Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2023 through December 31, 2024
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
Under allowable cost/cost principles, an organization in receipt of federal funding is required to have a system of controls in place to safeguard assets and ensure that only allowable costs are charged to federal programs. 2 CFR Part 200 states that changes to awards for salaries and wages are to be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated.
Condition:
In testing a sample of 40 payroll items, we identified the following:
• 15 out of the 40 transactions tested did not have supporting documentation for the specific employee’s payroll allocation.
• Time and effort was not documented for all employees tested.
Questioned Costs:
$-0-
Context:
Payroll transactions are not being properly documented, and allocations supported throughout the payroll process.
Cause:
Time and effort studies, and support for allocations are not being performed.
Effect:
Inaccurate payroll costs may be charged to federal programs.
Repeat Finding:
This is a repeat finding.
Recommendation:
Policies and procedures over the processing of payroll transactions should include the following:
• Time and effort studies should be conducted on all employees to support allocations.
Views of Responsible Officials and Planned Corrective Actions:
There is no disagreement with the audit finding. We are revising procedures to ensure that all payroll costs are allocated accurately and supported by time and effort studies to prevent future discrepancies and maintain compliance with applicable regulations.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan:
Immediately
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2023 through December 31, 2024
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
Under allowable cost/cost principles, an organization in receipt of federal funding is required to have a system of controls in place to safeguard assets and ensure that only allowable costs are charged to federal programs. 2 CFR Part 200 states that changes to awards for salaries and wages are to be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated.
Condition:
In testing a sample of 40 payroll items, we identified the following:
• 15 out of the 40 transactions tested did not have supporting documentation for the specific employee’s payroll allocation.
• Time and effort was not documented for all employees tested.
Questioned Costs:
$-0-
Context:
Payroll transactions are not being properly documented, and allocations supported throughout the payroll process.
Cause:
Time and effort studies, and support for allocations are not being performed.
Effect:
Inaccurate payroll costs may be charged to federal programs.
Repeat Finding:
This is a repeat finding.
Recommendation:
Policies and procedures over the processing of payroll transactions should include the following:
• Time and effort studies should be conducted on all employees to support allocations.
Views of Responsible Officials and Planned Corrective Actions:
There is no disagreement with the audit finding. We are revising procedures to ensure that all payroll costs are allocated accurately and supported by time and effort studies to prevent future discrepancies and maintain compliance with applicable regulations.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan:
Immediately
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2023 through December 31, 2024
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
Under allowable cost/cost principles, an organization in receipt of federal funding is required to have a system of controls in place to safeguard assets and ensure that only allowable costs are charged to federal programs. 2 CFR Part 200 states that changes to awards for salaries and wages are to be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated.
Condition:
In testing a sample of 40 payroll items, we identified the following:
• 15 out of the 40 transactions tested did not have supporting documentation for the specific employee’s payroll allocation.
• Time and effort was not documented for all employees tested.
Questioned Costs:
$-0-
Context:
Payroll transactions are not being properly documented, and allocations supported throughout the payroll process.
Cause:
Time and effort studies, and support for allocations are not being performed.
Effect:
Inaccurate payroll costs may be charged to federal programs.
Repeat Finding:
This is a repeat finding.
Recommendation:
Policies and procedures over the processing of payroll transactions should include the following:
• Time and effort studies should be conducted on all employees to support allocations.
Views of Responsible Officials and Planned Corrective Actions:
There is no disagreement with the audit finding. We are revising procedures to ensure that all payroll costs are allocated accurately and supported by time and effort studies to prevent future discrepancies and maintain compliance with applicable regulations.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan:
Immediately
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2023 through December 31, 2024
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
Under allowable cost/cost principles, an organization in receipt of federal funding is required to have a system of controls in place to safeguard assets and ensure that only allowable costs are charged to federal programs. 2 CFR Part 200 states that changes to awards for salaries and wages are to be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated.
Condition:
In testing a sample of 40 payroll items, we identified the following:
• 15 out of the 40 transactions tested did not have supporting documentation for the specific employee’s payroll allocation.
• Time and effort was not documented for all employees tested.
Questioned Costs:
$-0-
Context:
Payroll transactions are not being properly documented, and allocations supported throughout the payroll process.
