Finding 975435 (2023-002)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-05-30

AI Summary

  • Core Issue: Monthly financial reports for June to November 2023 were not submitted on time, violating federal requirements.
  • Impacted Requirements: NCRC CDFI must submit reports within 30 days of month-end, which was not met due to organizational turnover and budget uncertainties.
  • Recommended Follow-Up: Management should actively monitor federal grant reporting requirements to ensure timely submissions moving forward.

Finding Text

Federal Agency: Department of Treasury Federal Program Title: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Pass-Through Agency: Illinois Department of Commerce & Economic Opportunity Award Period: October 1, 2022 – June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance Condition: During our testing of reporting requirements, we noted that monthly financial reporting was required to be submitted within 30 days of month-end. Based on the results of our testing, we noted that monthly reports for the months of June through November 2023 were not submitted as of December 31, 2023. In addition, the monthly reports that were submitted during 2023 were not submitted on a timely basis. Criteria or specific requirement: NCRC CDFI must submit monthly financial reports within 30 days of each month-end. Context: We noted the reports were not filed timely due to turnover within the organization and uncertainty regarding the budgeted amounts submitted to the government agency, due to changes in the indirect cost rate. Effect: Inadequate controls over compliance can result in noncompliance. Cause: Turnover within the organization and uncertainty regarding calculations of indirect costs and alignment with budgeted amounts contributed to management’s lack of filing financial reports as required under the grant agreement. Recommendation: We recommend the management monitor the reporting requirements of each federal grant to ensure that all required reports are being submitted timely. Views of Responsible Officials: There is no disagreement with the audit finding. New processes have been implemented that include proper approval and review of all accounting transactions. In addition, subsequent to year end uncertainties regarding calculations of indirect costs and alignment with budgeted amounts have been resolved and monthly financial reports for June through November 2023 have been filed.

Categories

Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 398993 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $161.46M
21.024 Community Development Financial Institutions Rapid Response Program (cdfi Rrp) $1.32M
21.020 Community Development Financial Institutions Program $610,000
99.U19 Neighborworks America Hscp Grant $497,787
14.316 Housing Counseling Training Program $464,053
14.169 Housing Counseling Assistance Program $397,229
14.416 Education and Outreach Initiatives $197,013
93.866 Aging Research $95,721
59.043 Women's Business Ownership Assistance $93,456
14.418 Private Enforcement Initiatives $81,392