Audit 315390

Finding 2023-01 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers: 93.958 Block Grants for Community Mental Health Services 93.959 Block Grants for Prevention and Treatment Substance Abuse Federal Agency: U.S. Department of Health and Human Services Passthrough Agency: Illinois Department of Human Services Award Number/Year: 2023 Criteria Uniform Guidance requires that single audits be completed, and the reporting package submitted to the Federal Audit Clearinghouse within the earlier of thirty (30) calendar days after receipt of the auditor’s report or nine (9) months after the end of the audit period. Condition The Organization did not submit its audited financial statements and SEFA to the Federal Audit Clearinghouse website within nine (9) months of June 30, 2023. The Organization also didn’t submit its audited financial statements, SEFA, CYEFR and other required information to the GATA portal within six (6) months after June 30, 2023. This is a repeat finding (see Finding 2022-003 in the Summary of Prior Audit Findings). Cause This condition was due to the Organization being understaffed within its accounting and finance department resulting in a significant delay in completing the recording of financial transactions, performing account reconciliations and preparing financial reports available for audit. Effect The effect is that controls over the financial reporting process were weakened thereby increasing the risk that material misstatements could be included in the financial statements without management being aware. Additionally, noncompliance with financial reporting deadlines could cause funding sources for the Organization to delay providing funding for the current fiscal year. Questioned Costs None noted. Recommendation We recommend that management either 1) hire personnel within its accounting and finance department so that all defined tasks can be performed in a more timely manner or 2) evaluate its current processes to determine how to make them more efficient so that the current personnel within the accounting and finance department are able to complete their tasks in a more timely manner. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.

Finding 2023-02 Material Weakness in Internal Control Over Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Cash Management, Period of Performance and Reporting Assistance Listing Numbers 93.958 Block Grants for Community Mental Health Services 93.959 Block Grants for Prevention and Treatment Substance Abuse Federal Agency: U.S. Department of Health and Human Services Passthrough Agency: Illinois Department of Human Services Award Number/Year: 2023 Criteria The Organization is responsible for keeping an accurate accounting of all federal expenditures and maintaining all of the required documentation and reports in accordance with applicable federal regulations. Condition For AL No. 93.958, Block Grant for Community Mental Health Services, a sample of fourteen (14) expense transactions were tested for Activities Allowed or Unallowed, Allowable Costs/Cost Principles and Period of Performance. For AL No. 93.959, Block Grant for Prevention and Treatment of Substance Abuse, a sample of fourteen (14) expense transactions were tested for Activities Allowed or Unallowed, Allowable Costs/Cost Principles and Period of Performance. The Organization was not able to provide vendor invoices for any of the expense transactions selected for testing. We did note that the expense transaction details matched the appropriate vouchers for reimbursement and supporting documentation of vendor payment. It was also noted that one person prepared, reviewed and submitted all vouchers and reports which is an indication of improper segregation of duties. Cause The Organization did not follow its established policies and procedures which resulted in new accounting and grant administration personnel not knowing where appropriate documentation was stored so that it could be readily available when required. Effect The Organization is not in compliance with the Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Period of Performance requirements of its grant agreements within its federally funded programs as prescribed by Uniform Guidance. Questioned Costs See scope limitation. Repeat Finding Yes Recommendation We recommend that the Organization implement the following corrective actions: • Enforce its current specific internal control procedures to ensure compliance with applicable federal regulations. • Require that all personnel files have authorization and approval of current pay rates along with correspondence regarding to which grant an employee’s salary and fringe benefits should be expensed including any allocations if the employee worked on several grants. • Require that all expenses have proper invoices with approvals and should be organized within the Organization’s office. • Require that vouchers have all related invoices attached to them and be reconciled with monthly, quarterly and close-out financial reports. • Require that all vouchers and reports be prepared by one individual and independently reviewed and approved by a second individual prior to submission. There should be documentation of the review such as a sign-off or initials. • Require that all vouchers and reports should be filed timely in accordance with the various grant agreements. • Require that correspondence be received from those agencies indicating that required reports per the written grant agreements are not necessary when applicable. • Ensure that the data collection form is filed the earlier of thirty (30) days after the report date or no later than nine months after the fiscal year-end. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.

Finding 2023-01 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers: 93.958 Block Grants for Community Mental Health Services 93.959 Block Grants for Prevention and Treatment Substance Abuse Federal Agency: U.S. Department of Health and Human Services Passthrough Agency: Illinois Department of Human Services Award Number/Year: 2023 Criteria Uniform Guidance requires that single audits be completed, and the reporting package submitted to the Federal Audit Clearinghouse within the earlier of thirty (30) calendar days after receipt of the auditor’s report or nine (9) months after the end of the audit period. Condition The Organization did not submit its audited financial statements and SEFA to the Federal Audit Clearinghouse website within nine (9) months of June 30, 2023. The Organization also didn’t submit its audited financial statements, SEFA, CYEFR and other required information to the GATA portal within six (6) months after June 30, 2023. This is a repeat finding (see Finding 2022-003 in the Summary of Prior Audit Findings). Cause This condition was due to the Organization being understaffed within its accounting and finance department resulting in a significant delay in completing the recording of financial transactions, performing account reconciliations and preparing financial reports available for audit. Effect The effect is that controls over the financial reporting process were weakened thereby increasing the risk that material misstatements could be included in the financial statements without management being aware. Additionally, noncompliance with financial reporting deadlines could cause funding sources for the Organization to delay providing funding for the current fiscal year. Questioned Costs None noted. Recommendation We recommend that management either 1) hire personnel within its accounting and finance department so that all defined tasks can be performed in a more timely manner or 2) evaluate its current processes to determine how to make them more efficient so that the current personnel within the accounting and finance department are able to complete their tasks in a more timely manner. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.

Finding 2023-02 Material Weakness in Internal Control Over Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Cash Management, Period of Performance and Reporting Assistance Listing Numbers 93.958 Block Grants for Community Mental Health Services 93.959 Block Grants for Prevention and Treatment Substance Abuse Federal Agency: U.S. Department of Health and Human Services Passthrough Agency: Illinois Department of Human Services Award Number/Year: 2023 Criteria The Organization is responsible for keeping an accurate accounting of all federal expenditures and maintaining all of the required documentation and reports in accordance with applicable federal regulations. Condition For AL No. 93.958, Block Grant for Community Mental Health Services, a sample of fourteen (14) expense transactions were tested for Activities Allowed or Unallowed, Allowable Costs/Cost Principles and Period of Performance. For AL No. 93.959, Block Grant for Prevention and Treatment of Substance Abuse, a sample of fourteen (14) expense transactions were tested for Activities Allowed or Unallowed, Allowable Costs/Cost Principles and Period of Performance. The Organization was not able to provide vendor invoices for any of the expense transactions selected for testing. We did note that the expense transaction details matched the appropriate vouchers for reimbursement and supporting documentation of vendor payment. It was also noted that one person prepared, reviewed and submitted all vouchers and reports which is an indication of improper segregation of duties. Cause The Organization did not follow its established policies and procedures which resulted in new accounting and grant administration personnel not knowing where appropriate documentation was stored so that it could be readily available when required. Effect The Organization is not in compliance with the Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Period of Performance requirements of its grant agreements within its federally funded programs as prescribed by Uniform Guidance. Questioned Costs See scope limitation. Repeat Finding Yes Recommendation We recommend that the Organization implement the following corrective actions: • Enforce its current specific internal control procedures to ensure compliance with applicable federal regulations. • Require that all personnel files have authorization and approval of current pay rates along with correspondence regarding to which grant an employee’s salary and fringe benefits should be expensed including any allocations if the employee worked on several grants. • Require that all expenses have proper invoices with approvals and should be organized within the Organization’s office. • Require that vouchers have all related invoices attached to them and be reconciled with monthly, quarterly and close-out financial reports. • Require that all vouchers and reports be prepared by one individual and independently reviewed and approved by a second individual prior to submission. There should be documentation of the review such as a sign-off or initials. • Require that all vouchers and reports should be filed timely in accordance with the various grant agreements. • Require that correspondence be received from those agencies indicating that required reports per the written grant agreements are not necessary when applicable. • Ensure that the data collection form is filed the earlier of thirty (30) days after the report date or no later than nine months after the fiscal year-end. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.

Finding 2023-01 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers: 93.958 Block Grants for Community Mental Health Services 93.959 Block Grants for Prevention and Treatment Substance Abuse Federal Agency: U.S. Department of Health and Human Services Passthrough Agency: Illinois Department of Human Services Award Number/Year: 2023 Criteria Uniform Guidance requires that single audits be completed, and the reporting package submitted to the Federal Audit Clearinghouse within the earlier of thirty (30) calendar days after receipt of the auditor’s report or nine (9) months after the end of the audit period. Condition The Organization did not submit its audited financial statements and SEFA to the Federal Audit Clearinghouse website within nine (9) months of June 30, 2023. The Organization also didn’t submit its audited financial statements, SEFA, CYEFR and other required information to the GATA portal within six (6) months after June 30, 2023. This is a repeat finding (see Finding 2022-003 in the Summary of Prior Audit Findings). Cause This condition was due to the Organization being understaffed within its accounting and finance department resulting in a significant delay in completing the recording of financial transactions, performing account reconciliations and preparing financial reports available for audit. Effect The effect is that controls over the financial reporting process were weakened thereby increasing the risk that material misstatements could be included in the financial statements without management being aware. Additionally, noncompliance with financial reporting deadlines could cause funding sources for the Organization to delay providing funding for the current fiscal year. Questioned Costs None noted. Recommendation We recommend that management either 1) hire personnel within its accounting and finance department so that all defined tasks can be performed in a more timely manner or 2) evaluate its current processes to determine how to make them more efficient so that the current personnel within the accounting and finance department are able to complete their tasks in a more timely manner. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.