Cause:
Time and effort studies, and support for allocations are not being performed.
Effect:
Inaccurate payroll costs may be charged to federal programs.
Repeat Finding:
This is a repeat finding.
Recommendation:
Policies and procedures over the processing of payroll transactions should include the following:
• Time and effort studies should be conducted on all employees to support allocations.
Views of Responsible Officials and Planned Corrective Actions:
There is no disagreement with the audit finding. We are revising procedures to ensure that all payroll costs are allocated accurately and supported by time and effort studies to prevent future discrepancies and maintain compliance with applicable regulations.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan:
Immediately
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2023 through December 31, 2024
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
Under allowable cost/cost principles, an organization in receipt of federal funding is required to have a system of controls in place to safeguard assets and ensure that only allowable costs are charged to federal programs. 2 CFR Part 200 states that costs may be allocated or transferred to benefitted projects on any reasonable documented basis.
Condition:
In testing a sample of 8 items, we identified the following:
• 5 out of the 8 transactions tested did not have back up to support the amount allocated.
Questioned Costs:
Unknown
Context:
Disbursements are not being properly documented for the allocation methodology being used.
Cause:
Procedures for the allocation of general disbursements in full compliance with the Uniform Guidance have not yet been fully implemented.
Effect:
Inaccurate costs may be charged to federal programs if The Blvd does not have procedures in place to monitor and record general disbursements devoted to federal programs.
Repeat Finding:
This is a repeat finding.
Recommendation:
Management should develop a process whereby general disbursements 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 and support the distribution of the disbursement among specific activities or cost objectives if the disbursement is allocated to more than one federally funded program. These estimates should be properly reflected during the vouchering process.
Views of responsible officials and planned corrective actions:
There is no disagreement with the audit finding. Currently, all vouchers are reviewed and approved by upper management prior to submission. These vouchers are checked against our policy ensuring costs are reasonable, allowable, and allocable to a State, Federal, local, and private awards shall be charged to that award directly or indirectly.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan:
Immediately
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2023 through December 31, 2024
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
Under allowable cost/cost principles, an organization in receipt of federal funding is required to have a system of controls in place to safeguard assets and ensure that only allowable costs are charged to federal programs. 2 CFR Part 200 states that costs may be allocated or transferred to benefitted projects on any reasonable documented basis.
Condition:
In testing a sample of 8 items, we identified the following:
• 5 out of the 8 transactions tested did not have back up to support the amount allocated.
Questioned Costs:
Unknown
Context:
Disbursements are not being properly documented for the allocation methodology being used.
Cause:
Procedures for the allocation of general disbursements in full compliance with the Uniform Guidance have not yet been fully implemented.
Effect:
Inaccurate costs may be charged to federal programs if The Blvd does not have procedures in place to monitor and record general disbursements devoted to federal programs.
Repeat Finding:
This is a repeat finding.
Recommendation:
Management should develop a process whereby general disbursements 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 and support the distribution of the disbursement among specific activities or cost objectives if the disbursement is allocated to more than one federally funded program. These estimates should be properly reflected during the vouchering process.
Views of responsible officials and planned corrective actions:
There is no disagreement with the audit finding. Currently, all vouchers are reviewed and approved by upper management prior to submission. These vouchers are checked against our policy ensuring costs are reasonable, allowable, and allocable to a State, Federal, local, and private awards shall be charged to that award directly or indirectly.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan:
Immediately
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2023 through December 31, 2024
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
Under allowable cost/cost principles, an organization in receipt of federal funding is required to have a system of controls in place to safeguard assets and ensure that only allowable costs are charged to federal programs. 2 CFR Part 200 states that costs may be allocated or transferred to benefitted projects on any reasonable documented basis.
Condition:
In testing a sample of 8 items, we identified the following:
• 5 out of the 8 transactions tested did not have back up to support the amount allocated.
Questioned Costs:
Unknown
Context:
Disbursements are not being properly documented for the allocation methodology being used.
Cause:
Procedures for the allocation of general disbursements in full compliance with the Uniform Guidance have not yet been fully implemented.
Effect:
Inaccurate costs may be charged to federal programs if The Blvd does not have procedures in place to monitor and record general disbursements devoted to federal programs.
