Corrective Action Plans

Finding 1241033 (2025-032)

Material Weakness 2025

State of Illinois

IL

Allowable Costs / Cost Principles Eligibility Matching / Level of Effort / Earmarking § 200.303

Finding Number: 2025-032 Finding Name: Missing Documentation in Beneficiary Files Finding Condition(s): The Illinois Department of Human Services (IDHS) could not locate case file documentation supporting certain eligibility and special test requirements for beneficiaries of the Temporary Assistance...

Finding Number: 2025-032 Finding Name: Missing Documentation in Beneficiary Files Finding Condition(s): The Illinois Department of Human Services (IDHS) could not locate case file documentation supporting certain eligibility and special test requirements for beneficiaries of the Temporary Assistance for Needy Families (TANF), the Children’s Health Insurance Program (CHIP), and the Medicaid Cluster program. The auditors also noted the State does not have adequate resources to perform and document eligibility determinations. Additionally, the State has not established appropriate monitoring procedures to ensure eligibility determinations are properly documented in accordance with program requirements. Name of Contact Person(s): • Elizabeth Lusk, Social Service Program Planner – Illinois Department of Human Services, Family and Community Services • Kasey Reagan, Division Director – Illinois Department of Human Services, Family and Community Services Corrective Action(s): The IDHS will work to ensure that support for all eligibility items is properly retained in the record. Improved collection and retention of eligibility items will be achieved through Integrated Eligibility System (IES) enhancements and through implementation of quarterly administrative reviews of TANF cases to track trends and address any issues identified. Specific corrective actions include the following: • An IES enhancement will be implemented to allow telephonic signatures for TANF Responsibility and Service Plans (RSPs). This will eliminate the need to use a paper process. (Proposed Completion Date: 03/31/27) • Regional Administrators will discuss TANF review trends and RSP signature errors with their Local Office Administrators (LOAs) monthly during their regularly scheduled LOA meeting or via email to ensure ongoing priority is given to this matter. (Proposed Completion Date: 12/31/26) • Regional Administrators will track the number of TANF completed reviews for the 4th quarter of 2026, and then again in 1st quarter of 2027, to compare data trends. Specifically, they will note the number of correct cases, the number of reviewed cases missing RSP signatures, and the number of budgeting errors. (Proposed Completion Date: 12/31/26) Proposed Completion Date: March 31, 2027

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Finding 1241023 (2025-031)

Material Weakness 2025

State of Illinois

IL

Allowable Costs / Cost Principles Subrecipient Monitoring Cash Management § 200.303 § 200.403

Finding Number: 2025-031 Finding Name: Unallowable Costs Charged to the TANF and CCDF Cluster Programs Finding Condition(s): The Illinois Department of Human Services (IDHS) could not provide documentation to support payments made on behalf of beneficiaries of the Temporary Assistance for Needy Fami...

Finding Number: 2025-031 Finding Name: Unallowable Costs Charged to the TANF and CCDF Cluster Programs Finding Condition(s): The Illinois Department of Human Services (IDHS) could not provide documentation to support payments made on behalf of beneficiaries of the Temporary Assistance for Needy Families (TANF) and the Child Care and Development Fund (CCDF) Cluster programs. The auditors also noted that the IDHS does not have adequate controls in place to ensure billing information from providers is accurate and the IDHS does not obtain source documentation (certified attendance records) for child care billings and did not obtain them for our audit procedures. Name of Contact Person(s): Maureen Bilek, Audit Compliance and Programmatic Monitoring Administrator – Illinois Department of Human Services, Division of Early Childhood Corrective Action(s): The IDHS has started to implement corrective actions to obligate and liquidate CCDF grant funding within the applicable period of performance and to strengthen internal controls related to Child Care Assistance Program (CCAP) payments. These corrective actions include the following: • Develop and implement internal procedures to conduct quarterly reviews of billing certificates for payments entered through the Interactive Voice Response (IVR) system. (Completed as of 04/30/26) • Assess existing deliverables, CCAP policy, and CCDF State Plan responses related to IVR payments and determine and implement any necessary revisions. (Completed as of 06/30/26) • Develop external guidance for providers and Child Care Resource and Referral (CCR&R) agencies outlining IVR payment requirements, documentation standards, record-retention expectations, and the review process. (Completed as of 03/09/26) • Initiate and continue implementation of a communication plan to announce upcoming reviews, including the Service Employees International Union (SEIU), the Illinois Department of Early Childhood (IDEC), the CCR&R agencies, and all providers utilizing the IVR. Additional communications will be issued as the process is refined. (Completed as of 04/09/26) • Commence IVR payment reviews in June 2026 and continue a quarterly basis. (Completed as of 09/30/26) • Establish and maintain a master tracking log of provider reviews by year, subject to management review and oversight. (Completed as of 03/15/26) • Develop a centralized tracking tool identifying each grant’s period of performance, obligation deadline, liquidation deadline, and extension requirements. (Proposed Completion Date: 06/30/27) • Establish written procedures requiring monthly review of grant obligations, expenditures, and remaining grant balances, including documented management review. (Proposed Completion Date: 06/30/27) • Implement a notification and escalation process requiring program and fiscal management to be notified when a grant is within six months of its obligation or liquidation deadline. (Proposed Completion Date: 06/30/27) • Provide training to fiscal and program staff responsible for grant administration on federal period of performance, including obligation and liquidation deadlines, extensions, and new tracking and escalation procedures. (Proposed Completion Date: 09/30/27) Proposed Completion Date: September 30, 2027

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Finding 1241016 (2025-030)

Material Weakness 2025

State of Illinois

IL

Equipment & Real Property Management Matching / Level of Effort / Earmarking Special Tests & Provisions § 200.303

Finding Number: 2025-030 Finding Name: Inadequate Review of Recipient Agencies of the Food Distribution Cluster Program Finding Condition(s): The Illinois Department of Human Services (IDHS) did not adequately review the recipient agencies of the Food Distribution Cluster (FDC) program. Name of Cont...

