FAC Explorer

Audit 342339

FY End
2024-06-30
Total Expended
$1.00M
Findings
4
Programs
9
Organization: Association House of Chicago (IL)
Year: 2024 Accepted: 2025-02-13
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
523075 2024-002 Material Weakness Yes B
523076 2024-002 Material Weakness Yes B
1099517 2024-002 Material Weakness Yes B
1099518 2024-002 Material Weakness Yes B

Programs

ALN Program Spent Major Findings
17.258 Wioa Adult Program $255,071 Yes 1
93.958 Block Grants for Community Mental Health Services $179,268 Yes 1
94.006 Americorps State and National 94.006 $158,899 - 0
14.218 Community Development Block Grants/entitlement Grants $146,680 - 0
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $98,102 - 0
17.289 Community Project Funding/congressionally Directed Spending $44,074 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $35,719 - 0
93.959 Block Grants for Prevention and Treatment of Substance Abuse $31,707 - 0
21.029 Coronavirus Capital Projects Fund $12,675 - 0

Contacts

Name Title Type
U43SP5TQJHD9 Margarita Rosas Auditee
7737727170 Thure Ross Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the SEFA are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable 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. De Minimis Rate Used: N Rate Explanation: The Agency has not 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 Agency under programs of the federal government for the year ended June 30, 2024. The information in this SEFA is presented in accordance with the requirements of 2 CFR Part 900, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). As the SEFA presents only a selected portion of the operations of the Agency, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Agency.
Title: OTHER MATTERS Accounting Policies: NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the SEFA are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable 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. De Minimis Rate Used: N Rate Explanation: The Agency has not 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 2024-002
Federal Agencies: U.S. Department of Health and Human Services and U.S. Department of Labor Federal Program Names: Block Grants for Community Mental Health Services and WIOA Adult Program Assistance Listing Numbers: 93.958 and 17.258 Pass-Through Agencies: Illinois Department of Human Services and Chicago Cook Workforce Partnership Pass-Through Numbers: 45CBB00060; 2021-2135 and 2022-2135 Award Period: July 1, 2023 through June 30, 2024; October 1, 2022 through September 30, 2023; October 1, 2023 through September 30, 2024 Type of Finding: Other Matters Material Weakness in Internal Control over Compliance Criteria or Specific Requirement: Uniform Guidance section 200.430(h)(8)(i) indicates that the standards for documentation of personnel expenses are such that (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must:(i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated;(ii) Be incorporated into the official records of the non-Federal entity and (iii) Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities. Furthermore, subsection (viii) indicates: Budget estimates alone do not qualify as support for charges to Federal awards, but may be used for interim accounting purposes, provided that:(A) The system for establishing the estimates produces reasonable approximations of the activity actually performed;(B) Significant changes in the corresponding work activity are identified and entered into the records in a timely manner and (C) The non-Federal entity's system of internal controls includes processes to review after-the-fact interim charges made to a Federal awards based on budget estimates. Condition: The Agency is allocating payroll costs to grants based upon budgeted amounts/percentages submitted to the funding agency and does not currently have a system for ensuring that the estimates used produce reasonable approximations of the activity actually performed. Questioned Costs: None Context: This condition occurred in all 47 transactions selected for testing and represented 14 different employees. Cause: Procedures for the allocation of employee time in full compliance with the Uniform Guidance have not yet been fully implemented. 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: This finding is a repeat of finding 2023-003. 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: There is no disagreement with this finding.
Finding 2024-002
Federal Agencies: U.S. Department of Health and Human Services and U.S. Department of Labor Federal Program Names: Block Grants for Community Mental Health Services and WIOA Adult Program Assistance Listing Numbers: 93.958 and 17.258 Pass-Through Agencies: Illinois Department of Human Services and Chicago Cook Workforce Partnership Pass-Through Numbers: 45CBB00060; 2021-2135 and 2022-2135 Award Period: July 1, 2023 through June 30, 2024; October 1, 2022 through September 30, 2023; October 1, 2023 through September 30, 2024 Type of Finding: Other Matters Material Weakness in Internal Control over Compliance Criteria or Specific Requirement: Uniform Guidance section 200.430(h)(8)(i) indicates that the standards for documentation of personnel expenses are such that (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must:(i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated;(ii) Be incorporated into the official records of the non-Federal entity and (iii) Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities. Furthermore, subsection (viii) indicates: Budget estimates alone do not qualify as support for charges to Federal awards, but may be used for interim accounting purposes, provided that:(A) The system for establishing the estimates produces reasonable approximations of the activity actually performed;(B) Significant changes in the corresponding work activity are identified and entered into the records in a timely manner and (C) The non-Federal entity's system of internal controls includes processes to review after-the-fact interim charges made to a Federal awards based on budget estimates. Condition: The Agency is allocating payroll costs to grants based upon budgeted amounts/percentages submitted to the funding agency and does not currently have a system for ensuring that the estimates used produce reasonable approximations of the activity actually performed. Questioned Costs: None Context: This condition occurred in all 47 transactions selected for testing and represented 14 different employees. Cause: Procedures for the allocation of employee time in full compliance with the Uniform Guidance have not yet been fully implemented. 