Repeat Finding:
This is a repeat finding.
Recommendation:
Management should develop a process whereby general disbursements 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 and support the distribution of the disbursement among specific activities or cost objectives if the disbursement is allocated to more than one federally funded program. These estimates should be properly reflected during the vouchering process.
Views of responsible officials and planned corrective actions:
There is no disagreement with the audit finding. Currently, all vouchers are reviewed and approved by upper management prior to submission. These vouchers are checked against our policy ensuring costs are reasonable, allowable, and allocable to a State, Federal, local, and private awards shall be charged to that award directly or indirectly.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan:
Immediately
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2023 through December 31, 2024
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
Under allowable cost/cost principles, an organization in receipt of federal funding is required to have a system of controls in place to safeguard assets and ensure that only allowable costs are charged to federal programs. 2 CFR Part 200 states that costs may be allocated or transferred to benefitted projects on any reasonable documented basis.
Condition:
In testing a sample of 8 items, we identified the following:
• 5 out of the 8 transactions tested did not have back up to support the amount allocated.
Questioned Costs:
Unknown
Context:
Disbursements are not being properly documented for the allocation methodology being used.
Cause:
Procedures for the allocation of general disbursements in full compliance with the Uniform Guidance have not yet been fully implemented.
Effect:
Inaccurate costs may be charged to federal programs if The Blvd does not have procedures in place to monitor and record general disbursements devoted to federal programs.
Repeat Finding:
This is a repeat finding.
Recommendation:
Management should develop a process whereby general disbursements 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 and support the distribution of the disbursement among specific activities or cost objectives if the disbursement is allocated to more than one federally funded program. These estimates should be properly reflected during the vouchering process.
Views of responsible officials and planned corrective actions:
There is no disagreement with the audit finding. Currently, all vouchers are reviewed and approved by upper management prior to submission. These vouchers are checked against our policy ensuring costs are reasonable, allowable, and allocable to a State, Federal, local, and private awards shall be charged to that award directly or indirectly.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan:
Immediately
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2023 through December 31, 2024
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
A well-designed system of internal control should include policies and procedures to ensure the accuracy of indirect cost calculations and voucher requests. This ensures only allowable costs are charged to federal programs.
Condition:
In testing a sample of five indirect cost items, we identified the following:
• 5 out of the 5 indirect cost calculations tested were calculated on personnel and benefit expenses for employees already being charged to the grant directly.
Questioned Costs:
$14,724
Context:
Indirect cost calculations are not being properly calculated, reviewed and approved throughout the voucher process.
Cause:
Policies and procedures had not been put into place to properly calculate the indirect costs and document review of vouchers prior to submission during the monthly voucher process. Procedures should be in accordance with the Uniform Guidance.
Effect:
Inaccurate costs may be charged to federal programs through the indirect cost allocation if The Blvd does not have procedures in place to monitor the accuracy of the calculation. Additionally, an error could occur during the voucher and process if The Blvd does not have procedures in place to properly review and approve the vouchers prior to submission.
Repeat Finding:
This is a repeat finding.
Recommendation:
Management should develop a process whereby indirect costs for federal grants are supported by a system of internal controls which provides reasonable assurance that the allocation calculated is accurate, allowable, and properly calculated, and supported. This process should be documented by a sign-off and date of both the preparer and the reviewer prior to the submission of the voucher during the monthly voucher process.
Views of Responsible Officials and Planned Corrective Actions:
There is no disagreement with the audit finding. We are currently revising our allocation methodology to ensure all calculations are accurate and well-documented, and we are training staff to consistently apply the update approach.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan:
Immediately
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2023 through December 31, 2024
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
A well-designed system of internal control should include policies and procedures to ensure the accuracy of indirect cost calculations and voucher requests. This ensures only allowable costs are charged to federal programs.
Condition:
In testing a sample of five indirect cost items, we identified the following:
• 5 out of the 5 indirect cost calculations tested were calculated on personnel and benefit expenses for employees already being charged to the grant directly.
Questioned Costs:
$14,724
Context:
Indirect cost calculations are not being properly calculated, reviewed and approved throughout the voucher process.
