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