Audit 305385

FY End
2023-06-30
Total Expended
$2.91M
Findings
18
Programs
7
Organization: Ucan (IL)
Year: 2023 Accepted: 2024-05-02
Auditor: Porte Brown LLC

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
395743 2023-002 Significant Deficiency - A
395744 2023-003 Material Weakness - L
395745 2023-004 Significant Deficiency Yes L
395746 2023-005 Significant Deficiency Yes L
395747 2023-004 Significant Deficiency Yes L
395748 2023-005 Significant Deficiency Yes L
395749 2023-003 Material Weakness - L
395750 2023-004 Significant Deficiency Yes L
395751 2023-005 Significant Deficiency Yes L
972185 2023-002 Significant Deficiency - A
972186 2023-003 Material Weakness - L
972187 2023-004 Significant Deficiency Yes L
972188 2023-005 Significant Deficiency Yes L
972189 2023-004 Significant Deficiency Yes L
972190 2023-005 Significant Deficiency Yes L
972191 2023-003 Material Weakness - L
972192 2023-004 Significant Deficiency Yes L
972193 2023-005 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
16.575 Crime Victim Assistance $775,609 Yes 3
94.011 Foster Grandparent Program $661,745 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $374,834 Yes 3
17.259 Wia Youth Activities $286,024 - 0
10.555 National School Lunch Program $122,455 - 0
10.553 School Breakfast Program $84,002 - 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $32,683 - 0

Contacts

Name Title Type
WDADCEE7TYW4 Suresh Sharma Auditee
7735880180 Megan Angle 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: The auditee did use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of UCAN and Affiliate (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 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: SUBRECIPIENTS 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: The auditee did use the de minimis cost rate. The Organization provided no amounts to subrecipients from the federal awards listed.
Title: NON-CASH ASSISTANCE 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: The auditee did use the de minimis cost rate. The Organization had no non-cash assistance, federal insurance, or loan guarantees to be disclosed as required by the Uniform Guidance.
Title: LOANS OUTSTANDING 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: The auditee did use the de minimis cost rate. There were no loans outstanding at June 30, 2023 related to the federal awards listed.
Title: DONATED PERSONAL PROTECTIVE EQUIPMENT 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: The auditee did use the de minimis cost rate. The Organization did not receive donated personal protective equipment during the year ended June 30, 2023.

Finding Details

Criteria: Exhibit A of the Illinois Criminal Justice Information Authority grant agreement outlines the eligibility requirements for individuals served under the program. 2 CFR 200.303 maintains that the awardee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the awardee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: During our testing of individuals who received services under the program, one of the individuals in the initial listing of individuals services was included in error and three of the individuals did not maintain documentation of a conclusion that the individual was directly or indirectly involved as a victim of violent crime in Cook County. Cause: Due to turnover in program management adequate records for these individuals were not maintained. Effect: The Organization must be able to demonstrate how the major program eligibility requirement is satisfied to be able to support its assertion that all participants meet the minimum requirements to be eligible to benefit from the major program award. Not doing so could lead to adverse action by the grantor. Recommendation: We recommend that the Organization implement policies, procedures and internal controls to maintain supporting documentation and ensure the existence and completeness of the participant population. Management's Response: We agree with this finding. See corrective action plan.
Criteria: 2 CFR 200.405 maintains that costs which are allocable to more than one program be allocated based on the proportional benefit or as determined on any reasonable documented basis. Condition: During our testing, 4 of the 8 expenses selected were unsupported by general ledger allocation of the expenses. The amount charged to the grant appeared to be an allocable percentage based on the budgeted amount however, the actual expenses that were incurred were not allocated out to the program in alignment with that budgeted amount. Cause: Due to turnover in program management adequate allocation of these expenses were not reconciled. Effect:The Organization must be able to demonstrate the expenses allocated to the grant on the vouchers is supported in its allocation in the general ledger to ensure proper allocation and avoidance of duplication of funding requests for the same amounts. Questioned Costs: The total of the allocated epxense transactions of $1,667 were not allocated in the general ledger system to the applicable program. Recommendation: We recommend that the Organization implement procedures and internal controls for regular review of the general ledger of their programs and reconcile to the vouchers prior to submission to the granting agency. Management's Response: We agree with this finding. See corrective action plan.
