Finding 50959 (2022-009)

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

AI Summary

  • Core Issue: 22 payroll expenses were submitted for reimbursement outside the grant period (June 1, 2022 - November 30, 2023).
  • Impacted Requirements: Costs must be incurred during the grant period as per Article 1.4 and CFR 200.403; unallowable costs total $8,686.
  • Recommended Follow-Up: Management should ensure all expenses are reviewed against the grant period to prevent future issues.

Finding Text

Finding 2022-009: Period of Performance: payroll costs Repeat Finding Yes (2021-007) Federal Program Title: U.S. Department of Justice Passed through Illinois Criminal Justice Information Authority 16.575; Crime Victim Assistance Award Year Award# 220040: June 1, 2022 ? November 30, 2023 Criteria: Article 1.4 of the Illinois Criminal Justice Information Authority grant agreement states that the term of the agreement is determined as the period between June 1, 2022 to November 30, 2023 for grant #220040. CFR 200.403 requires that costs must be incurred during the grant period of the Federal award. Condition: There were 22 instances of expenses that were submitted for reimbursement that fell outside the allowable grant period . Cause: Due to turnover in upper financial management, program oversight was not performed timely. Effect: Costs submitted for reimbursement outside of the allowable grant period are considered unallowable under Article 1.4. Questioned costs: The total expenditures requested for reimbursement outside the period of performance was $8,686. Context: Out of 120 selections, there were 22 selections that were charged to the grant outside the grant period, all of which were payroll costs. Recommendation: We recommend that management review the period of performance of the grant agreement in conjunction with the review of each expense to ensure that the expense occurred during the allowed grant period. Views of responsible officials: Management agrees with this finding. Please see corrective action plan attached.

Corrective Action Plan

Identifying Number: 2022-009 Finding: Period of Performance: payroll costs Corrective Actions Taken or Planned: UCAN agrees with this finding and is committed to strengthening internal controls to ensure that amounts are properly recorded and reported. UCAN has already taken steps to insure that items are billed in the period incurred and only items that fall into the grant period are billed. We believe that significant turnover in the finance department led to this deficiency, so we are actively documenting procedures and cross-training employees, so we always have coverage. 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 Period of Performance Allowable Costs / Cost Principles Cash Management

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
  • 48072 2022-007
    Significant Deficiency Repeat
  • 50958 2022-008
    Material Weakness 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