Finding Text
Finding 2023-001: Activities Allowed-Unallowed and Allowable Costs/Cost Principles– Lack of supporting documentation
Assistance Listing Number title and number: COVID-19- Coronavirus State and Local Fiscal Recovery Funds, 21.027
Federal grant number: FSCAH06318
Federal agency: U.S. Department of Treasury
Pass through entity: Illinois Department of Human Services, Cook County Health and Illinois Criminal Justice Information Authority
Criteria: Exhibit A of the Coronavirus State and Local Fiscal Recovery Funds – American Rescue Plan Act Add ons, Cook County Health Building Health Communities ARPA – American Rescue Plan Act, and the Illinois Criminal Justice Information Authority grant agreement outline the grantor specific terms and scope of the grant funding. The Compliance Supplement outlines that the Center must establish and maintain internal control over the Federal award that provides reasonable assurance that the Center is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.
Condition: Certain expenses related to non-payroll transactions charged to the federal program did not have adequate support for the purchase or underlying expense in order to determine if the expense was allowable under the grant. For these same transactions, there was no evidence of review and approval by the Program Manager.
Cause: Due to turnover in program staffing, program oversight was not performed timely.
Effect: Lack of expense documentation and controls can result in actions taken by oversight agencies which could impact future funding.
Questioned costs: Known questioned cost was $4,381.
Context: Total non-payroll transactions charged to the program was $70,201, of which $14,123 were selected for testing through a sample of 40. The Center could not provide support demonstrating the expense was allowable under the federal program for 28 of the non-payroll transactions totaling $4,381.
Repeat finding: No
Recommendation: We recommend that management improve internal controls and documentation for grant expenditures. For items such as uber trips, management should document the grant purpose for the charge and have proper approval for the grant expense.
Views of responsible officials: Management agrees with this finding. Please see corrective action plan attached.