FAC Explorer

Audit 324229

FY End
2023-06-30
Total Expended
$4.09M
Findings
6
Programs
3
Organization: El Hogar Del Nino (IL)
Year: 2023 Accepted: 2024-10-08
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
502029 2023-003 Material Weakness Yes AB
502030 2023-004 Significant Deficiency - AB
502031 2023-005 Significant Deficiency - AB
1078471 2023-003 Material Weakness Yes AB
1078472 2023-004 Significant Deficiency - AB
1078473 2023-005 Significant Deficiency - AB

Programs

ALN Program Spent Major Findings
93.600 Head Start $3.79M Yes 3
10.558 Child and Adult Care Food Program $269,264 - 0
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $22,641 - 0

Contacts

Name Title Type
URN1NKWFCDK5 Angelica Stapert Auditee
3124240200 Thure R. L. Ross, CPA Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 BASIS OF PRESENTATION Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the SEFA) includes the Federal award activity of the Organization under programs of the federal government for the year ended June 30, 2023. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because this schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in 2 CFR Part 230 – Cost Principles for Non-Profit Organizations (OMB Circular A-122), wherein certain types or expenditures are not allowed or are limited as to reimbursement. Negative amounts shown on the SEFA represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The Organization has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The Organization 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 SEFA) includes the Federal award activity of the Organization under programs of the federal government for the year ended June 30, 2023. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because this schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization.
Title: NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the SEFA) includes the Federal award activity of the Organization under programs of the federal government for the year ended June 30, 2023. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because this schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in 2 CFR Part 230 – Cost Principles for Non-Profit Organizations (OMB Circular A-122), wherein certain types or expenditures are not allowed or are limited as to reimbursement. Negative amounts shown on the SEFA represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The Organization has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The Organization 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 2 CFR Part 230 – Cost Principles for Non-Profit Organizations (OMB Circular A-122), wherein certain types or expenditures are not allowed or are limited as to reimbursement. Negative amounts shown on the SEFA represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The Organization has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: NOTE 3 SUBRECIPIENTS Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the SEFA) includes the Federal award activity of the Organization under programs of the federal government for the year ended June 30, 2023. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because this schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in 2 CFR Part 230 – Cost Principles for Non-Profit Organizations (OMB Circular A-122), wherein certain types or expenditures are not allowed or are limited as to reimbursement. Negative amounts shown on the SEFA represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The Organization has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Organization did not provide any Federal awards to subrecipients during the year ended June 30, 2023.
Title: NOTE 4 OTHER MATTERS Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the SEFA) includes the Federal award activity of the Organization under programs of the federal government for the year ended June 30, 2023. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because this schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in 2 CFR Part 230 – Cost Principles for Non-Profit Organizations (OMB Circular A-122), wherein certain types or expenditures are not allowed or are limited as to reimbursement. Negative amounts shown on the SEFA represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The Organization has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Amount of Noncash Assistance None Amount of Insurance None Amount of Loans None Amount of Loan Guarantees None

