Finding 946694 (2023-004)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-02-23
Audit: 291860
Organization: Association House of Chicago (IL)

AI Summary

  • Core Issue: A significant deficiency in internal control was found due to missing documented review and approval for a monthly expenditure report.
  • Impacted Requirements: Policies and procedures must ensure all required reports are reviewed and approved as per compliance standards.
  • Recommended Follow-Up: Management should update policies to guarantee that all monthly expenditure reports include documented review and approval.

Finding Text

2023 – 004: Reporting Federal Agency: U.S. Department of Labor Federal Program Name: WIOA Adult Program Assistance Listing Number: 17.258 Pass-Through Agency: Chicago Cook Workforce Partnership Pass-Through Number: 2022-2135 Award Period: October 1, 2022 through September 30, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: The internal control system should include policies and procedures to ensure that required reports have documented review and approval. Condition: In testing required reports, we noted a monthly expenditure report did not have documented review and approval. Questioned Costs: None Context: The Agency is required to report monthly expenditures to the funder. We noted one of three instances selected for testing did not have documented review and approval. Cause: The Agency did not follow established policies and procedures over the review and approval of the monthly expenditure reports. Effect: Monthly expenditure reports have a higher risk of error if review in accordance with established policies and procedures is not performed. Repeat Finding: This finding is not a repeat finding. Recommendation: We recommend management update their policies and procedures to ensure all monthly expenditure reports have documented review and approval. Views of Responsible Officials: There is no disagreement with this finding.

Categories

Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 370250 2023-002
    Significant Deficiency
  • 370251 2023-003
    Significant Deficiency
  • 370252 2023-004
    Significant Deficiency
  • 370253 2023-002
    Significant Deficiency
  • 370254 2023-003
    Significant Deficiency
  • 946692 2023-002
    Significant Deficiency
  • 946693 2023-003
    Significant Deficiency
  • 946695 2023-002
    Significant Deficiency
  • 946696 2023-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
17.258 Wia Adult Program $234,028
93.958 Block Grants for Community Mental Health Services $192,304
14.218 Community Development Block Grants/entitlement Grants $148,684
93.959 Block Grants for Prevention and Treatment of Substance Abuse $85,000
97.024 Emergency Food and Shelter National Board Program $59,590
21.027 Coronavirus State and Local Fiscal Recovery Funds $46,958
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $33,750
94.006 Americorps $23,725