Finding 2023-02 Material Weakness in Internal Control Over Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Cash Management, Period of Performance and Reporting Assistance Listing Numbers 93.958 Block Grants for Community Mental Health Services 93.959 Block Grants for Prevention and Treatment Substance Abuse Federal Agency: U.S. Department of Health and Human Services Passthrough Agency: Illinois Department of Human Services Award Number/Year: 2023 Criteria The Organization is responsible for keeping an accurate accounting of all federal expenditures and maintaining all of the required documentation and reports in accordance with applicable federal regulations. Condition For AL No. 93.958, Block Grant for Community Mental Health Services, a sample of fourteen (14) expense transactions were tested for Activities Allowed or Unallowed, Allowable Costs/Cost Principles and Period of Performance. For AL No. 93.959, Block Grant for Prevention and Treatment of Substance Abuse, a sample of fourteen (14) expense transactions were tested for Activities Allowed or Unallowed, Allowable Costs/Cost Principles and Period of Performance. The Organization was not able to provide vendor invoices for any of the expense transactions selected for testing. We did note that the expense transaction details matched the appropriate vouchers for reimbursement and supporting documentation of vendor payment. It was also noted that one person prepared, reviewed and submitted all vouchers and reports which is an indication of improper segregation of duties. Cause The Organization did not follow its established policies and procedures which resulted in new accounting and grant administration personnel not knowing where appropriate documentation was stored so that it could be readily available when required. Effect The Organization is not in compliance with the Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Period of Performance requirements of its grant agreements within its federally funded programs as prescribed by Uniform Guidance. Questioned Costs See scope limitation. Repeat Finding Yes Recommendation We recommend that the Organization implement the following corrective actions: • Enforce its current specific internal control procedures to ensure compliance with applicable federal regulations. • Require that all personnel files have authorization and approval of current pay rates along with correspondence regarding to which grant an employee’s salary and fringe benefits should be expensed including any allocations if the employee worked on several grants. • Require that all expenses have proper invoices with approvals and should be organized within the Organization’s office. • Require that vouchers have all related invoices attached to them and be reconciled with monthly, quarterly and close-out financial reports. • Require that all vouchers and reports be prepared by one individual and independently reviewed and approved by a second individual prior to submission. There should be documentation of the review such as a sign-off or initials. • Require that all vouchers and reports should be filed timely in accordance with the various grant agreements. • Require that correspondence be received from those agencies indicating that required reports per the written grant agreements are not necessary when applicable. • Ensure that the data collection form is filed the earlier of thirty (30) days after the report date or no later than nine months after the fiscal year-end. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.

Finding 2023-01 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers: 93.958 Block Grants for Community Mental Health Services 93.959 Block Grants for Prevention and Treatment Substance Abuse Federal Agency: U.S. Department of Health and Human Services Passthrough Agency: Illinois Department of Human Services Award Number/Year: 2023 Criteria Uniform Guidance requires that single audits be completed, and the reporting package submitted to the Federal Audit Clearinghouse within the earlier of thirty (30) calendar days after receipt of the auditor’s report or nine (9) months after the end of the audit period. Condition The Organization did not submit its audited financial statements and SEFA to the Federal Audit Clearinghouse website within nine (9) months of June 30, 2023. The Organization also didn’t submit its audited financial statements, SEFA, CYEFR and other required information to the GATA portal within six (6) months after June 30, 2023. This is a repeat finding (see Finding 2022-003 in the Summary of Prior Audit Findings). Cause This condition was due to the Organization being understaffed within its accounting and finance department resulting in a significant delay in completing the recording of financial transactions, performing account reconciliations and preparing financial reports available for audit. Effect The effect is that controls over the financial reporting process were weakened thereby increasing the risk that material misstatements could be included in the financial statements without management being aware. Additionally, noncompliance with financial reporting deadlines could cause funding sources for the Organization to delay providing funding for the current fiscal year. Questioned Costs None noted. Recommendation We recommend that management either 1) hire personnel within its accounting and finance department so that all defined tasks can be performed in a more timely manner or 2) evaluate its current processes to determine how to make them more efficient so that the current personnel within the accounting and finance department are able to complete their tasks in a more timely manner. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.

Finding 2023-02 Material Weakness in Internal Control Over Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Cash Management, Period of Performance and Reporting Assistance Listing Numbers 93.958 Block Grants for Community Mental Health Services 93.959 Block Grants for Prevention and Treatment Substance Abuse Federal Agency: U.S. Department of Health and Human Services Passthrough Agency: Illinois Department of Human Services Award Number/Year: 2023 Criteria The Organization is responsible for keeping an accurate accounting of all federal expenditures and maintaining all of the required documentation and reports in accordance with applicable federal regulations. Condition For AL No. 93.958, Block Grant for Community Mental Health Services, a sample of fourteen (14) expense transactions were tested for Activities Allowed or Unallowed, Allowable Costs/Cost Principles and Period of Performance. For AL No. 93.959, Block Grant for Prevention and Treatment of Substance Abuse, a sample of fourteen (14) expense transactions were tested for Activities Allowed or Unallowed, Allowable Costs/Cost Principles and Period of Performance. The Organization was not able to provide vendor invoices for any of the expense transactions selected for testing. We did note that the expense transaction details matched the appropriate vouchers for reimbursement and supporting documentation of vendor payment. It was also noted that one person prepared, reviewed and submitted all vouchers and reports which is an indication of improper segregation of duties. Cause The Organization did not follow its established policies and procedures which resulted in new accounting and grant administration personnel not knowing where appropriate documentation was stored so that it could be readily available when required. Effect The Organization is not in compliance with the Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Period of Performance requirements of its grant agreements within its federally funded programs as prescribed by Uniform Guidance. Questioned Costs See scope limitation. Repeat Finding Yes Recommendation We recommend that the Organization implement the following corrective actions: • Enforce its current specific internal control procedures to ensure compliance with applicable federal regulations. • Require that all personnel files have authorization and approval of current pay rates along with correspondence regarding to which grant an employee’s salary and fringe benefits should be expensed including any allocations if the employee worked on several grants. • Require that all expenses have proper invoices with approvals and should be organized within the Organization’s office. • Require that vouchers have all related invoices attached to them and be reconciled with monthly, quarterly and close-out financial reports. • Require that all vouchers and reports be prepared by one individual and independently reviewed and approved by a second individual prior to submission. There should be documentation of the review such as a sign-off or initials. • Require that all vouchers and reports should be filed timely in accordance with the various grant agreements. • Require that correspondence be received from those agencies indicating that required reports per the written grant agreements are not necessary when applicable. • Ensure that the data collection form is filed the earlier of thirty (30) days after the report date or no later than nine months after the fiscal year-end. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.

Finding 2023-01 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers: 93.958 Block Grants for Community Mental Health Services 93.959 Block Grants for Prevention and Treatment Substance Abuse Federal Agency: U.S. Department of Health and Human Services Passthrough Agency: Illinois Department of Human Services Award Number/Year: 2023 Criteria Uniform Guidance requires that single audits be completed, and the reporting package submitted to the Federal Audit Clearinghouse within the earlier of thirty (30) calendar days after receipt of the auditor’s report or nine (9) months after the end of the audit period. Condition The Organization did not submit its audited financial statements and SEFA to the Federal Audit Clearinghouse website within nine (9) months of June 30, 2023. The Organization also didn’t submit its audited financial statements, SEFA, CYEFR and other required information to the GATA portal within six (6) months after June 30, 2023. This is a repeat finding (see Finding 2022-003 in the Summary of Prior Audit Findings). Cause This condition was due to the Organization being understaffed within its accounting and finance department resulting in a significant delay in completing the recording of financial transactions, performing account reconciliations and preparing financial reports available for audit. Effect The effect is that controls over the financial reporting process were weakened thereby increasing the risk that material misstatements could be included in the financial statements without management being aware. Additionally, noncompliance with financial reporting deadlines could cause funding sources for the Organization to delay providing funding for the current fiscal year. Questioned Costs None noted. Recommendation We recommend that management either 1) hire personnel within its accounting and finance department so that all defined tasks can be performed in a more timely manner or 2) evaluate its current processes to determine how to make them more efficient so that the current personnel within the accounting and finance department are able to complete their tasks in a more timely manner. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.