Cause:
Policies and procedures had not been put into place to properly calculate the indirect costs and document review of vouchers prior to submission during the monthly voucher process. Procedures should be in accordance with the Uniform Guidance.
Effect:
Inaccurate costs may be charged to federal programs through the indirect cost allocation if The Blvd does not have procedures in place to monitor the accuracy of the calculation. Additionally, an error could occur during the voucher and process if The Blvd does not have procedures in place to properly review and approve the vouchers prior to submission.
Repeat Finding:
This is a repeat finding.
Recommendation:
Management should develop a process whereby indirect costs for federal grants are supported by a system of internal controls which provides reasonable assurance that the allocation calculated is accurate, allowable, and properly calculated, and supported. This process should be documented by a sign-off and date of both the preparer and the reviewer prior to the submission of the voucher during the monthly voucher process.
Views of Responsible Officials and Planned Corrective Actions:
There is no disagreement with the audit finding. We are currently revising our allocation methodology to ensure all calculations are accurate and well-documented, and we are training staff to consistently apply the update approach.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan:
Immediately
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2023 through December 31, 2024
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
A well-designed system of internal control should include policies and procedures to ensure the accuracy of indirect cost calculations and voucher requests. This ensures only allowable costs are charged to federal programs.
Condition:
In testing a sample of five indirect cost items, we identified the following:
• 5 out of the 5 indirect cost calculations tested were calculated on personnel and benefit expenses for employees already being charged to the grant directly.
Questioned Costs:
$14,724
Context:
Indirect cost calculations are not being properly calculated, reviewed and approved throughout the voucher process.
Cause:
Policies and procedures had not been put into place to properly calculate the indirect costs and document review of vouchers prior to submission during the monthly voucher process. Procedures should be in accordance with the Uniform Guidance.
Effect:
Inaccurate costs may be charged to federal programs through the indirect cost allocation if The Blvd does not have procedures in place to monitor the accuracy of the calculation. Additionally, an error could occur during the voucher and process if The Blvd does not have procedures in place to properly review and approve the vouchers prior to submission.
Repeat Finding:
This is a repeat finding.
Recommendation:
Management should develop a process whereby indirect costs for federal grants are supported by a system of internal controls which provides reasonable assurance that the allocation calculated is accurate, allowable, and properly calculated, and supported. This process should be documented by a sign-off and date of both the preparer and the reviewer prior to the submission of the voucher during the monthly voucher process.
Views of Responsible Officials and Planned Corrective Actions:
There is no disagreement with the audit finding. We are currently revising our allocation methodology to ensure all calculations are accurate and well-documented, and we are training staff to consistently apply the update approach.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan:
Immediately
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2023 through December 31, 2024
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
A well-designed system of internal control should include policies and procedures to ensure the accuracy of indirect cost calculations and voucher requests. This ensures only allowable costs are charged to federal programs.
Condition:
In testing a sample of five indirect cost items, we identified the following:
• 5 out of the 5 indirect cost calculations tested were calculated on personnel and benefit expenses for employees already being charged to the grant directly.
Questioned Costs:
$14,724
Context:
Indirect cost calculations are not being properly calculated, reviewed and approved throughout the voucher process.
Cause:
Policies and procedures had not been put into place to properly calculate the indirect costs and document review of vouchers prior to submission during the monthly voucher process. Procedures should be in accordance with the Uniform Guidance.
Effect:
Inaccurate costs may be charged to federal programs through the indirect cost allocation if The Blvd does not have procedures in place to monitor the accuracy of the calculation. Additionally, an error could occur during the voucher and process if The Blvd does not have procedures in place to properly review and approve the vouchers prior to submission.
Repeat Finding:
This is a repeat finding.
Recommendation:
Management should develop a process whereby indirect costs for federal grants are supported by a system of internal controls which provides reasonable assurance that the allocation calculated is accurate, allowable, and properly calculated, and supported. This process should be documented by a sign-off and date of both the preparer and the reviewer prior to the submission of the voucher during the monthly voucher process.