Finding Number: 2025-030 Finding Name: Inadequate Review of Recipient Agencies of the Food Distribution Cluster Program Finding Condition(s): The Illinois Department of Human Services (IDHS) did not adequately review the recipient agencies of the Food Distribution Cluster (FDC) program. Name of Contact Person(s): • Elizabeth Lusk, Social Services Program Planner – Illinois Department of Human Services, Family and Community Services • Kasey Reagan, Division Director – Illinois Department of Human Services, Family and Community Services Corrective Action(s): The IDHS’ program and fiscal officials will take steps to address the deficiencies noted, including collection of inventory records and appropriate reviews. Steps taken include the following: • The IDHS The Emergency Food Assistance Program (TEFAP) will include the requirement that an annual inventory count and reconciliation of inventory records be submitted for all recipient agencies at the end of each State fiscal year in the SFY27 Procedure Manual. Contract exhibits and the procedure manual has been updated, approved by leadership, and all providers have been notified. (Completed as of 07/01/26) • Five of the seven food banks have submitted annual inventory counts. The IDHS’ receipt of inventory is based on individual food bank annual count schedule. The TEFAP is in the process of reviewing and reconciling those count that have been received. The final due date for the last two food banks is 08/28/26. Reconciliations will be completed by 09/15/2026 and then the IDHS will finalize its documentation. (Proposed Completion Date: 10/31/26) • The IDHS has implemented a Risk-Based Evaluation System to determine when management evaluation/quality assurance monitoring will be conducted. Previously, the monitoring schedule was based on every four years. This has been updated. (Completed as of 03/01/26) Proposed Completion Date: October 31, 2026

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Finding 1241009 (2025-028)

Material Weakness 2025

State of Illinois

IL

Allowable Costs / Cost Principles Subrecipient Monitoring § 200.303 § 200.403 § 200.430

Finding Number: 2025-028 Finding Name: Inadequate Process to Communicate Award Information to Subrecipients Finding Condition(s): The Illinois Board of Higher Education (IBHE) does not have an adequate process in place to ensure required award information is accurately communicated to subrecipients ...

Finding Number: 2025-028 Finding Name: Inadequate Process to Communicate Award Information to Subrecipients Finding Condition(s): The Illinois Board of Higher Education (IBHE) does not have an adequate process in place to ensure required award information is accurately communicated to subrecipients of the Child Care and Development Fund (CCDF) Cluster (CCDF Cluster) program. Name of Contact Person(s): • Rebecca Heath, Assistance Chief Accountant - Illinois Board of Higher Education • Bill McCarty, Chief Financial Officer - Illinois Board of Higher Education Corrective Action(s): The IBHE is updating its grant procedure manual, adding a provision to ensure that the IBHE has an adequate process in place to ensure required information is accurately communicated to subrecipients of federal grant programs. Proposed Completion Date: September 30, 2026 – Complete

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Finding 1241004 (2025-027)

Material Weakness 2025

State of Illinois

IL

Procurement, Suspension & Debarment Subrecipient Monitoring § 200.303

Finding Number: 2025-027 Finding Name: Failure to Properly Report Subaward Information Required by FFATA Finding Condition(s): The Illinois Board of Higher Education (IBHE) failed to report information required by the Federal Funding Accountability and Transparency Act (FFATA) for awards granted to ...

Finding Number: 2025-027 Finding Name: Failure to Properly Report Subaward Information Required by FFATA Finding Condition(s): The Illinois Board of Higher Education (IBHE) failed to report information required by the Federal Funding Accountability and Transparency Act (FFATA) for awards granted to subrecipients of the Child Care and Development Fund (CCDF) Cluster (CCDF Cluster) program. Additionally, the auditors noted the IBHE did not establish adequate control procedures to ensure FFATA reports were properly completed for all subawards as required by federal regulations. Name of Contact Person(s): • Rebecca Heath, Assistance Chief Accountant - Illinois Board of Higher Education • Bill McCarty, Chief Financial Officer - Illinois Board of Higher Education Corrective Action(s): The IBHE is updating its grant procedure manual, adding a provision to ensure that the IBHE reports information required by the Federal Funding Accountability and Transparency Act (FFATA) for awards granted to subrecipients should the IBHE receive future federal grant money that requires it. Proposed Completion Date: September 30, 2026 – Complete

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Finding 1240999 (2025-026)

Material Weakness 2025

State of Illinois

IL

Procurement, Suspension & Debarment Subrecipient Monitoring Internal Control / Segregation of Duties § 200.303

Finding Number: 2025-026 Finding Name: Failure to Properly Report Subaward Information Required by FFATA Finding Condition(s): The Illinois Community College Board (ICCB) failed to report information required by the Federal Funding Accountability and Transparency Act (FFATA) for awards granted to su...

Finding Number: 2025-026 Finding Name: Failure to Properly Report Subaward Information Required by FFATA Finding Condition(s): The Illinois Community College Board (ICCB) failed to report information required by the Federal Funding Accountability and Transparency Act (FFATA) for awards granted to subrecipients of the Child Care and Development Fund (CCDF) Cluster (CCDF Cluster) program. Additionally, the auditors noted the ICCB did not establish adequate control procedures to ensure FFATA reports were properly completed for all subawards as required. Name of Contact Person(s): Jennifer Franklin, Deputy Director for Finance and Operations – Illinois Community College Board Corrective Action(s): As the grant noted in the finding ended at the end of Fiscal Year 2024, with only Fiscal Year 2025 expenditures remaining, the ICCB notes that no corrective action is needed at this time. However, if a similar grant is established between the Illinois Department of Human Services (DHS) and the ICCB in the future, both agencies will collaborate at the outset of the agreement to ensure all FFATA reporting requirements are identified, assigned, and completed in a timely manner. Proposed Completion Date: July 1, 2025 – Complete

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Finding 1240989 (2025-023)

Material Weakness 2025

State of Illinois

IL

Subrecipient Monitoring § 200.303 § 200.332 § 200.521

Finding Number: 2025-023 Finding Name: Inadequate Review of Subrecipient Single Audit Reports Finding Condition(s): The Illinois Department of Aging (IDOA) did not issue management decision letters for single audit report findings for subrecipients of the Aging Cluster program within required timefr...

