Enlace Chicago

Federal Agency: U.S. Department of Education Federal Program Name: 21st Century Community Learning Centers Assistance Listing Number: 84.287 Pass-Through Agency: Illinois State Board of Education Pass-Through Number: 21-4421-25-65-108-9335-51, and 22-4421-25-65-108-9335-51 Award Period: July 1, 2022 through June 30, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: The grant requires the Organization to file quarterly financial reports. In our review of the financial reports, we noted only 3 financial reports were prepared and submitted. Reports were submitted for expenditures through 2/28/23, 3/31/23, and 6/30/23. All of these reports were submitted after the required 30 calendar days after the month end of the quarter being reported. Condition: Through audit procedures performed, we noted only 3 financial reports were prepared and submitted. Reports were submitted for expenditures through 2/28/23, 3/31/23, and 6/30/23. All of these reports were submitted after the required 30 calendar days after the month end of the quarter being reported. Questioned Costs: None Context: Finding was identified for one missing financial report and the untimely filing of the three other reports tested. Cause: Unknown Effect: Not submitting the required number of financial reports for federal funds or untimely submission of reports prepared could result in inaccurate financial reporting and lack of timeliness. Repeat Finding: The finding is a repeat finding in the immediately prior year. Prior year finding number was 2022-007. Recommendation: We recommend that management follow established policies and procedures for timely preparation of reports under program requirements financial reports. Documented timing of preparation and approval should be maintained and documented. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with this finding. Enlace Chicago is committed to timely completion of report submissions. Enlace Chicago has continued to review and approve reports prior to submission as required by the state agency. We will continue to put forth best efforts to take a step further and document preparation and review on the report form to satisfy the internal process requirement. Name of the contact person responsible for corrective action: Laura Velazquez, Director of Finance Planned completion date for corrective action plan: June 30, 2024.

Federal Agency: U.S. Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Pass-Through Agencies: Illinois Department of Human Services; New Life Centers of Chicagoland; Illinois Criminal Justice Information Authority Pass-Through Number: FSCBX06450; 25JAC9145-07A; 823037; 823038 Award Period: July 1, 2022 through June 30, 2023; September 1, 2022 through August 31, 2025; and September 1, 2022 through June 30, 2023 Type of Finding: Material Weakness in Internal Control over Compliance Criteria or Specific Requirement: Under the Uniform Guidance, organizations are required to document the basis for their procurement. For the single source procurement tested, the Organization could not support how this procurement met the requirements for a single source procurement. Condition: For the single source procurement tested, the Organization could not support how this procurement met the requirements for a single source procurement. Questioned Costs: None Context: Finding was identified for the only procurement tested, which was the only expense charged to this grant that met the procurement threshold. Cause: Unknown Effect: The possible receipt of federal funds or assistance by an ineligible contractor. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the Organization follow the current policies and procedures over covered transactions to maintain documentation supporting the procurement for 5 years following the end of the contract. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with this finding. Enlace Chicago is committed to following the procurement process and requirements outlined within the policies and procedures. Name of the contact person responsible for corrective action: Laura Velazquez, Director of Finance Planned completion date for corrective action plan: June 30, 2024.

Federal Agency: U.S. Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Pass-Through Agencies: Illinois Department of Human Services; New Life Centers of Chicagoland; Illinois Criminal Justice Information Authority Pass-Through Number: FSCBX06450; 25JAC9145-07A; 823037; 823038 Award Periods: July 1, 2022 through June 30, 2023; September 1, 2022 through August 31, 2025; and September 1, 2022 through June 30, 2023 Type of Finding: Material Weakness in Internal Control over Compliance Criteria or Specific Requirement: Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services awarded under a non-procurement transaction (e.g. grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. Condition: Through audit procedures performed, we noted that the Organization does not have procedures for verifying that an entity with which it plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded. Questioned Costs: None Context: During our testing, we noted a formal policy was not in place over suspension and debarment. We also noted that the Organization did not determine or verify whether one vendor in which a contract was entered into was not suspended or debarred prior to entering into the contract. Cause: Policies and procedures had not been put into place to verify whether the Organization is entering into covered transactions with entities that are not suspended or debarred. Effect: The possible receipt of federal funds or assistance by an ineligible contractor. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that current policies and procedures over covered transactions be updated to include one of the following procedures related to suspension and debarment: • Searching for the person or entity within the Excluded Parties List System; Collecting certification from the person or entity; or • Adding a clause or condition to the covered transaction with that person or entity Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with this finding. Enlace Chicago is committed to ensuring the policies and procedures are being followed in relation to suspension and debarment. The current policy is to search a person or entity within the Excluded Parties List System on an ongoing basis. In addition to the search, moving forward, documentation will include the date of the search and saved within each contractual package. Contract language will also be added to include a clause to cover this internal control requirement. Name of the contact person responsible for corrective action: Laura Velazques, Director of Finance Planned completion date for corrective action plan: June 30, 2024

