The accuracy of the Schedule of Expenditures of Federal Awards prepared by management of Chicago
Family Health Center, Inc (CFHC) is very important. Management and accounting staff failed to implement
effective internal controls that would allow accurate identification and period matching of all Federal awards
received and expended for FY 2023. This is still a cascading result of unattended bookkeeping during
periods of turnover and vacancies of positions in the finance team that extended from FY 2022 to the
beginning of FY 2024—with each prior period inaccuracy affecting the next.
Management therefore is in agreement with ORBA’s findings, and an action plan has already begun to
address the weaknesses and deficiencies:
- Reconciling the Schedule of Expenditures of Federal Awards monthly as a control over contract
number, pass-through entities, and specific grant periods.
- Identifying, tracking, and reporting any unobligated balances
- Reconciliation and sign-off of each balance sheet for Grants Receivable.
- Rebalancing of staff workload to promote separation of duties.
- Training all finance staff involved in financial reporting on GAAP accounting and reporting
standards.
- Developing, enhancing, then following Standard Operating Procedures (SOP) with defined due
dates for accounting cycles