Criteria: 2 CFR 200.510(b) requires the auditee to prepare a schedule of federal awards (SEFA) that must contain federal awards expended during the period. Condition: On the original SEFA provided for the audit, the total federal expenditures reflected on the SEFA were inaccurate with excess amounts for some programs and the programs 21.027 and 10.561 were omitted on the initial SEFA report. This resulted in a restatement of the SEFA. Cause: Due to staff turnover, staff was unfamiliar with the specifics of the grant. Effect: SEFA was inaccurate. Recommendation: We recommend that management put controls in place over the preparation and review of the schedule of expenditures of federal awards to ensure that only (and all) federal expenditures are included. Management's Response: We agree with this finding. See corrective action plan.
Criteria: 2 CFR 200.512(a) requires that the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the fiscal year. Condition: UCAN’s data collection form for the year ended June 30, 2023 will be filed after the March 30, 2024 nine month deadline, making it a late filing. Cause: Inaccuracies of the SEFA resulted in delays in completion of the Single Audit and data collection form filing. Effect: Late filing will result in UCAN not meeting the low-risk auditee criteria for the audit of the year ended June 30, 2024. Recommendation: We recommend that management put controls in place over the preparation and review of the schedule of expenditures of federal awards to ensure that only (and all) federal expenditures are included. Management's Response: We agree with this finding. See corrective action plan.
Criteria: 2 CFR 200.510(b) requires the auditee to prepare a schedule of federal awards (SEFA) that must contain federal awards expended during the period. Condition: On the original SEFA provided for the audit, the total federal expenditures reflected on the SEFA were inaccurate with excess amounts for some programs and the programs 21.027 and 10.561 were omitted on the initial SEFA report. This resulted in a restatement of the SEFA. Cause: Due to staff turnover, staff was unfamiliar with the specifics of the grant. Effect: SEFA was inaccurate. Recommendation: We recommend that management put controls in place over the preparation and review of the schedule of expenditures of federal awards to ensure that only (and all) federal expenditures are included. Management's Response: We agree with this finding. See corrective action plan.
Criteria: 2 CFR 200.512(a) requires that the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the fiscal year. Condition: UCAN’s data collection form for the year ended June 30, 2023 will be filed after the March 30, 2024 nine month deadline, making it a late filing. Cause: Inaccuracies of the SEFA resulted in delays in completion of the Single Audit and data collection form filing. Effect: Late filing will result in UCAN not meeting the low-risk auditee criteria for the audit of the year ended June 30, 2024. Recommendation: We recommend that management put controls in place over the preparation and review of the schedule of expenditures of federal awards to ensure that only (and all) federal expenditures are included. Management's Response: We agree with this finding. See corrective action plan.
Criteria: 2 CFR 200.405 maintains that costs which are allocable to more than one program be allocated based on the proportional benefit or as determined on any reasonable documented basis. Condition: During our testing, 4 of the 8 expenses selected were unsupported by general ledger allocation of the expenses. The amount charged to the grant appeared to be an allocable percentage based on the budgeted amount however, the actual expenses that were incurred were not allocated out to the program in alignment with that budgeted amount. Cause: Due to turnover in program management adequate allocation of these expenses were not reconciled. Effect:The Organization must be able to demonstrate the expenses allocated to the grant on the vouchers is supported in its allocation in the general ledger to ensure proper allocation and avoidance of duplication of funding requests for the same amounts. Questioned Costs: The total of the allocated epxense transactions of $1,667 were not allocated in the general ledger system to the applicable program. Recommendation: We recommend that the Organization implement procedures and internal controls for regular review of the general ledger of their programs and reconcile to the vouchers prior to submission to the granting agency. Management's Response: We agree with this finding. See corrective action plan.