Finding 2022-006 – Payroll Allocation Federal Agency: U.S. Department of Treasury Federal Program Name: Immigrant And Refugee Housing Assistance Project Assistance Listing Number: 21.023 Pass-Through Agency: Illinois Department of Human Services Pass-Through Number: FCSAK05923 Award Period: July 1, 2021 through June 30, 2022 Federal Agency: U.S. Department of Education Federal Program Name: 21st Century Community Learning Centers Assistance Listing Number: 84.287 Pass-Through Agency: Illinois State Board of Education Pass-Through Number: 21-4421-25-65-108-9335-51, and 22-4421-25-65-108-9335-51 Award Period: July 1, 2021 through June 30, 2022 Type of Finding: Material Weakness in Internal Control over Compliance 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 200 states that changes to awards for salaries and wages are to be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. The Organization is required to maintain documentation supporting the time and effort spent by employees toward the efforts of the Federal program. Condition: Through audit procedures performed, we noted that there was no supporting documentation for the payroll allocation process to different funding sources and no evidence of timesheet approval as per the client's key control. Questioned Costs: None Context: We noted that there was no supporting documents for the payroll allocation process to different funding sources and no evidence of timesheet approval as per the client's key control. Cause: The Organization changed payroll providers between the fiscal years under audit and the time that fieldwork was performed, and was unable to go back and pull the relevant time sheets. Additionally, back-up was not maintained for the allocation process. Effect: Not maintaining the documentation for internal controls may result in inaccurate vouchers submitted for federal funds. Inaccurate payroll costs may be charged to federal programs. Repeat Finding: The finding is a repeat finding in the immediately prior year. Prior year finding number was 2021-005. Recommendation: We recommend that management follow established policies and procedures for the allocation of employee costs across the Organization's grants and programs. All supporting documentation of time sheets and allocation procedures should be maintained. Additionally, preparer and reviewer sign-offs should be documented with sign-offs and dates. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with this finding. Enlace Chicago was unable to provide timesheets to our auditors for FY21 as we transitioned payroll providers in December of 2021. Despite assurances from the prior provider, at the time of request, they were unable to produce prior period timesheets. Despite our inability to generate the timesheets requested, Enlace Chicago requires all staff to complete timesheets in order to process payroll. Providing timesheets for future periods will not be an issue moving forward. Name of the contact person responsible for corrective action: Laura Velazquez, Director of Budget and Planning Planned completion date for corrective action plan: June 30, 2023.

Finding 2022-007 – Reporting Federal Agency: U.S. Department of Treasury Federal Program Name: Immigrant And Refugee Housing Assistance Project Assistance Listing Number: 21.023 Pass-Through Agency: Illinois Department of Human Services Pass-Through Number: FCSAK05923 Award Period: July 1, 2021 through June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: The Organization is required to report on the financial progress of the award as well as maintain controls to ensure the completeness and accuracy of such reports, including documentation of timely preparation. Condition: Through audit procedures performed, we noted preparer and reviewer signoffs of tested reports. However, signoffs did not indicate date of preparation and review. Questioned Costs: None Context: Finding was identified for all 4 financial reports tested. Cause: Unknown Effect: Not maintaining the documentation for internal controls for timely preparer and reviewer signoffs could result in result in inaccurate reports submitted related to federal funds. Repeat Finding: The finding is a repeat finding in the immediately prior year. Prior year finding number was 2021-006. Recommendation: We recommend that management follow established policies and procedures for timely preparation of reports under program requirements financial reports. Documented timing of preparation and approval should be maintained and documented. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with this finding. Enlace Chicago has continued to review and approve reports prior to submission as required by the state agency. As stated in last year’s finding response, the attestation of review and approval is embedded in the report form provided by the grantor. We will continue to put forth best efforts to take a step further and document preparation and review on the report form to satisfy the internal process requirement. Name of the contact person responsible for corrective action: Laura Velazquez, Director of Budget and Planning Planned completion date for corrective action plan: June 30, 2023

