Finding 1174706 (2025-003)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2025

Accepted

2026-02-20

Audit: 388267

Organization: Lutheran Child and Family Services of Illinois (IL)

Auditor: CLIFTONLARSONALLEN LLP

AI Summary

Core Issue: The agency failed to have supervisors sign off on employee timecards, violating internal control procedures.
Impacted Requirements: Compliance with the Uniform Guidance for accurate and allowable compensation records is not being met.
Recommended Follow-Up: Ensure supervisors document their approval of employee time and effort as per agency policy.

Finding Text

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Continuum of Care Program Assistance Listing Number: 14.267 Federal Award Identification Number: IL178L5T172302 - 2024 IL0315L5T142316 - 2024 IL1651L5Y142305 - 2024 IL1780LST172201 - 2023 IL1651L5Tl42204 - 2023 IL0315LST142215 – 2023 Award Periods: August 1, 2023 – July 31, 2024; August 1, 2024 – July 31, 2025; July 1, 2024 – June 30, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria: Under the Uniform Guidance, compensation for personal services under federal awards must be supported by records that include internal controls ensuring charges that are accurate, allowable, and properly allocated. Condition: The agency did not perform the prescribed policy of having a supervisor signoff on the time of a subordinate within the timecard system. Questioned Costs: None Context: For one of the pay periods tested, the supervisor approval of the employee's timecard for the pay period was not performed and documented by the Agency. Cause: Unknown Effect: Lack of following payroll procedures could lead to inaccurate time and effort being charged to the grant. Repeat Finding: This finding is not a repeat finding. Recommendation: CLA recommends the Agency follow its prescribed policy of supervisors performing and documenting their approval of the documentation of employees' time and effort. Views of Responsible Officials:

Corrective Action Plan

Recommendation: CLA recommends the Agency follow its prescribed policy of supervisors performing and documenting their approval of the documentation of employees' time and effort. Explanation of disagreement with audit finding: There is no disagreement with this finding. Action taken in response to finding: We have revised our policy and procedures to make sure that all employees and supervisors are required to approve their timesheet and a follow-up from our HR department will ensure that we have established compliance with this finding. Name of the contact person responsible for corrective action: Dhiren Shah, CFO Planned completion date for corrective action plan: Immediately

Other Findings in this Audit

1174704 2025-001

Material Weakness Repeat
1174705 2025-002

Material Weakness Repeat
1174707 2025-004

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
14.267	CONTINUUM OF CARE PROGRAM	$910,465
14.261	NATIONAL HOMELESS DATA ANALYSIS PROJECT (NHDAP)	$476,346
93.959	BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE	$361,616
93.667	SOCIAL SERVICES BLOCK GRANT	$226,489
93.276	DRUG-FREE COMMUNITIES SUPPORT PROGRAM GRANTS	$98,826
93.569	COMMUNITY SERVICES BLOCK GRANT	$18,912