Finding Number: 2025-023 Finding Name: Inadequate Review of Subrecipient Single Audit Reports Finding Condition(s): The Illinois Department of Aging (IDOA) did not issue management decision letters for single audit report findings for subrecipients of the Aging Cluster program within required timeframes. Additionally, the IDOA has not established controls over subrecipient single audit reviews at an adequate level of precision to ensure single audit reporting requirements and the issuance of management decision letters are performed within required timeframes. Name of Contact Person(s): • Sarah Harris, Chief Fiscal Officer – Illinois Department of Aging • Theresa McKeon, Deputy Chief Fiscal Officer and Chief Accountability Officer – Illinois Department of Aging Corrective Action(s): Actions have already been taken to correct this finding. A smart tracking spreadsheet has been implemented, and master data from the State’s Audit Review Report Management System has been pre populated as the foundation of the tracker. The tracker pulls fiscal year end data to serve as the baseline for automated reminders. Automated notifications will be sent to the internal Grant Accountability and Transparency Act (GATA) team, the Chief Accountability Officer (CAO), the Chief Fiscal Officer (CFO), and the Budget Director when a single audit due to Aging is accepted and ready for agency review. The tracker link provided within the notification email will trigger follow up reminders as needed. This tool not only supports continued compliance, but also improves internal visibility and communication, ensuring coordination between program and compliance staff regarding required follow up actions and timelines. All audit materials, along with the corresponding management decision letters (MDLs), will be attached within the tracker to the appropriate grantee entry. To support the volume and timely completion of audit responsibilities, the IDOA’s Aging Division will engage an accounting firm annually from May through October to assist with reconciliations and the process leading to the creation and distribution of MDLs. During this period, the IDOA receives more than 600 audits. The contracted accounting team will focus on non Federal audit analysis, while the IDOA staff will concentrate on Federal audit review, reconciliations, and MDL preparation. This division of responsibilities will ensure MDLs are issued within 180 days of Federal Audit Clearinghouse acceptance and strengthen the IDOA’s overall oversight of grantee compliance. Proposed Completion Date: March 31, 2027

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Finding 1240984 (2025-022)

Material Weakness 2025

State of Illinois

IL

Procurement, Suspension & Debarment Subrecipient Monitoring Internal Control / Segregation of Duties § 200.303

Finding Number: 2025-022 Finding Name: Failure to Report Subaward Information Required by FFATA Finding Condition(s): The Illinois Department of Aging (IDOA) failed to report information required by the Federal Funding Accountability and Transparency Act (FFATA) for awards granted to subrecipients o...

Finding Number: 2025-022 Finding Name: Failure to Report Subaward Information Required by FFATA Finding Condition(s): The Illinois Department of Aging (IDOA) failed to report information required by the Federal Funding Accountability and Transparency Act (FFATA) for awards granted to subrecipients of the Aging Cluster program. Additionally, the auditors noted that the IDOA did not establish adequate internal controls over FFATA reporting to ensure all subawards were reported as required. Name of Contact Person(s): • Sarah Harris, Chief Fiscal Officer – Illinois Department of Aging • Theresa McKeon, Deputy Chief Fiscal Officer and Chief Accountability Officer – Illinois Department of Aging Corrective Action(s): Actions have already been taken to address and correct this finding. The IDOA has implemented a centralized smart tracking spreadsheet containing core grantee information, updated at the beginning of each grant cycle. Award amounts and related data will be entered within 48 hours of federal grant execution, and automated notifications will be sent to staff responsible for FFATA reporting in SAM.gov. To ensure accuracy, timeliness, and continuity of compliance, the following process has been established: 1. Master grantee data has been prepopulated in the smart tracker. Any new grantees awarded will be added to the tracker immediately. 2. Within 48 hours of grant execution, agreement numbers and award amounts—broken out by the Assistance Listing Number (ALN)—will be entered into the tracker. 3. Once agreement numbers and ALN specific amounts are recorded, an automated notification will be sent to team members with SAM.gov access, prompting them to enter all required FFATA information. 4. After FFATA data is entered into SAM.gov, staff will record the completion date in the smart tracker. 5. If the completion date is not entered within 10 days, the system will issue a reminder to staff and the Chief Accounting Officer (CAO). 6. The CAO and the GATA Manager within the Compliance Unit are responsible for monitoring FFATA submissions to ensure all entries are accurate, complete, and submitted within 30 days of each executed grant. Redundant staff access to SAM.gov has been established to prevent delays and maintain continuity. This enhanced process leverages technology for automated reminders, establishes staff redundancy, and ensures long term consistency and compliance with FFATA reporting requirements for current and future grant cycles. As of 09/30/26, the IDOA has implemented the above controls to ensure that all FFATA information is prepared and ready for entry into SAM.gov as soon as the Notice of Award (NOA) is received and entered into FFATA by the Federal awarding agency. One important consideration in resolving the finding is that the FFATA reporting does not allow any subrecipient award information to be entered into SAM.gov until the federal award has been entered into the system by the Federal awarding agency. This creates a timing conflict for formulary awards that may prevent all subrecipient award data from being entered within 30 days of execution. Therefore, as part of its corrective action, the IDOA will seek guidance from its Federal awarding agency to minimize or eliminate this timing issue and to determine an appropriate compliance path moving forward. Proposed Completion Date: March 31, 2027

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Finding 1240979 (2025-021)

Material Weakness 2025

State of Illinois

IL

Subrecipient Monitoring Internal Control / Segregation of Duties Reporting

Finding Number: 2025-021 Finding Name: Failure to Properly Report Subaward Information Required by FFATA Finding Condition(s): The Illinois Department of Public Health (IDPH) failed to properly report information required by the Federal Funding Accountability and Transparency Act (FFATA) for awards ...