Views of Responsible Officials and Planned Corrective Actions:
There is no disagreement with the audit finding. We are currently revising our allocation methodology to ensure all calculations are accurate and well-documented, and we are training staff to consistently apply the update approach.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan:
Immediately
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2023 through December 31, 2024
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
Under allowable cost/cost principles, an organization in receipt of federal funding is required to have a system of controls in place to safeguard assets and ensure that only allowable costs are charged to federal programs. 2 CFR Part 200 states that changes to awards for salaries and wages are to be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated.
Condition:
In testing a sample of 40 payroll items, we identified the following:
• 15 out of the 40 transactions tested did not have supporting documentation for the specific employee’s payroll allocation.
• Time and effort was not documented for all employees tested.
Questioned Costs:
$-0-
Context:
Payroll transactions are not being properly documented, and allocations supported throughout the payroll process.
Cause:
Time and effort studies, and support for allocations are not being performed.
Effect:
Inaccurate payroll costs may be charged to federal programs.
Repeat Finding:
This is a repeat finding.
Recommendation:
Policies and procedures over the processing of payroll transactions should include the following:
• Time and effort studies should be conducted on all employees to support allocations.
Views of Responsible Officials and Planned Corrective Actions:
There is no disagreement with the audit finding. We are revising procedures to ensure that all payroll costs are allocated accurately and supported by time and effort studies to prevent future discrepancies and maintain compliance with applicable regulations.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan:
Immediately
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2023 through December 31, 2024
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
Under allowable cost/cost principles, an organization in receipt of federal funding is required to have a system of controls in place to safeguard assets and ensure that only allowable costs are charged to federal programs. 2 CFR Part 200 states that changes to awards for salaries and wages are to be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated.
Condition:
In testing a sample of 40 payroll items, we identified the following:
• 15 out of the 40 transactions tested did not have supporting documentation for the specific employee’s payroll allocation.
• Time and effort was not documented for all employees tested.
Questioned Costs:
$-0-
Context:
Payroll transactions are not being properly documented, and allocations supported throughout the payroll process.
Cause:
Time and effort studies, and support for allocations are not being performed.
Effect:
Inaccurate payroll costs may be charged to federal programs.
Repeat Finding:
This is a repeat finding.
Recommendation:
Policies and procedures over the processing of payroll transactions should include the following:
• Time and effort studies should be conducted on all employees to support allocations.
Views of Responsible Officials and Planned Corrective Actions:
There is no disagreement with the audit finding. We are revising procedures to ensure that all payroll costs are allocated accurately and supported by time and effort studies to prevent future discrepancies and maintain compliance with applicable regulations.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan:
Immediately
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2023 through December 31, 2024
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
Under allowable cost/cost principles, an organization in receipt of federal funding is required to have a system of controls in place to safeguard assets and ensure that only allowable costs are charged to federal programs. 2 CFR Part 200 states that changes to awards for salaries and wages are to be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated.
Condition:
In testing a sample of 40 payroll items, we identified the following:
• 15 out of the 40 transactions tested did not have supporting documentation for the specific employee’s payroll allocation.
• Time and effort was not documented for all employees tested.
Questioned Costs:
$-0-
Context:
Payroll transactions are not being properly documented, and allocations supported throughout the payroll process.
Cause:
Time and effort studies, and support for allocations are not being performed.
Effect:
Inaccurate payroll costs may be charged to federal programs.
Repeat Finding:
This is a repeat finding.
Recommendation:
Policies and procedures over the processing of payroll transactions should include the following:
• Time and effort studies should be conducted on all employees to support allocations.
Views of Responsible Officials and Planned Corrective Actions:
There is no disagreement with the audit finding. We are revising procedures to ensure that all payroll costs are allocated accurately and supported by time and effort studies to prevent future discrepancies and maintain compliance with applicable regulations.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan:
Immediately
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2023 through December 31, 2024
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
Under allowable cost/cost principles, an organization in receipt of federal funding is required to have a system of controls in place to safeguard assets and ensure that only allowable costs are charged to federal programs. 2 CFR Part 200 states that changes to awards for salaries and wages are to be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated.
Condition:
In testing a sample of 40 payroll items, we identified the following:
• 15 out of the 40 transactions tested did not have supporting documentation for the specific employee’s payroll allocation.
• Time and effort was not documented for all employees tested.
Questioned Costs:
$-0-
Context:
Payroll transactions are not being properly documented, and allocations supported throughout the payroll process.