Finding 2023-02 Material Weakness in Internal Control Over Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Cash Management, Period of Performance and Reporting Assistance Listing Numbers 93.958 Block Grants for Community Mental Health Services 93.959 Block Grants for Prevention and Treatment Substance Abuse Federal Agency: U.S. Department of Health and Human Services Passthrough Agency: Illinois Department of Human Services Award Number/Year: 2023 Criteria The Organization is responsible for keeping an accurate accounting of all federal expenditures and maintaining all of the required documentation and reports in accordance with applicable federal regulations. Condition For AL No. 93.958, Block Grant for Community Mental Health Services, a sample of fourteen (14) expense transactions were tested for Activities Allowed or Unallowed, Allowable Costs/Cost Principles and Period of Performance. For AL No. 93.959, Block Grant for Prevention and Treatment of Substance Abuse, a sample of fourteen (14) expense transactions were tested for Activities Allowed or Unallowed, Allowable Costs/Cost Principles and Period of Performance. The Organization was not able to provide vendor invoices for any of the expense transactions selected for testing. We did note that the expense transaction details matched the appropriate vouchers for reimbursement and supporting documentation of vendor payment. It was also noted that one person prepared, reviewed and submitted all vouchers and reports which is an indication of improper segregation of duties. Cause The Organization did not follow its established policies and procedures which resulted in new accounting and grant administration personnel not knowing where appropriate documentation was stored so that it could be readily available when required. Effect The Organization is not in compliance with the Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Period of Performance requirements of its grant agreements within its federally funded programs as prescribed by Uniform Guidance. Questioned Costs See scope limitation. Repeat Finding Yes Recommendation We recommend that the Organization implement the following corrective actions: • Enforce its current specific internal control procedures to ensure compliance with applicable federal regulations. • Require that all personnel files have authorization and approval of current pay rates along with correspondence regarding to which grant an employee’s salary and fringe benefits should be expensed including any allocations if the employee worked on several grants. • Require that all expenses have proper invoices with approvals and should be organized within the Organization’s office. • Require that vouchers have all related invoices attached to them and be reconciled with monthly, quarterly and close-out financial reports. • Require that all vouchers and reports be prepared by one individual and independently reviewed and approved by a second individual prior to submission. There should be documentation of the review such as a sign-off or initials. • Require that all vouchers and reports should be filed timely in accordance with the various grant agreements. • Require that correspondence be received from those agencies indicating that required reports per the written grant agreements are not necessary when applicable. • Ensure that the data collection form is filed the earlier of thirty (30) days after the report date or no later than nine months after the fiscal year-end. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.

Finding 2023-01 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers: 93.958 Block Grants for Community Mental Health Services 93.959 Block Grants for Prevention and Treatment Substance Abuse Federal Agency: U.S. Department of Health and Human Services Passthrough Agency: Illinois Department of Human Services Award Number/Year: 2023 Criteria Uniform Guidance requires that single audits be completed, and the reporting package submitted to the Federal Audit Clearinghouse within the earlier of thirty (30) calendar days after receipt of the auditor’s report or nine (9) months after the end of the audit period. Condition The Organization did not submit its audited financial statements and SEFA to the Federal Audit Clearinghouse website within nine (9) months of June 30, 2023. The Organization also didn’t submit its audited financial statements, SEFA, CYEFR and other required information to the GATA portal within six (6) months after June 30, 2023. This is a repeat finding (see Finding 2022-003 in the Summary of Prior Audit Findings). Cause This condition was due to the Organization being understaffed within its accounting and finance department resulting in a significant delay in completing the recording of financial transactions, performing account reconciliations and preparing financial reports available for audit. Effect The effect is that controls over the financial reporting process were weakened thereby increasing the risk that material misstatements could be included in the financial statements without management being aware. Additionally, noncompliance with financial reporting deadlines could cause funding sources for the Organization to delay providing funding for the current fiscal year. Questioned Costs None noted. Recommendation We recommend that management either 1) hire personnel within its accounting and finance department so that all defined tasks can be performed in a more timely manner or 2) evaluate its current processes to determine how to make them more efficient so that the current personnel within the accounting and finance department are able to complete their tasks in a more timely manner. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.

Finding 2023-02 Material Weakness in Internal Control Over Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Cash Management, Period of Performance and Reporting Assistance Listing Numbers 93.958 Block Grants for Community Mental Health Services 93.959 Block Grants for Prevention and Treatment Substance Abuse Federal Agency: U.S. Department of Health and Human Services Passthrough Agency: Illinois Department of Human Services Award Number/Year: 2023 Criteria The Organization is responsible for keeping an accurate accounting of all federal expenditures and maintaining all of the required documentation and reports in accordance with applicable federal regulations. Condition For AL No. 93.958, Block Grant for Community Mental Health Services, a sample of fourteen (14) expense transactions were tested for Activities Allowed or Unallowed, Allowable Costs/Cost Principles and Period of Performance. For AL No. 93.959, Block Grant for Prevention and Treatment of Substance Abuse, a sample of fourteen (14) expense transactions were tested for Activities Allowed or Unallowed, Allowable Costs/Cost Principles and Period of Performance. The Organization was not able to provide vendor invoices for any of the expense transactions selected for testing. We did note that the expense transaction details matched the appropriate vouchers for reimbursement and supporting documentation of vendor payment. It was also noted that one person prepared, reviewed and submitted all vouchers and reports which is an indication of improper segregation of duties. Cause The Organization did not follow its established policies and procedures which resulted in new accounting and grant administration personnel not knowing where appropriate documentation was stored so that it could be readily available when required. Effect The Organization is not in compliance with the Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Period of Performance requirements of its grant agreements within its federally funded programs as prescribed by Uniform Guidance. Questioned Costs See scope limitation. Repeat Finding Yes Recommendation We recommend that the Organization implement the following corrective actions: • Enforce its current specific internal control procedures to ensure compliance with applicable federal regulations. • Require that all personnel files have authorization and approval of current pay rates along with correspondence regarding to which grant an employee’s salary and fringe benefits should be expensed including any allocations if the employee worked on several grants. • Require that all expenses have proper invoices with approvals and should be organized within the Organization’s office. • Require that vouchers have all related invoices attached to them and be reconciled with monthly, quarterly and close-out financial reports. • Require that all vouchers and reports be prepared by one individual and independently reviewed and approved by a second individual prior to submission. There should be documentation of the review such as a sign-off or initials. • Require that all vouchers and reports should be filed timely in accordance with the various grant agreements. • Require that correspondence be received from those agencies indicating that required reports per the written grant agreements are not necessary when applicable. • Ensure that the data collection form is filed the earlier of thirty (30) days after the report date or no later than nine months after the fiscal year-end. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.

Finding 2023-01 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers: 93.958 Block Grants for Community Mental Health Services 93.959 Block Grants for Prevention and Treatment Substance Abuse Federal Agency: U.S. Department of Health and Human Services Passthrough Agency: Illinois Department of Human Services Award Number/Year: 2023 Criteria Uniform Guidance requires that single audits be completed, and the reporting package submitted to the Federal Audit Clearinghouse within the earlier of thirty (30) calendar days after receipt of the auditor’s report or nine (9) months after the end of the audit period. Condition The Organization did not submit its audited financial statements and SEFA to the Federal Audit Clearinghouse website within nine (9) months of June 30, 2023. The Organization also didn’t submit its audited financial statements, SEFA, CYEFR and other required information to the GATA portal within six (6) months after June 30, 2023. This is a repeat finding (see Finding 2022-003 in the Summary of Prior Audit Findings). Cause This condition was due to the Organization being understaffed within its accounting and finance department resulting in a significant delay in completing the recording of financial transactions, performing account reconciliations and preparing financial reports available for audit. Effect The effect is that controls over the financial reporting process were weakened thereby increasing the risk that material misstatements could be included in the financial statements without management being aware. Additionally, noncompliance with financial reporting deadlines could cause funding sources for the Organization to delay providing funding for the current fiscal year. Questioned Costs None noted. Recommendation We recommend that management either 1) hire personnel within its accounting and finance department so that all defined tasks can be performed in a more timely manner or 2) evaluate its current processes to determine how to make them more efficient so that the current personnel within the accounting and finance department are able to complete their tasks in a more timely manner. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.

Finding 2023-02 Material Weakness in Internal Control Over Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Cash Management, Period of Performance and Reporting Assistance Listing Numbers 93.958 Block Grants for Community Mental Health Services 93.959 Block Grants for Prevention and Treatment Substance Abuse Federal Agency: U.S. Department of Health and Human Services Passthrough Agency: Illinois Department of Human Services Award Number/Year: 2023 Criteria The Organization is responsible for keeping an accurate accounting of all federal expenditures and maintaining all of the required documentation and reports in accordance with applicable federal regulations. Condition For AL No. 93.958, Block Grant for Community Mental Health Services, a sample of fourteen (14) expense transactions were tested for Activities Allowed or Unallowed, Allowable Costs/Cost Principles and Period of Performance. For AL No. 93.959, Block Grant for Prevention and Treatment of Substance Abuse, a sample of fourteen (14) expense transactions were tested for Activities Allowed or Unallowed, Allowable Costs/Cost Principles and Period of Performance. The Organization was not able to provide vendor invoices for any of the expense transactions selected for testing. We did note that the expense transaction details matched the appropriate vouchers for reimbursement and supporting documentation of vendor payment. It was also noted that one person prepared, reviewed and submitted all vouchers and reports which is an indication of improper segregation of duties. Cause The Organization did not follow its established policies and procedures which resulted in new accounting and grant administration personnel not knowing where appropriate documentation was stored so that it could be readily available when required. Effect The Organization is not in compliance with the Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Period of Performance requirements of its grant agreements within its federally funded programs as prescribed by Uniform Guidance. Questioned Costs See scope limitation. Repeat Finding Yes Recommendation We recommend that the Organization implement the following corrective actions: • Enforce its current specific internal control procedures to ensure compliance with applicable federal regulations. • Require that all personnel files have authorization and approval of current pay rates along with correspondence regarding to which grant an employee’s salary and fringe benefits should be expensed including any allocations if the employee worked on several grants. • Require that all expenses have proper invoices with approvals and should be organized within the Organization’s office. • Require that vouchers have all related invoices attached to them and be reconciled with monthly, quarterly and close-out financial reports. • Require that all vouchers and reports be prepared by one individual and independently reviewed and approved by a second individual prior to submission. There should be documentation of the review such as a sign-off or initials. • Require that all vouchers and reports should be filed timely in accordance with the various grant agreements. • Require that correspondence be received from those agencies indicating that required reports per the written grant agreements are not necessary when applicable. • Ensure that the data collection form is filed the earlier of thirty (30) days after the report date or no later than nine months after the fiscal year-end. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.

