2023- 009 – Allocation and Documentation of Payroll Costs
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services and CARES
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2022 through December 31, 2023
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
Under allowable cost/cost principles, an organization in receipt of federal funding is required to have a system of controls in place to safeguard assets and ensure that only allowable costs are charged to federal programs. 2 CFR Part 200 states that changes to awards for salaries and wages are to be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated.
Condition:
In testing a sample of 40 payroll items, we identified the following:
• 5 out of the 40 transactions tested did not have proper timesheet approval.
• 23 out of the 40 transactions tested did not have proper approved pay rates.
• 31 out of the 40 transactions tested did not have supporting documentation for the specific employee’s payroll allocation.
• Several payroll registers including these payroll transactions (noted above) were not reviewed and approved prior to final payroll processing and submission. Considered a finding for 24/40 employees.
• Time and effort was not documented for all employees tested.
Questioned Costs:
$-0-
Context:
Payroll transactions are not being properly documented, reviewed and approved throughout the payroll process.
Cause:
Employee time cards, approval of pay rates, time and effort studies (not performed), and payroll processing lacked supervisory review and approval.
Effect:
Inaccurate payroll costs may be charged to federal programs.
Repeat Finding:
This is a repeat finding.
Recommendation:
Policies and procedures over the processing of payroll transactions should include the following:
• Signatory evidence of review and approval by both the employee and supervisor on timecards and time and effort studies performed to support employee payroll allocations;
• Signatory evidence on employees approved pay rates by the appropriate level of upper management and/or human resources;
• Signatory evidence of management’s review and approval of payroll prior to processing and disbursement.
• Time and effort studies should be conducted on all employees to support allocations.
Views of Responsible Officials and Planned Corrective Actions:
There is no disagreement with the audit finding. All documentation substantiating a change/transaction will reflect the authorizing body approving such and confirmed against The Boulevard of Chicago’s policies.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan: Immediately
2023- 009 – Allocation and Documentation of Payroll Costs
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services and CARES
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2022 through December 31, 2023
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
Under allowable cost/cost principles, an organization in receipt of federal funding is required to have a system of controls in place to safeguard assets and ensure that only allowable costs are charged to federal programs. 2 CFR Part 200 states that changes to awards for salaries and wages are to be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated.
Condition:
In testing a sample of 40 payroll items, we identified the following:
• 5 out of the 40 transactions tested did not have proper timesheet approval.
• 23 out of the 40 transactions tested did not have proper approved pay rates.
• 31 out of the 40 transactions tested did not have supporting documentation for the specific employee’s payroll allocation.
• Several payroll registers including these payroll transactions (noted above) were not reviewed and approved prior to final payroll processing and submission. Considered a finding for 24/40 employees.
• Time and effort was not documented for all employees tested.
Questioned Costs:
$-0-
Context:
Payroll transactions are not being properly documented, reviewed and approved throughout the payroll process.
Cause:
Employee time cards, approval of pay rates, time and effort studies (not performed), and payroll processing lacked supervisory review and approval.
Effect:
Inaccurate payroll costs may be charged to federal programs.
Repeat Finding:
This is a repeat finding.
Recommendation:
Policies and procedures over the processing of payroll transactions should include the following:
• Signatory evidence of review and approval by both the employee and supervisor on timecards and time and effort studies performed to support employee payroll allocations;
• Signatory evidence on employees approved pay rates by the appropriate level of upper management and/or human resources;
• Signatory evidence of management’s review and approval of payroll prior to processing and disbursement.
• Time and effort studies should be conducted on all employees to support allocations.
Views of Responsible Officials and Planned Corrective Actions:
There is no disagreement with the audit finding. All documentation substantiating a change/transaction will reflect the authorizing body approving such and confirmed against The Boulevard of Chicago’s policies.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan: Immediately
2023- 009 – Allocation and Documentation of Payroll Costs
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services and CARES
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2022 through December 31, 2023
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
Under allowable cost/cost principles, an organization in receipt of federal funding is required to have a system of controls in place to safeguard assets and ensure that only allowable costs are charged to federal programs. 2 CFR Part 200 states that changes to awards for salaries and wages are to be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated.
Condition:
In testing a sample of 40 payroll items, we identified the following:
• 5 out of the 40 transactions tested did not have proper timesheet approval.
• 23 out of the 40 transactions tested did not have proper approved pay rates.
• 31 out of the 40 transactions tested did not have supporting documentation for the specific employee’s payroll allocation.
• Several payroll registers including these payroll transactions (noted above) were not reviewed and approved prior to final payroll processing and submission. Considered a finding for 24/40 employees.
• Time and effort was not documented for all employees tested.
Questioned Costs:
$-0-
Context:
Payroll transactions are not being properly documented, reviewed and approved throughout the payroll process.
Cause:
Employee time cards, approval of pay rates, time and effort studies (not performed), and payroll processing lacked supervisory review and approval.
Effect:
Inaccurate payroll costs may be charged to federal programs.
Repeat Finding:
This is a repeat finding.
Recommendation:
Policies and procedures over the processing of payroll transactions should include the following:
• Signatory evidence of review and approval by both the employee and supervisor on timecards and time and effort studies performed to support employee payroll allocations;
• Signatory evidence on employees approved pay rates by the appropriate level of upper management and/or human resources;
• Signatory evidence of management’s review and approval of payroll prior to processing and disbursement.
• Time and effort studies should be conducted on all employees to support allocations.
Views of Responsible Officials and Planned Corrective Actions:
There is no disagreement with the audit finding. All documentation substantiating a change/transaction will reflect the authorizing body approving such and confirmed against The Boulevard of Chicago’s policies.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan: Immediately
2023- 009 – Allocation and Documentation of Payroll Costs
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services and CARES
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2022 through December 31, 2023
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
Under allowable cost/cost principles, an organization in receipt of federal funding is required to have a system of controls in place to safeguard assets and ensure that only allowable costs are charged to federal programs. 2 CFR Part 200 states that changes to awards for salaries and wages are to be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated.
Condition:
In testing a sample of 40 payroll items, we identified the following:
• 5 out of the 40 transactions tested did not have proper timesheet approval.
• 23 out of the 40 transactions tested did not have proper approved pay rates.
• 31 out of the 40 transactions tested did not have supporting documentation for the specific employee’s payroll allocation.
• Several payroll registers including these payroll transactions (noted above) were not reviewed and approved prior to final payroll processing and submission. Considered a finding for 24/40 employees.
• Time and effort was not documented for all employees tested.
Questioned Costs:
$-0-
Context:
Payroll transactions are not being properly documented, reviewed and approved throughout the payroll process.
Cause:
Employee time cards, approval of pay rates, time and effort studies (not performed), and payroll processing lacked supervisory review and approval.
Effect:
Inaccurate payroll costs may be charged to federal programs.
Repeat Finding:
This is a repeat finding.
Recommendation:
Policies and procedures over the processing of payroll transactions should include the following:
• Signatory evidence of review and approval by both the employee and supervisor on timecards and time and effort studies performed to support employee payroll allocations;
• Signatory evidence on employees approved pay rates by the appropriate level of upper management and/or human resources;
• Signatory evidence of management’s review and approval of payroll prior to processing and disbursement.