Finding Number: 2025-021 Finding Name: Failure to Properly Report Subaward Information Required by FFATA Finding Condition(s): The Illinois Department of Public Health (IDPH) failed to properly report information required by the Federal Funding Accountability and Transparency Act (FFATA) for awards granted to subrecipients of the Immunization Cooperative Agreements (ICA) and Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) programs. Additionally, the auditors noted that the IDPH did not have adequate internal controls in place over FFATA reporting to ensure all subawards were accurately reported within required time frames. Name of Contact Person(s): • Jacob Cisco, Chief Financial Officer/Bureau Chief, Finance – Illinois Department of Public Health, Office of Administrative Affairs • Sheila Jefferson, Chief Accountability Officer – Illinois Department of Public Health, Office of Administrative Affairs • Timothy Stevens, Grant Management Auditor – Illinois Department of Public Health, Office of Administrative Affairs Corrective Action(s): • The IDPH has implemented policies to ensure better data quality for the FFATA report. o The IDPH has implemented a policy to ensure the FAIN is captured in grant set up and verified prior to the grant agreement being signed by the grantee. This ensures that the grants that are federally funded are reflected as such in the IDPH’s Grant Management System (EGrAMS). The responsible party for this policy is the Grant Accountability and Transparency Act Specialist, Oladayo Owoeye, and the Grant Administrative Specialist, Lisa Cotner. o The IDPH has implemented a policy of verifying the FFATA report by reviewing an additional query from EGrAMS of all Federally funded awards to verify the data that pulled in the FFATA extract from EGrAMS. The responsible party for this is the Office of Administrative Affairs, Bureau of Finance, Grants Division, specifically the Grant Management Auditor, Timothy Stevens. • EGrAMS has been enhanced to provide better accuracy of the FFATA report. o The IDPH has adopted electronic signatures within EGrAMS. With electronic signatures, the subaward obligation/action date populates the date that the award is obligated. The responsible party for this is the Office of Administrative Affairs, Bureau of Finance, Grants Division, specifically the Grant Management Auditor, Timothy Stevens. o To address the findings related to late reporting of the FFATA reports, the IDPH has removed the requirement of the grantee zip+4 needing to be in the agency registration, ensuring that all Federally funded awards are downloaded into the monthly FFATA report extract from EGrAMS. The responsible party for this is the Office of Administrative Affairs, Bureau of Finance, Grants Division, specifically the Grant Management Auditor, Timothy Stevens. Proposed Completion Date: January 31, 2025 - Complete

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Finding 1240974 (2025-020)

Material Weakness 2025

State of Illinois

IL

Subrecipient Monitoring § 200.303 § 200.332 § 200.521

Finding Number: 2025-020 Finding Name: Inadequate Process for Subrecipient Single Audit Report Desk Reviews Finding Condition(s): The Illinois Emergency Management Agency and Office of Homeland Security (IEMA-OHS) has not established effective internal controls or documented procedures to ensure sub...

Finding Number: 2025-020 Finding Name: Inadequate Process for Subrecipient Single Audit Report Desk Reviews Finding Condition(s): The Illinois Emergency Management Agency and Office of Homeland Security (IEMA-OHS) has not established effective internal controls or documented procedures to ensure subrecipients of the Disaster Grants - Public Assistance (Public Assistance) program perform audits required by the Uniform Guidance. During the audit procedures over IEMA-OHS' subrecipient monitoring and desk review processes, the auditors noted that IEMA-OHS did not have documented policies, procedures, or established internal controls to: • Identify subrecipients subject to the Single Audit requirements contained in Subpart F of the Uniform Guidance and determine whether required Single Audit reporting packages were timely submitted; • Review Single Audit reports submitted by subrecipients to identify findings, questioned costs, modified opinions, or other compliance matters related to Federal programs administered by IEMA-OHS and document any required follow-up actions; • Verify that Federal expenditures attributable to IEMA-OHS-administered awards were accurately reported by subrecipients within their schedules of expenditures or federal awards (SEFA) and Data Collection Forms submitted to the FAC; and • Reconcile expenditures reported by subrecipients for IEMA-OHS pass-through awards to agency records, award documentation, and other supporting information to determine whether reported amounts were complete, accurate, and consistent with IEMA-OHS' records. As a result of these deficiencies, IEMA-OHS could not demonstrate whether its subrecipients complied with Uniform Guidance audit requirements, nor could it verify whether required management decisions on subrecipient audit findings were issued within the federally mandated timeframes. Name of Contact Person(s): MyongAe Kim, Chief Accountability Officer – Illinois Emergency Management Agency and Office of Homeland Security, Director’s Office. Corrective Action(s): The Accountability Office will, with the assistance of the relevant grant programs, update, develop and implement clear and consistent procedures to better encompass the Public Assistance program and to ensure compliance with 2 CFR 200. 1. Improve the Single Audit tracking for the Public Assistance (PA) Program Improve the Single Audit tracking for the Public Assistance (PA) Program: • The Recovery Division’s Public Assistance (PA) program has begun development of a Program Standard Operating Policy (SOP) addressing subrecipient Single Audit compliance, which the Accountability Office will incorporate into the updated procedures. • A training will be provided by the PA staff to the Accountability Office, Fiscal, Legal, Internal Audit and management on the PA Grant management system single audit procedures, data, forms and reporting. • PA will provide grantee information from the grant management system to the Accountability Office (AO) on a monthly basis. • The AO will develop a tracking log to reconcile PA subrecipients from the PA grant management system to the GATA Grant Portal subrecipients agency-wide. • The AO will identify PA subrecipients identified as subject to the Single Audit requirements contained in Subpart F of the Uniform Guidance and determine whether required Single Audit reporting packages are timely submitted. • The AO will monitor single audit package submission status to the Federal Audit Clearinghouse (FAC). • The AO with the assistance of the PA program staff will follow-up with PA subrecipients who have not filed with the FAC. 2. Update Desk Review Procedures: • The AO will work with program staff to update the audit review procedures to better address PA processes according to 2 CFR 200 Subpart F and will update the Management Decision Letter templates for PA subrecipients. The AO will work with program staff and issue management decisions on applicable single audit findings within the timeframe required by 2 CFR 200.521 • The AO will review Single Audit reports submitted by subrecipients to identify findings, questioned costs, modified opinions, or other compliance matters related to Federal programs administered by IEMA-OHS and document required follow-up actions. 3. Update Reconciliation Procedures: The AO will work with program staff to update procedures to reconcile subrecipient’s reported SEFA with the FEMA Grant Portal, the state-wide accounting system-SAP, and the Federal Payment Management System to ensure proper review and accuracy. • The AO with the assistance of program staff that Federal expenditures attributable to IEMA-OHS-administered awards are accurately reported by subrecipients within their SEFAs and data collection forms submitted to the FAC • The AO with the assistance of program staff will reconcile expenditures reported by subrecipients for IEMA-OHS pass-through awards to agency records, award documentation, and other supporting information to determine whether reported amounts were complete, accurate, and consistent with IEMA-OHS’ records. 4. Retain Monitoring Documentation: All documentation will be maintained electronically by the Accountability Office. Proposed Completion Date: March 31, 2027

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Finding 1240972 (2025-019)

Material Weakness 2025

State of Illinois

IL

Procurement, Suspension & Debarment Subrecipient Monitoring § 200.303

Finding Number: 2025-019 Finding Name: Failure to Properly Report Subaward Information Required by FFATA Finding Condition(s): The Illinois Emergency Management Agency and Office of Homeland Security (IEMA-OHS) failed to properly report information required by the Federal Funding Accountability and ...

