FAC Explorer

Audit 347355

FY End
2024-06-30
Total Expended
$1.55M
Findings
4
Programs
7
Organization: Lutheran Child and Family Services of Illinois (IL)
Year: 2024 Accepted: 2025-03-21
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
529334 2024-001 Significant Deficiency - I
529335 2024-002 Significant Deficiency - I
1105776 2024-001 Significant Deficiency - I
1105777 2024-002 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
14.267 Continuum of Care Program $797,523 Yes 2
93.959 Block Grants for Prevention and Treatment of Substance Abuse $366,576 - 0
93.276 Drug-Free Communities Support Program Grants $124,730 - 0
93.667 Social Services Block Grant $117,596 - 0
93.550 Transitional Living for Homeless Youth $62,320 - 0
93.569 Community Services Block Grant $55,378 - 0
14.218 Community Development Block Grants/entitlement Grants $13,610 - 0

Contacts

Name Title Type
N6Z1Z39NMFF5 Dhiren Shah Auditee
6302481181 Thure Ross 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 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal award activity of Lutheran Child and Family Services of Illinois and 360 Youth Services under programs of the federal government for the year ended June 30, 2024. 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: 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 percent 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, 2024.

Finding Details

Finding 2024-001
2024-001 – Procurement Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Continuum of Care Program Assistance Listing Number: 14.267 Federal Award Identification Number: IL1780LST172201 - 2023 IL1651L5Tl42204 - 2023 IL1780L5T172100 - 2022 IL0315LST142215 - 2023 IL1651L5T142103 - 2022 Award Periods: August 1, 2022 – July 31, 2023; August 1, 2023 – July 31, 2024; July 1, 2023 – June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria: Under the Uniform Guidance, organizations are required to document the basis for their procurement. For the procurements tested, the Agency did not have documentation to support how these procurements met the requirements. Condition: While the Agency has a procurement policy in place that meets the requirements of Uniform Guidance, the Agency did not create and retain appropriate documentation for the method of procurement utilized. Questioned Costs: None Context: For one transaction selected for testing under assistance listing number (ALN) 14.267 the Agency utilized the sole source method of procurement but did not maintain documentation justifying why the use of this method was appropriate. Cause: Unknown Effect: Lack of following procurement procedures could result in the Agency engaging vendors who are not the most efficient or economical. Repeat Finding: This finding is not a repeat finding. Recommendation: CLA recommends the Agency maintain an audit trail for all procurements. This can be done electronically for efficiency. Views of Responsible Officials: There is no disagreement with this audit finding.
Finding 2024-002
2024-002 – Suspension and Debarment Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Continuum of Care Program Assistance Listing Number: 14.267 Federal Award Identification Number: IL1780LST172201 - 2023 IL1651L5Tl42204 - 2023 IL1780L5T172100 - 2022 IL0315LST142215 - 2023 IL1651L5T142103 - 2022 Award Periods: August 1, 2022 – July 31, 2023; August 1, 2023 – July 31, 2024; July 1, 2023 – June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria: 2 CFR sections 200.212 and 200.318(h); 2 CFR section 180.300; 48 CFR section 52.209-6 outlines that the non-Federal entity must verify that the agency in which it is entering into a contract is not suspended or debarred or otherwise excluded from participating in the transaction. Condition: The Agency did not retain the documentation of verification of vendors not suspended or debarred prior to entering into a contract with the vendor. Questioned Costs: None Context: The Agency procured grant writing services and made rental assistance payments to the vendors without maintaining the documentation of verification for the vendors not being suspended or debarred. Cause: Unknown Effect: Formalized procedures should be in place to ensure the Agency does not engage with vendors that are debarred, suspended, or otherwise excluded. Repeat Finding: This finding is not a repeat finding. Recommendation: CLA recommends the Agency update its procurement policy to include procedures that a vendor be verified as not being debarred, suspended, or excluded and documentation maintained to support the determination. Views of Responsible Officials: There is no disagreement with this audit finding.
Finding 2024-001
2024-001 – Procurement Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Continuum of Care Program Assistance Listing Number: 14.267 Federal Award Identification Number: IL1780LST172201 - 2023 IL1651L5Tl42204 - 2023 IL1780L5T172100 - 2022 IL0315LST142215 - 2023 IL1651L5T142103 - 2022 Award Periods: August 1, 2022 – July 31, 2023; August 1, 2023 – July 31, 2024; July 1, 2023 – June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria: Under the Uniform Guidance, organizations are required to document the basis for their procurement. For the procurements tested, the Agency did not have documentation to support how these procurements met the requirements. Condition: While the Agency has a procurement policy in place that meets the requirements of Uniform Guidance, the Agency did not create and retain appropriate documentation for the method of procurement utilized. Questioned Costs: None Context: For one transaction selected for testing under assistance listing number (ALN) 14.267 the Agency utilized the sole source method of procurement but did not maintain documentation justifying why the use of this method was appropriate. Cause: Unknown Effect: Lack of following procurement procedures could result in the Agency engaging vendors who are not the most efficient or economical. Repeat Finding: This finding is not a repeat finding. Recommendation: CLA recommends the Agency maintain an audit trail for all procurements. This can be done electronically for efficiency. Views of Responsible Officials: There is no disagreement with this audit finding.
Finding 2024-002
2024-002 – Suspension and Debarment Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Continuum of Care Program Assistance Listing Number: 14.267 Federal Award Identification Number: IL1780LST172201 - 2023 IL1651L5Tl42204 - 2023 IL1780L5T172100 - 2022 IL0315LST142215 - 2023 IL1651L5T142103 - 2022 Award Periods: August 1, 2022 – July 31, 2023; August 1, 2023 – July 31, 2024; July 1, 2023 – June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria: 2 CFR sections 200.212 and 200.318(h); 2 CFR section 180.300; 48 CFR section 52.209-6 outlines that the non-Federal entity must verify that the agency in which it is entering into a contract is not suspended or debarred or otherwise excluded from participating in the transaction. Condition: The Agency did not retain the documentation of verification of vendors not suspended or debarred prior to entering into a contract with the vendor. Questioned Costs: None Context: The Agency procured grant writing services and made rental assistance payments to the vendors without maintaining the documentation of verification for the vendors not being suspended or debarred. Cause: Unknown Effect: Formalized procedures should be in place to ensure the Agency does not engage with vendors that are debarred, suspended, or otherwise excluded. Repeat Finding: This finding is not a repeat finding. Recommendation: CLA recommends the Agency update its procurement policy to include procedures that a vendor be verified as not being debarred, suspended, or excluded and documentation maintained to support the determination. Views of Responsible Officials: There is no disagreement with this audit finding.