Audit 390148

Federal Program: 21.027 – Coronavirus State and Local Fiscal Recovery Funds Passed Through: City of Chicago Department of Planning and Development and City of Chicago Department of Business Affairs and Consumer Protection Federal Agency: U.S. Department of Treasury Criteria: The Organization participates in federal grant agreements through certain agencies that have reporting requirements in accordance with 2 CFR Part 200 (the Uniform Guidance) and State grant agreements that have reporting requirements in accordance with the State of Illinois Grant Accountability and Transparency Act (GATA). As such, for the year ended December 31, 2024, the Organization was required to submit audited financial statements, Single Audit reports, and a data collection form (DCF) to the Federal Audit Clearinghouse (FAC). In addition, it was required to submit all of the abovementioned documents in addition to a Consolidated Year End Financial Report (CYEFR) to the State of Illinois GATA portal. The abovementioned reports are due to the applicable agency at the earlier of (a) nine months after fiscal year end or (b) 30 days after receipt of final audit reports. Condition During our testing, we noted that the Organization did not submit the required fiscal year 2024 documents to the FAC and GATA portal by the required due date. Questioned Costs: None noted. Context: The fiscal year 2024 audit was not completed prior to the FAC and GATA deadlines, leading to late submission. Effect: The Organization is not in compliance with the Uniform Guidance reporting requirements and requirements delineated by its State grant agreements. Cause: The condition arose due to several factors including turnover of the Organization’s accounting staff, leading to delays in completing the 2024 audit. Recommendation: The Organization should ensure that the Single Audit reporting package is submitted to the FAC and GATA portal within the required timeframe. Management Response: Management concurs with this finding. See corrective action plan.

Federal Program: 21.027 – Coronavirus State and Local Fiscal Recovery Funds Passed Through: City of Chicago Department of Planning and Development, City of Chicago Department of Business Affairs and Consumer Protection Federal Agency: U.S. Department of Treasury Criteria: The Organization participates in grant programs that require recipients to ensure that employees whose time is reimbursed by federal grant funds are eligible to work in the U.S. Condition: During our testing, the Organization was unable to produce original source documentation to indicate that the employees who worked on federal programs underwent a process to ensure they were eligible to work in the U.S. (completed form I-9). Questioned Costs: None noted. Context: The Organization does not have a formal HR onboarding process, leading to the inability to produce original work eligibility hiring documents. Effect: The Organization is not in compliance with the employment requirements as required by the federal government. Cause:The condition arose due to several factors including unfamiliarity with federal program requirements and turnover of the Organization’s staff. Recommendation: The Organization should ensure that all employees assigned to federal programs undergo an eligibility process to ensure they are able to work in the U.S. Management Response: Management concurs with this finding. See corrective action plan.

Federal Program: 21.027 – Coronavirus State and Local Fiscal Recovery Funds Passed Through: City of Chicago Department of Planning and Development and City of Chicago Department of Business Affairs and Consumer Protection Federal Agency: U.S. Department of Treasury Criteria The Organization participates in federal grant programs with pass-through funders that require periodic submission of grant expenditures and underlying support to the grantor for reimbursement. Condition: During our testing, we noted instances of the Organization not submitting the required expenditure reports in accordance with the City of Chicago’s due dates. Questioned Costs: None noted. Context: There were delays in the compilation of internal grant information required to be submitted to the City of Chicago, leading to late reporting submissions. Effect: The Organization is not in compliance with the City of Chicago’s grant reporting requirements. Cause: The condition arose due to several factors including turnover of the Organization’s accounting staff. Recommendation: The Organization should ensure that all grant reporting documents are submitted within the required timeframe. Management Response: Management concurs with this finding. See corrective action plan.