Finding 2023-01 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers: 93.958 Block Grants for Community Mental Health Services 93.959 Block Grants for Prevention and Treatment Substance Abuse Federal Agency: U.S. Department of Health and Human Services Passthrough Agency: Illinois Department of Human Services Award Number/Year: 2023 Criteria Uniform Guidance requires that single audits be completed, and the reporting package submitted to the Federal Audit Clearinghouse within the earlier of thirty (30) calendar days after receipt of the auditor’s report or nine (9) months after the end of the audit period. Condition The Organization did not submit its audited financial statements and SEFA to the Federal Audit Clearinghouse website within nine (9) months of June 30, 2023. The Organization also didn’t submit its audited financial statements, SEFA, CYEFR and other required information to the GATA portal within six (6) months after June 30, 2023. This is a repeat finding (see Finding 2022-003 in the Summary of Prior Audit Findings). Cause This condition was due to the Organization being understaffed within its accounting and finance department resulting in a significant delay in completing the recording of financial transactions, performing account reconciliations and preparing financial reports available for audit. Effect The effect is that controls over the financial reporting process were weakened thereby increasing the risk that material misstatements could be included in the financial statements without management being aware. Additionally, noncompliance with financial reporting deadlines could cause funding sources for the Organization to delay providing funding for the current fiscal year. Questioned Costs None noted. Recommendation We recommend that management either 1) hire personnel within its accounting and finance department so that all defined tasks can be performed in a more timely manner or 2) evaluate its current processes to determine how to make them more efficient so that the current personnel within the accounting and finance department are able to complete their tasks in a more timely manner. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.

Finding 2023-02 Material Weakness in Internal Control Over Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Cash Management, Period of Performance and Reporting Assistance Listing Numbers 93.958 Block Grants for Community Mental Health Services 93.959 Block Grants for Prevention and Treatment Substance Abuse Federal Agency: U.S. Department of Health and Human Services Passthrough Agency: Illinois Department of Human Services Award Number/Year: 2023 Criteria The Organization is responsible for keeping an accurate accounting of all federal expenditures and maintaining all of the required documentation and reports in accordance with applicable federal regulations. Condition For AL No. 93.958, Block Grant for Community Mental Health Services, a sample of fourteen (14) expense transactions were tested for Activities Allowed or Unallowed, Allowable Costs/Cost Principles and Period of Performance. For AL No. 93.959, Block Grant for Prevention and Treatment of Substance Abuse, a sample of fourteen (14) expense transactions were tested for Activities Allowed or Unallowed, Allowable Costs/Cost Principles and Period of Performance. The Organization was not able to provide vendor invoices for any of the expense transactions selected for testing. We did note that the expense transaction details matched the appropriate vouchers for reimbursement and supporting documentation of vendor payment. It was also noted that one person prepared, reviewed and submitted all vouchers and reports which is an indication of improper segregation of duties. Cause The Organization did not follow its established policies and procedures which resulted in new accounting and grant administration personnel not knowing where appropriate documentation was stored so that it could be readily available when required. Effect The Organization is not in compliance with the Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Period of Performance requirements of its grant agreements within its federally funded programs as prescribed by Uniform Guidance. Questioned Costs See scope limitation. Repeat Finding Yes Recommendation We recommend that the Organization implement the following corrective actions: • Enforce its current specific internal control procedures to ensure compliance with applicable federal regulations. • Require that all personnel files have authorization and approval of current pay rates along with correspondence regarding to which grant an employee’s salary and fringe benefits should be expensed including any allocations if the employee worked on several grants. • Require that all expenses have proper invoices with approvals and should be organized within the Organization’s office. • Require that vouchers have all related invoices attached to them and be reconciled with monthly, quarterly and close-out financial reports. • Require that all vouchers and reports be prepared by one individual and independently reviewed and approved by a second individual prior to submission. There should be documentation of the review such as a sign-off or initials. • Require that all vouchers and reports should be filed timely in accordance with the various grant agreements. • Require that correspondence be received from those agencies indicating that required reports per the written grant agreements are not necessary when applicable. • Ensure that the data collection form is filed the earlier of thirty (30) days after the report date or no later than nine months after the fiscal year-end. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.

Finding 2023-01 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers: 93.958 Block Grants for Community Mental Health Services 93.959 Block Grants for Prevention and Treatment Substance Abuse Federal Agency: U.S. Department of Health and Human Services Passthrough Agency: Illinois Department of Human Services Award Number/Year: 2023 Criteria Uniform Guidance requires that single audits be completed, and the reporting package submitted to the Federal Audit Clearinghouse within the earlier of thirty (30) calendar days after receipt of the auditor’s report or nine (9) months after the end of the audit period. Condition The Organization did not submit its audited financial statements and SEFA to the Federal Audit Clearinghouse website within nine (9) months of June 30, 2023. The Organization also didn’t submit its audited financial statements, SEFA, CYEFR and other required information to the GATA portal within six (6) months after June 30, 2023. This is a repeat finding (see Finding 2022-003 in the Summary of Prior Audit Findings). Cause This condition was due to the Organization being understaffed within its accounting and finance department resulting in a significant delay in completing the recording of financial transactions, performing account reconciliations and preparing financial reports available for audit. Effect The effect is that controls over the financial reporting process were weakened thereby increasing the risk that material misstatements could be included in the financial statements without management being aware. Additionally, noncompliance with financial reporting deadlines could cause funding sources for the Organization to delay providing funding for the current fiscal year. Questioned Costs None noted. Recommendation We recommend that management either 1) hire personnel within its accounting and finance department so that all defined tasks can be performed in a more timely manner or 2) evaluate its current processes to determine how to make them more efficient so that the current personnel within the accounting and finance department are able to complete their tasks in a more timely manner. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.

Finding 2023-02 Material Weakness in Internal Control Over Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Cash Management, Period of Performance and Reporting Assistance Listing Numbers 93.958 Block Grants for Community Mental Health Services 93.959 Block Grants for Prevention and Treatment Substance Abuse Federal Agency: U.S. Department of Health and Human Services Passthrough Agency: Illinois Department of Human Services Award Number/Year: 2023 Criteria The Organization is responsible for keeping an accurate accounting of all federal expenditures and maintaining all of the required documentation and reports in accordance with applicable federal regulations. Condition For AL No. 93.958, Block Grant for Community Mental Health Services, a sample of fourteen (14) expense transactions were tested for Activities Allowed or Unallowed, Allowable Costs/Cost Principles and Period of Performance. For AL No. 93.959, Block Grant for Prevention and Treatment of Substance Abuse, a sample of fourteen (14) expense transactions were tested for Activities Allowed or Unallowed, Allowable Costs/Cost Principles and Period of Performance. The Organization was not able to provide vendor invoices for any of the expense transactions selected for testing. We did note that the expense transaction details matched the appropriate vouchers for reimbursement and supporting documentation of vendor payment. It was also noted that one person prepared, reviewed and submitted all vouchers and reports which is an indication of improper segregation of duties. Cause The Organization did not follow its established policies and procedures which resulted in new accounting and grant administration personnel not knowing where appropriate documentation was stored so that it could be readily available when required. Effect The Organization is not in compliance with the Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Period of Performance requirements of its grant agreements within its federally funded programs as prescribed by Uniform Guidance. Questioned Costs See scope limitation. Repeat Finding Yes Recommendation We recommend that the Organization implement the following corrective actions: • Enforce its current specific internal control procedures to ensure compliance with applicable federal regulations. • Require that all personnel files have authorization and approval of current pay rates along with correspondence regarding to which grant an employee’s salary and fringe benefits should be expensed including any allocations if the employee worked on several grants. • Require that all expenses have proper invoices with approvals and should be organized within the Organization’s office. • Require that vouchers have all related invoices attached to them and be reconciled with monthly, quarterly and close-out financial reports. • Require that all vouchers and reports be prepared by one individual and independently reviewed and approved by a second individual prior to submission. There should be documentation of the review such as a sign-off or initials. • Require that all vouchers and reports should be filed timely in accordance with the various grant agreements. • Require that correspondence be received from those agencies indicating that required reports per the written grant agreements are not necessary when applicable. • Ensure that the data collection form is filed the earlier of thirty (30) days after the report date or no later than nine months after the fiscal year-end. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.

