Finding Text
2022 – 006 Cash Management
Federal Agency: U.S. Department of Health and Human Services
Federal Program Name: Low-Income Home Energy Assistance Program (LIHEAP)
Assistance Listing Number: 93.568
Federal Award Identification Number and Year: 2102ILLIEA 10/1/2020; 2102ILE5C6 03/22/2021
Pass-Through Agency: Illinois Department of Commerce and Economic Opportunity
Pass-Through Numbers: 21-221038; 21-274038
Award Period: June 1, 2021 through September 30, 2022 and July 1, 2021 through September 30, 2022
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Material Noncompliance (Modified Opinion)
Criteria or specific requirement: Uniform Grant Guidance (2 CFR 200.303) requires non-federal entities receiving Federal awards establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include ensuring the draw down request are supported by documentation of expenditures that been incurred. Additionally, the time between drawing and disbursing federal funds should be minimized and interest should be calculated on amounts of unearned revenue.
Condition: Supporting documentation for the cash drawdown requests were not maintained. There were instances in which the accounting records did not agree to the grant cash draw request. The time between drawing and disbursing federal funds was not minimized and interest on unearned revenue was not calculated. Documentation of review and approval by an individual other than the preparer was not retained.
Questioned costs: $198,122
Context: 5 of 5 cash draw down requests tested did not have supporting documentation of the exact amount drawn down maintained.
Cause: Support for the draw down request could not be provided over the individual cash draw down request as it was not retained. Adjustments made to the project accounting records after the cash draw request were made caused the County to receive more funds than expenses incurred.
Effect: Lack of proper documentation for reported information can lead to an over or under reimbursement of grant funds.
Repeat Finding: No
Recommendation: We recommend the County design controls to ensure the accounting records reconcile to the draw request and documentation be retained. Reconciliations should be reviewed and approved by an individual other than the preparer at the time of the request and this documentation should be retained.
Views of responsible officials: There is no disagreement with the audit finding.