Finding Number: 2025-019 Finding Name: Failure to Properly Report Subaward Information Required by FFATA Finding Condition(s): The Illinois Emergency Management Agency and Office of Homeland Security (IEMA-OHS) failed to properly report information required by the Federal Funding Accountability and Transparency Act (FFATA) for awards granted to subrecipients of the Disaster Grants – Public Assistance (Public Assistance) and Homeland Security Grant Program (Homeland) programs. Additionally, the auditors noted that IEMA-OHS did not have adequate internal controls in place over FFATA reporting to ensure all subawards were accurately reported within required timeframes. Name of Contact Person(s): MyongAe Kim, Chief Accountability Officer – Illinois Emergency Management Agency and Office of Homeland Security, Director’s Office. Corrective Action(s): The IEMA-OHS’ Accountability Office has developed the FFATA Reporting Submission Checklist, which will be distributed to the grant program area. The checklist will be required to be submitted with the FFATA Reporting template to the Accountability Officer. The Accountability Officer will file in SAM.gov, and then the form will be sent back to grant program area for its review for accuracy. Proposed Completion Date: September 30, 2026 - Complete

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Finding 1240969 (2025-018)

Material Weakness 2025

State of Illinois

IL

Subrecipient Monitoring Cash Management Matching / Level of Effort / Earmarking § 200.303

Finding Number: 2025-018 Finding Name: Failure to Perform Cash Draws in Accordance with the Treasury State Agreement Finding Condition(s): The Illinois Department of Commerce and Economics Opportunity (DCEO) did not perform its cash draws in accordance with the funding technique prescribed in the Tr...

Finding Number: 2025-018 Finding Name: Failure to Perform Cash Draws in Accordance with the Treasury State Agreement Finding Condition(s): The Illinois Department of Commerce and Economics Opportunity (DCEO) did not perform its cash draws in accordance with the funding technique prescribed in the Treasury State Agreement (TSA). Additionally, the auditors noted that internal controls have not been established to ensure cash draws are calculated and requested in accordance with Treasury regulations and the funding technique prescribed by the Treasury-State agreement. Name of Contact Person(s): • Lisa Clement, Audit and Resolution Manager – Illinois Department of Commerce and Economic Opportunity • Jared Ebel, Chief Accountability Officer – Illinois Department of Commerce and Economic Opportunity • Phil Keshen, Deputy Director – Illinois Department of Commerce and Economic Opportunity, Office of Fiscal Management Corrective Action(s): The DCEO’s Office of Financial Management requested that the Governor’s Office of Management and Budget (GOMB) change the funding technique for the Low-Income Home Energy Assistance Program within the Treasury-State Agreement to Pre-Issuance. This change eliminates the need to re-certify to the accuracy of the clearance pattern. GOMB approved the change to the Treasury-State Agreement for Fiscal Year 2026. Proposed Completion Date: July 1, 2025 – Complete

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Finding 1240964 (2025-015)

Material Weakness 2025

State of Illinois

IL

Procurement, Suspension & Debarment Subrecipient Monitoring Internal Control / Segregation of Duties § 200.303

Finding Number: 2025-015 Finding Name: Failure to Properly Report Subaward Information Required by FFATA Finding Condition(s): The Illinois Department of Commerce and Economic Opportunity (DCEO) failed to properly report information required by the Federal Funding Accountability and Transparency Act...

Finding Number: 2025-015 Finding Name: Failure to Properly Report Subaward Information Required by FFATA Finding Condition(s): The Illinois Department of Commerce and Economic Opportunity (DCEO) failed to properly report information required by the Federal Funding Accountability and Transparency Act (FFATA) for awards granted to subrecipients of the Workforce Innovation and Opportunity Act (WIOA) Cluster and Low-Income Home Energy Assistance Program (LIHEAP) programs. Additionally, the auditors noted that the DCEO did not have adequate internal controls in place over FFATA reporting to ensure all subawards were accurately reported within required timeframes. Name of Contact Person(s): • Lisa Clement, Audit and Resolution Manager – Illinois Department of Commerce and Economic Opportunity • Jared Ebel, Chief Accountability Officer – Illinois Department of Commerce and Economic Opportunity • Phil Keshen, Deputy Director – Illinois Department of Commerce and Economic Opportunity, Office of Fiscal Management Corrective Action(s): The DCEO’s Office of Financial Management updated the FFATA reporting procedures. With this update, reports are filed based on award dates. To further clarify the procedure, if a grant’s value is equal to or exceeds $30,000 and is modified by any amount, then it must be reported again. Implementation of the new procedures began with the March 2025 report. Proposed Completion Date: April 14, 2025 – Complete

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Finding 1240958 (2025-013)

Material Weakness 2025

State of Illinois

IL

Special Tests & Provisions Subrecipient Monitoring Matching / Level of Effort / Earmarking § 200.303

Finding Number: 2025-013 Finding Name: Failure to Complete UI BAM Case File Reviews Within Required Timeframes Finding Condition(s): The Illinois Department of Employment Security (IDES) did not complete the Benefit Accuracy Measurement (BAM) case file reviews in accordance with United States Depart...

