Finding 1161761 (2024-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-11-03
Audit: 371696
Organization: Center on Halsted (IL)
Auditor: 420714325

AI Summary

  • Core Issue: Financial and performance reports were submitted late, violating grant agreement timelines.
  • Impacted Requirements: Reports must be filed within 15 days post quarter/month-end and 30 days after the grant period, as per federal and local guidelines.
  • Recommended Follow-Up: Establish a verification process to ensure timely report submission and maintain proper documentation for all reports.

Finding Text

Finding 2024-001: Reporting—financial and performance reports Assistance Listing Number title and number: COVID-19- Coronavirus State and Local Fiscal Recovery Funds, 21.027 Federal grant number: FSCAH06318 (July 1, 2023 to June 30, 2024) and NT041 (September 1, 2022 to August 31, 2023) Federal agency: U.S. Department of Treasury Pass through entity: Illinois Department of Human Services and Cook County Health Criteria: Article XIII 13.1 and 13.2 of the Coronavirus State and Local Fiscal Recovery Funds – American Rescue Plan Act Add on grant agreement states that financial and performance reports are to be submitted within 15 days after quarter-end for quarterly reports, 15 days after month-end for monthly reports, and 30 days after grant agreement close period. Article 5 of the Cook County Health – American Rescue Plan Act grant agreement states that performance metric and program outcomes are to be reported quarterly and a final report is to be submitted at the end of the award period. Condition: Certain financial and performance reports were filed late. Cause: Due to turnover in both financial management and program management, program oversight was not performed timely. Effect: Late filing of financial and performance reports can result in actions taken by oversight agencies which could impact future funding. Questioned costs: None Context: Out of 12 financial and performance monthly reports tested, 10 of the financial and performance reports were filed late and out of 2 performance quarterly reports tested, both failed to be filed. Repeat finding: Yes Recommendation: We recommend that management implement a process to verify that all reports are reviewed and submitted within the required timelines set by the funding agency. We also recommend management retain proper support for each report submitted. Views of responsible officials: Management agrees with this finding. Please see corrective action plan attached.

Corrective Action Plan

Finding: Reporting—financial and performance reports Corrective Actions Taken or Planned: ▪ Taken: This finding was a result of staff turnover and Center on Halsted has put in place an established relationship with an external accounting firm (Sikich), that will help create stability and support in all financial processes including grant reconciliation. This updated contractual agreement & relationship occurred on March 1, 2024. ▪ Taken: An ongoing process has been put in place to ensure multiple checks and balances are conducted prior to grant submission to identify reporting requirements and responsible parties. This will be facilitated by our Development team with assistance of our outsourced accounting firm, this process was implemented July 1, 2025. ▪ Taken: Stronger supervision of required reporting and deadlines. This will be facilitated by our Chief Development Officer, Nick Roman with our Sikich partners. This control process was implemented July 1, 2025 ▪ Planned: Alignment with our Board approved Financial Policy documentation that includes information on appropriate finance and accounting processes. The review and assessment of our current processes to the Finance Policy will be conducted by our external accounting firm, with a completion of that process occurring by September 30th, 2025.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1161746 2024-002
    Material Weakness Repeat
  • 1161747 2024-002
    Material Weakness Repeat
  • 1161748 2024-002
    Material Weakness Repeat
  • 1161749 2024-002
    Material Weakness Repeat
  • 1161750 2024-002
    Material Weakness Repeat
  • 1161751 2024-002
    Material Weakness Repeat
  • 1161752 2024-002
    Material Weakness Repeat
  • 1161753 2024-002
    Material Weakness Repeat
  • 1161754 2024-002
    Material Weakness Repeat
  • 1161755 2024-002
    Material Weakness Repeat
  • 1161756 2024-002
    Material Weakness Repeat
  • 1161757 2024-002
    Material Weakness Repeat
  • 1161758 2024-002
    Material Weakness Repeat
  • 1161759 2024-002
    Material Weakness Repeat
  • 1161760 2024-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.914 HIV EMERGENCY RELIEF PROJECT GRANTS $111,816
14.241 HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS $79,931
93.940 HIV PREVENTION ACTIVITIES HEALTH DEPARTMENT BASED $75,516
21.027 COVID-19 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $72,422
93.855 ALLERGY AND INFECTIOUS DISEASES RESEARCH $23,292
93.368 21ST CENTURY CURES ACT - PRECISION MEDICINE INITIATIVE $4,653