Finding 574605 (2024-002)

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Requirement
L
Questioned Costs
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Year
2024
Accepted
2025-08-25
Audit: 364860
Organization: Village of Harwood Heights (IL)
Auditor: Eccezion

AI Summary

  • Core Issue: Management struggled to provide timely expenditure reports for federal grants, leading to late submissions of performance reports.
  • Impacted Requirements: Compliance with grant agreement requirements was not met, risking misstatements in federal award expenditures and potential funding loss.
  • Recommended Follow-up: Management should enhance internal controls and regularly review expenditure reports to ensure timely submissions of all grant-related documents.

Finding Text

FINDING NUMBER: 2024-002 Criteria or specific requirement: Management is responsible for complying with grant agreement requirements. Condition: During the audit it was noted that management had difficulties providing expenditure reports for the federal grants. It was also noted that for the SLFRF grant performance reports that are due annually (30 days following the end of the period) were submitted late in the case of the 2024 grant. Context: It was difficult to obtain expenditure reports needed to tie out federal award expenditures. One of the performance reports was submitted late for the SLFRF grant. Effect: Misstatements of grant expenditures might not be caught timely, and the Schedule of Expenditures of Federal Awards could be misstated. The Village could potentially lose funding due to required grant reports being submitted late. Cause: The Village’s control activities and monitoring processes did not identify existing issues related to grant expenditure reports, as well as the requirement for timely submission of performance reports, in the case of the SLFRF grant. Recommendation: Management should review grant expenditure reports throughout the year to make sure that information is available timely for all grants. Management should improve their internal control processes to ensure that grant performance reports are filed as required based on the grant agreement. Management’s response: Management will monitor grant expenditure reports closely and will improve their control activities to ensure that grant performance reports are filed as required by the grant agreement.

Categories

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.13M
97.039 Hazard Mitigation Grant $1.06M
20.600 State and Community Highway Safety $43,029
16.607 Bulletproof Vest Partnership Program $3,368