Finding 2023-01 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers: 93.958 Block Grants for Community Mental Health Services 93.959 Block Grants for Prevention and Treatment Substance Abuse Federal Agency: U.S. Department of Health and Human Services Passthrough Agency: Illinois Department of Human Services Award Number/Year: 2023 Criteria Uniform Guidance requires that single audits be completed, and the reporting package submitted to the Federal Audit Clearinghouse within the earlier of thirty (30) calendar days after receipt of the auditor’s report or nine (9) months after the end of the audit period. Condition The Organization did not submit its audited financial statements and SEFA to the Federal Audit Clearinghouse website within nine (9) months of June 30, 2023. The Organization also didn’t submit its audited financial statements, SEFA, CYEFR and other required information to the GATA portal within six (6) months after June 30, 2023. This is a repeat finding (see Finding 2022-003 in the Summary of Prior Audit Findings). Cause This condition was due to the Organization being understaffed within its accounting and finance department resulting in a significant delay in completing the recording of financial transactions, performing account reconciliations and preparing financial reports available for audit. Effect The effect is that controls over the financial reporting process were weakened thereby increasing the risk that material misstatements could be included in the financial statements without management being aware. Additionally, noncompliance with financial reporting deadlines could cause funding sources for the Organization to delay providing funding for the current fiscal year. Questioned Costs None noted. Recommendation We recommend that management either 1) hire personnel within its accounting and finance department so that all defined tasks can be performed in a more timely manner or 2) evaluate its current processes to determine how to make them more efficient so that the current personnel within the accounting and finance department are able to complete their tasks in a more timely manner. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.

Finding 2023-02 Material Weakness in Internal Control Over Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Cash Management, Period of Performance and Reporting Assistance Listing Numbers 93.958 Block Grants for Community Mental Health Services 93.959 Block Grants for Prevention and Treatment Substance Abuse Federal Agency: U.S. Department of Health and Human Services Passthrough Agency: Illinois Department of Human Services Award Number/Year: 2023 Criteria The Organization is responsible for keeping an accurate accounting of all federal expenditures and maintaining all of the required documentation and reports in accordance with applicable federal regulations. Condition For AL No. 93.958, Block Grant for Community Mental Health Services, a sample of fourteen (14) expense transactions were tested for Activities Allowed or Unallowed, Allowable Costs/Cost Principles and Period of Performance. For AL No. 93.959, Block Grant for Prevention and Treatment of Substance Abuse, a sample of fourteen (14) expense transactions were tested for Activities Allowed or Unallowed, Allowable Costs/Cost Principles and Period of Performance. The Organization was not able to provide vendor invoices for any of the expense transactions selected for testing. We did note that the expense transaction details matched the appropriate vouchers for reimbursement and supporting documentation of vendor payment. It was also noted that one person prepared, reviewed and submitted all vouchers and reports which is an indication of improper segregation of duties. Cause The Organization did not follow its established policies and procedures which resulted in new accounting and grant administration personnel not knowing where appropriate documentation was stored so that it could be readily available when required. Effect The Organization is not in compliance with the Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Period of Performance requirements of its grant agreements within its federally funded programs as prescribed by Uniform Guidance. Questioned Costs See scope limitation. Repeat Finding Yes Recommendation We recommend that the Organization implement the following corrective actions: • Enforce its current specific internal control procedures to ensure compliance with applicable federal regulations. • Require that all personnel files have authorization and approval of current pay rates along with correspondence regarding to which grant an employee’s salary and fringe benefits should be expensed including any allocations if the employee worked on several grants. • Require that all expenses have proper invoices with approvals and should be organized within the Organization’s office. • Require that vouchers have all related invoices attached to them and be reconciled with monthly, quarterly and close-out financial reports. • Require that all vouchers and reports be prepared by one individual and independently reviewed and approved by a second individual prior to submission. There should be documentation of the review such as a sign-off or initials. • Require that all vouchers and reports should be filed timely in accordance with the various grant agreements. • Require that correspondence be received from those agencies indicating that required reports per the written grant agreements are not necessary when applicable. • Ensure that the data collection form is filed the earlier of thirty (30) days after the report date or no later than nine months after the fiscal year-end. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.

Finding 2023-01 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers: 93.958 Block Grants for Community Mental Health Services 93.959 Block Grants for Prevention and Treatment Substance Abuse Federal Agency: U.S. Department of Health and Human Services Passthrough Agency: Illinois Department of Human Services Award Number/Year: 2023 Criteria Uniform Guidance requires that single audits be completed, and the reporting package submitted to the Federal Audit Clearinghouse within the earlier of thirty (30) calendar days after receipt of the auditor’s report or nine (9) months after the end of the audit period. Condition The Organization did not submit its audited financial statements and SEFA to the Federal Audit Clearinghouse website within nine (9) months of June 30, 2023. The Organization also didn’t submit its audited financial statements, SEFA, CYEFR and other required information to the GATA portal within six (6) months after June 30, 2023. This is a repeat finding (see Finding 2022-003 in the Summary of Prior Audit Findings). Cause This condition was due to the Organization being understaffed within its accounting and finance department resulting in a significant delay in completing the recording of financial transactions, performing account reconciliations and preparing financial reports available for audit. Effect The effect is that controls over the financial reporting process were weakened thereby increasing the risk that material misstatements could be included in the financial statements without management being aware. Additionally, noncompliance with financial reporting deadlines could cause funding sources for the Organization to delay providing funding for the current fiscal year. Questioned Costs None noted. Recommendation We recommend that management either 1) hire personnel within its accounting and finance department so that all defined tasks can be performed in a more timely manner or 2) evaluate its current processes to determine how to make them more efficient so that the current personnel within the accounting and finance department are able to complete their tasks in a more timely manner. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.

Finding 2023-02 Material Weakness in Internal Control Over Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Cash Management, Period of Performance and Reporting Assistance Listing Numbers 93.958 Block Grants for Community Mental Health Services 93.959 Block Grants for Prevention and Treatment Substance Abuse Federal Agency: U.S. Department of Health and Human Services Passthrough Agency: Illinois Department of Human Services Award Number/Year: 2023 Criteria The Organization is responsible for keeping an accurate accounting of all federal expenditures and maintaining all of the required documentation and reports in accordance with applicable federal regulations. Condition For AL No. 93.958, Block Grant for Community Mental Health Services, a sample of fourteen (14) expense transactions were tested for Activities Allowed or Unallowed, Allowable Costs/Cost Principles and Period of Performance. For AL No. 93.959, Block Grant for Prevention and Treatment of Substance Abuse, a sample of fourteen (14) expense transactions were tested for Activities Allowed or Unallowed, Allowable Costs/Cost Principles and Period of Performance. The Organization was not able to provide vendor invoices for any of the expense transactions selected for testing. We did note that the expense transaction details matched the appropriate vouchers for reimbursement and supporting documentation of vendor payment. It was also noted that one person prepared, reviewed and submitted all vouchers and reports which is an indication of improper segregation of duties. Cause The Organization did not follow its established policies and procedures which resulted in new accounting and grant administration personnel not knowing where appropriate documentation was stored so that it could be readily available when required. Effect The Organization is not in compliance with the Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Period of Performance requirements of its grant agreements within its federally funded programs as prescribed by Uniform Guidance. Questioned Costs See scope limitation. Repeat Finding Yes Recommendation We recommend that the Organization implement the following corrective actions: • Enforce its current specific internal control procedures to ensure compliance with applicable federal regulations. • Require that all personnel files have authorization and approval of current pay rates along with correspondence regarding to which grant an employee’s salary and fringe benefits should be expensed including any allocations if the employee worked on several grants. • Require that all expenses have proper invoices with approvals and should be organized within the Organization’s office. • Require that vouchers have all related invoices attached to them and be reconciled with monthly, quarterly and close-out financial reports. • Require that all vouchers and reports be prepared by one individual and independently reviewed and approved by a second individual prior to submission. There should be documentation of the review such as a sign-off or initials. • Require that all vouchers and reports should be filed timely in accordance with the various grant agreements. • Require that correspondence be received from those agencies indicating that required reports per the written grant agreements are not necessary when applicable. • Ensure that the data collection form is filed the earlier of thirty (30) days after the report date or no later than nine months after the fiscal year-end. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.

Finding 2023-01 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers: 93.958 Block Grants for Community Mental Health Services 93.959 Block Grants for Prevention and Treatment Substance Abuse Federal Agency: U.S. Department of Health and Human Services Passthrough Agency: Illinois Department of Human Services Award Number/Year: 2023 Criteria Uniform Guidance requires that single audits be completed, and the reporting package submitted to the Federal Audit Clearinghouse within the earlier of thirty (30) calendar days after receipt of the auditor’s report or nine (9) months after the end of the audit period. Condition The Organization did not submit its audited financial statements and SEFA to the Federal Audit Clearinghouse website within nine (9) months of June 30, 2023. The Organization also didn’t submit its audited financial statements, SEFA, CYEFR and other required information to the GATA portal within six (6) months after June 30, 2023. This is a repeat finding (see Finding 2022-003 in the Summary of Prior Audit Findings). Cause This condition was due to the Organization being understaffed within its accounting and finance department resulting in a significant delay in completing the recording of financial transactions, performing account reconciliations and preparing financial reports available for audit. Effect The effect is that controls over the financial reporting process were weakened thereby increasing the risk that material misstatements could be included in the financial statements without management being aware. Additionally, noncompliance with financial reporting deadlines could cause funding sources for the Organization to delay providing funding for the current fiscal year. Questioned Costs None noted. Recommendation We recommend that management either 1) hire personnel within its accounting and finance department so that all defined tasks can be performed in a more timely manner or 2) evaluate its current processes to determine how to make them more efficient so that the current personnel within the accounting and finance department are able to complete their tasks in a more timely manner. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.