• Time and effort studies should be conducted on all employees to support allocations.
Views of Responsible Officials and Planned Corrective Actions:
There is no disagreement with the audit finding. All documentation substantiating a change/transaction will reflect the authorizing body approving such and confirmed against The Boulevard of Chicago’s policies.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan: Immediately
2023- 009 – Allocation and Documentation of Payroll Costs
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services and CARES
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2022 through December 31, 2023
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
Under allowable cost/cost principles, an organization in receipt of federal funding is required to have a system of controls in place to safeguard assets and ensure that only allowable costs are charged to federal programs. 2 CFR Part 200 states that changes to awards for salaries and wages are to be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated.
Condition:
In testing a sample of 40 payroll items, we identified the following:
• 5 out of the 40 transactions tested did not have proper timesheet approval.
• 23 out of the 40 transactions tested did not have proper approved pay rates.
• 31 out of the 40 transactions tested did not have supporting documentation for the specific employee’s payroll allocation.
• Several payroll registers including these payroll transactions (noted above) were not reviewed and approved prior to final payroll processing and submission. Considered a finding for 24/40 employees.
• Time and effort was not documented for all employees tested.
Questioned Costs:
$-0-
Context:
Payroll transactions are not being properly documented, reviewed and approved throughout the payroll process.
Cause:
Employee time cards, approval of pay rates, time and effort studies (not performed), and payroll processing lacked supervisory review and approval.
Effect:
Inaccurate payroll costs may be charged to federal programs.
Repeat Finding:
This is a repeat finding.
Recommendation:
Policies and procedures over the processing of payroll transactions should include the following:
• Signatory evidence of review and approval by both the employee and supervisor on timecards and time and effort studies performed to support employee payroll allocations;
• Signatory evidence on employees approved pay rates by the appropriate level of upper management and/or human resources;
• Signatory evidence of management’s review and approval of payroll prior to processing and disbursement.
• Time and effort studies should be conducted on all employees to support allocations.
Views of Responsible Officials and Planned Corrective Actions:
There is no disagreement with the audit finding. All documentation substantiating a change/transaction will reflect the authorizing body approving such and confirmed against The Boulevard of Chicago’s policies.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan: Immediately
2023- 010 – Allocation and Documentation of Cash Disbursements
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services and CARES
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2022 through December 31, 2023
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
Under allowable cost/cost principles, an organization in receipt of federal funding is required to have a system of controls in place to safeguard assets and ensure that only allowable costs are charged to federal programs. 2 CFR Part 200 states that costs may be allocated or transferred to benefitted projects on any reasonable documented basis.
Condition:
In testing a sample of 15 items, we identified the following:
• 9 out of the 15 transactions tested did not have back up to support the amount allocated.
• 3 out of the 15 transactions tested were for June 2022 expenses that were improperly included on the 2023 schedule of expenditures of federal awards ($717), resulting in improper cut-off at the prior year-end.
Questioned Costs:
$717
Context:
Disbursements are not being properly documented for the allocation methodology being used and prior year expenses were improperly included in the current year.
Cause:
Procedures for the allocation of general disbursements in full compliance with the Uniform Guidance have not yet been fully implemented.
Effect:
Inaccurate costs may be charged to federal programs if The Blvd does not have procedures in place to monitor and record general disbursements devoted to federal programs.
Repeat Finding:
This is a repeat finding.
Recommendation:
Management should develop a process whereby general disbursements allocated to federal grants are supported by a system of internal controls which provides reasonable assurance that the charges are accurate, allowable, and properly allocated and support the distribution of the disbursement among specific activities or cost objectives if the disbursement is allocated to more than one federally funded program. These estimates should be properly reflected during the vouchering process, and ensure recording in the proper year.
Views of responsible officials and planned corrective actions:
There is no disagreement with the audit finding. A modified policy will be established to ensure costs are reasonable, allowable, and allocable to a State, Federal, local, and private awards shall be charged to that award directly or indirectly. All unallowable costs shall be appropriately segregated from allowable costs in the general ledger in order to assure that unallowable costs are not charged to such awards. Any Indirect costs that either benefit more than one award (overhead costs) or non-award function or that are necessary for the overall operation of The Boulevard of Chicago will be allocated based upon an approved allocation method such as time and tracking or occupancy.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan: Immediately
2023- 010 – Allocation and Documentation of Cash Disbursements
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services and CARES
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2022 through December 31, 2023
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
Under allowable cost/cost principles, an organization in receipt of federal funding is required to have a system of controls in place to safeguard assets and ensure that only allowable costs are charged to federal programs. 2 CFR Part 200 states that costs may be allocated or transferred to benefitted projects on any reasonable documented basis.
Condition:
In testing a sample of 15 items, we identified the following:
• 9 out of the 15 transactions tested did not have back up to support the amount allocated.
• 3 out of the 15 transactions tested were for June 2022 expenses that were improperly included on the 2023 schedule of expenditures of federal awards ($717), resulting in improper cut-off at the prior year-end.
Questioned Costs:
$717
Context:
Disbursements are not being properly documented for the allocation methodology being used and prior year expenses were improperly included in the current year.
Cause:
Procedures for the allocation of general disbursements in full compliance with the Uniform Guidance have not yet been fully implemented.
Effect:
Inaccurate costs may be charged to federal programs if The Blvd does not have procedures in place to monitor and record general disbursements devoted to federal programs.
Repeat Finding:
This is a repeat finding.
Recommendation:
Management should develop a process whereby general disbursements allocated to federal grants are supported by a system of internal controls which provides reasonable assurance that the charges are accurate, allowable, and properly allocated and support the distribution of the disbursement among specific activities or cost objectives if the disbursement is allocated to more than one federally funded program. These estimates should be properly reflected during the vouchering process, and ensure recording in the proper year.
Views of responsible officials and planned corrective actions:
There is no disagreement with the audit finding. A modified policy will be established to ensure costs are reasonable, allowable, and allocable to a State, Federal, local, and private awards shall be charged to that award directly or indirectly. All unallowable costs shall be appropriately segregated from allowable costs in the general ledger in order to assure that unallowable costs are not charged to such awards. Any Indirect costs that either benefit more than one award (overhead costs) or non-award function or that are necessary for the overall operation of The Boulevard of Chicago will be allocated based upon an approved allocation method such as time and tracking or occupancy.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan: Immediately
2023- 010 – Allocation and Documentation of Cash Disbursements
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services and CARES
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2022 through December 31, 2023
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
Under allowable cost/cost principles, an organization in receipt of federal funding is required to have a system of controls in place to safeguard assets and ensure that only allowable costs are charged to federal programs. 2 CFR Part 200 states that costs may be allocated or transferred to benefitted projects on any reasonable documented basis.
Condition:
In testing a sample of 15 items, we identified the following:
• 9 out of the 15 transactions tested did not have back up to support the amount allocated.
• 3 out of the 15 transactions tested were for June 2022 expenses that were improperly included on the 2023 schedule of expenditures of federal awards ($717), resulting in improper cut-off at the prior year-end.
Questioned Costs:
$717
Context:
Disbursements are not being properly documented for the allocation methodology being used and prior year expenses were improperly included in the current year.
Cause:
Procedures for the allocation of general disbursements in full compliance with the Uniform Guidance have not yet been fully implemented.