Criteria: 2 CFR 200.510(b) requires the auditee to prepare a schedule of federal awards (SEFA) that must contain federal awards expended during the period. Condition: On the original SEFA provided for the audit, the total federal expenditures reflected on the SEFA were inaccurate with excess amounts for some programs and the programs 21.027 and 10.561 were omitted on the initial SEFA report. This resulted in a restatement of the SEFA. Cause: Due to staff turnover, staff was unfamiliar with the specifics of the grant. Effect: SEFA was inaccurate. Recommendation: We recommend that management put controls in place over the preparation and review of the schedule of expenditures of federal awards to ensure that only (and all) federal expenditures are included. Management's Response: We agree with this finding. See corrective action plan.
Criteria: 2 CFR 200.512(a) requires that the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the fiscal year. Condition: UCAN’s data collection form for the year ended June 30, 2023 will be filed after the March 30, 2024 nine month deadline, making it a late filing. Cause: Inaccuracies of the SEFA resulted in delays in completion of the Single Audit and data collection form filing. Effect: Late filing will result in UCAN not meeting the low-risk auditee criteria for the audit of the year ended June 30, 2024. Recommendation: We recommend that management put controls in place over the preparation and review of the schedule of expenditures of federal awards to ensure that only (and all) federal expenditures are included. Management's Response: We agree with this finding. See corrective action plan.
Criteria: Exhibit A of the Illinois Criminal Justice Information Authority grant agreement outlines the eligibility requirements for individuals served under the program. 2 CFR 200.303 maintains that the awardee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the awardee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: During our testing of individuals who received services under the program, one of the individuals in the initial listing of individuals services was included in error and three of the individuals did not maintain documentation of a conclusion that the individual was directly or indirectly involved as a victim of violent crime in Cook County. Cause: Due to turnover in program management adequate records for these individuals were not maintained. Effect: The Organization must be able to demonstrate how the major program eligibility requirement is satisfied to be able to support its assertion that all participants meet the minimum requirements to be eligible to benefit from the major program award. Not doing so could lead to adverse action by the grantor. Recommendation: We recommend that the Organization implement policies, procedures and internal controls to maintain supporting documentation and ensure the existence and completeness of the participant population. Management's Response: We agree with this finding. See corrective action plan.
Criteria: 2 CFR 200.405 maintains that costs which are allocable to more than one program be allocated based on the proportional benefit or as determined on any reasonable documented basis. Condition: During our testing, 4 of the 8 expenses selected were unsupported by general ledger allocation of the expenses. The amount charged to the grant appeared to be an allocable percentage based on the budgeted amount however, the actual expenses that were incurred were not allocated out to the program in alignment with that budgeted amount. Cause: Due to turnover in program management adequate allocation of these expenses were not reconciled. Effect:The Organization must be able to demonstrate the expenses allocated to the grant on the vouchers is supported in its allocation in the general ledger to ensure proper allocation and avoidance of duplication of funding requests for the same amounts. Questioned Costs: The total of the allocated epxense transactions of $1,667 were not allocated in the general ledger system to the applicable program. Recommendation: We recommend that the Organization implement procedures and internal controls for regular review of the general ledger of their programs and reconcile to the vouchers prior to submission to the granting agency. Management's Response: We agree with this finding. See corrective action plan.
Criteria: 2 CFR 200.510(b) requires the auditee to prepare a schedule of federal awards (SEFA) that must contain federal awards expended during the period. Condition: On the original SEFA provided for the audit, the total federal expenditures reflected on the SEFA were inaccurate with excess amounts for some programs and the programs 21.027 and 10.561 were omitted on the initial SEFA report. This resulted in a restatement of the SEFA. Cause: Due to staff turnover, staff was unfamiliar with the specifics of the grant. Effect: SEFA was inaccurate. Recommendation: We recommend that management put controls in place over the preparation and review of the schedule of expenditures of federal awards to ensure that only (and all) federal expenditures are included. Management's Response: We agree with this finding. See corrective action plan.
