FAC Explorer

Audit 350433

FY End
2024-06-30
Total Expended
$1.18M
Findings
2
Programs
6
Organization: Chicago Urban League (IL)
Year: 2024 Accepted: 2025-03-30
Auditor: Ringold Financial Management Services

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
540744 2024-001 Significant Deficiency - P
1117186 2024-001 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
93.667 Social Services Block Grant $394,894 Yes 0
14.218 Community Development Block Grants/entitlement Grants $130,340 - 0
17.270 Reentry Employment Opportunities $108,346 - 0
17.285 Registered Apprenticeship $82,887 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $48,829 Yes 0
14.169 Housing Counseling Assistance Program $20,331 - 0

Contacts

Name Title Type
F4MJCNN693F3 Curtis Whittaker Auditee
7732855800 Laura Hunter Auditor
No contacts on file

Notes to SEFA

Title: Note A - 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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: N/A The accompanying Schedule of Expenditures of Federal Awards (“the Schedule”) includes the federal grant activity of the Chicago Urban League and Affiliate (collectively, “the Organization”) under programs of the federal government for the year ended June 30, 2024. The information in this schedule is presented in accordance with 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 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 B – 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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: N/A Expenditures reported on the Schedule 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.
Title: Note C – Indirect Cost Rate 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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: N/A In the absence of a Negotiated Indirect Cost Rate Agreement (NICRA), the Organization has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Organization holds a NICRA with a pass-through grantor, National Urban League, whose rate varies depending on the fiscal year and ranges from 30% to 36%.
Title: Note D – Other 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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: N/A The Organization did not have any outstanding federal loans or loan guarantees as of June 30, 2024, and did not receive any federal noncash awards or insurance assistance for reimbursement losses during the year ended June 30, 2024.
Title: Note E - Program Costs 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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: N/A The amounts shown as current year expenditures represent only the federal portion of the program costs. Entire program costs, including the Organization’s portion, are more than shown. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.

Finding Details

Finding 2024-001
Section II – Financial Statement Findings Finding 2024-001 – Controls over Financial Statement Preparation Criteria Management of the Organization is responsible for establishing and maintaining effective internal control over financial reporting, including the full disclosure combined financial statements, in accordance with U.S. generally accepted accounting principles (GAAP). The Organization is required to have proper internal controls in place, specifically in regards to review and approval of accounts. Condition We have assisted the Organization in the preparation of the annual full disclosure combined financial statements. Preparation of GAAP financial statements and note disclosures is a time-consuming activity and requires an individual to remain current with all new reporting pronouncements issued by the Financial Accounting Standards Board (FASB). Context We assisted the Organization’s staff in preparing adjustments to various account balances to present the financial position and activities of the Organization in the annual audited combined financial statements in accordance with GAAP. Journal entries were required for the following accounts: accounts payable and accrued liabilities, prepaid expenses, contributions receivable, revenues, and expenses. Effect Management may not be able to detect material errors and omissions in its internal financial reports. As a result, inaccurate financial data may be shared with outside users. Cause This finding was caused by weak internal controls over the financial reporting process. The Organization relies on the auditor for expertise in financial reporting. The Organization’s internal controls did not function properly to identify the errors and omissions described above. Recommendation We recommend that the Organization strengthen internal controls over financial reporting to ensure that the financial statements are in accordance with GAAP. Management Response Management concurs with this finding. See corrective action plan. Section III – Federal Award Findings and Questioned Costs There were no federal award findings or questioned costs noted for the fiscal year ended June 30, 2024.
Finding 2024-001
Section II – Financial Statement Findings Finding 2024-001 – Controls over Financial Statement Preparation Criteria Management of the Organization is responsible for establishing and maintaining effective internal control over financial reporting, including the full disclosure combined financial statements, in accordance with U.S. generally accepted accounting principles (GAAP). The Organization is required to have proper internal controls in place, specifically in regards to review and approval of accounts. Condition We have assisted the Organization in the preparation of the annual full disclosure combined financial statements. Preparation of GAAP financial statements and note disclosures is a time-consuming activity and requires an individual to remain current with all new reporting pronouncements issued by the Financial Accounting Standards Board (FASB). Context We assisted the Organization’s staff in preparing adjustments to various account balances to present the financial position and activities of the Organization in the annual audited combined financial statements in accordance with GAAP. Journal entries were required for the following accounts: accounts payable and accrued liabilities, prepaid expenses, contributions receivable, revenues, and expenses. Effect Management may not be able to detect material errors and omissions in its internal financial reports. As a result, inaccurate financial data may be shared with outside users. Cause This finding was caused by weak internal controls over the financial reporting process. The Organization relies on the auditor for expertise in financial reporting. The Organization’s internal controls did not function properly to identify the errors and omissions described above. Recommendation We recommend that the Organization strengthen internal controls over financial reporting to ensure that the financial statements are in accordance with GAAP. Management Response Management concurs with this finding. See corrective action plan. Section III – Federal Award Findings and Questioned Costs There were no federal award findings or questioned costs noted for the fiscal year ended June 30, 2024.