Effect:
Inaccurate costs may be charged to federal programs if The Blvd does not have procedures in place to monitor and record general disbursements devoted to federal programs.
Repeat Finding:
This is a repeat finding.
Recommendation:
Management should develop a process whereby general disbursements allocated to federal grants are supported by a system of internal controls which provides reasonable assurance that the charges are accurate, allowable, and properly allocated and support the distribution of the disbursement among specific activities or cost objectives if the disbursement is allocated to more than one federally funded program. These estimates should be properly reflected during the vouchering process, and ensure recording in the proper year.
Views of responsible officials and planned corrective actions:
There is no disagreement with the audit finding. A modified policy will be established to ensure costs are reasonable, allowable, and allocable to a State, Federal, local, and private awards shall be charged to that award directly or indirectly. All unallowable costs shall be appropriately segregated from allowable costs in the general ledger in order to assure that unallowable costs are not charged to such awards. Any Indirect costs that either benefit more than one award (overhead costs) or non-award function or that are necessary for the overall operation of The Boulevard of Chicago will be allocated based upon an approved allocation method such as time and tracking or occupancy.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan: Immediately
2023- 010 – Allocation and Documentation of Cash Disbursements
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services and CARES
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2022 through December 31, 2023
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
Under allowable cost/cost principles, an organization in receipt of federal funding is required to have a system of controls in place to safeguard assets and ensure that only allowable costs are charged to federal programs. 2 CFR Part 200 states that costs may be allocated or transferred to benefitted projects on any reasonable documented basis.
Condition:
In testing a sample of 15 items, we identified the following:
• 9 out of the 15 transactions tested did not have back up to support the amount allocated.
• 3 out of the 15 transactions tested were for June 2022 expenses that were improperly included on the 2023 schedule of expenditures of federal awards ($717), resulting in improper cut-off at the prior year-end.
Questioned Costs:
$717
Context:
Disbursements are not being properly documented for the allocation methodology being used and prior year expenses were improperly included in the current year.
Cause:
Procedures for the allocation of general disbursements in full compliance with the Uniform Guidance have not yet been fully implemented.
Effect:
Inaccurate costs may be charged to federal programs if The Blvd does not have procedures in place to monitor and record general disbursements devoted to federal programs.
Repeat Finding:
This is a repeat finding.
Recommendation:
Management should develop a process whereby general disbursements allocated to federal grants are supported by a system of internal controls which provides reasonable assurance that the charges are accurate, allowable, and properly allocated and support the distribution of the disbursement among specific activities or cost objectives if the disbursement is allocated to more than one federally funded program. These estimates should be properly reflected during the vouchering process, and ensure recording in the proper year.
Views of responsible officials and planned corrective actions:
There is no disagreement with the audit finding. A modified policy will be established to ensure costs are reasonable, allowable, and allocable to a State, Federal, local, and private awards shall be charged to that award directly or indirectly. All unallowable costs shall be appropriately segregated from allowable costs in the general ledger in order to assure that unallowable costs are not charged to such awards. Any Indirect costs that either benefit more than one award (overhead costs) or non-award function or that are necessary for the overall operation of The Boulevard of Chicago will be allocated based upon an approved allocation method such as time and tracking or occupancy.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan: Immediately
2023- 010 – Allocation and Documentation of Cash Disbursements
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services and CARES
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2022 through December 31, 2023
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
Under allowable cost/cost principles, an organization in receipt of federal funding is required to have a system of controls in place to safeguard assets and ensure that only allowable costs are charged to federal programs. 2 CFR Part 200 states that costs may be allocated or transferred to benefitted projects on any reasonable documented basis.
Condition:
In testing a sample of 15 items, we identified the following:
• 9 out of the 15 transactions tested did not have back up to support the amount allocated.
• 3 out of the 15 transactions tested were for June 2022 expenses that were improperly included on the 2023 schedule of expenditures of federal awards ($717), resulting in improper cut-off at the prior year-end.
Questioned Costs:
$717
Context:
Disbursements are not being properly documented for the allocation methodology being used and prior year expenses were improperly included in the current year.
Cause:
Procedures for the allocation of general disbursements in full compliance with the Uniform Guidance have not yet been fully implemented.
Effect:
Inaccurate costs may be charged to federal programs if The Blvd does not have procedures in place to monitor and record general disbursements devoted to federal programs.
Repeat Finding:
This is a repeat finding.
Recommendation:
Management should develop a process whereby general disbursements allocated to federal grants are supported by a system of internal controls which provides reasonable assurance that the charges are accurate, allowable, and properly allocated and support the distribution of the disbursement among specific activities or cost objectives if the disbursement is allocated to more than one federally funded program. These estimates should be properly reflected during the vouchering process, and ensure recording in the proper year.
Views of responsible officials and planned corrective actions:
There is no disagreement with the audit finding. A modified policy will be established to ensure costs are reasonable, allowable, and allocable to a State, Federal, local, and private awards shall be charged to that award directly or indirectly. All unallowable costs shall be appropriately segregated from allowable costs in the general ledger in order to assure that unallowable costs are not charged to such awards. Any Indirect costs that either benefit more than one award (overhead costs) or non-award function or that are necessary for the overall operation of The Boulevard of Chicago will be allocated based upon an approved allocation method such as time and tracking or occupancy.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan: Immediately
2023- 011 –Indirect Costs Calculations and Documentation
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services and CARES
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2022 through December 31, 2023
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
A well-designed system of internal control should include policies and procedures to ensure the accuracy of indirect cost calculations and voucher requests. This ensures only allowable costs are charged to federal programs.
Condition:
In testing a sample of five indirect cost items, we identified the following:
• 5 out of the 5 indirect cost calculations tested were calculated on personnel and benefit expenses for employees already being charged to the grant directly.
• 5 out of the 5 indirect cost calculations tested were prepared and reviewed by the same individual.
Questioned Costs:
$14,545
Context:
Indirect cost calculations are not being properly calculated, reviewed and approved throughout the voucher process.
Cause:
Policies and procedures had not been put into place to properly calculate the indirect costs and document review of vouchers prior to submission during the monthly voucher process. Procedures should be in accordance with the Uniform Guidance.
Effect:
Inaccurate costs may be charged to federal programs through the indirect cost allocation if The Blvd does not have procedures in place to monitor the accuracy of the calculation. Additionally, an error could occur during the voucher and process if The Blvd does not have procedures in place to properly review and approve the vouchers prior to submission.
Repeat Finding:
This is not a repeat finding.
Recommendation:
Management should develop a process whereby indirect costs for federal grants are supported by a system of internal controls which provides reasonable assurance that the allocation calculated is accurate, allowable, and properly calculated, and supported. This process should be documented by a sign-off and date of both the preparer and the reviewer prior to the submission of the voucher during the monthly voucher process.
Views of Responsible Officials and Planned Corrective Actions:
There is no disagreement with the audit finding. All vouchers will be reviewed and approved by upper management before submission. These vouchers will be checked against a modified policy ensuring costs are reasonable, allowable, and allocable to a State, Federal, local, and private awards shall be charged to that award directly or indirectly.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan: Immediately
2023- 011 –Indirect Costs Calculations and Documentation
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services and CARES
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2022 through December 31, 2023
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
A well-designed system of internal control should include policies and procedures to ensure the accuracy of indirect cost calculations and voucher requests. This ensures only allowable costs are charged to federal programs.