Finding Number: 2025-013 Finding Name: Failure to Complete UI BAM Case File Reviews Within Required Timeframes Finding Condition(s): The Illinois Department of Employment Security (IDES) did not complete the Benefit Accuracy Measurement (BAM) case file reviews in accordance with United States Department of Labor (USDOL) requirements for the Unemployment Insurance (UI) program. The auditors noted that the IDES did not achieve each of the required percentage of case reviews within the required timeframes. The auditors noted that the IDES has not established adequate controls to ensure BAM case file review procedures are completed within timeframes established by the USDOL. Name of Contact Person(s): Dureyl Tyson, Benefit Accuracy Measurement Unit Manager – Illinois Department of Employment Security Corrective Action(s): During the latter half of 2025, the IDES hired and completed the training of two additional investigators to complete the reviews timely. Proposed Completion Date: December 31, 2025 – Complete

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Finding 1240956 (2025-012)

Material Weakness 2025

State of Illinois

IL

Subrecipient Monitoring Reporting Matching / Level of Effort / Earmarking § 200.303

Finding Number: 2025-012 Finding Name: Inadequate Process for Preparing ETA 2208A Special Report Finding Condition(s): The Illinois Department of Employment Security (IDES) does not have an adequate process in place to ensure the ETA 2208A special reports prepared for the Unemployment Insurance (UI)...

Finding Number: 2025-012 Finding Name: Inadequate Process for Preparing ETA 2208A Special Report Finding Condition(s): The Illinois Department of Employment Security (IDES) does not have an adequate process in place to ensure the ETA 2208A special reports prepared for the Unemployment Insurance (UI) program are complete and accurate. Name of Contact Person(s): Linette Hughes, Budget Director – Illinois Department of Employment Security Corrective Action(s): The IDES has reviewed and corrected the job aid for the ETA 2208A reporting. Additionally, the IDES has communicated the corrective actions to its staff. Proposed Completion Date: December 31, 2025 – Complete

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Finding 1240954 (2025-011)

Material Weakness 2025

State of Illinois

IL

Subrecipient Monitoring Reporting Matching / Level of Effort / Earmarking § 200.303

Finding Number: 2025-011 Finding Name: Inadequate Process for Preparing ETA 9130 Financial Reports Finding Condition(s): The Illinois Department of Employment Security (IDES) does not have an adequate process in place to ensure that the ETA 9130 financial reports prepared for the Unemployment Insura...

Finding Number: 2025-011 Finding Name: Inadequate Process for Preparing ETA 9130 Financial Reports Finding Condition(s): The Illinois Department of Employment Security (IDES) does not have an adequate process in place to ensure that the ETA 9130 financial reports prepared for the Unemployment Insurance (UI) program are complete and accurate. Additionally, the auditors noted that the IDES does not perform analytical or other procedures over previously reported information or expectations relative to current program activities. Finally, supervisory review procedures are not designed to operate at a level of precision to identify errors of this nature. Name of Contact Person(s): Kelly McGrath, Manager of Accounting and Reporting – Illinois Department of Employment Security Corrective Action(s): The IDES created a new ETA 9130 report based on current accounting operations from its accounting system, the Enterprise Resource Planning (ERP) system. The new ETA 9130 reports were created in March 2026, with the first test run for the March 31, 2026, ETA 9130 reporting period. The IDES also ran the new ETA 9130 reports for the June 30, 2026, reporting period. While the new ETA 9130 reports are running properly, the new ETA 9130 reports will need to be reconfigured for the new payroll system. As the underlying data in the new ETA 9130 reports will change with the new payroll system, the IDES has not yet implemented analytical procedures. Finally, the IDES implement supervisory review procedures. The IDES’ accountants enter the ETA 9130 data into the Payment Management System (PMS). Next, the Grant Accounting Supervisor reviews the ETA 9130 reports against what is entered into the PMS. The Grant Accounting Supervisor investigates all issues with ETA 9130 reports with the Manager of Accounting and Reporting. After the Grant Accounting Supervisor’s review, either the Manager of Accounting and Reporting or the Manager of Accounting Services approves the ETA 9130 report in the PMS. The IDES considers this new ETA 9130 report a first draft as accounting operations will be changing with the conversion from its old payroll system to the eTime/CTAS systems. In addition, the IDES is converting from an indirect cost allocation plan to a negotiated indirect cost rate. These changes in operations could affect how and where the IDES acquires the data needed for the ETA 9130 reports. Some reconfiguration may be needed to finalize the new ETA 9130 report. The IDES went live with the new payroll system with the July 31, 2026, payroll. The IDES is working through issues with the new payroll data and the new database and is working to create reports to use to enter the payroll data into the ERP system. Additionally, due to the payroll conversion, which will affect how to prepare the ETA 9130 report, current policies and procedures will need to be rewritten when the conversion is complete. Proposed Completion Date: October 31, 2026

View Audit 415211

Finding 1240950 (2025-009)

Material Weakness 2025

State of Illinois

IL

Matching / Level of Effort / Earmarking Subrecipient Monitoring § 200.303

Finding Number: 2025-009 Finding Name: Failure to Follow Established Control Procedures for Approving Certified Payrolls for the Airport Improvement Program Finding Condition(s): The Illinois Department of Transportation (IDOT) did not document approval of certified payrolls in accordance with its e...

Finding Number: 2025-009 Finding Name: Failure to Follow Established Control Procedures for Approving Certified Payrolls for the Airport Improvement Program Finding Condition(s): The Illinois Department of Transportation (IDOT) did not document approval of certified payrolls in accordance with its established internal control procedures for the Airport Improvement Program (AIP) program. Name of Contact Person(s): Clayton Stambaugh, Deputy Director of Aeronautics - Illinois Department of Transportation Corrective Action(s): Applicable staff will be reminded of requirements to review certified payroll reports and sign off on them prior to submission for reimbursement. Proposed Completion Date: October 1, 2026 - Complete

View Audit 415211

Finding 1240948 (2025-008)

Material Weakness 2025

State of Illinois

IL

Subrecipient Monitoring § 200.303 § 200.332 § 200.521

Finding Number: 2025-008 Finding Name: Inadequate Review of Subrecipient Single Audit Reports Finding Condition(s): The Illinois Department of Transportation (IDOT) did not adequately review single audit reports received from its subrecipients for the Highway Planning and Construction program on a t...