Finding 2022-008 – Credit Cards Federal Agency: U.S. Department of Education Federal Program Name: 21st Century Community Learning Centers Assistance Listing Number: 84.287 Pass-Through Agency: Illinois State Board of Education Pass-Through Number: 21-4421-25-65-108-9335-51, and 22-4421-25-65-108-9335-51 Award Period: July 1, 2021 through June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance 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. Condition: In testing a sample of 40 items, we identified 4 instances related to credit card cash disbursements that did not have back up to support the amount charged to the federal program, and there was no review and approval of the general disbursements (see questioned costs below). We also identified 3 other instances where support for the disbursement was provided, but there was no documented approval of the transaction. Questioned Costs: AL 84.287: $796 Context: We noted there were no receipts and back up to support the employee's credit card transactions that were charged to the federal program for these 4 items tested. There also was no documentation of approval by their supervisor for these general disbursements. We also noted 3 other instances where support for the disbursement was provided, but there was no documented approval of the transaction. Cause: Unknown Effect: Not maintaining back-up and supervisor's approval could result in Organization charging unallowed disbursements against a federal grant. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that management follow established policies and procedures for submitting credit card receipts and obtaining supervisor's approval prior to credit card expenses being paid. All support and back up should be maintained. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with this finding. Action taken in response to finding Enlace Chicago has and follows established policies and procedures for submitting credit card receipts and obtaining supervisor's approval prior to credit card expenses being paid. We were not able to find certain credit card holder documentation due to misfiling, but no credit card payment is processed without documentation. A process of signing out filed documentation has been created to establish a system of documenting when a filed document needs to be pulled. We will also improve on the consistency of documenting review and approved by process. Name of the contact person responsible for corrective action: Laura Velazques, Director of Budget and Planning and Myriam Quezada, Assistant Controller Planned completion date for corrective action plan: June 30, 2023

Finding 2021-005 ? Payroll Allocation Major Program: COVID-19: Coronavirus Relief Fund CFDA Number: 21.019 Federal Agency: Department of the Treasury Pass-Through: Illinois Department of Human Services Grantor Number: FCSZK05643, FCSZK05658 Award Period: July 1, 2020 through January 31, 2021 Type of Finding: Material weakness in Internal Control over Compliance Criteria or Specific Requirement: The Organization is required to maintain documentation supporting the time and effort spent by employees toward the efforts of the Federal program. Condition: Through audit procedures performed, we noted that there was no supporting documentation for the payroll allocation process to different funding sources and no evidence of timesheet approval as per the client's key control. Questioned Costs: None. Context: We noted that there was no supporting documents for the payroll allocation process to different funding sources and no evidence of timesheet approval as per the client's key control. Cause: The Organization changed payroll providers between the fiscal years under audit and the time that fieldwork was performed, and was unable to go back and pull the relevant time sheets. Effect: Not maintaining the documentation for internal controls may result in inaccurate vouchers submitted for federal funds. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that management follow established policies and procedures for the allocation of employee costs across the Organization's grants and programs. All supporting documentation of time sheets and allocation procedures should be maintained. Additionally, preparer and reviewer sign-offs should be documented with sign-offs and dates. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with this finding. Enlace Chicago was unable to provide timesheets to our auditors for FY21 as we transitioned payroll providers in December of 2021. Despite assurances from the prior provider, at the time of request, they were unable to produce prior period timesheets. Despite our inability to generate the timesheets requested, Enlace Chicago requires all staff to complete timesheets in order to process payroll. Providing timesheets for future periods will not be an issue moving forward. Name of the contact person responsible for corrective action: Lorraine Jones, Director of Finance Planned completion date for corrective action plan: June 30, 2022

Finding 2021-006 ? Review of Federal Grant Reports Major Program: COVID-19: Coronavirus Relief Fund CFDA Number: 21.019 Federal Agency: Department of the Treasury Pass-Through: Illinois Department of Human Services Grantor Number: FCSZK05643, FCSZK05658 Award Period: July 1, 2020 through January 31, 2021 Type of Finding: Significant deficiency in Internal Control over Compliance Criteria or Specific Requirement: The Organization is required to report on the financial and performance progress of the award as well as maintain controls to ensure the completeness and accuracy of such reports, including documentation of preparation and review. Condition: Through audit procedures performed, we noted that there was no documentation of who prepared and reviewed the financial and performance reports tested. Questioned Costs: None. Context: We noted that there was no documentation of who prepared and reviewed the financial and performance reports tested. Cause: The Organization submitted reports without maintaining preparer and reviewer sign-offs and dates. Effect: Not maintaining the documentation for internal controls on preparer and reviewer sign-offs and dates, could result in reports being submitted with errors, and may result in inaccurate reports submitted related to federal funds. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that management follow established policies and procedures for preparation of reports under program requirements both financial and performance based. Proper documentation should be maintained to substantiate that official reports have been subjected to the review and approval process. Preparer and reviewer sign-offs and dates should be maintained and documented. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with this finding. Action taken in response to finding: Enlace Chicago did review and approve the reports prior to submission and but did not document the review and approval in addition to the attestation and sign off embedded in the report form provided by the grantor. We will update our internal control processes to reflect the various ways we will document the review and approval of reports. Name of the contact person responsible for corrective action: Lorraine Jones, Director of Finance Planned completion date for corrective action plan: June 30, 2022