Finding 2023-02 Material Weakness in Internal Control Over Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Cash Management, Period of Performance and Reporting Assistance Listing Numbers 93.958 Block Grants for Community Mental Health Services 93.959 Block Grants for Prevention and Treatment Substance Abuse Federal Agency: U.S. Department of Health and Human Services Passthrough Agency: Illinois Department of Human Services Award Number/Year: 2023 Criteria The Organization is responsible for keeping an accurate accounting of all federal expenditures and maintaining all of the required documentation and reports in accordance with applicable federal regulations. Condition For AL No. 93.958, Block Grant for Community Mental Health Services, a sample of fourteen (14) expense transactions were tested for Activities Allowed or Unallowed, Allowable Costs/Cost Principles and Period of Performance. For AL No. 93.959, Block Grant for Prevention and Treatment of Substance Abuse, a sample of fourteen (14) expense transactions were tested for Activities Allowed or Unallowed, Allowable Costs/Cost Principles and Period of Performance. The Organization was not able to provide vendor invoices for any of the expense transactions selected for testing. We did note that the expense transaction details matched the appropriate vouchers for reimbursement and supporting documentation of vendor payment. It was also noted that one person prepared, reviewed and submitted all vouchers and reports which is an indication of improper segregation of duties. Cause The Organization did not follow its established policies and procedures which resulted in new accounting and grant administration personnel not knowing where appropriate documentation was stored so that it could be readily available when required. Effect The Organization is not in compliance with the Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Period of Performance requirements of its grant agreements within its federally funded programs as prescribed by Uniform Guidance. Questioned Costs See scope limitation. Repeat Finding Yes Recommendation We recommend that the Organization implement the following corrective actions: • Enforce its current specific internal control procedures to ensure compliance with applicable federal regulations. • Require that all personnel files have authorization and approval of current pay rates along with correspondence regarding to which grant an employee’s salary and fringe benefits should be expensed including any allocations if the employee worked on several grants. • Require that all expenses have proper invoices with approvals and should be organized within the Organization’s office. • Require that vouchers have all related invoices attached to them and be reconciled with monthly, quarterly and close-out financial reports. • Require that all vouchers and reports be prepared by one individual and independently reviewed and approved by a second individual prior to submission. There should be documentation of the review such as a sign-off or initials. • Require that all vouchers and reports should be filed timely in accordance with the various grant agreements. • Require that correspondence be received from those agencies indicating that required reports per the written grant agreements are not necessary when applicable. • Ensure that the data collection form is filed the earlier of thirty (30) days after the report date or no later than nine months after the fiscal year-end. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.

Finding 2023-01 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers: 93.958 Block Grants for Community Mental Health Services 93.959 Block Grants for Prevention and Treatment Substance Abuse Federal Agency: U.S. Department of Health and Human Services Passthrough Agency: Illinois Department of Human Services Award Number/Year: 2023 Criteria Uniform Guidance requires that single audits be completed, and the reporting package submitted to the Federal Audit Clearinghouse within the earlier of thirty (30) calendar days after receipt of the auditor’s report or nine (9) months after the end of the audit period. Condition The Organization did not submit its audited financial statements and SEFA to the Federal Audit Clearinghouse website within nine (9) months of June 30, 2023. The Organization also didn’t submit its audited financial statements, SEFA, CYEFR and other required information to the GATA portal within six (6) months after June 30, 2023. This is a repeat finding (see Finding 2022-003 in the Summary of Prior Audit Findings). Cause This condition was due to the Organization being understaffed within its accounting and finance department resulting in a significant delay in completing the recording of financial transactions, performing account reconciliations and preparing financial reports available for audit. Effect The effect is that controls over the financial reporting process were weakened thereby increasing the risk that material misstatements could be included in the financial statements without management being aware. Additionally, noncompliance with financial reporting deadlines could cause funding sources for the Organization to delay providing funding for the current fiscal year. Questioned Costs None noted. Recommendation We recommend that management either 1) hire personnel within its accounting and finance department so that all defined tasks can be performed in a more timely manner or 2) evaluate its current processes to determine how to make them more efficient so that the current personnel within the accounting and finance department are able to complete their tasks in a more timely manner. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.

Finding 2023-02 Material Weakness in Internal Control Over Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Cash Management, Period of Performance and Reporting Assistance Listing Numbers 93.958 Block Grants for Community Mental Health Services 93.959 Block Grants for Prevention and Treatment Substance Abuse Federal Agency: U.S. Department of Health and Human Services Passthrough Agency: Illinois Department of Human Services Award Number/Year: 2023 Criteria The Organization is responsible for keeping an accurate accounting of all federal expenditures and maintaining all of the required documentation and reports in accordance with applicable federal regulations. Condition For AL No. 93.958, Block Grant for Community Mental Health Services, a sample of fourteen (14) expense transactions were tested for Activities Allowed or Unallowed, Allowable Costs/Cost Principles and Period of Performance. For AL No. 93.959, Block Grant for Prevention and Treatment of Substance Abuse, a sample of fourteen (14) expense transactions were tested for Activities Allowed or Unallowed, Allowable Costs/Cost Principles and Period of Performance. The Organization was not able to provide vendor invoices for any of the expense transactions selected for testing. We did note that the expense transaction details matched the appropriate vouchers for reimbursement and supporting documentation of vendor payment. It was also noted that one person prepared, reviewed and submitted all vouchers and reports which is an indication of improper segregation of duties. Cause The Organization did not follow its established policies and procedures which resulted in new accounting and grant administration personnel not knowing where appropriate documentation was stored so that it could be readily available when required. Effect The Organization is not in compliance with the Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Period of Performance requirements of its grant agreements within its federally funded programs as prescribed by Uniform Guidance. Questioned Costs See scope limitation. Repeat Finding Yes Recommendation We recommend that the Organization implement the following corrective actions: • Enforce its current specific internal control procedures to ensure compliance with applicable federal regulations. • Require that all personnel files have authorization and approval of current pay rates along with correspondence regarding to which grant an employee’s salary and fringe benefits should be expensed including any allocations if the employee worked on several grants. • Require that all expenses have proper invoices with approvals and should be organized within the Organization’s office. • Require that vouchers have all related invoices attached to them and be reconciled with monthly, quarterly and close-out financial reports. • Require that all vouchers and reports be prepared by one individual and independently reviewed and approved by a second individual prior to submission. There should be documentation of the review such as a sign-off or initials. • Require that all vouchers and reports should be filed timely in accordance with the various grant agreements. • Require that correspondence be received from those agencies indicating that required reports per the written grant agreements are not necessary when applicable. • Ensure that the data collection form is filed the earlier of thirty (30) days after the report date or no later than nine months after the fiscal year-end. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.

Finding 2023-01 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers: 93.958 Block Grants for Community Mental Health Services 93.959 Block Grants for Prevention and Treatment Substance Abuse Federal Agency: U.S. Department of Health and Human Services Passthrough Agency: Illinois Department of Human Services Award Number/Year: 2023 Criteria Uniform Guidance requires that single audits be completed, and the reporting package submitted to the Federal Audit Clearinghouse within the earlier of thirty (30) calendar days after receipt of the auditor’s report or nine (9) months after the end of the audit period. Condition The Organization did not submit its audited financial statements and SEFA to the Federal Audit Clearinghouse website within nine (9) months of June 30, 2023. The Organization also didn’t submit its audited financial statements, SEFA, CYEFR and other required information to the GATA portal within six (6) months after June 30, 2023. This is a repeat finding (see Finding 2022-003 in the Summary of Prior Audit Findings). Cause This condition was due to the Organization being understaffed within its accounting and finance department resulting in a significant delay in completing the recording of financial transactions, performing account reconciliations and preparing financial reports available for audit. Effect The effect is that controls over the financial reporting process were weakened thereby increasing the risk that material misstatements could be included in the financial statements without management being aware. Additionally, noncompliance with financial reporting deadlines could cause funding sources for the Organization to delay providing funding for the current fiscal year. Questioned Costs None noted. Recommendation We recommend that management either 1) hire personnel within its accounting and finance department so that all defined tasks can be performed in a more timely manner or 2) evaluate its current processes to determine how to make them more efficient so that the current personnel within the accounting and finance department are able to complete their tasks in a more timely manner. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.

