Finding Text
2024 – 003 Period of Performance
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-2402LLIEA 6/1/2024; 2302ILLIEI 3/1/2023; G 2302ILLIEA 10/1/2022
Pass-Through Agency: Illinois Department of Commerce and Economic Opportunity
Pass-Through Numbers: 23-221038; 23-274038; 23-224038
Award Period: June 1, 2024 through September 30, 2025; March 1, 2023 through August 31, 2024; October 1, 2022 through August 31, 2024
Type of Finding:
• Significant Deficiency 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 200.308, 200.309, and 200.403(h)) requires that only allowable costs incurred during the approved budget period of a federal award’s period of performance be charged to the award. Effective internal controls should include procedures that involve costs charged to federal awards being reviewed and approved for proper period of performance.
Condition: The County charged costs to the federal award after the end of the period of performance. Furthermore, although payroll transactions charged to the federal award were reviewed and approved, documentation of such review was not retained.
Questioned Costs: $706
Context: 4 of 97 transactions tested were incurred after the period of performance end date. All 18 payroll transactions tested lacked documentation of review and approval.
Cause: Costs were inadvertently claimed outside the period of performance. Documentation of review and approval for payroll transactions was also not retained.
Effect: Charging costs outside the period of performance can result in unallowable costs being charged to federal awards, which could lead to noncompliance with federal requirements and potential repayment obligations.
Repeat Finding: The finding is a repeat of a finding in the prior year. The prior year finding number was 2023-005.
Section III – Findings and Questioned Costs – Major Federal Programs (Continued)
2024 – 003 Period of Performance (Continued)
Recommendation: We recommend that the County review and strengthen its internal controls to ensure that only costs incurred within the period of performance are charged. Costs charged to federal awards should be reviewed and approved for proper period of performance, and documentation of such review should be retained.
Views of Responsible Officials: There is no disagreement with the audit finding.