Audit 3200

Finding No. 2022-002: Allowable Costs/Cost Principles Program: AL# 10.331 - Gus Schumacher Nutrition Incentive Program (GUSNIP) and AL# 93.667 - Illinois Department of Human Services - Social Service Block Grant (IDHS) Federal Grantor: U.S. Department of Agriculture U.S. Department of Health and Human Services Criteria – The Organization should follow federal cost principles and monitor indirect costs for grants throughout the year to ensure that it is allocating shared costs using a consistent method across all programs in the Organization that are at or below the indirect cost rate for the year. Condition – The Organization did not monitor the indirect cost expense/rate charged to each grant for the year ending 2022. Cause – The Organization first accepted Federal grants for year 2021 and is in process of creating procedures to monitor such information. Effect – The Organization did not charge all programs its fair share of shared costs using a consistent method. Questioned Costs – None Repeat Finding – No Recommendation – We recommend that the Organization updates its policies and procedures to ensure it has internal controls in place to monitor the indirect cost charged to grants throughout the year and make sure it is at or below the indirect cost rate calculated for the year as per the cost principles of the Uniform Guidance. View of Responsible Officials – See Corrective Action Plan.

Finding No. 2022-003: Allowable Costs/Cost Principles Program: AL# 10.331 - Gus Schumacher Nutrition Incentive Program (GUSNIP) AL# 93.667 - Illinois Department of Human Services - Social Service Block Grant (IDHS) Federal Grantor: U.S. Department of Agriculture U.S. Department of Health and Human Services Criteria – The Organization should follow the Uniform Guidance requirements around tracking effort for employees who work on more than one program. The Uniform Guidance documentation requirements for payroll require Organizations to track 100% of employees time or effort if they benefit more than one program. The Organization is required to have control procedures in place to ensure that the payroll charges are accurate, and allowable to the grant. Condition – A sample of payroll disbursements were selected to test internal control over compliance and compliance with allowable costs/cost principles. Out of the items selected, we noted the Organization did not accurately reconcile actual payroll to approved budget, and overcharged payroll for the year to the grants. Cause – The Organization’s policies and procedures require employees who benefit more than one program, to track the time spent on the Federal program and charge actual payroll expense to the program. Effect – Possible disallowance of funds requiring a return of funds received from grant agencies. Questioned Costs – $26,296 Context – Out of a total population of 7 employees whose payroll is directly charged to the grants that were tested, we noted deficiencies in the documentation support for 6 of the individuals’ payroll costs. Repeat Finding – Yes – Finding 2021-003. Please see Summary Schedule of Prior Year Audit Findings. Recommendation – We recommend that the Organization updates its policies and procedures to ensure compliance with proper payroll documentation. We strongly recommend a tracking sheet to track hours spent on each program by each employee to ensure that costs are properly charged to the applicable grants. Views of Responsible Officials – See Corrective Action Plan.

Finding No. 2022-002: Allowable Costs/Cost Principles Program: AL# 10.331 - Gus Schumacher Nutrition Incentive Program (GUSNIP) and AL# 93.667 - Illinois Department of Human Services - Social Service Block Grant (IDHS) Federal Grantor: U.S. Department of Agriculture U.S. Department of Health and Human Services Criteria – The Organization should follow federal cost principles and monitor indirect costs for grants throughout the year to ensure that it is allocating shared costs using a consistent method across all programs in the Organization that are at or below the indirect cost rate for the year. Condition – The Organization did not monitor the indirect cost expense/rate charged to each grant for the year ending 2022. Cause – The Organization first accepted Federal grants for year 2021 and is in process of creating procedures to monitor such information. Effect – The Organization did not charge all programs its fair share of shared costs using a consistent method. Questioned Costs – None Repeat Finding – No Recommendation – We recommend that the Organization updates its policies and procedures to ensure it has internal controls in place to monitor the indirect cost charged to grants throughout the year and make sure it is at or below the indirect cost rate calculated for the year as per the cost principles of the Uniform Guidance. View of Responsible Officials – See Corrective Action Plan.

Finding No. 2022-003: Allowable Costs/Cost Principles Program: AL# 10.331 - Gus Schumacher Nutrition Incentive Program (GUSNIP) AL# 93.667 - Illinois Department of Human Services - Social Service Block Grant (IDHS) Federal Grantor: U.S. Department of Agriculture U.S. Department of Health and Human Services Criteria – The Organization should follow the Uniform Guidance requirements around tracking effort for employees who work on more than one program. The Uniform Guidance documentation requirements for payroll require Organizations to track 100% of employees time or effort if they benefit more than one program. The Organization is required to have control procedures in place to ensure that the payroll charges are accurate, and allowable to the grant. Condition – A sample of payroll disbursements were selected to test internal control over compliance and compliance with allowable costs/cost principles. Out of the items selected, we noted the Organization did not accurately reconcile actual payroll to approved budget, and overcharged payroll for the year to the grants. Cause – The Organization’s policies and procedures require employees who benefit more than one program, to track the time spent on the Federal program and charge actual payroll expense to the program. Effect – Possible disallowance of funds requiring a return of funds received from grant agencies. Questioned Costs – $26,296 Context – Out of a total population of 7 employees whose payroll is directly charged to the grants that were tested, we noted deficiencies in the documentation support for 6 of the individuals’ payroll costs. Repeat Finding – Yes – Finding 2021-003. Please see Summary Schedule of Prior Year Audit Findings. Recommendation – We recommend that the Organization updates its policies and procedures to ensure compliance with proper payroll documentation. We strongly recommend a tracking sheet to track hours spent on each program by each employee to ensure that costs are properly charged to the applicable grants. Views of Responsible Officials – See Corrective Action Plan.

