Audit 56710

Assistance Listing Number, Federal Agency, and Program Name - 93.788, U.S. Department of Health and Human Services, Opioid STR Federal Award Identification Number and Year - 2022 Pass through Entity - Illinois Department of Human Services Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - Per 2 CFR 200.403, costs cannot be charged to a federal award unless the costs are incurred by the Organization. Condition - The billing procedures review process did not ensure charges to federal awards were incurred prior to billing the grantor. Questioned Costs - $150,000 Identification of How Questioned Costs Were Computed - Questioned costs are the accumulation of certain monthly accruals charged to the program which were not incurred. Context - Certain monthly expense accruals amounting to $150,000 were charged to the program based on the budget, however these expenses were not incurred. These expenses have been excluded from the schedule of expenditures of federal awards (SEFA) as of June 30, 2022. Cause and Effect - Amounts submitted to Illinois Department of Human Services for reimbursement included expenditures based on the budget, rather than actual costs incurred. As a result, the Organization charged amounts to the grant that exceeded actual costs. Recommendation - We recommend returning the overage amount to the agency by reducing the amount of future reimbursement requests. Management should also implement controls to ensure expenditures charged to the grant accurately reflect costs incurred. Views of Responsible Officials and Corrective Action Plan - Management understands the importance of incurring costs that are charged to federal awards. Management will follow its existing policy to ensure that expenditures charged to grants accurately reflect the costs incurred. In addition, management will return the overage amount to the awarding agency no later than July 31, 2023.

Assistance Listing Number, Federal Agency, and Program Name - 93.788, U.S. Department of Health and Human Services, Opioid STR Federal Award Identification Number and Year - 2022 Pass through Entity - Illinois Department of Human Services Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - Per 2 CFR 200.403, costs cannot be charged to a federal award unless the costs are incurred by the Organization. Condition - The billing procedures review process did not ensure charges to federal awards were incurred prior to billing the grantor. Questioned Costs - $150,000 Identification of How Questioned Costs Were Computed - Questioned costs are the accumulation of certain monthly accruals charged to the program which were not incurred. Context - Certain monthly expense accruals amounting to $150,000 were charged to the program based on the budget, however these expenses were not incurred. These expenses have been excluded from the schedule of expenditures of federal awards (SEFA) as of June 30, 2022. Cause and Effect - Amounts submitted to Illinois Department of Human Services for reimbursement included expenditures based on the budget, rather than actual costs incurred. As a result, the Organization charged amounts to the grant that exceeded actual costs. Recommendation - We recommend returning the overage amount to the agency by reducing the amount of future reimbursement requests. Management should also implement controls to ensure expenditures charged to the grant accurately reflect costs incurred. Views of Responsible Officials and Corrective Action Plan - Management understands the importance of incurring costs that are charged to federal awards. Management will follow its existing policy to ensure that expenditures charged to grants accurately reflect the costs incurred. In addition, management will return the overage amount to the awarding agency no later than July 31, 2023.