Finding 1208274 (2025-001)

Material Weakness Repeat Finding
Requirement
H
Questioned Costs
-
Year
2025
Accepted
2026-04-21
Audit: 399300
Organization: Trilogy, Inc. (IL)

AI Summary

  • Core Issue: Costs of $5,521 were charged to the federal grant outside the approved budget period.
  • Impacted Requirements: Compliance with federal regulations on allowable costs (2 CFR sections 200.308, 200.309, and 200.403(h)).
  • Recommended Follow-Up: Management should enhance cost allocation processes with more thorough reviews to prevent unallowable charges.

Finding Text

Federal agency: U.S. Department of Health and Human Services Federal program title: Block Grants for Community Mental Health Services FALN Number: 93.958 Pass-Through Agency: Illinois Department of Human Services Pass-Through Number(s): 45CDB04278 Award Period: July 1, 2024 – June 30, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance and Immaterial Noncompliance Criteria or specific requirement: A non-federal entity may charge only allowable costs incurred during the approved budget period of a federal award's period of performance and any costs incurred before the federal awarding agency or pass-through entity made the federal award that were authorized by the federal awarding agency or pass-through entity (2 CFR sections 200.308 200.309 and 200.403(h)). A period of performance may contain one or more budget periods. Condition: Costs outside of the period of performance were charged to the grant. Questioned costs: $5,521 Context: Four (4) of the eight (8) transactions selected for testing. Cause: Oversight. Effect: The Organization may allocate unallowable costs to the federal grant. Repeat Finding: The finding is a repeat of a finding in the prior year. Prior year finding number was 2024-002. Recommendation: Management should review and revise its process for allocating costs to federal grants to include additional layers of review and so that costs for which some or all are from outside of the period of performance, may be appropriately excluded from the federal grant. Views of responsible officials: There is no disagreement with the audit finding

Corrective Action Plan

Period of Performance – Assistance Listing No. 93.958 Recommendation: Management should review and revise its process for allocating costs to federal grants to include additional layers of review and so that costs for which some or all are from outside of the period of performance, may be appropriately excluded from the federal grant. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management will revise cost allocation procedures to add program and finance review steps to ensure that only costs incurred within the applicable period of performance are charged to federal grants. Costs identified as outside the allowable period will be excluded or reclassified. Updated procedures will be communicated to relevant staff and monitored for compliance. Name(s) of the contact person(s) responsible for corrective action: George Pepe Planned completion date for corrective action plan: 6/30/2026

Categories

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Subrecipient Monitoring

Other Findings in this Audit

  • 1208271 2025-002
    Material Weakness Repeat
  • 1208272 2025-003
    Material Weakness Repeat
  • 1208273 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.267 CONTINUUM OF CARE PROGRAM $1.82M
93.959 BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE $300,356
93.958 BLOCK GRANTS FOR COMMUNITY MENTAL HEALTH SERVICES $260,442
93.150 Projects for Assistance in Transition from Homelessness $199,874
93.243 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $158,509
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $134,641