Finding Number: 2025-008 Finding Name: Inadequate Review of Subrecipient Single Audit Reports Finding Condition(s): The Illinois Department of Transportation (IDOT) did not adequately review single audit reports received from its subrecipients for the Highway Planning and Construction program on a timely basis. Additionally, IDOT has not established controls over subrecipient single audit desk reviews at an adequate level of precision to ensure single audit reporting requirements, including obtaining and reviewing single audit reporting packages, issuing management decision letters, and invoking stop payment actions, are performed within required timeframes. Name of Contact Person(s): Eric Bolinger, Chief Financial Officer - Illinois Department of Transportation Corrective Action(s): MDL Issuance For five subrecipients (with expenditures totaling $1,034,141), IDOT did not issue a management decision letter within required timeframes. The delays in issuing management decision letters ranged from one to 30 days beyond the required timeframe. IDOT acknowledges the finding regarding the untimely issuance of management decision letters to subrecipients. To address this issue, management will convene internal discussions with all relevant program and compliance staff to identify the root causes contributing to delays and to evaluate the current workflow for preparing and issuing management decision letters. As part of this process, IDOT will work collaboratively to develop a sustainable, standardized solution that ensures (1) responsibilities are clearly defined, (2) communication between divisions is improved, and (3) timelines comply with federal requirements. Interim monitoring procedures will be established to ensure any outstanding management decisions are tracked and issued promptly while the long term solution is being developed. Late Audit Package Submittal For four subrecipients (with expenditures of $1,348,055), the subrecipient single audit reporting package was not submitted by the subrecipients within the required timeframe. The delays in the submission of the subrecipient reporting packages for these subrecipients ranged from 19 to 81 days after the required timeframe, and IDOT did not follow-up with the subrecipient or invoke the stop pay process. IDOT staff are reviewing and planning to resume the stop pay notification process. Proposed Completion Date: December 31, 2026

View Audit 415211

Finding 1240946 (2025-007)

Material Weakness 2025

State of Illinois

IL

Procurement, Suspension & Debarment Subrecipient Monitoring Reporting § 200.303

Finding Number: 2025-007 Finding Name: Failure to Report Subaward Information Required by FFATA Finding Condition(s): The Illinois Department of Transportation (IDOT) failed to report information required by the Federal Funding Accountability and Transparency Act (FFATA) for awards granted to subrec...

Finding Number: 2025-007 Finding Name: Failure to Report Subaward Information Required by FFATA Finding Condition(s): The Illinois Department of Transportation (IDOT) failed to report information required by the Federal Funding Accountability and Transparency Act (FFATA) for awards granted to subrecipients of the Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and COVID-19 Airports Programs (AIP) program. Name of Contact Person(s): Joe Segobiano, Bureau Chief of Administrative Services – Illinois Department of Transportation, Division of Aeronautics Corrective Action(s): IDOT’s grant administrator and staff are now ensuring all grants are entered as soon as they are notified of the grant being executed. Proposed Completion Date: August 31, 2025 - Complete

View Audit 415211

Finding 1240942 (2025-005)

Material Weakness 2025

State of Illinois

IL

Allowable Costs / Cost Principles Subrecipient Monitoring § 200.303

Finding Number: 2025-005 Finding Name: Untimely Review of Subrecipient Performance Reports Finding Condition(s): The Illinois State Board of Education (ISBE) did not review subrecipient performance reports in a timely manner according to its program monitoring policies and procedures for subrecipien...

Finding Number: 2025-005 Finding Name: Untimely Review of Subrecipient Performance Reports Finding Condition(s): The Illinois State Board of Education (ISBE) did not review subrecipient performance reports in a timely manner according to its program monitoring policies and procedures for subrecipients of the Education and Stabilization Fund - Elementary and Secondary Education (ESF) program for fiscal year 2025. Name of Contact Person(s): Denise Blaney, Director of Title Grants – Illinois State Board of Education Corrective Action(s): To ensure proper review procedures are performed in a timely manner in accordance with its program monitoring policies and procedures, ISBE’s fiscal department will continue to send weekly lists of submitted, past due, and disapproved Grant Periodic Reports (GPRS) to each applicable department. Program areas worked with Information Technology Department and enhanced the report to provide a daily detailed GPRS report beginning December 22, 2025. This report allows management staff to review and ensure that reports are not overlooked. Program staff analyzes the GPRS reports and prioritizes reviews based on submission dates. Proposed Completion Date: December 22, 2025 - Complete

View Audit 415211

Finding 1240933 (2025-003)

Material Weakness 2025

State of Illinois

IL

Subrecipient Monitoring Matching / Level of Effort / Earmarking § 200.303 § 200.332 § 200.521

Finding Number: 2025-003 Finding Name: Inadequate Monitoring of Subrecipient Single Audit Reviews Finding Condition(s): The State of Illinois did not establish adequate controls to monitor the completion and documentation of the review of single audit reports for its subrecipients of the Special Sup...

