Finding Text
Finding 2022-008 – Credit Cards
Federal Agency: U.S. Department of Education
Federal Program Name: 21st Century Community Learning Centers
Assistance Listing Number: 84.287
Pass-Through Agency: Illinois State Board of Education
Pass-Through Number: 21-4421-25-65-108-9335-51, and 22-4421-25-65-108-9335-51
Award Period: July 1, 2021 through June 30, 2022
Type of Finding:
Significant Deficiency in Internal Control over Compliance
Criteria or Specific Requirement:
Under allowable cost/cost principles, an organization in receipt of federal funding is required to have a system of controls in place to safeguard assets and ensure that only allowable costs are charged to federal programs.
Condition:
In testing a sample of 40 items, we identified 4 instances related to credit card cash disbursements that did not have back up to support the amount charged to the federal program, and there was no review and approval of the general disbursements (see questioned costs below). We also identified 3 other instances where support for the disbursement was provided, but there was no documented approval of the transaction.
Questioned Costs:
AL 84.287: $796
Context:
We noted there were no receipts and back up to support the employee's credit card transactions that were charged to the federal program for these 4 items tested. There also was no documentation of approval by their supervisor for these general disbursements. We also noted 3 other instances where support for the disbursement was provided, but there was no documented approval of the transaction.
Cause:
Unknown
Effect:
Not maintaining back-up and supervisor's approval could result in Organization charging unallowed disbursements against a federal grant.
Repeat Finding:
This is not a repeat finding.
Recommendation:
We recommend that management follow established policies and procedures for submitting credit card receipts and obtaining supervisor's approval prior to credit card expenses being paid. All support and back up should be maintained.
Views of Responsible Officials and Planned Corrective Actions:
There is no disagreement with this finding. Action taken in response to finding Enlace Chicago has and follows established policies and procedures for submitting credit card receipts and obtaining supervisor's approval prior to credit card expenses being paid. We were not able to find certain credit card holder documentation due to misfiling, but no credit card payment is processed without documentation. A process of signing out filed documentation has been created to establish a system of documenting when a filed document needs to be pulled. We will also improve on the consistency of documenting review and approved by process.
Name of the contact person responsible for corrective action: Laura Velazques, Director of Budget and Planning and Myriam Quezada, Assistant Controller
Planned completion date for corrective action plan: June 30, 2023