Condition:
In testing a sample of five indirect cost items, we identified the following:
• 5 out of the 5 indirect cost calculations tested were calculated on personnel and benefit expenses for employees already being charged to the grant directly.
• 5 out of the 5 indirect cost calculations tested were prepared and reviewed by the same individual.
Questioned Costs:
$14,545
Context:
Indirect cost calculations are not being properly calculated, reviewed and approved throughout the voucher process.
Cause:
Policies and procedures had not been put into place to properly calculate the indirect costs and document review of vouchers prior to submission during the monthly voucher process. Procedures should be in accordance with the Uniform Guidance.
Effect:
Inaccurate costs may be charged to federal programs through the indirect cost allocation if The Blvd does not have procedures in place to monitor the accuracy of the calculation. Additionally, an error could occur during the voucher and process if The Blvd does not have procedures in place to properly review and approve the vouchers prior to submission.
Repeat Finding:
This is not a repeat finding.
Recommendation:
Management should develop a process whereby indirect costs for federal grants are supported by a system of internal controls which provides reasonable assurance that the allocation calculated is accurate, allowable, and properly calculated, and supported. This process should be documented by a sign-off and date of both the preparer and the reviewer prior to the submission of the voucher during the monthly voucher process.
Views of Responsible Officials and Planned Corrective Actions:
There is no disagreement with the audit finding. All vouchers will be reviewed and approved by upper management before submission. These vouchers will be checked against a modified policy ensuring costs are reasonable, allowable, and allocable to a State, Federal, local, and private awards shall be charged to that award directly or indirectly.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan: Immediately
2023- 011 –Indirect Costs Calculations and Documentation
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services and CARES
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2022 through December 31, 2023
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
A well-designed system of internal control should include policies and procedures to ensure the accuracy of indirect cost calculations and voucher requests. This ensures only allowable costs are charged to federal programs.
Condition:
In testing a sample of five indirect cost items, we identified the following:
• 5 out of the 5 indirect cost calculations tested were calculated on personnel and benefit expenses for employees already being charged to the grant directly.
• 5 out of the 5 indirect cost calculations tested were prepared and reviewed by the same individual.
Questioned Costs:
$14,545
Context:
Indirect cost calculations are not being properly calculated, reviewed and approved throughout the voucher process.
Cause:
Policies and procedures had not been put into place to properly calculate the indirect costs and document review of vouchers prior to submission during the monthly voucher process. Procedures should be in accordance with the Uniform Guidance.
Effect:
Inaccurate costs may be charged to federal programs through the indirect cost allocation if The Blvd does not have procedures in place to monitor the accuracy of the calculation. Additionally, an error could occur during the voucher and process if The Blvd does not have procedures in place to properly review and approve the vouchers prior to submission.
Repeat Finding:
This is not a repeat finding.
Recommendation:
Management should develop a process whereby indirect costs for federal grants are supported by a system of internal controls which provides reasonable assurance that the allocation calculated is accurate, allowable, and properly calculated, and supported. This process should be documented by a sign-off and date of both the preparer and the reviewer prior to the submission of the voucher during the monthly voucher process.
Views of Responsible Officials and Planned Corrective Actions:
There is no disagreement with the audit finding. All vouchers will be reviewed and approved by upper management before submission. These vouchers will be checked against a modified policy ensuring costs are reasonable, allowable, and allocable to a State, Federal, local, and private awards shall be charged to that award directly or indirectly.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan: Immediately
2023- 011 –Indirect Costs Calculations and Documentation
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services and CARES
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2022 through December 31, 2023
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
A well-designed system of internal control should include policies and procedures to ensure the accuracy of indirect cost calculations and voucher requests. This ensures only allowable costs are charged to federal programs.
Condition:
In testing a sample of five indirect cost items, we identified the following:
• 5 out of the 5 indirect cost calculations tested were calculated on personnel and benefit expenses for employees already being charged to the grant directly.
• 5 out of the 5 indirect cost calculations tested were prepared and reviewed by the same individual.
Questioned Costs:
$14,545
Context:
Indirect cost calculations are not being properly calculated, reviewed and approved throughout the voucher process.
Cause:
Policies and procedures had not been put into place to properly calculate the indirect costs and document review of vouchers prior to submission during the monthly voucher process. Procedures should be in accordance with the Uniform Guidance.
Effect:
Inaccurate costs may be charged to federal programs through the indirect cost allocation if The Blvd does not have procedures in place to monitor the accuracy of the calculation. Additionally, an error could occur during the voucher and process if The Blvd does not have procedures in place to properly review and approve the vouchers prior to submission.
Repeat Finding:
This is not a repeat finding.
Recommendation:
Management should develop a process whereby indirect costs for federal grants are supported by a system of internal controls which provides reasonable assurance that the allocation calculated is accurate, allowable, and properly calculated, and supported. This process should be documented by a sign-off and date of both the preparer and the reviewer prior to the submission of the voucher during the monthly voucher process.
Views of Responsible Officials and Planned Corrective Actions:
There is no disagreement with the audit finding. All vouchers will be reviewed and approved by upper management before submission. These vouchers will be checked against a modified policy ensuring costs are reasonable, allowable, and allocable to a State, Federal, local, and private awards shall be charged to that award directly or indirectly.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan: Immediately
2023- 011 –Indirect Costs Calculations and Documentation
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services and CARES
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2022 through December 31, 2023
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
A well-designed system of internal control should include policies and procedures to ensure the accuracy of indirect cost calculations and voucher requests. This ensures only allowable costs are charged to federal programs.
Condition:
In testing a sample of five indirect cost items, we identified the following:
• 5 out of the 5 indirect cost calculations tested were calculated on personnel and benefit expenses for employees already being charged to the grant directly.
• 5 out of the 5 indirect cost calculations tested were prepared and reviewed by the same individual.
Questioned Costs:
$14,545
Context:
Indirect cost calculations are not being properly calculated, reviewed and approved throughout the voucher process.
Cause:
Policies and procedures had not been put into place to properly calculate the indirect costs and document review of vouchers prior to submission during the monthly voucher process. Procedures should be in accordance with the Uniform Guidance.
Effect:
Inaccurate costs may be charged to federal programs through the indirect cost allocation if The Blvd does not have procedures in place to monitor the accuracy of the calculation. Additionally, an error could occur during the voucher and process if The Blvd does not have procedures in place to properly review and approve the vouchers prior to submission.
Repeat Finding:
This is not a repeat finding.
Recommendation:
Management should develop a process whereby indirect costs for federal grants are supported by a system of internal controls which provides reasonable assurance that the allocation calculated is accurate, allowable, and properly calculated, and supported. This process should be documented by a sign-off and date of both the preparer and the reviewer prior to the submission of the voucher during the monthly voucher process.
