FAC Explorer

Audit 323714

FY End
2023-06-30
Total Expended
$2.06M
Findings
8
Programs
8
Organization: Lutheran Child and Family Services of Illinois (IL)
Year: 2023 Accepted: 2024-10-02
Auditor: Rsm US LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
501662 2023-002 Material Weakness - N
501663 2023-003 Material Weakness - G
501664 2023-004 Significant Deficiency - P
501665 2023-004 Significant Deficiency - P
1078104 2023-002 Material Weakness - N
1078105 2023-003 Material Weakness - G
1078106 2023-004 Significant Deficiency - P
1078107 2023-004 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
14.267 Continuum of Care Program $606,963 Yes 3
93.959 Block Grants for Prevention and Treatment of Substance Abuse $361,616 - 0
14.231 Covid-19 - Emergency Solutions Grant Program $322,697 Yes 1
93.550 Transitional Living for Homeless Youth $235,764 - 0
93.667 Social Services Block Grant $172,512 - 0
93.276 Drug-Free Communities Support Program Grants $131,002 - 0
14.218 Covid-19 - Community Development Block Grants/entitlement Grants $45,242 - 0
93.569 Community Services Block Grant $40,161 - 0

Contacts

Name Title Type
N6Z1Z39NMFF5 Dhiren Shah Auditee
6302481181 Craig Wories Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The Agency has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Lutheran Child and Family Services of Illinois (the Agency) under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Agency, it is not intended to and does not represent the financial position, changes in net assets, or cash flows of the Agency.
Title: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The Agency has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Indirect Cost Rates Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The Agency has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Agency has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Note 4. Noncash Awards Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The Agency has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Agency did not have any outstanding federal loans or loan guarantees or insurance and did not receive any federal noncash awards during the year ended June 30, 2023.