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: This finding is a repeat of finding 2023-003. 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: There is no disagreement with this finding.
Finding 2024-002
Federal Agencies: U.S. Department of Health and Human Services and U.S. Department of Labor Federal Program Names: Block Grants for Community Mental Health Services and WIOA Adult Program Assistance Listing Numbers: 93.958 and 17.258 Pass-Through Agencies: Illinois Department of Human Services and Chicago Cook Workforce Partnership Pass-Through Numbers: 45CBB00060; 2021-2135 and 2022-2135 Award Period: July 1, 2023 through June 30, 2024; October 1, 2022 through September 30, 2023; October 1, 2023 through September 30, 2024 Type of Finding: Other Matters Material Weakness in Internal Control over Compliance Criteria or Specific Requirement: Uniform Guidance section 200.430(h)(8)(i) indicates that the standards for documentation of personnel expenses are such that (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must:(i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated;(ii) Be incorporated into the official records of the non-Federal entity and (iii) Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities. Furthermore, subsection (viii) indicates: Budget estimates alone do not qualify as support for charges to Federal awards, but may be used for interim accounting purposes, provided that:(A) The system for establishing the estimates produces reasonable approximations of the activity actually performed;(B) Significant changes in the corresponding work activity are identified and entered into the records in a timely manner and (C) The non-Federal entity's system of internal controls includes processes to review after-the-fact interim charges made to a Federal awards based on budget estimates. Condition: The Agency is allocating payroll costs to grants based upon budgeted amounts/percentages submitted to the funding agency and does not currently have a system for ensuring that the estimates used produce reasonable approximations of the activity actually performed. Questioned Costs: None Context: This condition occurred in all 47 transactions selected for testing and represented 14 different employees. Cause: Procedures for the allocation of employee time in full compliance with the Uniform Guidance have not yet been fully implemented. 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: This finding is a repeat of finding 2023-003. 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: There is no disagreement with this finding.
Finding 2024-002
Federal Agencies: U.S. Department of Health and Human Services and U.S. Department of Labor Federal Program Names: Block Grants for Community Mental Health Services and WIOA Adult Program Assistance Listing Numbers: 93.958 and 17.258 Pass-Through Agencies: Illinois Department of Human Services and Chicago Cook Workforce Partnership Pass-Through Numbers: 45CBB00060; 2021-2135 and 2022-2135 Award Period: July 1, 2023 through June 30, 2024; October 1, 2022 through September 30, 2023; October 1, 2023 through September 30, 2024 Type of Finding: Other Matters Material Weakness in Internal Control over Compliance Criteria or Specific Requirement: Uniform Guidance section 200.430(h)(8)(i) indicates that the standards for documentation of personnel expenses are such that (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must:(i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated;(ii) Be incorporated into the official records of the non-Federal entity and (iii) Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities. Furthermore, subsection (viii) indicates: Budget estimates alone do not qualify as support for charges to Federal awards, but may be used for interim accounting purposes, provided that:(A) The system for establishing the estimates produces reasonable approximations of the activity actually performed;(B) Significant changes in the corresponding work activity are identified and entered into the records in a timely manner and (C) The non-Federal entity's system of internal controls includes processes to review after-the-fact interim charges made to a Federal awards based on budget estimates. Condition: The Agency is allocating payroll costs to grants based upon budgeted amounts/percentages submitted to the funding agency and does not currently have a system for ensuring that the estimates used produce reasonable approximations of the activity actually performed. Questioned Costs: None Context: This condition occurred in all 47 transactions selected for testing and represented 14 different employees. Cause: Procedures for the allocation of employee time in full compliance with the Uniform Guidance have not yet been fully implemented. 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: This finding is a repeat of finding 2023-003. 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: There is no disagreement with this finding.