Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Homeless Services
Assistance Listing Number: 14.231
Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services
Pass-Through Numbers: N/A
Award Periods: January 1, 2023 through December 31, 2024
Type of Finding:
Material Weakness in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
Under allowable cost/cost principles, an organization in receipt of federal funding is required to have a system of controls in place to safeguard assets and ensure that only allowable costs are charged to federal programs. 2 CFR Part 200 states that costs may be allocated or transferred to benefitted projects on any reasonable documented basis.
Condition:
In testing a sample of 8 items, we identified the following:
• 5 out of the 8 transactions tested did not have back up to support the amount allocated.
Questioned Costs:
Unknown
Context:
Disbursements are not being properly documented for the allocation methodology being used.
Cause:
Procedures for the allocation of general disbursements in full compliance with the Uniform Guidance have not yet been fully implemented.
Effect:
Inaccurate costs may be charged to federal programs if The Blvd does not have procedures in place to monitor and record general disbursements devoted to federal programs.
Repeat Finding:
This is a repeat finding.
Recommendation:
Management should develop a process whereby general disbursements allocated to federal grants are supported by a system of internal controls which provides reasonable assurance that the charges are accurate, allowable, and properly allocated and support the distribution of the disbursement among specific activities or cost objectives if the disbursement is allocated to more than one federally funded program. These estimates should be properly reflected during the vouchering process.
Views of responsible officials and planned corrective actions:
There is no disagreement with the audit finding. Currently, all vouchers are reviewed and approved by upper management prior to submission. These vouchers are checked against our policy ensuring costs are reasonable, allowable, and allocable to a State, Federal, local, and private awards shall be charged to that award directly or indirectly.
Name of the Contact Person Responsible for Corrective Action:
Bo Gasic, CFO
Planned Completion Date for Corrective Action Plan:
Immediately