Views of Responsible Officials and Planned Corrective Actions:
There is no disagreement with the audit finding. All vouchers will be reviewed and approved by upper management before submission. These vouchers will be checked against a modified policy ensuring costs are reasonable, allowable, and allocable to a State, Federal, local, and private awards shall be charged to that award directly or indirectly.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan: Immediately
2023- 009 – Allocation and Documentation of Payroll Costs
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services and CARES
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2022 through December 31, 2023
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
Under allowable cost/cost principles, an organization in receipt of federal funding is required to have a system of controls in place to safeguard assets and ensure that only allowable costs are charged to federal programs. 2 CFR Part 200 states that changes to awards for salaries and wages are to be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated.
Condition:
In testing a sample of 40 payroll items, we identified the following:
• 5 out of the 40 transactions tested did not have proper timesheet approval.
• 23 out of the 40 transactions tested did not have proper approved pay rates.
• 31 out of the 40 transactions tested did not have supporting documentation for the specific employee’s payroll allocation.
• Several payroll registers including these payroll transactions (noted above) were not reviewed and approved prior to final payroll processing and submission. Considered a finding for 24/40 employees.
• Time and effort was not documented for all employees tested.
Questioned Costs:
$-0-
Context:
Payroll transactions are not being properly documented, reviewed and approved throughout the payroll process.
Cause:
Employee time cards, approval of pay rates, time and effort studies (not performed), and payroll processing lacked supervisory review and approval.
Effect:
Inaccurate payroll costs may be charged to federal programs.
Repeat Finding:
This is a repeat finding.
Recommendation:
Policies and procedures over the processing of payroll transactions should include the following:
• Signatory evidence of review and approval by both the employee and supervisor on timecards and time and effort studies performed to support employee payroll allocations;
• Signatory evidence on employees approved pay rates by the appropriate level of upper management and/or human resources;
• Signatory evidence of management’s review and approval of payroll prior to processing and disbursement.
• Time and effort studies should be conducted on all employees to support allocations.
Views of Responsible Officials and Planned Corrective Actions:
There is no disagreement with the audit finding. All documentation substantiating a change/transaction will reflect the authorizing body approving such and confirmed against The Boulevard of Chicago’s policies.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan: Immediately
2023- 009 – Allocation and Documentation of Payroll Costs
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services and CARES
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2022 through December 31, 2023
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
Under allowable cost/cost principles, an organization in receipt of federal funding is required to have a system of controls in place to safeguard assets and ensure that only allowable costs are charged to federal programs. 2 CFR Part 200 states that changes to awards for salaries and wages are to be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated.
Condition:
In testing a sample of 40 payroll items, we identified the following:
• 5 out of the 40 transactions tested did not have proper timesheet approval.
• 23 out of the 40 transactions tested did not have proper approved pay rates.
• 31 out of the 40 transactions tested did not have supporting documentation for the specific employee’s payroll allocation.
• Several payroll registers including these payroll transactions (noted above) were not reviewed and approved prior to final payroll processing and submission. Considered a finding for 24/40 employees.
• Time and effort was not documented for all employees tested.
Questioned Costs:
$-0-
Context:
Payroll transactions are not being properly documented, reviewed and approved throughout the payroll process.
Cause:
Employee time cards, approval of pay rates, time and effort studies (not performed), and payroll processing lacked supervisory review and approval.
Effect:
Inaccurate payroll costs may be charged to federal programs.
Repeat Finding:
This is a repeat finding.
Recommendation:
Policies and procedures over the processing of payroll transactions should include the following:
• Signatory evidence of review and approval by both the employee and supervisor on timecards and time and effort studies performed to support employee payroll allocations;
• Signatory evidence on employees approved pay rates by the appropriate level of upper management and/or human resources;
• Signatory evidence of management’s review and approval of payroll prior to processing and disbursement.
• Time and effort studies should be conducted on all employees to support allocations.
Views of Responsible Officials and Planned Corrective Actions:
There is no disagreement with the audit finding. All documentation substantiating a change/transaction will reflect the authorizing body approving such and confirmed against The Boulevard of Chicago’s policies.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan: Immediately
2023- 009 – Allocation and Documentation of Payroll Costs
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services and CARES
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2022 through December 31, 2023
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
Under allowable cost/cost principles, an organization in receipt of federal funding is required to have a system of controls in place to safeguard assets and ensure that only allowable costs are charged to federal programs. 2 CFR Part 200 states that changes to awards for salaries and wages are to be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated.
Condition:
In testing a sample of 40 payroll items, we identified the following:
• 5 out of the 40 transactions tested did not have proper timesheet approval.
• 23 out of the 40 transactions tested did not have proper approved pay rates.
• 31 out of the 40 transactions tested did not have supporting documentation for the specific employee’s payroll allocation.
• Several payroll registers including these payroll transactions (noted above) were not reviewed and approved prior to final payroll processing and submission. Considered a finding for 24/40 employees.
• Time and effort was not documented for all employees tested.
Questioned Costs:
$-0-
Context:
Payroll transactions are not being properly documented, reviewed and approved throughout the payroll process.
Cause:
Employee time cards, approval of pay rates, time and effort studies (not performed), and payroll processing lacked supervisory review and approval.
Effect:
Inaccurate payroll costs may be charged to federal programs.
Repeat Finding:
This is a repeat finding.
Recommendation:
Policies and procedures over the processing of payroll transactions should include the following:
• Signatory evidence of review and approval by both the employee and supervisor on timecards and time and effort studies performed to support employee payroll allocations;
• Signatory evidence on employees approved pay rates by the appropriate level of upper management and/or human resources;
• Signatory evidence of management’s review and approval of payroll prior to processing and disbursement.
• Time and effort studies should be conducted on all employees to support allocations.
Views of Responsible Officials and Planned Corrective Actions:
There is no disagreement with the audit finding. All documentation substantiating a change/transaction will reflect the authorizing body approving such and confirmed against The Boulevard of Chicago’s policies.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan: Immediately
2023- 009 – Allocation and Documentation of Payroll Costs
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services and CARES
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2022 through December 31, 2023
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
Under allowable cost/cost principles, an organization in receipt of federal funding is required to have a system of controls in place to safeguard assets and ensure that only allowable costs are charged to federal programs. 2 CFR Part 200 states that changes to awards for salaries and wages are to be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated.
Condition:
In testing a sample of 40 payroll items, we identified the following:
• 5 out of the 40 transactions tested did not have proper timesheet approval.
• 23 out of the 40 transactions tested did not have proper approved pay rates.
• 31 out of the 40 transactions tested did not have supporting documentation for the specific employee’s payroll allocation.
• Several payroll registers including these payroll transactions (noted above) were not reviewed and approved prior to final payroll processing and submission. Considered a finding for 24/40 employees.
• Time and effort was not documented for all employees tested.
Questioned Costs:
$-0-
Context:
Payroll transactions are not being properly documented, reviewed and approved throughout the payroll process.
Cause:
Employee time cards, approval of pay rates, time and effort studies (not performed), and payroll processing lacked supervisory review and approval.
Effect:
Inaccurate payroll costs may be charged to federal programs.
Repeat Finding:
This is a repeat finding.
Recommendation:
Policies and procedures over the processing of payroll transactions should include the following:
• Signatory evidence of review and approval by both the employee and supervisor on timecards and time and effort studies performed to support employee payroll allocations;
• Signatory evidence on employees approved pay rates by the appropriate level of upper management and/or human resources;
• Signatory evidence of management’s review and approval of payroll prior to processing and disbursement.
