FAC Explorer

Finding 572053 (2024-003)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-07-28
Audit: 363171
Organization: City of Chicago (IL)
Auditor: Baker Tilly US LLP

AI Summary

  • Core Issue: The City failed to spend $281,760 of the Emergency Solutions Grants Program award within the required 24-month period and delayed payments to subrecipients beyond the 30-day requirement.
  • Impacted Requirements: The program mandates that all grant funds be used within 24 months and subrecipient payments be made within 30 days of receiving complete requests.
  • Recommended Follow-up: DFSS should enhance budgeting and monitoring to ensure timely spending, while VATS should evaluate its payment processing to prioritize vouchers from programs with strict deadlines.

Finding Text

FINDING 2024-003 Assistance Listing Number 14.231 Emergency Solutions Grants Program Federal Agency U.S. Department of Housing and Urban Development Pass-through Agency Not applicable Award Numbers / Years E-22-MC-17-0006, 2022 / E-24-MC-17-0006, 2024 City Departments Department of Family and Support Services (DFSS) Department of Finance (DOF) Criteria: The program regulations for the Emergency Solutions Grants Program include requirements related to the timing of expenditures as well as payments to subrecipients. Specifically, all of the grant must be expended for eligible activity costs within 24 months after the date HUD signs the grant agreement with the City. In addition, the City must pay each subrecipient for allowable costs within 30 days after receiving the subrecipient's complete payment request. Condition/Context: There was one award (E-22-MC-17-0006) where the period of performance ended in the audit year and was subject to the 24-month expenditure requirement. This award was underspent by $281,760 upon reaching 24 months after the award was executed by HUD. We also tested 40 individual payments made to subrecipients. 13 of those payments were paid after the 30-day subrecipient payment requirement. Our samples were not statistically valid. Effect: The City is not meeting target expenditure and payment requirements in accordance with the program agreements. Questioned Costs: None noted. Cause: DFSS did not expend the full amount of the identified award within the required timeframe because it was prioritizing the spending of a related CARES award during the same timeframe. The City's Voucher Audit and Tracking Unit (VATS) within the Department of Finance is responsible for making payments to subrecipients. At times, VATS will experience a significant increase in voucher submissions and is operating with limited staffing, which has caused some delays in processing payments. Recommendation: We recommend that DFSS determine if the budgeting and monitoring process can identify instances where spending does not occur within the required timeframes for current grants to help increase compliance in subsequent years. We also recommend that VATS review its processing procedures to determine if priority can be given to vouchers from programs with specific payment requirements. Views of Responsible Officials: See Corrective Action Plan.

Corrective Action Plan

The Department of Family and Support Services (DFSS) will review its budget and monitoring process for the Emergency Solutions Grant (ESG) Program to ensure grant funds are prioritized for spending in accordance with the program requirements. Monthly expenditure reports will be reviewed by the Director of Homeless Prevention Policy & Planning to assess spending progress and to follow up on any delays in vouchering by subrecipients. Specifically: 1. The Director will review monthly expenditure reports provided by the Department of Family and Support Services (DFSS) Finance team by the 10th of each month for all ESG grant awards. 2. The Homeless Services Division will send notices to agencies with expenditures below contracted expenditure expectations on ESG awards on at least a quarterly basis. The notice will include the current expenditure rate, a reminder on expectations to voucher on a monthly basis within 15 calendar days of the end of the month, and a request for the agency’s plan to improve expenditure rates in line with contract expectations, which are as follows: a. First quarter 25% b. Second quarter 50% c. Third quarter 75% d. Fourth quarter 100% 3. Any unspent ESG funds in the first 12 months of the grant will be reallocated in the second 12 months of the grant to maximize expenditures. Director of Homeless Prevention Policy & Planning Howard at the Department of Family and Support Services will be responsible for ensuring the implementation of this corrective action plan by December 31, 2025. The Voucher Audit and Tracking Unit (VATS) within the Department of Finance, Grant and Project Accounting Division will closely monitor the daily report of accumulated subrecipient (delegate agency) vouchers and prioritize aged vouchers. The goal is to issue payment for aged subrecipient vouchers within 15 calendar days. If the supporting documentation for the vouchers is incomplete or requires additional follow-up information, VATS will hold the vouchers for 2 business days pending the additional supporting documentation/information from the delegate agency. If the supporting documentation is not received within 2 business days, then VATS will reject the vouchers and provide an explanation for the rejection. The delegate agency will be allowed to re-submit the voucher(s) with the required supporting documentation. Chief Voucher Expediters Mendez and Vargas at the Department of Finance, Grant and Project Accounting Division, Voucher Audit and Tracking Systems (VATS) Unit will be responsible for ensuring timely payments to subrecipients and for the implementation of this corrective action plan by July 31, 2025.

Categories

Subrecipient Monitoring Allowable Costs / Cost Principles HUD Housing Programs Period of Performance

