FAC Explorer

Finding 1077563 (2023-002)

Material Weakness
Requirement
M
Questioned Costs
-
Year
2023
Accepted
2024-09-30
Audit: 323383
Organization: The Carle Foundation (IL)
Auditor: Kpmg

AI Summary

  • Core Issue: Carle failed to provide essential federal program information to subrecipients for the Illinois SOR2 program, missing key elements in subaward documents.
  • Impacted Requirements: This violates 2 CFR 200.332(a) and 2 CFR 200.303, which mandate clear identification of subawards and effective internal controls for compliance.
  • Recommended Follow-Up: Carle should review and update subaward documents to include all required information and ensure proper communication with subrecipients.

Finding Text

Finding 2023-002: Failure to Notify Subrecipients of Federal Funding Condition Found: Carle did not communicate required federal program information to subrecipients the Illinois SOR2 program. During our testing of 2 subrecipient awards, we noted the subaward document did not include most of the required elements, including but not limited to: FAIN, ALN number and title, name of the federal awarding agency, UEI, indirect cost rate, Single Audit requirements, and a suspension and debarment clause. Amounts passed through to subrecipients under the SOR2 program totaled $201,863 during the year ended December 31, 2023. Criteria or Requirement: Per 2 CFR 200.332(a), all pass-through entities must ensure that every subaward is clearly identified to the subrecipient as a subaward and includes the information listed at 2 CFR 200.332 (1) at the time of the subaward and if any of these data elements change, include the changes in subsequent subaward modification. Additionally, 2 CFR 200.303 requires non-Federal entities receiving Federal awards to establish and maintain internal control designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include implementing risk assessment procedures required by Uniform Guidance and ensuring monitoring procedures are performed and documented in accordance with established policies and procedures. Cause: In discussion with Carle management, internal controls were not effectively implemented at the organizational level or cascaded to department leadership. The templates used for subawards was not reflective of the required communications. Possible Asserted Effect: Failure to communicate ALNs at the time of disbursement can hamper the subrecipient’s ability to correctly prepare their schedule of expenditures of federal awards. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend Carle evaluate its subaward documents for federal awards and ensure that they include all required elements. Views of Carle management: Management agrees with the finding. Ann Campen had conversations with all the sub-awardees and provided them with the information required. Staff will email the sub-awardees with an “addendum” by the end of calendar year 2024.

Categories

Subrecipient Monitoring Procurement, Suspension & Debarment

Other Findings in this Audit

  • 501115 2023-001
    Material Weakness Repeat
  • 501116 2023-001
    Material Weakness Repeat
  • 501117 2023-001
    Material Weakness Repeat
  • 501118 2023-001
    Material Weakness Repeat
  • 501119 2023-002
    Material Weakness
  • 501120 2023-002
    Material Weakness
  • 501121 2023-002
    Material Weakness
  • 501122 2023-002
    Material Weakness
  • 501123 2023-003
    Material Weakness
  • 501124 2023-003
    Material Weakness
  • 501125 2023-003
    Material Weakness
  • 501126 2023-003
    Material Weakness
  • 501127 2023-004
    Material Weakness
  • 501128 2023-004
    Material Weakness
  • 501129 2023-004
    Material Weakness
  • 501130 2023-004
    Material Weakness
  • 1077557 2023-001
    Material Weakness Repeat
  • 1077558 2023-001
    Material Weakness Repeat
  • 1077559 2023-001
    Material Weakness Repeat
  • 1077560 2023-001
    Material Weakness Repeat
  • 1077561 2023-002
    Material Weakness
  • 1077562 2023-002
    Material Weakness
  • 1077564 2023-002
    Material Weakness
  • 1077565 2023-003
    Material Weakness
  • 1077566 2023-003
    Material Weakness
  • 1077567 2023-003
    Material Weakness
  • 1077568 2023-003
    Material Weakness
  • 1077569 2023-004
    Material Weakness
  • 1077570 2023-004
    Material Weakness
  • 1077571 2023-004
    Material Weakness
  • 1077572 2023-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.399 Cancer Control $2.41M
84.268 Federal Direct Student Loans $2.28M
32.006 Covid-19 Telehealth Program $643,231
93.829 Section 223 Demonstration Programs to Improve Community Mental Health Services $604,775
21.027 Coronavirus State and Local Fiscal Recovery Funds $600,000
84.063 Federal Pell Grant Program $599,878
93.470 Elder Abuse Prevention Interventions Program $552,758
93.846 Arthritis, Musculoskeletal and Skin Diseases Research $370,562
93.045 Special Programs for the Aging, Title Iii, Part C, Nutrition Services $352,357
93.889 National Bioterrorism Hospital Preparedness Program $144,106
93.788 Opioid Str $144,025
93.044 Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers $132,939
84.425 Education Stabilization Fund $100,731
93.048 Special Programs for the Aging, Title Iv, and Title Ii, Discretionary Projects $95,760
14.181 Supportive Housing for Persons with Disabilities $79,250
93.837 Cardiovascular Diseases Research $76,368
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $72,442
93.958 Block Grants for Community Mental Health Services $72,248
93.052 National Family Caregiver Support, Title Iii, Part E $71,856
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $57,623
93.959 Block Grants for Prevention and Treatment of Substance Abuse $56,582
93.994 Maternal and Child Health Services Block Grant to the States $50,000
93.242 Mental Health Research Grants $48,857
84.007 Federal Supplemental Educational Opportunity Grants $43,718
84.033 Federal Work-Study Program $38,556
93.301 Small Rural Hospital Improvement Grant Program $35,814
93.747 Elder Abuse Prevention Interventions Program $33,688
93.847 Diabetes, Digestive, and Kidney Diseases Extramural Research $33,094
93.155 Rural Health Research Centers $32,231
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $28,660
93.838 Lung Diseases Research $25,305
93.286 Discovery and Applied Research for Technological Innovations to Improve Human Health $23,288
93.368 21st Century Cures Act - Precision Medicine Initiative $14,000
93.043 Special Programs for the Aging, Title Iii, Part D, Disease Prevention and Health Promotion Services $6,543
93.279 Drug Abuse and Addiction Research Programs $6,342
93.575 Child Care and Development Block Grant $6,127
12.420 Military Medical Research and Development $5,000
93.865 Child Health and Human Development Extramural Research $1,130
93.569 Community Services Block Grant $1,085
21.006 Tax Counseling for the Elderly $680
93.395 Cancer Treatment Research $624
93.273 Alcohol Research Programs $387
93.041 Special Programs for the Aging, Title Vii, Chapter 3, Programs for Prevention of Elder Abuse, Neglect, and Exploitation $20
93.912 Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement $0