FAC Explorer

Finding 1176341 (2024-003)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2026-03-03
Audit: 390148
Organization: Greater Chatham Initiative (IL)
Auditor: RINGOLD FINANCIAL MANAGEMENT SERVICES

AI Summary

  • Core Issue: The Organization failed to submit required expenditure reports on time for federal grants, impacting compliance with the City of Chicago's requirements.
  • Impacted Requirements: Timely submission of grant expenditure reports is essential for reimbursement from the City of Chicago.
  • Recommended Follow-Up: Implement a system to ensure all grant reporting documents are submitted on time, addressing staff turnover and improving internal processes.

Finding Text

Federal Program: 21.027 – Coronavirus State and Local Fiscal Recovery Funds Passed Through: City of Chicago Department of Planning and Development and City of Chicago Department of Business Affairs and Consumer Protection Federal Agency: U.S. Department of Treasury Criteria The Organization participates in federal grant programs with pass-through funders that require periodic submission of grant expenditures and underlying support to the grantor for reimbursement. Condition: During our testing, we noted instances of the Organization not submitting the required expenditure reports in accordance with the City of Chicago’s due dates. Questioned Costs: None noted. Context: There were delays in the compilation of internal grant information required to be submitted to the City of Chicago, leading to late reporting submissions. Effect: The Organization is not in compliance with the City of Chicago’s grant reporting requirements. Cause: The condition arose due to several factors including turnover of the Organization’s accounting staff. Recommendation: The Organization should ensure that all grant reporting documents are submitted within the required timeframe. Management Response: Management concurs with this finding. See corrective action plan.

Corrective Action Plan

Corrective Action Plan: The City of Chicago impedes the submission of expenditure reports by delaying the finalization of budgets or by not allowing GCI to submit expenditures when a budget change is submitted during the period when the change is approved. GCI will submit required expenditures upon execution of City contracts and will update them on time. Estimated Correction Date: GCI does not currently have any City contracts. When GCI enters into new City contracts, GCI will submit expenditures in a timely manner if the proper City documentation is available to complete the tasks. GCI has a new full-time Operations Manager, who will submit expenditures. Having a full-time manager familiar with all the expenditures and processing should make this task easier and timelier. Responsible Official: Nedra Sims Fears, Executive Director

Categories

Reporting Cash Management

Other Findings in this Audit

  • 1176330 2024-001
    Material Weakness Repeat
  • 1176331 2024-002
    Material Weakness Repeat
  • 1176332 2024-003
    Material Weakness Repeat
  • 1176333 2024-001
    Material Weakness Repeat
  • 1176334 2024-002
    Material Weakness Repeat
  • 1176335 2024-003
    Material Weakness Repeat
  • 1176336 2024-001
    Material Weakness Repeat
  • 1176337 2024-002
    Material Weakness Repeat
  • 1176338 2024-003
    Material Weakness Repeat
  • 1176339 2024-001
    Material Weakness Repeat
  • 1176340 2024-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $194,701
14.252 SECTION 4 CAPACITY BUILDING FOR COMMUNITY DEVELOPMENT AND AFFORDABLE HOUSING $26,962