Other Findings in this Audit

  • 572052 2024-002
    Material Weakness
  • 572054 2024-004
    Significant Deficiency
  • 572055 2024-005
    Significant Deficiency
  • 572056 2024-005
    Significant Deficiency
  • 1148494 2024-002
    Material Weakness
  • 1148495 2024-003
    Significant Deficiency
  • 1148496 2024-004
    Significant Deficiency
  • 1148497 2024-005
    Significant Deficiency
  • 1148498 2024-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.600 Head Start $73.10M
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $68.78M
16.738 Edward Byrne Memorial Justice Assistance Grant Program $67.26M
93.268 Immunization Cooperative Agreements $66.15M
66.958 Water Infrastructure Finance and Innovation (wifia) $56.41M
20.106 Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and Covid-19 Airports Programs $44.71M
97.067 Homeland Security Grant Program $40.22M
93.914 Hiv Emergency Relief Project Grants $24.19M
97.024 Emergency Food and Shelter National Board Program $18.95M
66.468 Drinking Water State Revolving Fund $14.36M
14.241 Housing Opportunities for Persons with Aids $12.17M
93.940 Hiv Prevention Activities Health Department Based $11.90M
93.569 Community Services Block Grant $11.15M
93.069 Public Health Emergency Preparedness $11.14M
66.458 Clean Water State Revolving Fund $8.47M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $6.82M
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $5.83M
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $4.99M
97.106 Securing the Cities Program $4.69M
93.994 Maternal and Child Health Services Block Grant to the States $4.22M
10.557 Wic Special Supplemental Nutrition Program for Women, Infants, and Children $4.06M
16.710 Public Safety Partnership and Community Policing Grants $3.43M
93.686 Ending the Hiv Epidemic: A Plan for America — Ryan White Hiv/aids Program Parts A and B $3.20M
93.136 Injury Prevention and Control Research and State and Community Based Programs $2.90M
93.889 National Bioterrorism Hospital Preparedness Program $2.80M
93.053 Nutrition Services Incentive Program $2.71M
20.205 Highway Planning and Construction $2.68M
93.045 Special Programs for the Aging, Title Iii, Part C, Nutrition Services $2.32M
93.052 National Family Caregiver Support, Title Iii, Part E $2.02M
97.141 Shelter and Services Program $1.76M
93.044 Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers $1.67M
14.881 Moving to Work Demonstration Program $1.36M
93.967 Centers for Disease Control and Prevention Collaboration with Academia to Strengthen Public Health $1.25M
93.495 Community Health Workers for Public Health Response and Resilient $1.11M
14.218 Community Development Block Grants/entitlement Grants $1.04M
20.600 State and Community Highway Safety $978,174
93.137 Community Programs to Improve Minority Health $959,506
93.944 Human Immunodeficiency Virus (hiv)/acquired Immunodeficiency Virus Syndrome (aids) Surveillance $874,614
97.075 Rail and Transit Security Grant Program $820,576
97.111 Regional Catastrophic Preparedness Grant Program (rcpgp) $816,774
93.977 Sexually Transmitted Diseases (std) Prevention and Control Grants $795,239
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $788,507
93.667 Social Services Block Grant $777,364
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $688,658
14.231 Emergency Solutions Grant Program $661,126
20.500 Federal Transit Capital Investment Grants $606,840
97.042 Emergency Management Performance Grants $556,613
16.922 Equitable Sharing Program $472,902
93.197 Childhood Lead Poisoning Prevention Projects, State and Local Childhood Lead Poisoning Prevention and Surveillance of Blood Lead Levels in Children $459,549
94.011 Americorps Seniors Foster Grandparent Program (fgp) 94.011 $452,567
66.802 Superfund State, Political Subdivision, and Indian Tribe Site-Specific Cooperative Agreements $396,767
66.605 Performance Partnership Grants $345,180
14.905 Lead Hazard Reduction Demonstration Grant Program $288,733
94.016 Americorps Seniors Senior Companion Program (scp) 94.016 $286,772
93.043 Special Programs for the Aging, Title Iii, Part D, Disease Prevention and Health Promotion Services $274,628
97.056 Port Security Grant Program $270,088
16.575 Crime Victim Assistance $257,600
16.745 Criminal and Juvenile Justice and Mental Health Collaboration Program $209,609
97.044 Assistance to Firefighters Grant $203,826
16.833 National Sexual Assault Kit Initiative $195,703
10.025 Plant and Animal Disease, Pest Control, and Animal Care $194,932
93.959 Block Grants for Prevention and Treatment of Substance Abuse $190,026
93.747 Elder Abuse Prevention Interventions Program $181,092
14.239 Home Investment Partnerships Program $150,409
45.025 Promotion of the Arts Partnership Agreements $140,200
93.071 Medicare Enrollment Assistance Program $122,445
16.753 Congressionally Recommended Awards $100,999
93.350 National Center for Advancing Translational Sciences $98,245
10.559 Summer Food Service Program for Children $97,392
93.270 Viral Hepatitis Prevention and Control $90,367
93.387 National and State Tobacco Control Program $89,636
66.202 Congressionally Mandated Projects $83,809
16.540 Juvenile Justice and Delinquency Prevention $76,838
93.048 Special Programs for the Aging, Title Iv, and Title Ii, Discretionary Projects $67,500
45.024 Promotion of the Arts Grants to Organizations and Individuals $63,108
10.558 Child and Adult Care Food Program $42,663
93.041 Special Programs for the Aging, Title Vii, Chapter 3, Programs for Prevention of Elder Abuse, Neglect, and Exploitation $40,363
93.978 Sexually Transmitted Diseases (std) Provider Education Grants $36,310
14.256 Neighborhood Stabilization Program (recovery Act Funded) $23,198
11.307 Economic Adjustment Assistance $11,930
10.175 Farmers Market and Local Food Promotion Program $8,333
20.703 Interagency Hazardous Materials Public Sector Training and Planning Grants $8,280
16.320 Services for Trafficking Victims $4,342
14.264 Neighborhood Stabilization Program $3,874
20.521 New Freedom Program $1,124
93.042 Special Programs for the Aging, Title Vii, Chapter 2, Long Term Care Ombudsman Services for Older Individuals $714
16.590 Grants to Encourage Arrest Policies and Enforcement of Protection Orders Program $191
21.027 Coronavirus State and Local Fiscal Recovery Funds $9
21.023 Emergency Rental Assistance Program $-5,700
81.087 Renewable Energy Research and Development $-291,098
20.616 National Priority Safety Programs $-694,699