PUBLIC HEALTH INSTITUTE OF METROPOLITAN CHICAGONon-Profit

Agencies: Corporation for National Community Service and U.S. Department of Health and Human Services Federal Program: All federal awards. Criteria: The Uniform Grant Guidance requires PHIMC to submit the Data Collection Form and single audit reporting package to the Federal Audit Clearinghouse within the earlier of nine months following its fiscal year end, or 30 days after receipt of the auditors' report. Condition: PHIMC did not submit its 2024 Data Collection Form and single audit reporting package to the Federal Audit Clearinghouse before the deadline of September 30, 2025. In addition, PHIMC's Consolidated Year End Financial Report (CYEFR) required by the Grant Accountability and Transparency Act was also submitted late. Context: The 2024 single audit reporting package was due to the Federal Clearinghouse no later than September 30, 2025. However, as a result of significant turnover in the business office, there were delays in completing both the financial and single audits. The CYEFR was due September 30, 2025. Cause: Significant turnover in the business office led to delays in starting and completing the financial statement and single audits. Questions Costs: None identified Effect: Timely reporting to governmental agencies was not achieved. Grantor agencies may reduce or withdraw funding if compliance requirements are not met. Recommendation: We recommend PHIMC obtain adequate personnel or third party resources to ensure the timely and adequate close of PHIMC's year end and scheduling of the financial statement and single audits. Views of Responsible Officials: Management concurs and hired a professional services firm to supplement its existing finance department.

Agencies: Corporation for National Community Service and U.S. Department of Health and Human Services Federal Program: All federal awards. Criteria: Personnel files should be maintained for every employee and include documentation such as Form I- 9, termination letters, enrollment, benefit waiver forms, documentation of pay rate changes, etc. Condition: We identified several instances in which personnel file were missing certain documentation, including pay rates, merit increases, hire dates, etc. Context: Out of a sample of twenty employee files, all files were missing information, including support for current wage information. Sample was not statistically valid. Cause: As a result of turnover in human resources and the finance department, a complete evaluation of personnel records has not been performed and personnel files have not been updated for the most current information. Questions Costs: No questioned costs were identified. Effect: Our audit procedures uncovered no instances in which personnel were not paid the correct wage as all merit increases were verbally approved by the President and Chief Executive Officer. However, incomplete personnel files can lead to errors in interpreting benefits and miscommunication with employees as well as errors in payroll and government grant record keeping. Recommendation: We recommend personnel files be reviewed for completeness, any missing documentation should be replaced immediately, and proper documentation should be maintained going forward. Views of Responsible Officials: Management plans to perform a review of all personnel files to ensure applicable files are complete and have up to date information.

Agencies: U.S. Department of Health and Human Services Pass-through Agency: Illinois Department of Human Services Federal program: 93.959 Block Grants for Prevention and Treatment of Substance Abuse Criteria: For grant 43CCZ03786 and 43CDZ03786, the grantee shall submit periodic financial reports to the grantor, using the grantor monthly expenditure payment voucher form, no later than fifteen days after the month end. For grant 43CCZ03786, 43CDZ03786, 43CCZ03552 and 43CDZ03552, the grantee shall also submit a financial close-out report no later than thirty days after the end of the period of performance. Condition: We identified several monthly vouchers which were submitted to the grantor later than fifteen days after the month end. In addition, we identified financial close-out reports which were submitted to the grantor later than thirty days after the end of the performance period. Context: Five out of twelve monthly vouchers were submitted to the grantor later than fifteen days after the month end. All financial close-out reports were submitted to the grantor later than thirty days after the end of the performance period. Cause: As a result of turnover in human resources and the finance department, certain monthly vouchers and financial close-out reports were not submitted timely to the grantor during the transition period. Questions Costs: No questioned costs were identified. Effect: There is a risk that the grantor may not reimburse PHIMC for expenses as certain monthly vouchers and financial close-out reports were submitted to the grantor late. Recommendation: We recommend PHIMC reiterate to the grant team the financial reporting requirements of the grant to ensure that monthly vouchers and financial close-out reports are submitted to the grantor timely. Views of Responsible Officials: Management plans to reiterate the financial reporting requirements to ensure that monthly vouchers and financial close-out reports are submitted to the grantor timely.

