Finding Text
2025 – 004 Cash Management Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Low-Income Home Energy Assistance Program (LIHEAP) Assistance Listing Number: 93.568 Federal Award Identification Number and Year: G-2402LLIEA 10/1/2023; 2502ILLIEI 10/1/2024 Pass-Through Agency: Illinois Department of Commerce and Economic Opportunity Pass-Through Numbers: 24-224038; 25-224038; 24-221038 Award Period: October 1, 2023 through August 31, 2025; October 1, 2024 through August 31, 2026; June 1, 2024 through September 30, 2025 Type of Finding: • Significant Deficiency in Internal Control over Compliance AND Other Matter Criteria or Specific Requirement: Uniform Grant Guidance (2 CFR 200.303) requires non-federal entities receiving federal awards to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to ensure reimbursement requests reconcile to documentation of the underlying expenditures incurred and are also reviewed and approved prior to submission. Condition: There were instances in which reimbursement requests did not reconcile to documentation of the underlying expenditures incurred. In addition, reimbursement requests were not reviewed and approved prior to submission to the granting agency. Questioned Costs: None Context: 1 of 6 reimbursement requests tested did not have supporting documentation reconciling to the amount received. 6 of 6 reimbursement requests tested lacked documentation of review and approval prior to submission. Cause: Supporting documentation for reimbursement requests was not retained, in part due to employee turnover. Additionally, the County does not have a formal process in place to ensure documentation of the review and approval of reimbursement requests is consistently retained. Effect: Without proper supporting documentation and documented review, there is an increased risk of over- or under-reimbursement of federal awards, which could result in noncompliance with federal requirements and potential repayment obligations. Repeat Finding: The finding is a partial repeat of a finding in the prior year. The prior year finding number was 2024-004. Recommendation: We recommend that the County design and implement internal controls to ensure accounting records reconcile to reimbursement requests and that supporting documentation is retained. Reimbursement requests should be reviewed and approved by an individual other than the preparer prior to submission, and documentation evidencing such review should be retained. Views of Responsible Officials: There is no disagreement with the audit finding.