• Time and effort studies should be conducted on all employees to support allocations.
Views of Responsible Officials and Planned Corrective Actions:
There is no disagreement with the audit finding. All documentation substantiating a change/transaction will reflect the authorizing body approving such and confirmed against The Boulevard of Chicago’s policies.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan: Immediately
2023- 009 – Allocation and Documentation of Payroll Costs
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services and CARES
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2022 through December 31, 2023
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
Under allowable cost/cost principles, an organization in receipt of federal funding is required to have a system of controls in place to safeguard assets and ensure that only allowable costs are charged to federal programs. 2 CFR Part 200 states that changes to awards for salaries and wages are to be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated.
Condition:
In testing a sample of 40 payroll items, we identified the following:
• 5 out of the 40 transactions tested did not have proper timesheet approval.
• 23 out of the 40 transactions tested did not have proper approved pay rates.
• 31 out of the 40 transactions tested did not have supporting documentation for the specific employee’s payroll allocation.
• Several payroll registers including these payroll transactions (noted above) were not reviewed and approved prior to final payroll processing and submission. Considered a finding for 24/40 employees.
• Time and effort was not documented for all employees tested.
Questioned Costs:
$-0-
Context:
Payroll transactions are not being properly documented, reviewed and approved throughout the payroll process.
Cause:
Employee time cards, approval of pay rates, time and effort studies (not performed), and payroll processing lacked supervisory review and approval.
Effect:
Inaccurate payroll costs may be charged to federal programs.
Repeat Finding:
This is a repeat finding.
Recommendation:
Policies and procedures over the processing of payroll transactions should include the following:
• Signatory evidence of review and approval by both the employee and supervisor on timecards and time and effort studies performed to support employee payroll allocations;
• Signatory evidence on employees approved pay rates by the appropriate level of upper management and/or human resources;
• Signatory evidence of management’s review and approval of payroll prior to processing and disbursement.
• Time and effort studies should be conducted on all employees to support allocations.
Views of Responsible Officials and Planned Corrective Actions:
There is no disagreement with the audit finding. All documentation substantiating a change/transaction will reflect the authorizing body approving such and confirmed against The Boulevard of Chicago’s policies.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan: Immediately
2023- 010 – Allocation and Documentation of Cash Disbursements
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services and CARES
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2022 through December 31, 2023
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
Under allowable cost/cost principles, an organization in receipt of federal funding is required to have a system of controls in place to safeguard assets and ensure that only allowable costs are charged to federal programs. 2 CFR Part 200 states that costs may be allocated or transferred to benefitted projects on any reasonable documented basis.
Condition:
In testing a sample of 15 items, we identified the following:
• 9 out of the 15 transactions tested did not have back up to support the amount allocated.
• 3 out of the 15 transactions tested were for June 2022 expenses that were improperly included on the 2023 schedule of expenditures of federal awards ($717), resulting in improper cut-off at the prior year-end.
Questioned Costs:
$717
Context:
Disbursements are not being properly documented for the allocation methodology being used and prior year expenses were improperly included in the current year.
Cause:
Procedures for the allocation of general disbursements in full compliance with the Uniform Guidance have not yet been fully implemented.
Effect:
Inaccurate costs may be charged to federal programs if The Blvd does not have procedures in place to monitor and record general disbursements devoted to federal programs.
Repeat Finding:
This is a repeat finding.
Recommendation:
Management should develop a process whereby general disbursements allocated to federal grants are supported by a system of internal controls which provides reasonable assurance that the charges are accurate, allowable, and properly allocated and support the distribution of the disbursement among specific activities or cost objectives if the disbursement is allocated to more than one federally funded program. These estimates should be properly reflected during the vouchering process, and ensure recording in the proper year.
Views of responsible officials and planned corrective actions:
There is no disagreement with the audit finding. A modified policy will be established to ensure costs are reasonable, allowable, and allocable to a State, Federal, local, and private awards shall be charged to that award directly or indirectly. All unallowable costs shall be appropriately segregated from allowable costs in the general ledger in order to assure that unallowable costs are not charged to such awards. Any Indirect costs that either benefit more than one award (overhead costs) or non-award function or that are necessary for the overall operation of The Boulevard of Chicago will be allocated based upon an approved allocation method such as time and tracking or occupancy.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan: Immediately
2023- 010 – Allocation and Documentation of Cash Disbursements
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services and CARES
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2022 through December 31, 2023
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
Under allowable cost/cost principles, an organization in receipt of federal funding is required to have a system of controls in place to safeguard assets and ensure that only allowable costs are charged to federal programs. 2 CFR Part 200 states that costs may be allocated or transferred to benefitted projects on any reasonable documented basis.
Condition:
In testing a sample of 15 items, we identified the following:
• 9 out of the 15 transactions tested did not have back up to support the amount allocated.
• 3 out of the 15 transactions tested were for June 2022 expenses that were improperly included on the 2023 schedule of expenditures of federal awards ($717), resulting in improper cut-off at the prior year-end.
Questioned Costs:
$717
Context:
Disbursements are not being properly documented for the allocation methodology being used and prior year expenses were improperly included in the current year.
Cause:
Procedures for the allocation of general disbursements in full compliance with the Uniform Guidance have not yet been fully implemented.
Effect:
Inaccurate costs may be charged to federal programs if The Blvd does not have procedures in place to monitor and record general disbursements devoted to federal programs.
Repeat Finding:
This is a repeat finding.
Recommendation:
Management should develop a process whereby general disbursements allocated to federal grants are supported by a system of internal controls which provides reasonable assurance that the charges are accurate, allowable, and properly allocated and support the distribution of the disbursement among specific activities or cost objectives if the disbursement is allocated to more than one federally funded program. These estimates should be properly reflected during the vouchering process, and ensure recording in the proper year.
Views of responsible officials and planned corrective actions:
There is no disagreement with the audit finding. A modified policy will be established to ensure costs are reasonable, allowable, and allocable to a State, Federal, local, and private awards shall be charged to that award directly or indirectly. All unallowable costs shall be appropriately segregated from allowable costs in the general ledger in order to assure that unallowable costs are not charged to such awards. Any Indirect costs that either benefit more than one award (overhead costs) or non-award function or that are necessary for the overall operation of The Boulevard of Chicago will be allocated based upon an approved allocation method such as time and tracking or occupancy.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan: Immediately
2023- 010 – Allocation and Documentation of Cash Disbursements
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services and CARES
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2022 through December 31, 2023
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
Under allowable cost/cost principles, an organization in receipt of federal funding is required to have a system of controls in place to safeguard assets and ensure that only allowable costs are charged to federal programs. 2 CFR Part 200 states that costs may be allocated or transferred to benefitted projects on any reasonable documented basis.
Condition:
In testing a sample of 15 items, we identified the following:
• 9 out of the 15 transactions tested did not have back up to support the amount allocated.
• 3 out of the 15 transactions tested were for June 2022 expenses that were improperly included on the 2023 schedule of expenditures of federal awards ($717), resulting in improper cut-off at the prior year-end.
Questioned Costs:
$717
Context:
Disbursements are not being properly documented for the allocation methodology being used and prior year expenses were improperly included in the current year.
Cause:
Procedures for the allocation of general disbursements in full compliance with the Uniform Guidance have not yet been fully implemented.