Cause:
Time and effort studies, and support for allocations are not being performed.
Effect:
Inaccurate payroll costs may be charged to federal programs.
Repeat Finding:
This is a repeat finding.
Recommendation:
Policies and procedures over the processing of payroll transactions should include the following:
• Time and effort studies should be conducted on all employees to support allocations.
Views of Responsible Officials and Planned Corrective Actions:
There is no disagreement with the audit finding. We are revising procedures to ensure that all payroll costs are allocated accurately and supported by time and effort studies to prevent future discrepancies and maintain compliance with applicable regulations.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan:
Immediately
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2023 through December 31, 2024
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
Under allowable cost/cost principles, an organization in receipt of federal funding is required to have a system of controls in place to safeguard assets and ensure that only allowable costs are charged to federal programs. 2 CFR Part 200 states that costs may be allocated or transferred to benefitted projects on any reasonable documented basis.
Condition:
In testing a sample of 8 items, we identified the following:
• 5 out of the 8 transactions tested did not have back up to support the amount allocated.
Questioned Costs:
Unknown
Context:
Disbursements are not being properly documented for the allocation methodology being used.
Cause:
Procedures for the allocation of general disbursements in full compliance with the Uniform Guidance have not yet been fully implemented.
Effect:
Inaccurate costs may be charged to federal programs if The Blvd does not have procedures in place to monitor and record general disbursements devoted to federal programs.
Repeat Finding:
This is a repeat finding.
Recommendation:
Management should develop a process whereby general disbursements 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 and support the distribution of the disbursement among specific activities or cost objectives if the disbursement is allocated to more than one federally funded program. These estimates should be properly reflected during the vouchering process.
Views of responsible officials and planned corrective actions:
There is no disagreement with the audit finding. Currently, all vouchers are reviewed and approved by upper management prior to submission. These vouchers are checked against our policy ensuring costs are reasonable, allowable, and allocable to a State, Federal, local, and private awards shall be charged to that award directly or indirectly.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan:
Immediately
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2023 through December 31, 2024
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
Under allowable cost/cost principles, an organization in receipt of federal funding is required to have a system of controls in place to safeguard assets and ensure that only allowable costs are charged to federal programs. 2 CFR Part 200 states that costs may be allocated or transferred to benefitted projects on any reasonable documented basis.
Condition:
In testing a sample of 8 items, we identified the following:
• 5 out of the 8 transactions tested did not have back up to support the amount allocated.
Questioned Costs:
Unknown
Context:
Disbursements are not being properly documented for the allocation methodology being used.
Cause:
Procedures for the allocation of general disbursements in full compliance with the Uniform Guidance have not yet been fully implemented.
Effect:
Inaccurate costs may be charged to federal programs if The Blvd does not have procedures in place to monitor and record general disbursements devoted to federal programs.
Repeat Finding:
This is a repeat finding.
Recommendation:
Management should develop a process whereby general disbursements 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 and support the distribution of the disbursement among specific activities or cost objectives if the disbursement is allocated to more than one federally funded program. These estimates should be properly reflected during the vouchering process.
Views of responsible officials and planned corrective actions:
There is no disagreement with the audit finding. Currently, all vouchers are reviewed and approved by upper management prior to submission. These vouchers are checked against our policy ensuring costs are reasonable, allowable, and allocable to a State, Federal, local, and private awards shall be charged to that award directly or indirectly.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan:
Immediately
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2023 through December 31, 2024
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
Under allowable cost/cost principles, an organization in receipt of federal funding is required to have a system of controls in place to safeguard assets and ensure that only allowable costs are charged to federal programs. 2 CFR Part 200 states that costs may be allocated or transferred to benefitted projects on any reasonable documented basis.
Condition:
In testing a sample of 8 items, we identified the following:
• 5 out of the 8 transactions tested did not have back up to support the amount allocated.
Questioned Costs:
Unknown
Context:
Disbursements are not being properly documented for the allocation methodology being used.
Cause:
Procedures for the allocation of general disbursements in full compliance with the Uniform Guidance have not yet been fully implemented.
Effect:
Inaccurate costs may be charged to federal programs if The Blvd does not have procedures in place to monitor and record general disbursements devoted to federal programs.