Finding Number: 2025-003 Finding Name: Inadequate Monitoring of Subrecipient Single Audit Reviews Finding Condition(s): The State of Illinois did not establish adequate controls to monitor the completion and documentation of the review of single audit reports for its subrecipients of the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), Child and Adult Care Food Program (CACFP), WIOA Cluster (WIOA Cluster), Highway and Planning Construction (Highway Planning), Title I Grants to Local Education Agencies (Title I), Special Education Cluster (Special Education Cluster), Twenty-First Century Community Learning Centers (21st Century), Supporting Effective Instruction State Grants (SEISG), Student Support and Academic Enrichment Program (SSAE), Education Stabilization Funds (ESF), Aging Cluster (Aging), Epidemiology and Laboratory Capacity for Infectious Diseases (ELC), Temporary Assistance for Needy Families (TANF), Child Support Services (CSS), Low-Income Home Energy Assistance Program (LIHEAP), Child Care and Development Fund Cluster (CCDF Cluster), Social Services Block Grant (SSBG), Block Grants for Prevention and Treatment of Substance Abuse (SAPT), Disaster Grants – Public Assistance (Public Assistance), and Homeland Security Grant Program (Homeland Security) programs in the State's Grant Accountability and Transparency Act (GATA) Audit Report Review Management System (ARRMS). Name of Contact Person(s): Keyria Rodgers, Grant Accountability and Transparency Unit Director – Illinois Governor’s Office of Management and Budget Corrective Action(s): The Grant Accountability and Transparency Unit (GATU) within the Illinois Governor’s Office of Management and Budget (GOMB) has developed both reactive (reduce the backlog) and proactive (eliminate future backlogs) approaches to address this finding. These approaches strengthen internal controls, establish consistent monitoring of Management Decision Letter (MDL) completion, and reduce the likelihood that agencies continue the pattern of missing MDL completion deadlines. Reducing the Backlog – Reactive Approach Due to the significant backlog, the reactive monitoring process was implemented first, in June 2025, to identify agencies with outstanding MDLs. Prior to June 2025, GATU did not have consistent visibility into outstanding MDLs requiring upload to the ARRMS system, nor did it regularly report this information to agencies. Beginning in June 2025, GATU implemented a MDL Analysis, a monthly monitoring of MDLs in ARRMS, to provide clearer visibility into overdue items and areas requiring corrective action. After each monthly review, GATU’s Fiscal and Audit Manager distributes the MDL Analysis to Chief Accountability Officers (CAOs) and Subject Matter Experts (SMEs) during the monthly CAO and SME calls hosted by GATU. In addition, the Fiscal and Audit Manager provides live demonstrations and one on one technical assistance upon request to support agencies in understanding and completing their MDL requirements. (Proposed Completion Date for Backlog: June 30, 2027) Eliminating Future Backlogs – Proactive Approach GATU’s reactive efforts have significantly reduced the backlog of MDL completions in ARRMS, enabling GATU to establish a clear, proactive approach that minimizes the likelihood of repeated missed deadlines. Beginning in December 2026, GATU’s Fiscal and Audit Manager will move to conducting MDL Analyses weekly. Using the MDL Analyses, the Fiscal and Audit Manager will notify agencies of upcoming deadlines 90 days prior to the date MDLs must be entered into ARRMS. A second reminder will be sent 30 days prior to the deadline. If the Fiscal and Audit Manager does not observe meaningful progress toward MDL completion following these notifications, the matter will be escalated to the GATU Director for a touchpoint meeting with the agency’s CAO. If the agency remains delinquent after the reminders and GATU Director level intervention, the GATU Director will escalate the matter to the Senior Deputy Director of Accountability and Compliance for further action within 15 days of the agency’s review becoming overdue. This escalation will be sent via email and will document the agency’s status, prior reminders, and the need for corrective action. (Proposed Completion Date for Implementing Proactive Approach: December 31, 2026) Proposed Completion Date: June 30, 2027

View Audit 415211

Finding 1240892 (2025-001)

Material Weakness 2025

Town of Salem

CT

Procurement, Suspension & Debarment Subrecipient Monitoring

FEDERAL FINDING 2025-001 – SIGNIFICANT DEFICIENCY- PROCUREMENT AND SUSPENSION AND DEBARMENT- INTERNAL CONTROL OVER VERIFICATION AGAINST THE SYSTEM FOR AWARD MANAGEMENT (“SAM”) Description of Finding: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Fede...

FEDERAL FINDING 2025-001 – SIGNIFICANT DEFICIENCY- PROCUREMENT AND SUSPENSION AND DEBARMENT- INTERNAL CONTROL OVER VERIFICATION AGAINST THE SYSTEM FOR AWARD MANAGEMENT (“SAM”) Description of Finding: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, (Uniform Guidance) requires compliance with provisions of procurement, suspension, and debarment. Non-federal entities are required to ensure that they do not award contracts or make subawards to any parties that are suspended or debarred from receiving federal funds. This verification may be accomplished by checking the System for Award Management (SAM). The Town does not have a process in place to check that vendors are not suspended or debarred by checking the System for Award Management (SAM). Statement of Concurrence or Nonconcurrence: The Town agrees with the audit finding. Corrective Action: The Town will establish policies and procedures to ensure vendors are not suspended or debarred by checking the System for Award Management (SAM) and maintain documentation showing that verification. Name of Contact Person: Meliza Jimnez, Finance Director, (860) 859-3873 x220. Projected Completion Date: June 30, 2026.

View Audit 415201

Finding 1240888 (2025-006)

Material Weakness 2025

Libson Regional School District

NH

Procurement, Suspension & Debarment Subrecipient Monitoring Allowable Costs / Cost Principles

The Business Manager will work to create policies and procedures to address all the items listed in this finding. The Principal and Superintendent will assist in enforcing the procedures are followed. All staff involved with the administration of Federal funds will be trained on these policies and p...

The Business Manager will work to create policies and procedures to address all the items listed in this finding. The Principal and Superintendent will assist in enforcing the procedures are followed. All staff involved with the administration of Federal funds will be trained on these policies and procedures. The Business Manager will work to make sure the policies and procedures stay consistent with current Uniform Guidance requirements and the School Districts federal grant activities. Our auditors assist the business manager to assure we are in step with the changes.

View Audit 415191

Finding 1240859 (2025-001)

Material Weakness 2025

City of Springfield

MA

Allowable Costs / Cost Principles Subrecipient Monitoring Significant Deficiency § 200.303 § 200.430

Audit Finding Reference: 2025-001 Maintain Documentation Supporting Employee Pay Rates Planned Corrective Action: We will maintain a current Memorandum of Understanding supporting the hourly pay rate charge to the program for employee pay rates. Planned Implementation Date of Corrective Action: Nove...

Audit Finding Reference: 2025-001 Maintain Documentation Supporting Employee Pay Rates Planned Corrective Action: We will maintain a current Memorandum of Understanding supporting the hourly pay rate charge to the program for employee pay rates. Planned Implementation Date of Corrective Action: November 2026 Person Responsible for Corrective Action: Valerie L. Williams

View Audit 415178

Finding 1240804 (2025-018)

Material Weakness 2025

City of Belgrade

MT

Subrecipient Monitoring Reporting § 200.512

FINDING 2025-018: Audit Report Filing Deadline Response: The changes identified throughout the previous findings will support completion of the Single Audit in a timely manner. The SEFA and all related documentation will be included on the year-end checklist. In addition to the other changes, the Gr...

FINDING 2025-018: Audit Report Filing Deadline Response: The changes identified throughout the previous findings will support completion of the Single Audit in a timely manner. The SEFA and all related documentation will be included on the year-end checklist. In addition to the other changes, the Grant & Federal Funding Policy will include quarterly review of federal funding sources and grant status.

View Audit 415127

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