Finding Text
Finding 2023-002 – B. Allowable Costs and C. Cash Management
Federal Agency: U.S. Department of Health and Human Services
Passthrough Entity: Illinois Department of Human Services
Assistance Listing Number and Federal Program: 93.671 Family Violence Prevention and Services
Criteria:
In accordance with 2 CFR 200.303 and the grant agreement, the Organization must establish and maintain
effective internal control over the Federal award to provide reasonable assurance the Organization is in compliance
with Federal statutes, regulations, and terms and conditions of the Federal award. The Organization must have
systems in place that provide reasonable assurance that the information is accurate, allowable, and compliance
with the terms and conditions of the grant agreement.
Statement of Condition:
During the course of our audit, we found there is not an internal control in place to ensure the required Periodic
Financial Report accurately reflects the records of the Organization.
Statement Cause:
The Chief Executive Officer signs each Periodic Financial Report after it has been completed by the Chief Finance
Officer, however, the proper supporting documentation is not provided to the Chief Executive Officer for review of the Periodic Financial Report prior to submission.
Statement of Effect:
Without a proper review of the costs being claimed for reimbursement on the Periodic Financial Report,
unallowable costs could be claimed or costs could be claimed for which have not been incurred prior to the request for reimbursement.
Questioned Costs:
No questioned costs were identified.
Identification of Repeat Findings:
Not a repeat finding.
Recommendations:
We recommend the Chief Finance Officer provide general ledger detail of the grant expenses to the Chief
Executive Officer with the Periodic Finance Report. This will allow another level of review to ensure all costs being claimed for reimbursement have been incurred and are allowable under the grant agreement.
Views of Responsible Official(s):
The Chief Finance Officer will provide general ledger detail individually by grant to the Chief Executive Officer along with the Periodic Finance Report to review. This process will be reviewed by the Finance Committee and approved by the Quanada Board of Trustees as part of our Fiscal Policy document. See corrective action plan.