Finding Details

Finding 2023-002
Finding 2023-002: Special Tests and Provisions; Rent Reasonableness Calculations Federal Program Title: Department of Housing and Urban Development Assistance Listing No. 14.267 – Continuum of Care Award year: IL1651L5T142002 August 1, 2021 – July 31, 2022; IL0315l5T142114 July 1, 2022 – June 30, 2023; IL1780L5T172100 and IL1651L5T142103 August 1, 2022 – July 31, 2023 Criteria: The Special Test provision for the Continuum of Care program requires that, where grants are used to pay for rent for all or part of a structure, the rent paid must be reasonable in relation to rents being charged in the area for comparable space. In addition, the rent may not exceed rents currently being charged by the same owner for comparable unassisted space. Uniform Grant Guidance (2 CFR 200.303) requires nonfederal entities receiving Federal awards establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to ensure enrollment reporting is completed properly. Condition: Documentation of rent reasonableness determination could not be located for program recipients whose rental units were located outside of the two main rental locations where participants are housed. The total costs associated with these units was $58,847. Cause and Effect: There were no controls in place to ensure that rent reasonableness determinations be performed, and evidence of such calculations be maintained for the Rapid Rehousing grants. As a result, the cost of assistance may be disallowed. Questioned Costs: $58,847 Context: A sample of 7 seven rental payments totaling $14,563 was selected from a population of payments totaling $271,155. The test found that 5 five of the payments, totaling $3,866, did not have documentation of rent reasonableness calculations. All 5 five of our exceptions related to the Rapid Rehousing grants. Total Rapid Rehousing costs make up $58,847 of the $271,155 population. Repeat Finding: No. Recommendation: We recommend that management perform a reasonableness review of all rental units under the program and should establish internal controls to ensure such calculations are performed and retained for all units going forward. Views of Responsible Officials: Management agrees with this finding. See corrective action plan.
Finding 2023-003
Finding 2023-003: Controls over Matching Federal Program Title: Department of Housing and Urban Development Assistance Listing No. 14.267 – Continuum of Care Award year: IL1651L5T142002 August 1, 2021 – July 31, 2022; IL0315l5T142114 July 1, 2022 – June 30, 2023; IL1780L5T172100 and IL1651L5T142103 August 1, 2022 – July 31, 2023 Criteria: 24 CFR section 578.73 requires that Continuum of Care grant recipients must match all grant funds, except for leasing funds, with at least 25 percen%t of cash or in-kind contributions from other sources on a grant-by-grant basis. In order to ensure compliance with this requirement, the Agency should have internal controls in place to monitor matching and should document the performance of those controls. Condition: While we were able to test that the Agency was in compliance with the matching requirement, the Agency could not provide evidence of effective internal controls over the grant fund matching compliance requirement. Cause and Effect: The Agency does not have sufficient controls in place to monitor this compliance requirement. The lack of control could result in the Agency not meeting the matching requirement which would represent a compliance exception and could impact future funding. Questioned Costs: None identified. Context: We tested compliance with the matching requirement for the three grants under this program which concluded during the audit period. We did not identify any noncompliance with the matching requirement as a result of our testing. However, the Agency did not have processes or controls in place to track the sources and uses of the match and monitor it throughout the agreement for proper compliance. Repeat Finding: No. Recommendation: We recommend that management implement a process to monitor the matching of grant funds for applicable grants and document performance of that control. This should include clear identification of the funds used for matching and their related sources. Views of Responsible Officials: Management agrees with the finding. See corrective action plan.
Finding 2023-004
Finding 2023-004: Data Collection Form Filing Federal Program Title: Department of Housing and Urban Development Assistance Listing No. 14.267 – Continuum of Care; Department of Housing and Urban Development Assistance Listing No. 14.231 – COVID-19 – Emergency Solution Grants Program Criteria: 2 CFR 200.512(a) requires that the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or 9 nine months after the end of the audit period. Condition: The data collection form for the year ended June 30, 2023, will be filed after the March 31, 2024, deadline, making it a late submission. Cause and Effect: The single audit was not completed as of the submission deadline. Late filing will result in the Agency not meeting the low-risk auditee criteria for the audit of the year ended June 30, 2024. Questioned Costs: None identified. Context: None Repeat Finding: No. Recommendation: We recommend that the Agency implement processes and controls to allow for a more timely audit. Views of Responsible Officials: Management agrees with this finding. See corrective action plan.
Finding 2023-004
Finding 2023-004: Data Collection Form Filing Federal Program Title: Department of Housing and Urban Development Assistance Listing No. 14.267 – Continuum of Care; Department of Housing and Urban Development Assistance Listing No. 14.231 – COVID-19 – Emergency Solution Grants Program Criteria: 2 CFR 200.512(a) requires that the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or 9 nine months after the end of the audit period. Condition: The data collection form for the year ended June 30, 2023, will be filed after the March 31, 2024, deadline, making it a late submission. Cause and Effect: The single audit was not completed as of the submission deadline. Late filing will result in the Agency not meeting the low-risk auditee criteria for the audit of the year ended June 30, 2024. Questioned Costs: None identified. Context: None Repeat Finding: No. Recommendation: We recommend that the Agency implement processes and controls to allow for a more timely audit. Views of Responsible Officials: Management agrees with this finding. See corrective action plan.
