Finding 524097 (2023-004)

Material Weakness
Requirement
H
Questioned Costs
$1
Year
2023
Accepted
2025-02-20
Audit: 343276
Organization: Trilogy, Inc. (IL)

AI Summary

  • Core Issue: Costs of $7,253 were charged to the grant outside the approved period of performance.
  • Impacted Requirements: Costs must only be charged during the approved budget period as per federal regulations (2 CFR sections 200.308, 200.309, 200.403(h)).
  • Recommended Follow-Up: Revise cost allocation processes to include additional reviews for expenses, especially in the first and last month of the grant period.

Finding Text

Finding 2023-004 – Period of Performance Federal Agency: Department of Health and Human Services Federal program title: Block Grants for Community Mental Health Services Assistance Listing Number: 93.958 Pass-Through Agency: Illinois Department of Human Services Pass-Through Number: 45CBB04278; 45CBB03514; 45CBB00648 Award Period: 07/01/2022 – 06/30/2023 Criteria or specific requirement: A non-federal entity may charge only allowable costs incurred during the approved budget period of a federal award's period of performance and any costs incurred before the federal awarding agency or pass-through entity made the federal award that were authorized by the federal awarding agency or pass-through entity (2 CFR sections 200.308 200.309 and 200.403(h)). A period of performance may contain one or more budget periods. Condition: Costs outside of the period of performance were charged to the grant. Questioned Costs: $7,253 Context: Four (4) of the sixteen (16) transactions selected for testing. Cause: The Organization did not have a control in place to ensure the proper cut-off of expense charged to federal awards. Effect: The Organization allocated unallowable costs to the federal grant. Repeat Finding: No Recommendation: Management should review and revise its process for allocating costs to federal grants to include additional layers of review related to the cut-off of grant expenditures. Particular attention should be focused on the first and last month of the grant budget period. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

Action taken in response to finding: Trilogy will thoroughly review the grant agreements to understand specific start and end dates as well as any allowable cost guidelines. Training will be provided to staff on identifying cut off periods and the reviewing of invoices for expenditures will be monitored closely when entered into the system to ensure it is entered into the system in the correct period in which the expense is incurred. Documentation will be reviewed by the Controller before posting to the general ledger to ensure expenses are charged to the correct grant period. During the grant invoice preparation there will be an additional review of the expenses in the general ledger to ensure the cut-off for grant expenditures are included in the correct period for the monthly grant vouchers. Trilogy will also implement a quarterly review of expenses charged to grants in preparation of the quarterly reports to ensure proper allocation to grants and cut off grant expenditures during the first and last month of the grant budget period. Name(s) of the contact person(s) responsible for corrective action: Richard Powell, Shunita Rhodes, Hagar Buster, Han Qi Planned completion date for corrective action plan: October 31, 2024, and ongoing as needed.

Categories

Questioned Costs Allowable Costs / Cost Principles Subrecipient Monitoring

Other Findings in this Audit

  • 524096 2023-003
    Material Weakness Repeat
  • 524098 2023-005
    Material Weakness
  • 1100538 2023-003
    Material Weakness Repeat
  • 1100539 2023-004
    Material Weakness
  • 1100540 2023-005
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.958 Block Grants for Community Mental Health Services $781,410
14.267 Continuum of Care Program $327,015
14.218 Community Development Block Grants/entitlement Grants $285,590
93.959 Block Grants for Prevention and Treatment of Substance Abuse $276,463
93.150 Projects for Assistance in Transition From Homelessness (path) $85,000
21.027 Coronavirus State and Local Fiscal Recovery Funds $58,452
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $42,412