Finding No. 2022-002: Allowable Costs/Cost Principles Program: AL# 10.331 - Gus Schumacher Nutrition Incentive Program (GUSNIP) and AL# 93.667 - Illinois Department of Human Services - Social Service Block Grant (IDHS) Federal Grantor: U.S. Department of Agriculture U.S. Department of Health and Human Services Criteria – The Organization should follow federal cost principles and monitor indirect costs for grants throughout the year to ensure that it is allocating shared costs using a consistent method across all programs in the Organization that are at or below the indirect cost rate for the year. Condition – The Organization did not monitor the indirect cost expense/rate charged to each grant for the year ending 2022. Cause – The Organization first accepted Federal grants for year 2021 and is in process of creating procedures to monitor such information. Effect – The Organization did not charge all programs its fair share of shared costs using a consistent method. Questioned Costs – None Repeat Finding – No Recommendation – We recommend that the Organization updates its policies and procedures to ensure it has internal controls in place to monitor the indirect cost charged to grants throughout the year and make sure it is at or below the indirect cost rate calculated for the year as per the cost principles of the Uniform Guidance. View of Responsible Officials – See Corrective Action Plan.

Finding No. 2022-003: Allowable Costs/Cost Principles Program: AL# 10.331 - Gus Schumacher Nutrition Incentive Program (GUSNIP) AL# 93.667 - Illinois Department of Human Services - Social Service Block Grant (IDHS) Federal Grantor: U.S. Department of Agriculture U.S. Department of Health and Human Services Criteria – The Organization should follow the Uniform Guidance requirements around tracking effort for employees who work on more than one program. The Uniform Guidance documentation requirements for payroll require Organizations to track 100% of employees time or effort if they benefit more than one program. The Organization is required to have control procedures in place to ensure that the payroll charges are accurate, and allowable to the grant. Condition – A sample of payroll disbursements were selected to test internal control over compliance and compliance with allowable costs/cost principles. Out of the items selected, we noted the Organization did not accurately reconcile actual payroll to approved budget, and overcharged payroll for the year to the grants. Cause – The Organization’s policies and procedures require employees who benefit more than one program, to track the time spent on the Federal program and charge actual payroll expense to the program. Effect – Possible disallowance of funds requiring a return of funds received from grant agencies. Questioned Costs – $26,296 Context – Out of a total population of 7 employees whose payroll is directly charged to the grants that were tested, we noted deficiencies in the documentation support for 6 of the individuals’ payroll costs. Repeat Finding – Yes – Finding 2021-003. Please see Summary Schedule of Prior Year Audit Findings. Recommendation – We recommend that the Organization updates its policies and procedures to ensure compliance with proper payroll documentation. We strongly recommend a tracking sheet to track hours spent on each program by each employee to ensure that costs are properly charged to the applicable grants. Views of Responsible Officials – See Corrective Action Plan.

Finding No. 2022-002: Allowable Costs/Cost Principles Program: AL# 10.331 - Gus Schumacher Nutrition Incentive Program (GUSNIP) and AL# 93.667 - Illinois Department of Human Services - Social Service Block Grant (IDHS) Federal Grantor: U.S. Department of Agriculture U.S. Department of Health and Human Services Criteria – The Organization should follow federal cost principles and monitor indirect costs for grants throughout the year to ensure that it is allocating shared costs using a consistent method across all programs in the Organization that are at or below the indirect cost rate for the year. Condition – The Organization did not monitor the indirect cost expense/rate charged to each grant for the year ending 2022. Cause – The Organization first accepted Federal grants for year 2021 and is in process of creating procedures to monitor such information. Effect – The Organization did not charge all programs its fair share of shared costs using a consistent method. Questioned Costs – None Repeat Finding – No Recommendation – We recommend that the Organization updates its policies and procedures to ensure it has internal controls in place to monitor the indirect cost charged to grants throughout the year and make sure it is at or below the indirect cost rate calculated for the year as per the cost principles of the Uniform Guidance. View of Responsible Officials – See Corrective Action Plan.

Finding No. 2022-003: Allowable Costs/Cost Principles Program: AL# 10.331 - Gus Schumacher Nutrition Incentive Program (GUSNIP) AL# 93.667 - Illinois Department of Human Services - Social Service Block Grant (IDHS) Federal Grantor: U.S. Department of Agriculture U.S. Department of Health and Human Services Criteria – The Organization should follow the Uniform Guidance requirements around tracking effort for employees who work on more than one program. The Uniform Guidance documentation requirements for payroll require Organizations to track 100% of employees time or effort if they benefit more than one program. The Organization is required to have control procedures in place to ensure that the payroll charges are accurate, and allowable to the grant. Condition – A sample of payroll disbursements were selected to test internal control over compliance and compliance with allowable costs/cost principles. Out of the items selected, we noted the Organization did not accurately reconcile actual payroll to approved budget, and overcharged payroll for the year to the grants. Cause – The Organization’s policies and procedures require employees who benefit more than one program, to track the time spent on the Federal program and charge actual payroll expense to the program. Effect – Possible disallowance of funds requiring a return of funds received from grant agencies. Questioned Costs – $26,296 Context – Out of a total population of 7 employees whose payroll is directly charged to the grants that were tested, we noted deficiencies in the documentation support for 6 of the individuals’ payroll costs. Repeat Finding – Yes – Finding 2021-003. Please see Summary Schedule of Prior Year Audit Findings. Recommendation – We recommend that the Organization updates its policies and procedures to ensure compliance with proper payroll documentation. We strongly recommend a tracking sheet to track hours spent on each program by each employee to ensure that costs are properly charged to the applicable grants. Views of Responsible Officials – See Corrective Action Plan.