Finding Text
2022 – 007 Reporting
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
• Other Matters
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 quarterly financial reporting be supported by documentation of expenditures that have been incurred. In addition, grant agreements requiring grant close-out reports should reconcile to the accounting records.
Condition: Supporting documentation for the quarterly financial reporting accounting records were not maintained. There was in instance in which the accounting records did not agree to the grant reconciliation submitted with the grant close-out package.
Questioned costs: None
Context: 3 of 4 quarterly financial reports tested did not have supporting documentation retained. 1 of 2 financial close out reports tested had accounting records that did not agree to the amounts reported.
Cause: Support for the quarterly financial reports could not be provided as it was not retained. Adjustments made to the project accounting records after the close out report package was submitted caused the report to have inaccurate information.
Effect: Lack of proper documentation for reported information can lead to an over or under reporting of grant expenditures.
Repeat Finding: No
Recommendation: We recommend the County design controls to ensure the accounting records reconcile to the quarterly financial reporting and grant close-out reports and documentation be retained. No financial activity should be recorded to the project accounting records after the grant close out report package is completed.
Views of responsible officials: There is no disagreement with the audit finding.