Finding 48072 (2022-007)

Significant Deficiency Repeat Finding
Requirement
B
Questioned Costs
$1
Year
2022
Accepted
2023-07-13
Audit: 53429
Organization: Ucan (IL)
Auditor: Rsm US LLP

AI Summary

  • Core Issue: Unallowable salary costs were submitted for reimbursement, including duplicate charges and amounts exceeding payroll support.
  • Impacted Requirements: This violates the grant agreement budget and 2 CFR 200.430, which mandates accurate salary allocation based on actual work performed.
  • Recommended Follow-Up: Strengthen internal controls over salary allocations to ensure compliance with grant requirements and prevent future errors.

Finding Text

Finding 2022-007: Unallowable cost-salary allocation Repeat Finding Yes (2021-008) Federal Program Title: U.S. Department of Justice Passed through Illinois Criminal Justice Information Authority 16.575; Crime Victim Assistance Award Year Award# 219040: March 23, 2021 ? May 31, 2022 Criteria: Section C of the grant agreement budget from Illinois Criminal Justice Information Authority indicates approved individuals and positions with their approved salary allocation percentages. 2 CFR 200.430 requires that charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. Condition: One employee?s salary was applied twice in the same reporting period. One employee?s expenditure was applied at an amount that was greater than the individual?s payroll support provided. Cause: Due to turnover in upper financial management, program oversight was not performed timely. Effect: Unallowable costs were submitted for reimbursement causing UCAN to be out of compliance with grant agreement budget Section C. Questioned costs: There was $1,458 in payroll applied twice in the same period and $500 in payroll expenses applied more than payroll support. Questioned costs totaled $3,585. Context: Out of 60 selections, one employee?s salary was applied twice in the same reporting period and one employee?s payroll expenditure was submitted for reimbursement at a higher amount than allowable per grant agreement. Recommendation: We recommend that management strengthen their internal controls over the salary amounts being charged to the program. Views of responsible officials: Management agrees with this finding. Please see corrective action plan attached.

Corrective Action Plan

Identifying Number: 2022-007 Finding: Unallowable cost-salary allocation Corrective Actions Taken or Planned: UCAN agrees with this finding and is committed to strengthening internal controls to ensure that amounts are properly reported to the funder. We believe that significant turnover in the finance department led to this deficiency, so we are actively documenting procedures and cross-training employees. All vouchers will also go through a review process before they are sent to the funder. This is a repeat finding, with the original corrective action plan to be completed before June 30, 2023. We do believe that corrective actions that have been taken have resolved this issue. Contact person is Kimberly Parish, Chief Financial Officer and she can be reached at kim.parish@ucanchicago.org.

Categories

Questioned Costs Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Other Findings in this Audit

  • 47968 2022-010
    Significant Deficiency Repeat
  • 47969 2022-011
    Significant Deficiency
  • 47970 2022-012
    Significant Deficiency Repeat
  • 47971 2022-013
    Significant Deficiency Repeat
  • 50958 2022-008
    Material Weakness Repeat
  • 50959 2022-009
    Significant Deficiency Repeat
  • 624410 2022-010
    Significant Deficiency Repeat
  • 624411 2022-011
    Significant Deficiency
  • 624412 2022-012
    Significant Deficiency Repeat
  • 624413 2022-013
    Significant Deficiency Repeat
  • 624514 2022-007
    Significant Deficiency Repeat
  • 627400 2022-008
    Material Weakness Repeat
  • 627401 2022-009
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
16.575 Crime Victim Assistance $890,857
94.011 Foster Grandparent Program $419,581
17.259 Wioa Youth Activities $290,970
10.555 National School Lunch Program $58,272
10.553 School Breakfast Program $38,333