Finding 399213 (2023-001)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2023
Accepted
2024-05-31

AI Summary

  • Core Issue: There was a significant deficiency in managing expenses, including a duplicate entry and pre-award costs recorded without approval.
  • Impacted Requirements: Violations of 2 CFR 200.400(c) and 2 CFR 200.458 regarding proper expense management and pre-award cost approvals.
  • Recommended Follow-up: Enhance controls over manual journal entries and implement a review process to ensure compliance with grant funding regulations.

Finding Text

Assistance Listing, Federal Agency, and Program Name - 93.778, U.S. Department of Health and Human Services, Medicaid Cluster - Medical Assistance Program Federal Award Identification Number and Year - HCBS000020, 2023 Pass through Entity - Illinois Department of Healthcare and Family Services Finding Type - Significant deficiency and material noncompliance with laws and regulations Repeat Finding - No Criteria - 2 CFR 200.400(c) The non Federal entity, in recognition of its own unique combination of staff, facilities, and experience, has the primary responsibility for employing whatever form of sound organization and management techniques may be necessary in order to assure proper and efficient administration of the Federal award. 2 CFR 200.458 Pre-award costs are allowable only to the extent that they would have been allowable if incurred after the date of the Federal award and only with the written approval of the Federal awarding agency. Condition - A duplicate expense was recorded to the program and expenses were recorded to the program prior to the period of performance Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A, see additional information within the context below Context - Five expenses totaling $4,050 were recorded to the grant as pre award expenses without written approval and another expense of $20,229 was recorded twice to the program. Cause and Effect - The Organization recorded journal entries during the year and the process and reviews for the journal entries did not identify expenses were incurred prior to the start of the period of performance. The duplicate expense was identified but not corrected prior finalization of the SEFA. Recommendation - We recommend the Organization increase controls over manual adjustments to record expenses charged to grants. Views of Responsible Officials and Corrective Action Plan - Management acknowledges noncompliance in the current fiscal year and has taken measures to improve internal controls over compliance. Management has instituted procedures to provide a review of journal entries to reclass expenses to grant funded programs and promptly record.

Corrective Action Plan

Condition: A duplicate expense was recorded to the program and expenses were recorded to the program prior to the period of performance. Planned Corrective Action: Management acknowledges noncompliance in the current fiscal year and has taken measures to improve internal controls over compliance. Management has instituted procedures to provide a review of journal entries to reclass expenses to grant funded programs and promptly record. As well, Finance staff have been added to oversee the accounting function for the grant. Contact person responsible for corrective action: Mary Lawrence, Director of Financial Analysis and Special Initiatives Anticipated Completion Date: 5/15/2024

Categories

Period of Performance Allowable Costs / Cost Principles Reporting Significant Deficiency

Other Findings in this Audit

  • 975655 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.600 Head Start $1.04M
93.778 Medical Assistance Program $750,000
93.600 Early Head Start $572,383
21.027 Covid-19 - Coronavirus State and Local Fiscal Recovery Funds $282,206
84.044 Trio_talent Search $216,437
93.667 Social Services Block Grant $91,337
93.600 Covid-19 - Head Start $41,381
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $31,370
93.600 Covid-19 - Early Head Start $22,464
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $19,538
10.558 Child and Adult Care Food Program $11,966