Finding 401269 (2022-003)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2024-06-19
Audit: 309281
Organization: Alternatives, Inc. (IL)

AI Summary

  • Core Issue: Three out of four financial reports did not match the program's subledger, indicating a lack of adherence to financial policies.
  • Impacted Requirements: The organization failed to keep necessary supporting documents for monthly vouchers, violating its own financial policies.
  • Recommended Follow-Up: Ensure strict compliance with financial policies and retain all required documentation for vouchering.

Finding Text

Finding 2022-003 Adherence and Application of Financial Policies and Procedures for Vouchering Federal Agency: U.S. Department of Health and Human Services Pass-Through Entity: Illinois Department of Human Services Program Name: Social Services Block Grant Assistance Listing #: 93.667 Questioned Costs: None Condition/Context P&R selected four Periodic Financial Reports for testing, the amounts reported in three of the four reports did not agree to the amounts recorded in the program’s subledger. Criteria Per the Organization’s Financial Policies and Procedures; before preparing a voucher, expenditures eligible for reimbursement are to be identified in the general ledger. In addition, supporting documentation are to be attached to the voucher. The Organization is to retain a copy of the voucher and supporting documentation for each month for each contract vouchered. Cause The Organization did not retain copies of the supporting documents that accompany the monthly vouchers. Effect Non-adherence and inconsistent application of established policies and procedures may result in noncompliance with Uniform Guidance Cash Management and Reporting compliance requirements, and questioned costs. Recommendation We recommend that the Organization adheres to its Financial Policies and Procedures for Vouchering. Organization’s Management Response Refer to corrective action plan.

Corrective Action Plan

Finding 2022-003 Adherence and Application of Financial Policies and Procedures for Vouchering Federal Agency: U.S. Department of Health and Human Services Pass-Through Entity: Illinois Department of Human Services Program Name: Social Services Block Grant Assistance Listing #: 93.667 Questioned Costs: None Corrective Action: We agree with the auditor’s comments and actions stated in the recommendation. The Organization is rewriting its accounting policies and procedures to ensure adherence to the proper procedures for vouchering, which will be completed in fiscal year 2024. In August 2022, the building at 4730 N. Sheridan was sold. During the move some documents were misfiled or otherwise missed place. This made it difficult to find vouchers for the audit. The new accounting system allows Alternatives to save a copy of the vouchers and necessary support within the software. The electronic filing of the backup documentation will prevent misplacement of vouchers in the future. Contact Person: Sonya Cook, Finance Director Anticipated Completion Date: December 15, 2023

Categories

Cash Management Subrecipient Monitoring Reporting

Other Findings in this Audit

  • 977711 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.667 Social Services Block Grant $1.80M
93.959 Block Grants for Prevention and Treatment of Substance Abuse $257,190
14.218 Community Development Block Grants/entitlement Grants $115,353
21.027 Coronavirus State and Local Fiscal Recovery Funds $31,151