Criteria: 2 CFR 200.512(a) requires that the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the fiscal year. Condition: UCAN’s data collection form for the year ended June 30, 2023 will be filed after the March 30, 2024 nine month deadline, making it a late filing. Cause: Inaccuracies of the SEFA resulted in delays in completion of the Single Audit and data collection form filing. Effect: Late filing will result in UCAN not meeting the low-risk auditee criteria for the audit of the year ended June 30, 2024. Recommendation: We recommend that management put controls in place over the preparation and review of the schedule of expenditures of federal awards to ensure that only (and all) federal expenditures are included. Management's Response: We agree with this finding. See corrective action plan.
Criteria: 2 CFR 200.510(b) requires the auditee to prepare a schedule of federal awards (SEFA) that must contain federal awards expended during the period. Condition: On the original SEFA provided for the audit, the total federal expenditures reflected on the SEFA were inaccurate with excess amounts for some programs and the programs 21.027 and 10.561 were omitted on the initial SEFA report. This resulted in a restatement of the SEFA. Cause: Due to staff turnover, staff was unfamiliar with the specifics of the grant. Effect: SEFA was inaccurate. Recommendation: We recommend that management put controls in place over the preparation and review of the schedule of expenditures of federal awards to ensure that only (and all) federal expenditures are included. Management's Response: We agree with this finding. See corrective action plan.
Criteria: 2 CFR 200.512(a) requires that the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the fiscal year. Condition: UCAN’s data collection form for the year ended June 30, 2023 will be filed after the March 30, 2024 nine month deadline, making it a late filing. Cause: Inaccuracies of the SEFA resulted in delays in completion of the Single Audit and data collection form filing. Effect: Late filing will result in UCAN not meeting the low-risk auditee criteria for the audit of the year ended June 30, 2024. Recommendation: We recommend that management put controls in place over the preparation and review of the schedule of expenditures of federal awards to ensure that only (and all) federal expenditures are included. Management's Response: We agree with this finding. See corrective action plan.
Criteria: 2 CFR 200.405 maintains that costs which are allocable to more than one program be allocated based on the proportional benefit or as determined on any reasonable documented basis. Condition: During our testing, 4 of the 8 expenses selected were unsupported by general ledger allocation of the expenses. The amount charged to the grant appeared to be an allocable percentage based on the budgeted amount however, the actual expenses that were incurred were not allocated out to the program in alignment with that budgeted amount. Cause: Due to turnover in program management adequate allocation of these expenses were not reconciled. Effect:The Organization must be able to demonstrate the expenses allocated to the grant on the vouchers is supported in its allocation in the general ledger to ensure proper allocation and avoidance of duplication of funding requests for the same amounts. Questioned Costs: The total of the allocated epxense transactions of $1,667 were not allocated in the general ledger system to the applicable program. Recommendation: We recommend that the Organization implement procedures and internal controls for regular review of the general ledger of their programs and reconcile to the vouchers prior to submission to the granting agency. Management's Response: We agree with this finding. See corrective action plan.
Criteria: 2 CFR 200.510(b) requires the auditee to prepare a schedule of federal awards (SEFA) that must contain federal awards expended during the period. Condition: On the original SEFA provided for the audit, the total federal expenditures reflected on the SEFA were inaccurate with excess amounts for some programs and the programs 21.027 and 10.561 were omitted on the initial SEFA report. This resulted in a restatement of the SEFA. Cause: Due to staff turnover, staff was unfamiliar with the specifics of the grant. Effect: SEFA was inaccurate. Recommendation: We recommend that management put controls in place over the preparation and review of the schedule of expenditures of federal awards to ensure that only (and all) federal expenditures are included. Management's Response: We agree with this finding. See corrective action plan.
Criteria: 2 CFR 200.512(a) requires that the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the fiscal year. Condition: UCAN’s data collection form for the year ended June 30, 2023 will be filed after the March 30, 2024 nine month deadline, making it a late filing. Cause: Inaccuracies of the SEFA resulted in delays in completion of the Single Audit and data collection form filing. Effect: Late filing will result in UCAN not meeting the low-risk auditee criteria for the audit of the year ended June 30, 2024. Recommendation: We recommend that management put controls in place over the preparation and review of the schedule of expenditures of federal awards to ensure that only (and all) federal expenditures are included. Management's Response: We agree with this finding. See corrective action plan.