Finding 32220 (2022-010)

Material Weakness
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2023-09-19
Audit: 31477
Organization: The Boulevard of Chicago, Inc. (IL)

AI Summary

  • Core Issue: There is a material weakness in internal controls over compliance, with inadequate documentation for cash disbursements related to federal programs.
  • Impacted Requirements: The lack of proper documentation violates 2 CFR Part 200, which mandates that costs must be supported and allocated based on reasonable, documented methods.
  • Recommended Follow-Up: Management should implement a robust internal control system to ensure all disbursements are accurately documented and compliant, with a completion target of December 2023.

Finding Text

2022- 010 ? Allocation of Cash Disbursements Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Homeless Services and CARES Assistance Listing Number: 14.231 Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services Pass-Through Numbers: N/A Award Periods: January 1, 2021 through December 31, 2022 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Opportunity Persons with Aids (RHHP) Assistance Listing Number: 14.241 Pass-Through Agencies: Chicago Department of Public Health and Aids Foundation of Chicago Pass-Through Numbers: N/A Award Periods: January 1, 2021 through February 28, 2023 Type of Finding: Material Weakness in Internal Control over Compliance Other Matters Criteria or specific requirement: Under allowable cost/cost principles, an organization in receipt of federal funding is required to have a system of controls in place to safeguard assets and ensure that only allowable costs are charged to federal programs. 2 CFR Part 200 states that costs may be allocated or transferred to benefitted projects on any reasonable documented basis. Condition: AL 14.231: In testing a sample of 18 items, we identified the following: ? 7 out of the 18 transactions tested did not have back up to support the amount allocated. AL 14.241: In testing a sample of 11 items, we identified the following: ? 10 out of the 11 transactions tested did not have back up to support the amount allocated. Questioned Costs: None Context: Disbursements are not being properly documented for the allocation methodology being used. Cause: Procedures for the allocation of general disbursements in full compliance with the Uniform Guidance have not yet been fully implemented. Effect: Inaccurate costs may be charged to federal programs if The Blvd does not have procedures in place to monitor and record general disbursements devoted to federal programs. Repeat Finding: This is not a repeat finding. Recommendation: Management should develop a process whereby general disbursements allocated to federal grants are supported by a system of internal controls which provides reasonable assurance that the charges are accurate, allowable, and properly allocated and support the distribution of the disbursement among specific activities or cost objectives if the disbursement is allocated to more than one federally funded program. These estimates should be properly reflected during the vouchering process. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding. A modified policy will be established to ensure costs are reasonable, allowable, and allocable to a State, Federal, local, and private awards shall be charged to that award directly or indirectly. All unallowable costs shall be appropriately segregated from allowable costs in the general ledger in order to assure that unallowable costs are not charged to such awards. Any Indirect costs that either benefit more than one award (overhead costs) or non-award function or that are necessary for the overall operation of The Boulevard of Chicago will be allocated based upon an approved allocation method such as time and tracking or occupancy. Name(s) of the contact person(s) responsible for corrective action: Shanan Egger, Chief Financial Officer Planned completion date for corrective action plan: December 2023

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 29710 2022-009
    Material Weakness
  • 29711 2022-010
    Material Weakness
  • 29712 2022-009
    Material Weakness
  • 29713 2022-010
    Material Weakness
  • 29714 2022-009
    Material Weakness
  • 29715 2022-010
    Material Weakness
  • 29716 2022-009
    Material Weakness
  • 29717 2022-010
    Material Weakness
  • 29718 2022-009
    Material Weakness
  • 29719 2022-010
    Material Weakness
  • 29720 2022-009
    Material Weakness
  • 29721 2022-010
    Material Weakness
  • 29722 2022-009
    Material Weakness
  • 29723 2022-010
    Material Weakness
  • 32212 2022-011
    Significant Deficiency
  • 32213 2022-009
    Material Weakness
  • 32214 2022-010
    Material Weakness
  • 32215 2022-011
    Significant Deficiency
  • 32216 2022-009
    Material Weakness
  • 32217 2022-010
    Material Weakness
  • 32218 2022-011
    Significant Deficiency
  • 32219 2022-009
    Material Weakness
  • 32221 2022-011
    Significant Deficiency
  • 32222 2022-009
    Material Weakness
  • 32223 2022-010
    Material Weakness
  • 32224 2022-011
    Significant Deficiency
  • 32225 2022-009
    Material Weakness
  • 32226 2022-010
    Material Weakness
  • 32227 2022-011
    Significant Deficiency
  • 606152 2022-009
    Material Weakness
  • 606153 2022-010
    Material Weakness
  • 606154 2022-009
    Material Weakness
  • 606155 2022-010
    Material Weakness
  • 606156 2022-009
    Material Weakness
  • 606157 2022-010
    Material Weakness
  • 606158 2022-009
    Material Weakness
  • 606159 2022-010
    Material Weakness
  • 606160 2022-009
    Material Weakness
  • 606161 2022-010
    Material Weakness
  • 606162 2022-009
    Material Weakness
  • 606163 2022-010
    Material Weakness
  • 606164 2022-009
    Material Weakness
  • 606165 2022-010
    Material Weakness
  • 608654 2022-011
    Significant Deficiency
  • 608655 2022-009
    Material Weakness
  • 608656 2022-010
    Material Weakness
  • 608657 2022-011
    Significant Deficiency
  • 608658 2022-009
    Material Weakness
  • 608659 2022-010
    Material Weakness
  • 608660 2022-011
    Significant Deficiency
  • 608661 2022-009
    Material Weakness
  • 608662 2022-010
    Material Weakness
  • 608663 2022-011
    Significant Deficiency
  • 608664 2022-009
    Material Weakness
  • 608665 2022-010
    Material Weakness
  • 608666 2022-011
    Significant Deficiency
  • 608667 2022-009
    Material Weakness
  • 608668 2022-010
    Material Weakness
  • 608669 2022-011
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.267 Continuum of Care Program $104,057
10.569 Emergency Food Assistance Program (food Commodities) $59,315
64.024 Va Homeless Providers Grant and Per Diem Program $55,489
14.241 Housing Opportunities for Persons with Aids $28,158
14.218 Community Development Block Grants/entitlement Grants $20,634
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $8,122
14.231 Emergency Solutions Grant Program $5,329
97.024 Emergency Food and Shelter National Board Program $3,697