Finding Text
Funding Years(s): 7/1/2022 – 6/31/2023
Financial Assistance Listing Number: Coronavirus State and Local Fiscal Recovery
Funds (CFDA 21.027)
Contract Number: 21-417039
Pass-Through Agency: The State of Illinois, Department of Human
Services
Federal Agency: U.S. Department of the Treasury
Type of Finding: Internal Control (Material Weakness)
Repeat Finding: No
Criteria: In accordance with Part 6 of the 2023 Compliance Supplement and as stipulated by the 2 CFR
Section 200.303, recipients of Federal Awards are required to establish and maintain an internal
control environment that complies with either the guidance in “Standards for Internal Control in the
Federal Government” (the “Green Book”) issued by the Comptroller General of the United States or
the “Internal Control Integrated Framework” (revised in 2013), issued by the Committee of Sponsoring
Organization of the Treadway Commission (“COSO”) for the federal funding streams it administers.
Condition: We selected a non-statistical sample of nineteen (19) employee payroll expenses to test
compliance for Activities Allowed and Unallowed and Allowable Costs for the grant and found that for
the passthrough award received for Job Training & Economic Development (JTED), the Lighthouse
did not maintain sufficient and timely documentation regarding the review and approval of time spent
by personnel working on the program that was charged to the grant.
Cause: Lighthouse has a process in place to review and ensure expenditures charged to the grant do
not exceed budget. We were not able to obtain evidence that these payroll expenditures were reviewed
by someone knowledgeable about the grant and its compliance requirements, such as the Assistant
Director for Grants and Contracts.
Effect: The lack of timely application of the review of the data on the hours worked used in the
determination of payroll expense charged to the grant could result to the entity charging cost to the
grant that have not yet been incurred.
Questions Costs: None
Recommendation: We recommend that management establish a control to timely review the actual
time worked by each personnel assigned to the program prior to charges being submitted to the grantor
for reimbursement.
Views of Responsible Official: Management notes the details of this finding and will implement
procedures to mitigate the outlined issues as described in our Corrective Action Plan.