FAC Explorer

Audit 299852

FY End
2023-06-30
Total Expended
$794,523
Findings
4
Programs
6
Organization: Chicago Urban League (IL)
Year: 2023 Accepted: 2024-03-28
Auditor: Ringold Financial Management Services

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
387813 2023-001 Significant Deficiency Yes L
387814 2023-002 Significant Deficiency - P
964255 2023-001 Significant Deficiency Yes L
964256 2023-002 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
93.667 Social Services Block Grant $387,105 Yes 0
17.285 Apprenticeship USA Grants $116,163 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $115,270 - 0
14.218 Community Development Block Grants/entitlement Grants $62,618 - 0
14.169 Housing Counseling Assistance Program $20,332 - 0
17.270 Reintegration of Ex-Offenders $17,812 - 2

Contacts

Name Title Type
F4MJCNN693F3 Curtis Whittaker, CPA Auditee
7732855800 Lily Bartkoske Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: N/A The accompanying Schedule of Expenditures of Federal Awards (“the Schedule”) includes the federal grant activity of the Chicago Urban League and Affiliate (collectively, “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 requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because 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: Note B – Summary of Significant Accounting Policies Accounting Policies: 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: N/A 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Note C – Indirect Cost Rate Accounting Policies: 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: N/A The Organization has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Note D – Other Accounting Policies: 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: N/A The Organization did not have any outstanding federal loans or loan guarantees as of June 30, 2023, and did not receive any federal noncash awards or insurance assistance for reimbursement losses during the year ended June 30, 2023.

Finding Details

Finding 2023-001
Criteria Management of the Organization is responsible for establishing and maintaining effective internal control over financial reporting, including the net assets with donor restrictions transaction classes. Condition During our testing of net assets, we noted weak internal controls for identifying and tracking additions and releases for net assets with donor restrictions. Context During our testing we noted the following issues:  We were unable to obtain a reconciliation between the manual net assets with donor restrictions schedule and the accounting system reporting.  We were unable to validate certain releases from restrictions as presented on the schedule. Effect Management may not be able to detect material errors and omissions in the net assets with donor restrictions schedule. As a result, incomplete or inaccurate financial data may be shared with outside users. Cause This finding was caused by weak internal controls and documentation related to net assets with donor restrictions. Recommendation We recommend that the Organization strengthen internal controls over net assets with donor restrictions. Management Response Management concurs with this finding. See corrective action plan
Finding 2023-002
Criteria Reporting - 2 CFR Part 200 requires grantees to submit the Single Audit reporting package to the Federal Audit Clearinghouse (FAC) within the earlier of 30 calendar days after receiving the audit report or nine months after the fiscal year end. Condition During our testing, we noted that the Single Audit reporting package for fiscal year 2021 was not submitted to the FAC within the required timeframe. Questioned Costs None Context The complete reporting package was submitted on June 18, 2022. Because the package was submitted over nine months after the Organization’s fiscal year end it was considered late based on 2 CFR Part 200 requirements. Effect The Organization was not in compliance with 2 CFR Part 200 and was classified as a high-risk auditee for fiscal year 2023. Cause The audit was not finalized within the 9 month time frame to allow the Organization to file its Single Audit package according to 2 CFR Part 200 requirements. Recommendation The Organization should ensure that the Single Audit reporting package is submitted to the FAC within the required timeframe. Management Response Management concurs with this finding. See corrective action plan
Finding 2023-001
Criteria Management of the Organization is responsible for establishing and maintaining effective internal control over financial reporting, including the net assets with donor restrictions transaction classes. Condition During our testing of net assets, we noted weak internal controls for identifying and tracking additions and releases for net assets with donor restrictions. Context During our testing we noted the following issues:  We were unable to obtain a reconciliation between the manual net assets with donor restrictions schedule and the accounting system reporting.  We were unable to validate certain releases from restrictions as presented on the schedule. Effect Management may not be able to detect material errors and omissions in the net assets with donor restrictions schedule. As a result, incomplete or inaccurate financial data may be shared with outside users. Cause This finding was caused by weak internal controls and documentation related to net assets with donor restrictions. Recommendation We recommend that the Organization strengthen internal controls over net assets with donor restrictions. Management Response Management concurs with this finding. See corrective action plan
Finding 2023-002
Criteria Reporting - 2 CFR Part 200 requires grantees to submit the Single Audit reporting package to the Federal Audit Clearinghouse (FAC) within the earlier of 30 calendar days after receiving the audit report or nine months after the fiscal year end. Condition During our testing, we noted that the Single Audit reporting package for fiscal year 2021 was not submitted to the FAC within the required timeframe. Questioned Costs None Context The complete reporting package was submitted on June 18, 2022. Because the package was submitted over nine months after the Organization’s fiscal year end it was considered late based on 2 CFR Part 200 requirements. Effect The Organization was not in compliance with 2 CFR Part 200 and was classified as a high-risk auditee for fiscal year 2023. Cause The audit was not finalized within the 9 month time frame to allow the Organization to file its Single Audit package according to 2 CFR Part 200 requirements. Recommendation The Organization should ensure that the Single Audit reporting package is submitted to the FAC within the required timeframe. Management Response Management concurs with this finding. See corrective action plan