Finding 2023-002
Finding 2023-002: Special Tests and Provisions; Rent Reasonableness Calculations Federal Program Title: Department of Housing and Urban Development Assistance Listing No. 14.267 – Continuum of Care Award year: IL1651L5T142002 August 1, 2021 – July 31, 2022; IL0315l5T142114 July 1, 2022 – June 30, 2023; IL1780L5T172100 and IL1651L5T142103 August 1, 2022 – July 31, 2023 Criteria: The Special Test provision for the Continuum of Care program requires that, where grants are used to pay for rent for all or part of a structure, the rent paid must be reasonable in relation to rents being charged in the area for comparable space. In addition, the rent may not exceed rents currently being charged by the same owner for comparable unassisted space. Uniform Grant Guidance (2 CFR 200.303) requires nonfederal entities receiving Federal awards establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to ensure enrollment reporting is completed properly. Condition: Documentation of rent reasonableness determination could not be located for program recipients whose rental units were located outside of the two main rental locations where participants are housed. The total costs associated with these units was $58,847. Cause and Effect: There were no controls in place to ensure that rent reasonableness determinations be performed, and evidence of such calculations be maintained for the Rapid Rehousing grants. As a result, the cost of assistance may be disallowed. Questioned Costs: $58,847 Context: A sample of 7 seven rental payments totaling $14,563 was selected from a population of payments totaling $271,155. The test found that 5 five of the payments, totaling $3,866, did not have documentation of rent reasonableness calculations. All 5 five of our exceptions related to the Rapid Rehousing grants. Total Rapid Rehousing costs make up $58,847 of the $271,155 population. Repeat Finding: No. Recommendation: We recommend that management perform a reasonableness review of all rental units under the program and should establish internal controls to ensure such calculations are performed and retained for all units going forward. Views of Responsible Officials: Management agrees with this finding. See corrective action plan.
Finding 2023-003
Finding 2023-003: Controls over Matching Federal Program Title: Department of Housing and Urban Development Assistance Listing No. 14.267 – Continuum of Care Award year: IL1651L5T142002 August 1, 2021 – July 31, 2022; IL0315l5T142114 July 1, 2022 – June 30, 2023; IL1780L5T172100 and IL1651L5T142103 August 1, 2022 – July 31, 2023 Criteria: 24 CFR section 578.73 requires that Continuum of Care grant recipients must match all grant funds, except for leasing funds, with at least 25 percen%t of cash or in-kind contributions from other sources on a grant-by-grant basis. In order to ensure compliance with this requirement, the Agency should have internal controls in place to monitor matching and should document the performance of those controls. Condition: While we were able to test that the Agency was in compliance with the matching requirement, the Agency could not provide evidence of effective internal controls over the grant fund matching compliance requirement. Cause and Effect: The Agency does not have sufficient controls in place to monitor this compliance requirement. The lack of control could result in the Agency not meeting the matching requirement which would represent a compliance exception and could impact future funding. Questioned Costs: None identified. Context: We tested compliance with the matching requirement for the three grants under this program which concluded during the audit period. We did not identify any noncompliance with the matching requirement as a result of our testing. However, the Agency did not have processes or controls in place to track the sources and uses of the match and monitor it throughout the agreement for proper compliance. Repeat Finding: No. Recommendation: We recommend that management implement a process to monitor the matching of grant funds for applicable grants and document performance of that control. This should include clear identification of the funds used for matching and their related sources. Views of Responsible Officials: Management agrees with the finding. See corrective action plan.
Finding 2023-004
Finding 2023-004: Data Collection Form Filing Federal Program Title: Department of Housing and Urban Development Assistance Listing No. 14.267 – Continuum of Care; Department of Housing and Urban Development Assistance Listing No. 14.231 – COVID-19 – Emergency Solution Grants Program Criteria: 2 CFR 200.512(a) requires that the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or 9 nine months after the end of the audit period. Condition: The data collection form for the year ended June 30, 2023, will be filed after the March 31, 2024, deadline, making it a late submission. Cause and Effect: The single audit was not completed as of the submission deadline. Late filing will result in the Agency not meeting the low-risk auditee criteria for the audit of the year ended June 30, 2024. Questioned Costs: None identified. Context: None Repeat Finding: No. Recommendation: We recommend that the Agency implement processes and controls to allow for a more timely audit. Views of Responsible Officials: Management agrees with this finding. See corrective action plan.
Finding 2023-004
Finding 2023-004: Data Collection Form Filing Federal Program Title: Department of Housing and Urban Development Assistance Listing No. 14.267 – Continuum of Care; Department of Housing and Urban Development Assistance Listing No. 14.231 – COVID-19 – Emergency Solution Grants Program Criteria: 2 CFR 200.512(a) requires that the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or 9 nine months after the end of the audit period. Condition: The data collection form for the year ended June 30, 2023, will be filed after the March 31, 2024, deadline, making it a late submission. Cause and Effect: The single audit was not completed as of the submission deadline. Late filing will result in the Agency not meeting the low-risk auditee criteria for the audit of the year ended June 30, 2024. Questioned Costs: None identified. Context: None Repeat Finding: No. Recommendation: We recommend that the Agency implement processes and controls to allow for a more timely audit. Views of Responsible Officials: Management agrees with this finding. See corrective action plan.