Finding 1157370 (2024-003)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
$1
Year
2024
Accepted
2025-09-30
Audit: 369652
Organization: Northwest Side Housing Center (IL)
Auditor: Porte Brown LLC

AI Summary

  • Core Issue: The Center failed to provide proper documentation for personnel expenses across 3 of 4 grant awards, violating 2 CFR §200.430(h)(8)(i).
  • Impacted Requirements: Inadequate staffing led to insufficient timesheets and documentation, raising concerns about the accuracy of wage allocations and potential duplication of funding requests.
  • Recommended Follow-Up: Management should enhance tracking processes for payroll costs by grant, ensuring internal controls are in place to verify accuracy and proper allocation of expenses.

Finding Text

Criteria: 2 CFR §200.430(h)(8)(i) requires that amounts of personnel expenses are properly documented and include appropriate controls and documentation to support the distribution of the employee's wages among specific activities if the employee works on more than one award. Condition: Of the testing population, for 3 of the 4 grant awards, the Center was unable to provide timesheets or other documentation to substantiate the application of each individual's time for that period. Cause: Due to inadequate staffing resources, the Center was not able to ensure maintenance of adequate documentation. Effect: The Center isnot able to demonstrate that the personnelexpenses allocated to the grant was proper and ensure avoidance of duplication of funding requests for the same amounts. Questioned Costs: Our sample of 46 items consisted of $53,195 in costs of which $17,698 were identified as known questionedcosts.Duetothelack of timesheetsmaintainedfor3of the4grants,theentirepopulationsforthe3grantsof$136,423 is considered to be likely questioned costs. Recommendation: Management should review and refine its process of tracking payroll costs by grant to ensure that the costs are supported by a system of internal controls which provides reasonable assurance that the charges are accurate, are properly allocated, and reasonably reflect the total activity for which the employee is compensated. Views of Responsible Officials: Management agrees with the finding; see corrective action plan.

Corrective Action Plan

The Center has implemented time and effort reports in the subsequent year to properly substantiate each employee's time and effort spent on each grant.

Categories

Questioned Costs Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1157368 2024-003
    Material Weakness Repeat
  • 1157369 2024-003
    Material Weakness Repeat
  • 1157371 2024-004
    Material Weakness Repeat
  • 1157372 2024-004
    Material Weakness Repeat
  • 1157373 2024-004
    Material Weakness Repeat
  • 1157374 2024-004
    Material Weakness Repeat
  • 1157375 2024-004
    Material Weakness Repeat
  • 1157376 2024-005
    Material Weakness Repeat
  • 1157377 2024-005
    Material Weakness Repeat
  • 1157378 2024-005
    Material Weakness Repeat
  • 1157379 2024-005
    Material Weakness Repeat
  • 1157380 2024-005
    Material Weakness Repeat
  • 1157381 2024-006
    Material Weakness Repeat
  • 1157382 2024-006
    Material Weakness Repeat
  • 1157383 2024-006
    Material Weakness Repeat
  • 1157384 2024-006
    Material Weakness Repeat
  • 1157385 2024-006
    Material Weakness Repeat
  • 1157386 2024-007
    Material Weakness Repeat
  • 1157387 2024-008
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $290,665
93.197 Childhood Lead Poisoning Prevention Projects_state and Local Childhood Lead Poisoning Prevention and Surveillance of Blood Lead Levels in Children $144,665
14.218 Community Development Block Grants/entitlement Grants $94,483
93.268 Medicare Enrollment Assistance Program $89,353
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $84,739
93.071 Medicare Enrollment Assistance Program $75,000
21.029 Coronavirus Capital Projects Fund Program $39,870
21.027 Coronavirus State and Local Fiscal Recovery Funds $22,113
14.169 Housing Counseling Assistance Program $21,200