Finding 573667 (2024-004)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2024
Accepted
2025-08-14
Audit: 364306
Organization: Trilogy, Inc. (IL)

AI Summary

  • Core Issue: The organization submitted a reimbursement request for duplicate pay periods, leading to inaccurate payroll costs.
  • Impacted Requirements: Internal controls over compliance were not effectively maintained as required by § 200.303(a).
  • Recommended Follow-Up: Review and verify pay periods for personnel costs charged to the grant to prevent future errors.

Finding Text

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: 45CCB03514; 45CCB04278; 45CCB00648 Award Period: 07/01/2023 – 06/30/2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: § 200.303(a) indicates non-federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Organization requested reimbursement for duplicate pay periods in a single month. Questioned Costs: None Context: In July 2023, the Organization requested reimbursement for pay date July 7, 2023 twice rather than pay dates July 7, 2023 and July 21, 2023. The net effect resulted in Trilogy requesting reimbursement for $118 less in payroll costs than what it could have requested. Cause: Oversight. Effect: Inaccurate payroll costs charged. Repeat Finding: No Recommendation: We recommend the Organization review the pay periods supporting the personnel costs that are charged to the grant. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

Action taken in response to finding: Trilogy will be conducting a comprehensive review of payroll records and timesheets for all employees whose salaries are charged to the grant. This includes verifying that the pay periods align with the grant’s allowable cost period and that supporting documentation is complete and accurate. This will ensure that personnel costs are consistently reconciled with grant pay periods before charges are submitted for reimbursement. Relevant staff members will receive refresher training on grant compliance requirements, specifically focusing on documentation standards for personnel costs and the importance of aligning pay periods with grant terms. Trilogy will implement periodic internal audits to monitor compliance and ensure continued accuracy in personnel cost allocations. Name(s) of the contact person(s) responsible for corrective action: Shunita Rhodes & Hagar Buster Planned completion date for corrective action plan: July 2025

Categories

Internal Control / Segregation of Duties Cash Management Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 573664 2024-001
    Material Weakness Repeat
  • 573665 2024-002
    Material Weakness Repeat
  • 573666 2024-003
    Significant Deficiency Repeat
  • 1150106 2024-001
    Material Weakness Repeat
  • 1150107 2024-002
    Material Weakness Repeat
  • 1150108 2024-003
    Significant Deficiency Repeat
  • 1150109 2024-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.958 Block Grants for Community Mental Health Services $547,579
93.959 Block Grants for Prevention and Treatment of Substance Abuse $319,527
14.267 Continuum of Care Program $295,420
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $92,383
93.150 Projects for Assistance in Transition From Homelessness (path) $90,380
14.218 Community Development Block Grants/entitlement Grants $71,147
21.027 Coronavirus State and Local Fiscal Recovery Funds $58,452