Finding 2023-02 Material Weakness in Internal Control Over Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Cash Management, Period of Performance and Reporting Assistance Listing Numbers 93.958 Block Grants for Community Mental Health Services 93.959 Block Grants for Prevention and Treatment Substance Abuse Federal Agency: U.S. Department of Health and Human Services Passthrough Agency: Illinois Department of Human Services Award Number/Year: 2023 Criteria The Organization is responsible for keeping an accurate accounting of all federal expenditures and maintaining all of the required documentation and reports in accordance with applicable federal regulations. Condition For AL No. 93.958, Block Grant for Community Mental Health Services, a sample of fourteen (14) expense transactions were tested for Activities Allowed or Unallowed, Allowable Costs/Cost Principles and Period of Performance. For AL No. 93.959, Block Grant for Prevention and Treatment of Substance Abuse, a sample of fourteen (14) expense transactions were tested for Activities Allowed or Unallowed, Allowable Costs/Cost Principles and Period of Performance. The Organization was not able to provide vendor invoices for any of the expense transactions selected for testing. We did note that the expense transaction details matched the appropriate vouchers for reimbursement and supporting documentation of vendor payment. It was also noted that one person prepared, reviewed and submitted all vouchers and reports which is an indication of improper segregation of duties. Cause The Organization did not follow its established policies and procedures which resulted in new accounting and grant administration personnel not knowing where appropriate documentation was stored so that it could be readily available when required. Effect The Organization is not in compliance with the Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Period of Performance requirements of its grant agreements within its federally funded programs as prescribed by Uniform Guidance. Questioned Costs See scope limitation. Repeat Finding Yes Recommendation We recommend that the Organization implement the following corrective actions: • Enforce its current specific internal control procedures to ensure compliance with applicable federal regulations. • Require that all personnel files have authorization and approval of current pay rates along with correspondence regarding to which grant an employee’s salary and fringe benefits should be expensed including any allocations if the employee worked on several grants. • Require that all expenses have proper invoices with approvals and should be organized within the Organization’s office. • Require that vouchers have all related invoices attached to them and be reconciled with monthly, quarterly and close-out financial reports. • Require that all vouchers and reports be prepared by one individual and independently reviewed and approved by a second individual prior to submission. There should be documentation of the review such as a sign-off or initials. • Require that all vouchers and reports should be filed timely in accordance with the various grant agreements. • Require that correspondence be received from those agencies indicating that required reports per the written grant agreements are not necessary when applicable. • Ensure that the data collection form is filed the earlier of thirty (30) days after the report date or no later than nine months after the fiscal year-end. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.

Finding 2023-01 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers: 93.958 Block Grants for Community Mental Health Services 93.959 Block Grants for Prevention and Treatment Substance Abuse Federal Agency: U.S. Department of Health and Human Services Passthrough Agency: Illinois Department of Human Services Award Number/Year: 2023 Criteria Uniform Guidance requires that single audits be completed, and the reporting package submitted to the Federal Audit Clearinghouse within the earlier of thirty (30) calendar days after receipt of the auditor’s report or nine (9) months after the end of the audit period. Condition The Organization did not submit its audited financial statements and SEFA to the Federal Audit Clearinghouse website within nine (9) months of June 30, 2023. The Organization also didn’t submit its audited financial statements, SEFA, CYEFR and other required information to the GATA portal within six (6) months after June 30, 2023. This is a repeat finding (see Finding 2022-003 in the Summary of Prior Audit Findings). Cause This condition was due to the Organization being understaffed within its accounting and finance department resulting in a significant delay in completing the recording of financial transactions, performing account reconciliations and preparing financial reports available for audit. Effect The effect is that controls over the financial reporting process were weakened thereby increasing the risk that material misstatements could be included in the financial statements without management being aware. Additionally, noncompliance with financial reporting deadlines could cause funding sources for the Organization to delay providing funding for the current fiscal year. Questioned Costs None noted. Recommendation We recommend that management either 1) hire personnel within its accounting and finance department so that all defined tasks can be performed in a more timely manner or 2) evaluate its current processes to determine how to make them more efficient so that the current personnel within the accounting and finance department are able to complete their tasks in a more timely manner. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.

Finding 2023-02 Material Weakness in Internal Control Over Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Cash Management, Period of Performance and Reporting Assistance Listing Numbers 93.958 Block Grants for Community Mental Health Services 93.959 Block Grants for Prevention and Treatment Substance Abuse Federal Agency: U.S. Department of Health and Human Services Passthrough Agency: Illinois Department of Human Services Award Number/Year: 2023 Criteria The Organization is responsible for keeping an accurate accounting of all federal expenditures and maintaining all of the required documentation and reports in accordance with applicable federal regulations. Condition For AL No. 93.958, Block Grant for Community Mental Health Services, a sample of fourteen (14) expense transactions were tested for Activities Allowed or Unallowed, Allowable Costs/Cost Principles and Period of Performance. For AL No. 93.959, Block Grant for Prevention and Treatment of Substance Abuse, a sample of fourteen (14) expense transactions were tested for Activities Allowed or Unallowed, Allowable Costs/Cost Principles and Period of Performance. The Organization was not able to provide vendor invoices for any of the expense transactions selected for testing. We did note that the expense transaction details matched the appropriate vouchers for reimbursement and supporting documentation of vendor payment. It was also noted that one person prepared, reviewed and submitted all vouchers and reports which is an indication of improper segregation of duties. Cause The Organization did not follow its established policies and procedures which resulted in new accounting and grant administration personnel not knowing where appropriate documentation was stored so that it could be readily available when required. Effect The Organization is not in compliance with the Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Period of Performance requirements of its grant agreements within its federally funded programs as prescribed by Uniform Guidance. Questioned Costs See scope limitation. Repeat Finding Yes Recommendation We recommend that the Organization implement the following corrective actions: • Enforce its current specific internal control procedures to ensure compliance with applicable federal regulations. • Require that all personnel files have authorization and approval of current pay rates along with correspondence regarding to which grant an employee’s salary and fringe benefits should be expensed including any allocations if the employee worked on several grants. • Require that all expenses have proper invoices with approvals and should be organized within the Organization’s office. • Require that vouchers have all related invoices attached to them and be reconciled with monthly, quarterly and close-out financial reports. • Require that all vouchers and reports be prepared by one individual and independently reviewed and approved by a second individual prior to submission. There should be documentation of the review such as a sign-off or initials. • Require that all vouchers and reports should be filed timely in accordance with the various grant agreements. • Require that correspondence be received from those agencies indicating that required reports per the written grant agreements are not necessary when applicable. • Ensure that the data collection form is filed the earlier of thirty (30) days after the report date or no later than nine months after the fiscal year-end. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.

Finding 2023-01 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers: 93.958 Block Grants for Community Mental Health Services 93.959 Block Grants for Prevention and Treatment Substance Abuse Federal Agency: U.S. Department of Health and Human Services Passthrough Agency: Illinois Department of Human Services Award Number/Year: 2023 Criteria Uniform Guidance requires that single audits be completed, and the reporting package submitted to the Federal Audit Clearinghouse within the earlier of thirty (30) calendar days after receipt of the auditor’s report or nine (9) months after the end of the audit period. Condition The Organization did not submit its audited financial statements and SEFA to the Federal Audit Clearinghouse website within nine (9) months of June 30, 2023. The Organization also didn’t submit its audited financial statements, SEFA, CYEFR and other required information to the GATA portal within six (6) months after June 30, 2023. This is a repeat finding (see Finding 2022-003 in the Summary of Prior Audit Findings). Cause This condition was due to the Organization being understaffed within its accounting and finance department resulting in a significant delay in completing the recording of financial transactions, performing account reconciliations and preparing financial reports available for audit. Effect The effect is that controls over the financial reporting process were weakened thereby increasing the risk that material misstatements could be included in the financial statements without management being aware. Additionally, noncompliance with financial reporting deadlines could cause funding sources for the Organization to delay providing funding for the current fiscal year. Questioned Costs None noted. Recommendation We recommend that management either 1) hire personnel within its accounting and finance department so that all defined tasks can be performed in a more timely manner or 2) evaluate its current processes to determine how to make them more efficient so that the current personnel within the accounting and finance department are able to complete their tasks in a more timely manner. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.

Finding 2023-02 Material Weakness in Internal Control Over Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Cash Management, Period of Performance and Reporting Assistance Listing Numbers 93.958 Block Grants for Community Mental Health Services 93.959 Block Grants for Prevention and Treatment Substance Abuse Federal Agency: U.S. Department of Health and Human Services Passthrough Agency: Illinois Department of Human Services Award Number/Year: 2023 Criteria The Organization is responsible for keeping an accurate accounting of all federal expenditures and maintaining all of the required documentation and reports in accordance with applicable federal regulations. Condition For AL No. 93.958, Block Grant for Community Mental Health Services, a sample of fourteen (14) expense transactions were tested for Activities Allowed or Unallowed, Allowable Costs/Cost Principles and Period of Performance. For AL No. 93.959, Block Grant for Prevention and Treatment of Substance Abuse, a sample of fourteen (14) expense transactions were tested for Activities Allowed or Unallowed, Allowable Costs/Cost Principles and Period of Performance. The Organization was not able to provide vendor invoices for any of the expense transactions selected for testing. We did note that the expense transaction details matched the appropriate vouchers for reimbursement and supporting documentation of vendor payment. It was also noted that one person prepared, reviewed and submitted all vouchers and reports which is an indication of improper segregation of duties. Cause The Organization did not follow its established policies and procedures which resulted in new accounting and grant administration personnel not knowing where appropriate documentation was stored so that it could be readily available when required. Effect The Organization is not in compliance with the Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Period of Performance requirements of its grant agreements within its federally funded programs as prescribed by Uniform Guidance. Questioned Costs See scope limitation. Repeat Finding Yes Recommendation We recommend that the Organization implement the following corrective actions: • Enforce its current specific internal control procedures to ensure compliance with applicable federal regulations. • Require that all personnel files have authorization and approval of current pay rates along with correspondence regarding to which grant an employee’s salary and fringe benefits should be expensed including any allocations if the employee worked on several grants. • Require that all expenses have proper invoices with approvals and should be organized within the Organization’s office. • Require that vouchers have all related invoices attached to them and be reconciled with monthly, quarterly and close-out financial reports. • Require that all vouchers and reports be prepared by one individual and independently reviewed and approved by a second individual prior to submission. There should be documentation of the review such as a sign-off or initials. • Require that all vouchers and reports should be filed timely in accordance with the various grant agreements. • Require that correspondence be received from those agencies indicating that required reports per the written grant agreements are not necessary when applicable. • Ensure that the data collection form is filed the earlier of thirty (30) days after the report date or no later than nine months after the fiscal year-end. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.

