Finding Text
2023 – 002: Preparation of Schedule of Expenditures of Federal Awards
Federal Agencies: U.S. Department of Health and Human Services and U.S. Department of Labor
Federal Program Names: Block Grants for Community Mental Health Services and WIOA Adult Program
Assistance Listing Numbers: 93.958 and 17.258
Pass-Through Agencies: Illinois Department of Human Services and Chicago Cook Workforce Partnership
Pass-Through Numbers: 45CBB00060; 2021-2135 and 2022-2135
Award Periods: July 1, 2022 through June 30, 2023; October 1, 2021 through September 30, 2022; October 1, 2022 through September 30, 2023
Type of Finding: Significant Deficiency in Internal Control over Compliance
Criteria or Specific Requirement: The Agency must provide the Schedule of Expenditures of Federal Awards. The schedule must be complete and accurate to provide for the basis of testing by the auditors as well as for accurate financial reporting to primary and secondary funders.
Condition: During the audit, 1) noted $103,547 in payments originally classified as a federal award until auditors' review of agreement identified that amount is not federal funding (ALN 93.958). 2) Noted $25,400 was omitted from the SEFA for grant as formula calculating total expenditures excluded an amount. A change to the SEFA was required to adjust the amounts reflected as federal awards.
Questioned Costs: None
Context: The initial SEFA provided overstated federal awards by $103,547 (ALN 93.958) passed-through the Illinois Department of Human Services and understated federal awards by $25,400 (ALN 17.258) passed-through the Chicago Cook Workforce Partnership.
Cause: Lack of review of final calculations and passed through grant agreement.
Effect: Amounts inaccurately reflected on the SEFA.
Repeat Finding: This finding is not a repeat finding.
Recommendation: We recommend the Agency establish controls to evaluate grant agreements to capture funds identified as federal accurately and perform review of final SEFA to avoid any calculation related errors.
Views of Responsible Officials: There is no disagreement with this finding.