Finding Text
2022- 010 ? Allocation of Cash Disbursements Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Homeless Services and CARES Assistance Listing Number: 14.231 Pass-Through Agencies: All Chicago and Chicago Department of Family and Support Services Pass-Through Numbers: N/A Award Periods: January 1, 2021 through December 31, 2022 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Opportunity Persons with Aids (RHHP) Assistance Listing Number: 14.241 Pass-Through Agencies: Chicago Department of Public Health and Aids Foundation of Chicago Pass-Through Numbers: N/A Award Periods: January 1, 2021 through February 28, 2023 Type of Finding: Material Weakness in Internal Control over Compliance Other Matters 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. 2 CFR Part 200 states that costs may be allocated or transferred to benefitted projects on any reasonable documented basis. Condition: AL 14.231: In testing a sample of 18 items, we identified the following: ? 7 out of the 18 transactions tested did not have back up to support the amount allocated. AL 14.241: In testing a sample of 11 items, we identified the following: ? 10 out of the 11 transactions tested did not have back up to support the amount allocated. Questioned Costs: None Context: Disbursements are not being properly documented for the allocation methodology being used. Cause: Procedures for the allocation of general disbursements in full compliance with the Uniform Guidance have not yet been fully implemented. Effect: Inaccurate costs may be charged to federal programs if The Blvd does not have procedures in place to monitor and record general disbursements devoted to federal programs. Repeat Finding: This is not a repeat finding. Recommendation: Management should develop a process whereby general disbursements allocated to federal grants are supported by a system of internal controls which provides reasonable assurance that the charges are accurate, allowable, and properly allocated and support the distribution of the disbursement among specific activities or cost objectives if the disbursement is allocated to more than one federally funded program. These estimates should be properly reflected during the vouchering process. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding. A modified policy will be established to ensure costs are reasonable, allowable, and allocable to a State, Federal, local, and private awards shall be charged to that award directly or indirectly. All unallowable costs shall be appropriately segregated from allowable costs in the general ledger in order to assure that unallowable costs are not charged to such awards. Any Indirect costs that either benefit more than one award (overhead costs) or non-award function or that are necessary for the overall operation of The Boulevard of Chicago will be allocated based upon an approved allocation method such as time and tracking or occupancy. Name(s) of the contact person(s) responsible for corrective action: Shanan Egger, Chief Financial Officer Planned completion date for corrective action plan: December 2023