation was not maintained for all payroll costs charged to federal programs. Repeat finding: This finding is not a repeat finding. Recommendation: We recommend the Organization emphasize compliance with their established policies and procedures related to maintaining appropriate up-to-date supporting documentation for payroll costs. Views of Responsible Official: There is no disagreement with this finding.