Finding 2023-01 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers: 93.958 Block Grants for Community Mental Health Services 93.959 Block Grants for Prevention and Treatment Substance Abuse Federal Agency: U.S. Department of Health and Human Services Passthrough Agency: Illinois Department of Human Services Award Number/Year: 2023 Criteria Uniform Guidance requires that single audits be completed, and the reporting package submitted to the Federal Audit Clearinghouse within the earlier of thirty (30) calendar days after receipt of the auditor’s report or nine (9) months after the end of the audit period. Condition The Organization did not submit its audited financial statements and SEFA to the Federal Audit Clearinghouse website within nine (9) months of June 30, 2023. The Organization also didn’t submit its audited financial statements, SEFA, CYEFR and other required information to the GATA portal within six (6) months after June 30, 2023. This is a repeat finding (see Finding 2022-003 in the Summary of Prior Audit Findings). Cause This condition was due to the Organization being understaffed within its accounting and finance department resulting in a significant delay in completing the recording of financial transactions, performing account reconciliations and preparing financial reports available for audit. Effect The effect is that controls over the financial reporting process were weakened thereby increasing the risk that material misstatements could be included in the financial statements without management being aware. Additionally, noncompliance with financial reporting deadlines could cause funding sources for the Organization to delay providing funding for the current fiscal year. Questioned Costs None noted. Recommendation We recommend that management either 1) hire personnel within its accounting and finance department so that all defined tasks can be performed in a more timely manner or 2) evaluate its current processes to determine how to make them more efficient so that the current personnel within the accounting and finance department are able to complete their tasks in a more timely manner. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.

Finding 2023-02 Material Weakness in Internal Control Over Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Cash Management, Period of Performance and Reporting Assistance Listing Numbers 93.958 Block Grants for Community Mental Health Services 93.959 Block Grants for Prevention and Treatment Substance Abuse Federal Agency: U.S. Department of Health and Human Services Passthrough Agency: Illinois Department of Human Services Award Number/Year: 2023 Criteria The Organization is responsible for keeping an accurate accounting of all federal expenditures and maintaining all of the required documentation and reports in accordance with applicable federal regulations. Condition For AL No. 93.958, Block Grant for Community Mental Health Services, a sample of fourteen (14) expense transactions were tested for Activities Allowed or Unallowed, Allowable Costs/Cost Principles and Period of Performance. For AL No. 93.959, Block Grant for Prevention and Treatment of Substance Abuse, a sample of fourteen (14) expense transactions were tested for Activities Allowed or Unallowed, Allowable Costs/Cost Principles and Period of Performance. The Organization was not able to provide vendor invoices for any of the expense transactions selected for testing. We did note that the expense transaction details matched the appropriate vouchers for reimbursement and supporting documentation of vendor payment. It was also noted that one person prepared, reviewed and submitted all vouchers and reports which is an indication of improper segregation of duties. Cause The Organization did not follow its established policies and procedures which resulted in new accounting and grant administration personnel not knowing where appropriate documentation was stored so that it could be readily available when required. Effect The Organization is not in compliance with the Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Period of Performance requirements of its grant agreements within its federally funded programs as prescribed by Uniform Guidance. Questioned Costs See scope limitation. Repeat Finding Yes Recommendation We recommend that the Organization implement the following corrective actions: • Enforce its current specific internal control procedures to ensure compliance with applicable federal regulations. • Require that all personnel files have authorization and approval of current pay rates along with correspondence regarding to which grant an employee’s salary and fringe benefits should be expensed including any allocations if the employee worked on several grants. • Require that all expenses have proper invoices with approvals and should be organized within the Organization’s office. • Require that vouchers have all related invoices attached to them and be reconciled with monthly, quarterly and close-out financial reports. • Require that all vouchers and reports be prepared by one individual and independently reviewed and approved by a second individual prior to submission. There should be documentation of the review such as a sign-off or initials. • Require that all vouchers and reports should be filed timely in accordance with the various grant agreements. • Require that correspondence be received from those agencies indicating that required reports per the written grant agreements are not necessary when applicable. • Ensure that the data collection form is filed the earlier of thirty (30) days after the report date or no later than nine months after the fiscal year-end. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.

Finding 2023-01 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers: 93.958 Block Grants for Community Mental Health Services 93.959 Block Grants for Prevention and Treatment Substance Abuse Federal Agency: U.S. Department of Health and Human Services Passthrough Agency: Illinois Department of Human Services Award Number/Year: 2023 Criteria Uniform Guidance requires that single audits be completed, and the reporting package submitted to the Federal Audit Clearinghouse within the earlier of thirty (30) calendar days after receipt of the auditor’s report or nine (9) months after the end of the audit period. Condition The Organization did not submit its audited financial statements and SEFA to the Federal Audit Clearinghouse website within nine (9) months of June 30, 2023. The Organization also didn’t submit its audited financial statements, SEFA, CYEFR and other required information to the GATA portal within six (6) months after June 30, 2023. This is a repeat finding (see Finding 2022-003 in the Summary of Prior Audit Findings). Cause This condition was due to the Organization being understaffed within its accounting and finance department resulting in a significant delay in completing the recording of financial transactions, performing account reconciliations and preparing financial reports available for audit. Effect The effect is that controls over the financial reporting process were weakened thereby increasing the risk that material misstatements could be included in the financial statements without management being aware. Additionally, noncompliance with financial reporting deadlines could cause funding sources for the Organization to delay providing funding for the current fiscal year. Questioned Costs None noted. Recommendation We recommend that management either 1) hire personnel within its accounting and finance department so that all defined tasks can be performed in a more timely manner or 2) evaluate its current processes to determine how to make them more efficient so that the current personnel within the accounting and finance department are able to complete their tasks in a more timely manner. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.

Finding 2023-02 Material Weakness in Internal Control Over Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Cash Management, Period of Performance and Reporting Assistance Listing Numbers 93.958 Block Grants for Community Mental Health Services 93.959 Block Grants for Prevention and Treatment Substance Abuse Federal Agency: U.S. Department of Health and Human Services Passthrough Agency: Illinois Department of Human Services Award Number/Year: 2023 Criteria The Organization is responsible for keeping an accurate accounting of all federal expenditures and maintaining all of the required documentation and reports in accordance with applicable federal regulations. Condition For AL No. 93.958, Block Grant for Community Mental Health Services, a sample of fourteen (14) expense transactions were tested for Activities Allowed or Unallowed, Allowable Costs/Cost Principles and Period of Performance. For AL No. 93.959, Block Grant for Prevention and Treatment of Substance Abuse, a sample of fourteen (14) expense transactions were tested for Activities Allowed or Unallowed, Allowable Costs/Cost Principles and Period of Performance. The Organization was not able to provide vendor invoices for any of the expense transactions selected for testing. We did note that the expense transaction details matched the appropriate vouchers for reimbursement and supporting documentation of vendor payment. It was also noted that one person prepared, reviewed and submitted all vouchers and reports which is an indication of improper segregation of duties. Cause The Organization did not follow its established policies and procedures which resulted in new accounting and grant administration personnel not knowing where appropriate documentation was stored so that it could be readily available when required. Effect The Organization is not in compliance with the Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Period of Performance requirements of its grant agreements within its federally funded programs as prescribed by Uniform Guidance. Questioned Costs See scope limitation. Repeat Finding Yes Recommendation We recommend that the Organization implement the following corrective actions: • Enforce its current specific internal control procedures to ensure compliance with applicable federal regulations. • Require that all personnel files have authorization and approval of current pay rates along with correspondence regarding to which grant an employee’s salary and fringe benefits should be expensed including any allocations if the employee worked on several grants. • Require that all expenses have proper invoices with approvals and should be organized within the Organization’s office. • Require that vouchers have all related invoices attached to them and be reconciled with monthly, quarterly and close-out financial reports. • Require that all vouchers and reports be prepared by one individual and independently reviewed and approved by a second individual prior to submission. There should be documentation of the review such as a sign-off or initials. • Require that all vouchers and reports should be filed timely in accordance with the various grant agreements. • Require that correspondence be received from those agencies indicating that required reports per the written grant agreements are not necessary when applicable. • Ensure that the data collection form is filed the earlier of thirty (30) days after the report date or no later than nine months after the fiscal year-end. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.