Repeat Finding:
This is a repeat finding.
Recommendation:
Management should develop a process whereby general disbursements 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 and support the distribution of the disbursement among specific activities or cost objectives if the disbursement is allocated to more than one federally funded program. These estimates should be properly reflected during the vouchering process.
Views of responsible officials and planned corrective actions:
There is no disagreement with the audit finding. Currently, all vouchers are reviewed and approved by upper management prior to submission. These vouchers are checked against our policy ensuring costs are reasonable, allowable, and allocable to a State, Federal, local, and private awards shall be charged to that award directly or indirectly.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan:
Immediately
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2023 through December 31, 2024
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
Under allowable cost/cost principles, an organization in receipt of federal funding is required to have a system of controls in place to safeguard assets and ensure that only allowable costs are charged to federal programs. 2 CFR Part 200 states that costs may be allocated or transferred to benefitted projects on any reasonable documented basis.
Condition:
In testing a sample of 8 items, we identified the following:
• 5 out of the 8 transactions tested did not have back up to support the amount allocated.
Questioned Costs:
Unknown
Context:
Disbursements are not being properly documented for the allocation methodology being used.
Cause:
Procedures for the allocation of general disbursements in full compliance with the Uniform Guidance have not yet been fully implemented.
Effect:
Inaccurate costs may be charged to federal programs if The Blvd does not have procedures in place to monitor and record general disbursements devoted to federal programs.
Repeat Finding:
This is a repeat finding.
Recommendation:
Management should develop a process whereby general disbursements 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 and support the distribution of the disbursement among specific activities or cost objectives if the disbursement is allocated to more than one federally funded program. These estimates should be properly reflected during the vouchering process.
Views of responsible officials and planned corrective actions:
There is no disagreement with the audit finding. Currently, all vouchers are reviewed and approved by upper management prior to submission. These vouchers are checked against our policy ensuring costs are reasonable, allowable, and allocable to a State, Federal, local, and private awards shall be charged to that award directly or indirectly.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan:
Immediately
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2023 through December 31, 2024
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
A well-designed system of internal control should include policies and procedures to ensure the accuracy of indirect cost calculations and voucher requests. This ensures only allowable costs are charged to federal programs.
Condition:
In testing a sample of five indirect cost items, we identified the following:
• 5 out of the 5 indirect cost calculations tested were calculated on personnel and benefit expenses for employees already being charged to the grant directly.
Questioned Costs:
$14,724
Context:
Indirect cost calculations are not being properly calculated, reviewed and approved throughout the voucher process.
Cause:
Policies and procedures had not been put into place to properly calculate the indirect costs and document review of vouchers prior to submission during the monthly voucher process. Procedures should be in accordance with the Uniform Guidance.
Effect:
Inaccurate costs may be charged to federal programs through the indirect cost allocation if The Blvd does not have procedures in place to monitor the accuracy of the calculation. Additionally, an error could occur during the voucher and process if The Blvd does not have procedures in place to properly review and approve the vouchers prior to submission.
Repeat Finding:
This is a repeat finding.
Recommendation:
Management should develop a process whereby indirect costs for federal grants are supported by a system of internal controls which provides reasonable assurance that the allocation calculated is accurate, allowable, and properly calculated, and supported. This process should be documented by a sign-off and date of both the preparer and the reviewer prior to the submission of the voucher during the monthly voucher process.
Views of Responsible Officials and Planned Corrective Actions:
There is no disagreement with the audit finding. We are currently revising our allocation methodology to ensure all calculations are accurate and well-documented, and we are training staff to consistently apply the update approach.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan:
Immediately
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2023 through December 31, 2024
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
A well-designed system of internal control should include policies and procedures to ensure the accuracy of indirect cost calculations and voucher requests. This ensures only allowable costs are charged to federal programs.
Condition:
In testing a sample of five indirect cost items, we identified the following:
• 5 out of the 5 indirect cost calculations tested were calculated on personnel and benefit expenses for employees already being charged to the grant directly.
Questioned Costs:
$14,724
Context:
Indirect cost calculations are not being properly calculated, reviewed and approved throughout the voucher process.