Finding Details

Finding 2023-003
2023 – 003 Allowable Costs / Cost Principles Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Head Start Assistance Listing Number: 93.600 Federal Award Identification Number and Year: N/A Pass-Through Agency: City of Chicago Department of Family and Support Services & Start Early Pass-Through Number(s): 1130806/181206/189365/190275; 05CH011953-ELH23-03 Award Period: Start Early: 1/1/22-12/31/22; 1/1/23-12/31/23; City of Chicago: 113806: 12/1/2019-11/30/22; 181206/189365/190275: 4/1/22-11/30/22 Type of Finding: Material Noncompliance (Modified Opinion) Material Weakness in Internal Control over Compliance Criteria or Specific Requirement: Reports reflecting the distribution of activity of each employee must be maintained for all staff members whose compensation is charged, in whole or in part, directly to awards, in accordance with Cost Principles for Non-Profit Organizations (2 CFR Part 230.8). Charges to Federal awards must also be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. These records must also support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: The Organization provided time records that account for the number of hours worked by the selected employees and the departments employees are charged. The Organization is using projected salaries including vacant positions in order to calculate their full-time equivalent rate to be used for administrative allocations and not using actual time. We noted that the expenses are not being properly tracked by federal grant within the general ledger properly to show expenses are not being allocated to multiple grants. Questioned Costs: None Context: This condition occurred in all 49 payroll transactions selected for testing and represented 38 different employees. Cause: Unknown Effect: Inaccurate payroll costs may be charged to federal programs if the Agency does not have procedures in place to monitor and record employee time devoted to federal programs. Repeat Finding: The finding is a repeat finding in the immediately prior year. Prior year finding number was 2022-002. Section III – Findings and Questioned Costs – Major Federal Programs (Continued) 2023 – 003 Allowable Costs / Cost Principles (Continued) Recommendation: Management should develop a process whereby payroll costs 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, reasonably reflect the total activity for which the employee is compensated, and support the distribution of the employee’s wages among specific activities or cost objectives if the employee woks on more than one federally funded program. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with this finding.
Finding 2023-004
2023 – 004 Internal Control over Payroll Tracking Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Head Start Assistance Listing Number: 93.600 Federal Award Identification Number and Year: N/A Pass-Through Agency: City of Chicago Department of Family and Support Services & Start Early Pass-Through Number(s): 1130806/181206/189365/190275; 05CH011953-ELH23-03 Award Period: Start Early: 1/1/22-12/31/22; 1/1/23-12/31/23; City of Chicago: 113806: 12/1/2019-11/30/22; 181206/189365/190275: 4/1/22-11/30/22 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Reports reflecting the distribution of activity of each employee must be maintained for all staff members whose compensation is charged, in whole or in part, directly to awards, in accordance with Cost Principles for Non-Profit Organizations (2 CFR Part 230.8). Charges to Federal awards must also be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. These records must also support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: The Organization provided time records that account for the number of hours worked by the selected employees and the departments employees are charged. The Organization's control procedures call for dual signatures of the employee and supervisor as a control over hours worked. We noted for 13 timecards tested, one of these signoffs was not present. Questioned Costs: None Context: This condition occurred in 13 of the 49 payroll transactions selected for testing and represented 13 different employees. Cause: Internal controls over compliance with the Uniform Guidance were not followed. Section III – Findings and Questioned Costs – Major Federal Programs (Continued) 2023 – 004 Internal Control over Payroll Tracking (Continued) Effect: Inaccurate payroll costs may be charged to federal programs if the Agency does not have procedures in place to monitor and record employee time devoted to federal programs. Repeat Finding: The finding is not a repeat finding. Recommendation: Management should follow established controls requiring signatures on time cards of the employee and their supervisor to ensure the completeness and accuracy of hours allocated to the federally funded grant. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with this finding.
Finding 2023-005
2023 – 005 Payroll Disbursements Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Head Start Assistance Listing Number: 93.600 Federal Award Identification Number and Year: N/A Pass-Through Agency: City of Chicago Department of Family and Support Services & Start Early Pass-Through Number(s): 1130806/181206/189365/190275; 05CH011953-ELH23-03 Award Period: Start Early: 1/1/22-12/31/22; 1/1/23-12/31/23; City of Chicago: 113806: 12/1/2019-11/30/22; 181206/189365/190275: 4/1/22-11/30/22 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: The Organization is required to established controls so that employees compensated with grant funds have their wages reflect actual time and effort performed. Condition: We noted that three employees had variances between actual compensation and what was expected according to the documentation of their approved salary or wage rate. Questioned Costs: ALN 93.600: $197 Context: For the 49 payroll disbursements tested, we observed documentation of the employee's approved wage rate. We performed a recalculation of the disbursements to those employees per the payroll register for that period using the approved rate and the hours per the employee's timesheet. For three disbursements, the recalculation varied from the disbursement. Cause: Internal controls over compliance with the Uniform Guidance were not followed. Section III – Findings and Questioned Costs – Major Federal Programs (Continued) 2023 – 005 Payroll Disbursements (Continued) Effect: Inaccurate payroll costs may be charged to federal programs if the Agency does not have procedures in place to monitor and record employee time devoted to federal programs. Repeat Finding: The finding is not a repeat finding. Recommendation: Management should continue to follow established controls to ensure the appropriate compensation of its employees at approved rates. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with this finding.
