FAC Explorer

Audit 9985

FY End
2023-06-30
Total Expended
$991,209
Findings
2
Programs
4
Organization: Chicago Neighborhood Initiatives, INC (IL)
Year: 2023 Accepted: 2024-01-05
Auditor: Novogradac & Company LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
7615 2023-002 Material Weakness - L
584057 2023-002 Material Weakness - L

Programs

ALN Program Spent Major Findings
21.020 Community Development Financial Institutions Program $700,000 Yes 1
21.024 Community Development Financial Institutions Rapid Response Program (cdfi Rrp) $107,610 - 0
59.046 Microloan Program $94,981 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $88,618 - 0

Contacts

Name Title Type
SDDAM4VGHZL5 Annette Washington Auditee
3127302231 David Conway Auditor
No contacts on file

Notes to SEFA

Title: Outstanding federal loans Accounting Policies: 1. Basis of presentation The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the expenditures of Chicago Neighborhood Initiatives, Inc. (an Illinois non-profit public benefit corporation) and Subsidiaries (the “Organization”) under programs of the federal government for the year ended June 30, 2023. The information in the Schedule is presented in accordance with the requirements of Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of the basic consolidated financial statements. For purposes of the Schedule, federal awards include all sub awards to the Organization by nonfederal organizations pursuant to federal grants, contract and similar agreements. 2. Summary of significant accounting policies Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards; wherein certain types of expenditures are not allowed. Assistance Listing numbers (“AL No.”) are provided when available. De Minimis Rate Used: N Rate Explanation: The Organization elected not to use the 10% de minimis indirect cost rate. The following represents the amount of outstanding loans identified by AL No. 59.046. All loans are provided by the Small Business Administration and are included in the Schedule. AL No. - 59.046; Program Title - Small Business Administration Microloan Program; Loans received in 2023 - $0; Prior year loans with continuing compliance requirements - $94,981; Total outstanding loans - $0.

Finding Details

Finding 2023-002
Section III - Federal Award Findings and Questioned Costs Finding 2023-2 Criteria The Federal program, AL 21.020 Community Development Financial Institutions Program (“CDFI Program”), requires a Uses of Award Report for the year ended June 30, 2023 to be submitted by September 30, 2023. Statement of Condition The reporting to the CDFI Fund was submitted timely but did not include the correct expenditures per the SEFA included in the audit. Questioned Costs None Effect or Potential Effect The Company is in non-compliance with specific requirements of the major Federal program. Context and Cause GAC did not have procedures in place to ensure Federal awards expended were tracked accurately throughout the year to report the correct expenditures to the CDFI Fund. Recommendation GAC must establish controls to properly monitor expenditures of Federal awards expended in compliance with the CDFI programs and accurately report to the CDFI Fund.
Finding 2023-002
Section III - Federal Award Findings and Questioned Costs Finding 2023-2 Criteria The Federal program, AL 21.020 Community Development Financial Institutions Program (“CDFI Program”), requires a Uses of Award Report for the year ended June 30, 2023 to be submitted by September 30, 2023. Statement of Condition The reporting to the CDFI Fund was submitted timely but did not include the correct expenditures per the SEFA included in the audit. Questioned Costs None Effect or Potential Effect The Company is in non-compliance with specific requirements of the major Federal program. Context and Cause GAC did not have procedures in place to ensure Federal awards expended were tracked accurately throughout the year to report the correct expenditures to the CDFI Fund. Recommendation GAC must establish controls to properly monitor expenditures of Federal awards expended in compliance with the CDFI programs and accurately report to the CDFI Fund.