Cause:
Policies and procedures had not been put into place to properly calculate the indirect costs and document review of vouchers prior to submission during the monthly voucher process. Procedures should be in accordance with the Uniform Guidance.
Effect:
Inaccurate costs may be charged to federal programs through the indirect cost allocation if The Blvd does not have procedures in place to monitor the accuracy of the calculation. Additionally, an error could occur during the voucher and process if The Blvd does not have procedures in place to properly review and approve the vouchers prior to submission.
Repeat Finding:
This is a repeat finding.
Recommendation:
Management should develop a process whereby indirect costs for federal grants are supported by a system of internal controls which provides reasonable assurance that the allocation calculated is accurate, allowable, and properly calculated, and supported. This process should be documented by a sign-off and date of both the preparer and the reviewer prior to the submission of the voucher during the monthly voucher process.
Views of Responsible Officials and Planned Corrective Actions:
There is no disagreement with the audit finding. We are currently revising our allocation methodology to ensure all calculations are accurate and well-documented, and we are training staff to consistently apply the update approach.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan:
Immediately
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2023 through December 31, 2024
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
A well-designed system of internal control should include policies and procedures to ensure the accuracy of indirect cost calculations and voucher requests. This ensures only allowable costs are charged to federal programs.
Condition:
In testing a sample of five indirect cost items, we identified the following:
• 5 out of the 5 indirect cost calculations tested were calculated on personnel and benefit expenses for employees already being charged to the grant directly.
Questioned Costs:
$14,724
Context:
Indirect cost calculations are not being properly calculated, reviewed and approved throughout the voucher process.
Cause:
Policies and procedures had not been put into place to properly calculate the indirect costs and document review of vouchers prior to submission during the monthly voucher process. Procedures should be in accordance with the Uniform Guidance.
Effect:
Inaccurate costs may be charged to federal programs through the indirect cost allocation if The Blvd does not have procedures in place to monitor the accuracy of the calculation. Additionally, an error could occur during the voucher and process if The Blvd does not have procedures in place to properly review and approve the vouchers prior to submission.
Repeat Finding:
This is a repeat finding.
Recommendation:
Management should develop a process whereby indirect costs for federal grants are supported by a system of internal controls which provides reasonable assurance that the allocation calculated is accurate, allowable, and properly calculated, and supported. This process should be documented by a sign-off and date of both the preparer and the reviewer prior to the submission of the voucher during the monthly voucher process.
Views of Responsible Officials and Planned Corrective Actions:
There is no disagreement with the audit finding. We are currently revising our allocation methodology to ensure all calculations are accurate and well-documented, and we are training staff to consistently apply the update approach.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan:
Immediately
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2023 through December 31, 2024
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
A well-designed system of internal control should include policies and procedures to ensure the accuracy of indirect cost calculations and voucher requests. This ensures only allowable costs are charged to federal programs.
Condition:
In testing a sample of five indirect cost items, we identified the following:
• 5 out of the 5 indirect cost calculations tested were calculated on personnel and benefit expenses for employees already being charged to the grant directly.
Questioned Costs:
$14,724
Context:
Indirect cost calculations are not being properly calculated, reviewed and approved throughout the voucher process.
Cause:
Policies and procedures had not been put into place to properly calculate the indirect costs and document review of vouchers prior to submission during the monthly voucher process. Procedures should be in accordance with the Uniform Guidance.
Effect:
Inaccurate costs may be charged to federal programs through the indirect cost allocation if The Blvd does not have procedures in place to monitor the accuracy of the calculation. Additionally, an error could occur during the voucher and process if The Blvd does not have procedures in place to properly review and approve the vouchers prior to submission.
Repeat Finding:
This is a repeat finding.
Recommendation:
Management should develop a process whereby indirect costs for federal grants are supported by a system of internal controls which provides reasonable assurance that the allocation calculated is accurate, allowable, and properly calculated, and supported. This process should be documented by a sign-off and date of both the preparer and the reviewer prior to the submission of the voucher during the monthly voucher process.
Views of Responsible Officials and Planned Corrective Actions:
There is no disagreement with the audit finding. We are currently revising our allocation methodology to ensure all calculations are accurate and well-documented, and we are training staff to consistently apply the update approach.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan:
Immediately