Finding Text
2022 – 005 Period of Performance
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 procedures to ensure transactions for costs recorded for the end of the period of performance were not incurred after the period of performance for Federal awards. Additionally, manual journal entries should be supported by documentation for transactions that occurred during the period of performance.
Condition: The County allocated costs to federal awards after the end of the period of performance. Documentation for manual adjusting journal entries was not maintained to ascertain transactions occurred during the period of performance.
Questioned costs: $519,076
Context: 4 of 20 transactions tested were incurred after the period of performance end date. All 36 manual journal entries recorded to the programs did not have supporting documentation available.
Cause: Costs were inadvertently claimed that fell outside the period of performance. Support for the accounting records could not be provided for the manual adjusting entries.
Effect: May result in unallowable costs being charged to the Federal program.
Repeat Finding: No
Recommendation: We recommend the County review its procedures relative to allocating costs to Federal programs, and ensure only cost within the grant period are included. Supporting accounting records for manual adjusting journal entries should be maintained to support transactions incurred, with a documented approval process.
Views of responsible officials: There is no disagreement with the audit finding.