Effect:
Inaccurate costs may be charged to federal programs if The Blvd does not have procedures in place to monitor and record general disbursements devoted to federal programs.
Repeat Finding:
This is a repeat finding.
Recommendation:
Management should develop a process whereby general disbursements allocated to federal grants are supported by a system of internal controls which provides reasonable assurance that the charges are accurate, allowable, and properly allocated and support the distribution of the disbursement among specific activities or cost objectives if the disbursement is allocated to more than one federally funded program. These estimates should be properly reflected during the vouchering process, and ensure recording in the proper year.
Views of responsible officials and planned corrective actions:
There is no disagreement with the audit finding. A modified policy will be established to ensure costs are reasonable, allowable, and allocable to a State, Federal, local, and private awards shall be charged to that award directly or indirectly. All unallowable costs shall be appropriately segregated from allowable costs in the general ledger in order to assure that unallowable costs are not charged to such awards. Any Indirect costs that either benefit more than one award (overhead costs) or non-award function or that are necessary for the overall operation of The Boulevard of Chicago will be allocated based upon an approved allocation method such as time and tracking or occupancy.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan: Immediately
2023- 010 – Allocation and Documentation of Cash Disbursements
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services and CARES
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2022 through December 31, 2023
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
Under allowable cost/cost principles, an organization in receipt of federal funding is required to have a system of controls in place to safeguard assets and ensure that only allowable costs are charged to federal programs. 2 CFR Part 200 states that costs may be allocated or transferred to benefitted projects on any reasonable documented basis.
Condition:
In testing a sample of 15 items, we identified the following:
• 9 out of the 15 transactions tested did not have back up to support the amount allocated.
• 3 out of the 15 transactions tested were for June 2022 expenses that were improperly included on the 2023 schedule of expenditures of federal awards ($717), resulting in improper cut-off at the prior year-end.
Questioned Costs:
$717
Context:
Disbursements are not being properly documented for the allocation methodology being used and prior year expenses were improperly included in the current year.
Cause:
Procedures for the allocation of general disbursements in full compliance with the Uniform Guidance have not yet been fully implemented.
Effect:
Inaccurate costs may be charged to federal programs if The Blvd does not have procedures in place to monitor and record general disbursements devoted to federal programs.
Repeat Finding:
This is a repeat finding.
Recommendation:
Management should develop a process whereby general disbursements allocated to federal grants are supported by a system of internal controls which provides reasonable assurance that the charges are accurate, allowable, and properly allocated and support the distribution of the disbursement among specific activities or cost objectives if the disbursement is allocated to more than one federally funded program. These estimates should be properly reflected during the vouchering process, and ensure recording in the proper year.
Views of responsible officials and planned corrective actions:
There is no disagreement with the audit finding. A modified policy will be established to ensure costs are reasonable, allowable, and allocable to a State, Federal, local, and private awards shall be charged to that award directly or indirectly. All unallowable costs shall be appropriately segregated from allowable costs in the general ledger in order to assure that unallowable costs are not charged to such awards. Any Indirect costs that either benefit more than one award (overhead costs) or non-award function or that are necessary for the overall operation of The Boulevard of Chicago will be allocated based upon an approved allocation method such as time and tracking or occupancy.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan: Immediately
2023- 010 – Allocation and Documentation of Cash Disbursements
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services and CARES
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2022 through December 31, 2023
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
Under allowable cost/cost principles, an organization in receipt of federal funding is required to have a system of controls in place to safeguard assets and ensure that only allowable costs are charged to federal programs. 2 CFR Part 200 states that costs may be allocated or transferred to benefitted projects on any reasonable documented basis.
Condition:
In testing a sample of 15 items, we identified the following:
• 9 out of the 15 transactions tested did not have back up to support the amount allocated.
• 3 out of the 15 transactions tested were for June 2022 expenses that were improperly included on the 2023 schedule of expenditures of federal awards ($717), resulting in improper cut-off at the prior year-end.
Questioned Costs:
$717
Context:
Disbursements are not being properly documented for the allocation methodology being used and prior year expenses were improperly included in the current year.
Cause:
Procedures for the allocation of general disbursements in full compliance with the Uniform Guidance have not yet been fully implemented.
Effect:
Inaccurate costs may be charged to federal programs if The Blvd does not have procedures in place to monitor and record general disbursements devoted to federal programs.
Repeat Finding:
This is a repeat finding.
Recommendation:
Management should develop a process whereby general disbursements allocated to federal grants are supported by a system of internal controls which provides reasonable assurance that the charges are accurate, allowable, and properly allocated and support the distribution of the disbursement among specific activities or cost objectives if the disbursement is allocated to more than one federally funded program. These estimates should be properly reflected during the vouchering process, and ensure recording in the proper year.
Views of responsible officials and planned corrective actions:
There is no disagreement with the audit finding. A modified policy will be established to ensure costs are reasonable, allowable, and allocable to a State, Federal, local, and private awards shall be charged to that award directly or indirectly. All unallowable costs shall be appropriately segregated from allowable costs in the general ledger in order to assure that unallowable costs are not charged to such awards. Any Indirect costs that either benefit more than one award (overhead costs) or non-award function or that are necessary for the overall operation of The Boulevard of Chicago will be allocated based upon an approved allocation method such as time and tracking or occupancy.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan: Immediately
2023- 011 –Indirect Costs Calculations and Documentation
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services and CARES
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2022 through December 31, 2023
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
A well-designed system of internal control should include policies and procedures to ensure the accuracy of indirect cost calculations and voucher requests. This ensures only allowable costs are charged to federal programs.
Condition:
In testing a sample of five indirect cost items, we identified the following:
• 5 out of the 5 indirect cost calculations tested were calculated on personnel and benefit expenses for employees already being charged to the grant directly.
• 5 out of the 5 indirect cost calculations tested were prepared and reviewed by the same individual.
Questioned Costs:
$14,545
Context:
Indirect cost calculations are not being properly calculated, reviewed and approved throughout the voucher process.
Cause:
Policies and procedures had not been put into place to properly calculate the indirect costs and document review of vouchers prior to submission during the monthly voucher process. Procedures should be in accordance with the Uniform Guidance.
Effect:
Inaccurate costs may be charged to federal programs through the indirect cost allocation if The Blvd does not have procedures in place to monitor the accuracy of the calculation. Additionally, an error could occur during the voucher and process if The Blvd does not have procedures in place to properly review and approve the vouchers prior to submission.
Repeat Finding:
This is not a repeat finding.
Recommendation:
Management should develop a process whereby indirect costs for federal grants are supported by a system of internal controls which provides reasonable assurance that the allocation calculated is accurate, allowable, and properly calculated, and supported. This process should be documented by a sign-off and date of both the preparer and the reviewer prior to the submission of the voucher during the monthly voucher process.
Views of Responsible Officials and Planned Corrective Actions:
There is no disagreement with the audit finding. All vouchers will be reviewed and approved by upper management before submission. These vouchers will be checked against a modified policy ensuring costs are reasonable, allowable, and allocable to a State, Federal, local, and private awards shall be charged to that award directly or indirectly.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan: Immediately
2023- 011 –Indirect Costs Calculations and Documentation
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services and CARES
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2022 through December 31, 2023
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
A well-designed system of internal control should include policies and procedures to ensure the accuracy of indirect cost calculations and voucher requests. This ensures only allowable costs are charged to federal programs.