Finding 2023-003
2023 – 003 Allowable Costs / Cost Principles Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Head Start Assistance Listing Number: 93.600 Federal Award Identification Number and Year: N/A Pass-Through Agency: City of Chicago Department of Family and Support Services & Start Early Pass-Through Number(s): 1130806/181206/189365/190275; 05CH011953-ELH23-03 Award Period: Start Early: 1/1/22-12/31/22; 1/1/23-12/31/23; City of Chicago: 113806: 12/1/2019-11/30/22; 181206/189365/190275: 4/1/22-11/30/22 Type of Finding: Material Noncompliance (Modified Opinion) Material Weakness in Internal Control over Compliance Criteria or Specific Requirement: Reports reflecting the distribution of activity of each employee must be maintained for all staff members whose compensation is charged, in whole or in part, directly to awards, in accordance with Cost Principles for Non-Profit Organizations (2 CFR Part 230.8). Charges to Federal awards must also be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. These records must also support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: The Organization provided time records that account for the number of hours worked by the selected employees and the departments employees are charged. The Organization is using projected salaries including vacant positions in order to calculate their full-time equivalent rate to be used for administrative allocations and not using actual time. We noted that the expenses are not being properly tracked by federal grant within the general ledger properly to show expenses are not being allocated to multiple grants. Questioned Costs: None Context: This condition occurred in all 49 payroll transactions selected for testing and represented 38 different employees. Cause: Unknown Effect: Inaccurate payroll costs may be charged to federal programs if the Agency does not have procedures in place to monitor and record employee time devoted to federal programs. Repeat Finding: The finding is a repeat finding in the immediately prior year. Prior year finding number was 2022-002. Section III – Findings and Questioned Costs – Major Federal Programs (Continued) 2023 – 003 Allowable Costs / Cost Principles (Continued) Recommendation: Management should develop a process whereby payroll costs 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, reasonably reflect the total activity for which the employee is compensated, and support the distribution of the employee’s wages among specific activities or cost objectives if the employee woks on more than one federally funded program. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with this finding.
Finding 2023-004
2023 – 004 Internal Control over Payroll Tracking Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Head Start Assistance Listing Number: 93.600 Federal Award Identification Number and Year: N/A Pass-Through Agency: City of Chicago Department of Family and Support Services & Start Early Pass-Through Number(s): 1130806/181206/189365/190275; 05CH011953-ELH23-03 Award Period: Start Early: 1/1/22-12/31/22; 1/1/23-12/31/23; City of Chicago: 113806: 12/1/2019-11/30/22; 181206/189365/190275: 4/1/22-11/30/22 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Reports reflecting the distribution of activity of each employee must be maintained for all staff members whose compensation is charged, in whole or in part, directly to awards, in accordance with Cost Principles for Non-Profit Organizations (2 CFR Part 230.8). Charges to Federal awards must also be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. These records must also support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: The Organization provided time records that account for the number of hours worked by the selected employees and the departments employees are charged. The Organization's control procedures call for dual signatures of the employee and supervisor as a control over hours worked. We noted for 13 timecards tested, one of these signoffs was not present. Questioned Costs: None Context: This condition occurred in 13 of the 49 payroll transactions selected for testing and represented 13 different employees. Cause: Internal controls over compliance with the Uniform Guidance were not followed. Section III – Findings and Questioned Costs – Major Federal Programs (Continued) 2023 – 004 Internal Control over Payroll Tracking (Continued) Effect: Inaccurate payroll costs may be charged to federal programs if the Agency does not have procedures in place to monitor and record employee time devoted to federal programs. Repeat Finding: The finding is not a repeat finding. Recommendation: Management should follow established controls requiring signatures on time cards of the employee and their supervisor to ensure the completeness and accuracy of hours allocated to the federally funded grant. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with this finding.
Finding 2023-005
2023 – 005 Payroll Disbursements Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Head Start Assistance Listing Number: 93.600 Federal Award Identification Number and Year: N/A Pass-Through Agency: City of Chicago Department of Family and Support Services & Start Early Pass-Through Number(s): 1130806/181206/189365/190275; 05CH011953-ELH23-03 Award Period: Start Early: 1/1/22-12/31/22; 1/1/23-12/31/23; City of Chicago: 113806: 12/1/2019-11/30/22; 181206/189365/190275: 4/1/22-11/30/22 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: The Organization is required to established controls so that employees compensated with grant funds have their wages reflect actual time and effort performed. Condition: We noted that three employees had variances between actual compensation and what was expected according to the documentation of their approved salary or wage rate. Questioned Costs: ALN 93.600: $197 Context: For the 49 payroll disbursements tested, we observed documentation of the employee's approved wage rate. We performed a recalculation of the disbursements to those employees per the payroll register for that period using the approved rate and the hours per the employee's timesheet. For three disbursements, the recalculation varied from the disbursement. Cause: Internal controls over compliance with the Uniform Guidance were not followed. Section III – Findings and Questioned Costs – Major Federal Programs (Continued) 2023 – 005 Payroll Disbursements (Continued) Effect: Inaccurate payroll costs may be charged to federal programs if the Agency does not have procedures in place to monitor and record employee time devoted to federal programs. Repeat Finding: The finding is not a repeat finding. Recommendation: Management should continue to follow established controls to ensure the appropriate compensation of its employees at approved rates. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with this finding.