Finding Text
2023 – 007 Reporting
Federal Agency: U.S. Department of Health and Human Services
Federal Program Name: Low-Income Home Energy Assistance Program (LIHEAP)
Assistance Listing Number: 93.568
Federal Award Identification Number and Year: G-2202ILLIEA 10/1/2021; G-2202ILLIEA 10/1/2021; G-2302ILLIEA 10/1/2022; 2102ILLWCS 5/28/2021
Pass-Through Agency: Illinois Department of Commerce and Economic Opportunity
Pass-Through Numbers: 22-221038; 22-224038; 23-224038; 21-233038
Award Period: June 1, 2022 through September 30, 2023, October 1, 2021 through June 30, 2023, October 1, 2022 through June 30, 2024, and September 1, 2021 through August 31, 2023
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria or specific requirement: Uniform Grant Guidance (2 CFR 200.303) requires non-federal entities receiving Federal awards establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Uniform Grant Guidance (2 CFR 200.329) requires non-federal entities submit financial reports required by the pass through entity award and that the data accumulated and summarized is in accordance with the required or stated criteria and methodology. Effective internal controls should include ensuring the periodic financial reporting be supported by documentation of expenditures that have been incurred. In addition, grant agreements requiring grant close-out reports should reconcile to the accounting records.
Condition: Supporting documentation for the periodic financial reporting accounting records were not maintained. Additionally, the accounting records supporting the SEFA did not agree to the grant reconciliation submitted with the grant close-out packages tested, and they were not filed by the due date.
Questioned costs: None
Context: 5 of 5 periodic financial reports tested did not have supporting documentation retained. 3 of 3 financial close out reports did not reconcile to supporting documentation and were late.
Cause: Support for the periodic financial reports could not be provided as it was not retained. Adjustments made to the project accounting records after the close-out report package was submitted caused the report to have inaccurate information.
Effect: Lack of proper documentation for reported information can lead to an over or under reporting of grant expenditures.
Repeat Finding: This is a repeat finding. Prior year finding number was 2022-007.
Recommendation: We recommend the County design controls to ensure the accounting records reconcile to the periodic financial reporting and grant close-out reports and documentation be retained. A detailed, documented review of all reports should occur by someone other than the preparer, to ensure the reports are accurate, supported, and filed timely. No financial activity should be recorded to the project accounting records after the grant close out report package is completed.
Views of responsible officials: There is no disagreement with the audit finding.