Condition:
In testing a sample of five indirect cost items, we identified the following:
• 5 out of the 5 indirect cost calculations tested were calculated on personnel and benefit expenses for employees already being charged to the grant directly.
• 5 out of the 5 indirect cost calculations tested were prepared and reviewed by the same individual.
Questioned Costs:
$14,545
Context:
Indirect cost calculations are not being properly calculated, reviewed and approved throughout the voucher process.
Cause:
Policies and procedures had not been put into place to properly calculate the indirect costs and document review of vouchers prior to submission during the monthly voucher process. Procedures should be in accordance with the Uniform Guidance.
Effect:
Inaccurate costs may be charged to federal programs through the indirect cost allocation if The Blvd does not have procedures in place to monitor the accuracy of the calculation. Additionally, an error could occur during the voucher and process if The Blvd does not have procedures in place to properly review and approve the vouchers prior to submission.
Repeat Finding:
This is not a repeat finding.
Recommendation:
Management should develop a process whereby indirect costs for federal grants are supported by a system of internal controls which provides reasonable assurance that the allocation calculated is accurate, allowable, and properly calculated, and supported. This process should be documented by a sign-off and date of both the preparer and the reviewer prior to the submission of the voucher during the monthly voucher process.
Views of Responsible Officials and Planned Corrective Actions:
There is no disagreement with the audit finding. All vouchers will be reviewed and approved by upper management before submission. These vouchers will be checked against a modified policy ensuring costs are reasonable, allowable, and allocable to a State, Federal, local, and private awards shall be charged to that award directly or indirectly.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan: Immediately
2023- 011 –Indirect Costs Calculations and Documentation
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services and CARES
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2022 through December 31, 2023
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
A well-designed system of internal control should include policies and procedures to ensure the accuracy of indirect cost calculations and voucher requests. This ensures only allowable costs are charged to federal programs.
Condition:
In testing a sample of five indirect cost items, we identified the following:
• 5 out of the 5 indirect cost calculations tested were calculated on personnel and benefit expenses for employees already being charged to the grant directly.
• 5 out of the 5 indirect cost calculations tested were prepared and reviewed by the same individual.
Questioned Costs:
$14,545
Context:
Indirect cost calculations are not being properly calculated, reviewed and approved throughout the voucher process.
Cause:
Policies and procedures had not been put into place to properly calculate the indirect costs and document review of vouchers prior to submission during the monthly voucher process. Procedures should be in accordance with the Uniform Guidance.
Effect:
Inaccurate costs may be charged to federal programs through the indirect cost allocation if The Blvd does not have procedures in place to monitor the accuracy of the calculation. Additionally, an error could occur during the voucher and process if The Blvd does not have procedures in place to properly review and approve the vouchers prior to submission.
Repeat Finding:
This is not a repeat finding.
Recommendation:
Management should develop a process whereby indirect costs for federal grants are supported by a system of internal controls which provides reasonable assurance that the allocation calculated is accurate, allowable, and properly calculated, and supported. This process should be documented by a sign-off and date of both the preparer and the reviewer prior to the submission of the voucher during the monthly voucher process.
Views of Responsible Officials and Planned Corrective Actions:
There is no disagreement with the audit finding. All vouchers will be reviewed and approved by upper management before submission. These vouchers will be checked against a modified policy ensuring costs are reasonable, allowable, and allocable to a State, Federal, local, and private awards shall be charged to that award directly or indirectly.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan: Immediately
2023- 011 –Indirect Costs Calculations and Documentation
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services and CARES
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2022 through December 31, 2023
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
A well-designed system of internal control should include policies and procedures to ensure the accuracy of indirect cost calculations and voucher requests. This ensures only allowable costs are charged to federal programs.
Condition:
In testing a sample of five indirect cost items, we identified the following:
• 5 out of the 5 indirect cost calculations tested were calculated on personnel and benefit expenses for employees already being charged to the grant directly.
• 5 out of the 5 indirect cost calculations tested were prepared and reviewed by the same individual.
Questioned Costs:
$14,545
Context:
Indirect cost calculations are not being properly calculated, reviewed and approved throughout the voucher process.
Cause:
Policies and procedures had not been put into place to properly calculate the indirect costs and document review of vouchers prior to submission during the monthly voucher process. Procedures should be in accordance with the Uniform Guidance.
Effect:
Inaccurate costs may be charged to federal programs through the indirect cost allocation if The Blvd does not have procedures in place to monitor the accuracy of the calculation. Additionally, an error could occur during the voucher and process if The Blvd does not have procedures in place to properly review and approve the vouchers prior to submission.
Repeat Finding:
This is not a repeat finding.
Recommendation:
Management should develop a process whereby indirect costs for federal grants are supported by a system of internal controls which provides reasonable assurance that the allocation calculated is accurate, allowable, and properly calculated, and supported. This process should be documented by a sign-off and date of both the preparer and the reviewer prior to the submission of the voucher during the monthly voucher process.
Views of Responsible Officials and Planned Corrective Actions:
There is no disagreement with the audit finding. All vouchers will be reviewed and approved by upper management before submission. These vouchers will be checked against a modified policy ensuring costs are reasonable, allowable, and allocable to a State, Federal, local, and private awards shall be charged to that award directly or indirectly.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan: Immediately
2023- 011 –Indirect Costs Calculations and Documentation
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services and CARES
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2022 through December 31, 2023
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
A well-designed system of internal control should include policies and procedures to ensure the accuracy of indirect cost calculations and voucher requests. This ensures only allowable costs are charged to federal programs.
Condition:
In testing a sample of five indirect cost items, we identified the following:
• 5 out of the 5 indirect cost calculations tested were calculated on personnel and benefit expenses for employees already being charged to the grant directly.
• 5 out of the 5 indirect cost calculations tested were prepared and reviewed by the same individual.
Questioned Costs:
$14,545
Context:
Indirect cost calculations are not being properly calculated, reviewed and approved throughout the voucher process.
Cause:
Policies and procedures had not been put into place to properly calculate the indirect costs and document review of vouchers prior to submission during the monthly voucher process. Procedures should be in accordance with the Uniform Guidance.
Effect:
Inaccurate costs may be charged to federal programs through the indirect cost allocation if The Blvd does not have procedures in place to monitor the accuracy of the calculation. Additionally, an error could occur during the voucher and process if The Blvd does not have procedures in place to properly review and approve the vouchers prior to submission.
Repeat Finding:
This is not a repeat finding.
Recommendation:
Management should develop a process whereby indirect costs for federal grants are supported by a system of internal controls which provides reasonable assurance that the allocation calculated is accurate, allowable, and properly calculated, and supported. This process should be documented by a sign-off and date of both the preparer and the reviewer prior to the submission of the voucher during the monthly voucher process.
Views of Responsible Officials and Planned Corrective Actions:
There is no disagreement with the audit finding. All vouchers will be reviewed and approved by upper management before submission. These vouchers will be checked against a modified policy ensuring costs are reasonable, allowable, and allocable to a State, Federal, local, and private awards shall be charged to that award directly or indirectly.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan: Immediately