FAC Explorer

Finding 572054 (2024-004)

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

AI Summary

  • Core Issue: DFSS struggled to accurately monitor the matching funds required for Emergency Solutions Grant Program awards, leading to discrepancies in funding calculations.
  • Impacted Requirements: The City risks non-compliance with financial requirements set by HUD, which could affect future funding and program effectiveness.
  • Recommended Follow-up: DFSS should revise its policies and procedures to ensure proper tracking and oversight of matching funds and level of effort requirements.

Finding Text

FINDING 2024-004 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-23-MC-17-0006, 2023 City Department Department of Family and Support Services (DFSS) Criteria: According to program requirements, recipients of Emergency Solutions Grant Program funding must match the funding provided by HUD with an equal amount from sources other than those provided under the program. In addition, a recipient cannot use program funds to replace funds the City provided for street outreach and emergency shelter services during the preceding 12-month period. Condition/Context: We reviewed the process used by DFSS to monitor the matching requirement for two of the four active awards. According to the initial documentation received, it appeared that one award was under matched and one award was over matched. DFSS made corrections to the calculations based on the issues noted during our audit to both awards. The level of effort requirements were dependent on these same calculations and were revised along with the matching calculations. Our samples were not statistically valid. Effect: The City may not meet the various financial requirements contained in the awards' terms and conditions without appropriate oversight. Questioned Costs: None noted. Cause: DFSS did not have a definitive process in place to identify, calculate, and monitor the matching and level of effort requirements. Recommendation: We recommend DFSS review its policies and procedures regarding the matching and level of effort requirements to ensure they are accurately performed and monitored by appropriate financial personnel. Views of Responsible Officials: See Corrective Action Plan.

Corrective Action Plan

The Department of Family and Support Services (DFSS) will document its annual process regarding the calculation of Emergency Solutions Grant (ESG) matching and level of effort requirements to ensure it is accurately performed and reviewed by the appropriate DFSS Finance management personnel, Supervisor of Accounting and Director of Finance. The completed match will be sent for final review to DFSS’ Deputy Commissioner of Finance for confirmation and required financial grant reporting. Deputy Commissioner of Finance Ciezczak at the Department of Family and Support Services will be responsible for providing oversight and monitoring this process. The defined process will be documented and implemented by December 31, 2025.

Categories

Matching / Level of Effort / Earmarking HUD Housing Programs

Other Findings in this Audit

  • 572052 2024-002
    Material Weakness
  • 572053 2024-003
    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