Finding Text
Federal Agency: Department of Treasury
Federal Program Title: Coronavirus State and Local Fiscal Recovery Funds
Assistance Listing Number: 21.027
Pass-Through Agency: Illinois Department of Commerce & Economic Opportunity
Award Period: October 1, 2022 – June 30, 2024
Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance
Condition: During our testing of reporting requirements, we noted that monthly financial reporting was required to be submitted within 30 days of month-end. Based on the results of our testing, we noted that monthly reports for the months of June through November 2023 were not submitted as of December 31, 2023. In addition, the monthly reports that were submitted during 2023 were not submitted on a timely basis.
Criteria or specific requirement: NCRC CDFI must submit monthly financial reports within 30 days of each month-end.
Context: We noted the reports were not filed timely due to turnover within the organization and uncertainty regarding the budgeted amounts submitted to the government agency, due to changes in the indirect cost rate.
Effect: Inadequate controls over compliance can result in noncompliance.
Cause: Turnover within the organization and uncertainty regarding calculations of indirect costs and alignment with budgeted amounts contributed to management’s lack of filing financial reports as required under the grant agreement.
Recommendation: We recommend the management monitor the reporting requirements of each federal grant to ensure that all required reports are being submitted timely.
Views of Responsible Officials: There is no disagreement with the audit finding. New processes have been implemented that include proper approval and review of all accounting transactions. In addition, subsequent to year end uncertainties regarding calculations of indirect costs and alignment with budgeted amounts have been resolved and monthly financial reports for June through November 2023 have been filed.