Agencies: Corporation for National Community Service and U.S. Department of Health and Human Services Federal Program: All federal awards. Criteria: The Uniform Grant Guidance requires PHIMC to submit the Data Collection Form and single audit reporting package to the Federal Audit Clearinghouse within the earlier of nine months following its fiscal year end, or 30 days after receipt of the auditors' report. Condition: PHIMC did not submit its 2023 Data Collection Form and single audit reporting package to the Federal Audit Clearinghouse before the deadline. In addition, PHIMC's Consolidated Year End Financial Report (CYEFR) required by the Grant Accountability and Transparency Act was also submitted late. Context: The 2023 single audit reporting package was due to the Federal Clearinghouse no later than September 30, 2024. However, as a result of significant turnover in the business office, there were delays in completing both the financial and single audits. The CYEFR was due September 30, 2024. Cause: Significant turnover in the business office led to delays in starting and completing the financial statement and single audits. Questions Costs: None identified. Effect: Timely reporting to governmental agencies was not achieved. Grantor agencies may reduce or withdraw funding if compliance requirements are not met. Recommendation: We recommend PHIMC obtain adequate personnel or third party resources to ensure the timely and adequate close of PHIMC's year end and scheduling of the financial statement and single audits. Views of Responsible Officials: Management concurs and hired a professional services firm to supplement its existing finance department.

Agencies: Corporation for National Community Service and U.S. Department of Health and Human Services Federal Program: All federal awards. Criteria: Personnel files should be maintained for every employee and include documentation such as Form I- 9, termination letters, enrollment, benefit waiver forms, documentation of pay rate changes, etc. Condition: We identified several instances in which personnel file were missing certain documentation, including pay rates, merit increases, hire dates, etc. Context: Out of a sample of ten employee files, ten files were missing information, including support for current wage information. Sample was not statistically valid. Cause: As a result of turnover in human resources and the finance department, a complete evaluation of personnel records has not been performed and personnel files have not been updated for the most current information. Questions Costs: No questioned costs were identified. Effect: Our audit procedures uncovered no instances in which personnel were not paid the correct wage as all merit increases were verbally approved by the President and Chief Executive Officer. However, incomplete personnel files can lead to errors in interpreting benefits and miscommunication with employees as well as errors in payroll and government grant record keeping. Recommendation: We recommend personnel files be reviewed for completeness, any missing documentation should be replaced immediately, and proper documentation should be maintained going forward. Views of Responsible Officials: Management plans to perform a review of all personnel files to ensure applicable files are complete and have up to date information.

Agencies: Corporation for National Community Service and U.S. Department of Health and Human Services Federal Program: All federal awards. Criteria: It is PHIMC's policy to have timecards prepared and signed by the employee and their applicable supervisor. In addition, 2 CFR 200.430 (i) Compensation-Personnel Services, Standards for Documentation of Personnel Services requires payroll systems must be based on records that accurately reflect the work performed and supported by a system of internal controls that provides reasonable assurances that charges are accurate; allowable and reasonable; and properly allocated. Condition: We identified an instance in which a timesheet was not signed off by applicable supervisor and there was no evidence of review. In addition, we noted an instance in which the timesheet did not include all time worked. Context: Out of a sample of 40 timesheets, two timesheets were not complete. Sample was not statistically valid. Cause: The lack of supervisory authorizations and incomplete timesheets appear to be a result of human error and an oversight. Questions Costs: No questioned costs were identified. Effect: Amounts charged to federal awards related to these incomplete timesheets were accurate. However, lack of supervisory review and inaccurate timesheet data can lead to errors in payroll and government grant record keeping. Recommendation: We recommend PHIMC reiterate applicable policy, and ensure all timesheets are prepared, reviewed, and contain appropriate approvals. Views of Responsible Officials: Management plans to reiterate the time and effort reporting policy and ensure timesheets are completed in accordance with PHIMC policy

Agency: U.S. Department of Health and Human Services Pass-through Agency: Illinois Department of Public Health Federal program: 93.940 HIV Prevention Activities-Health Department Based Federal award number: 38780057K Criteria: Support for vouchers that are submitted for reimbursement should be maintained. Condition: We identified an instance in which $107 of a $985 voucher could not be obtained. Context: Out of a sample of 40 vouchers charged to the federal program, the underlying support for a portion of the voucher could not be located. Cause: As a result of turnover in the finance department and lack of formal filing procedures, we noted an instance in which the support for a portion of an authorized voucher could not be located Questions Costs: Unknown questioned costs were less than $20,000. Effect: PHIMC could not locate the underlying support for $107 of a $985 voucher charged to the program. Recommendation: We recommend PHIMC develop a formal process to maintain the underlying support for all voucher submissions. Views of Responsible Officials: In conjunction with the hiring of a professional services firm for accounting and finance support, PHIMC will evaluate the current record keeping system and ensure supporting information for submitted vouchers is maintained and accessible.

Agencies: U.S. Department of Health and Human Services Pass-through Agency: Illinois Department of Public Health Federal program: 93.940 HIV Prevention Activities-Health Department Based Criteria: The Uniform Guidance requires passthrough entities to provide reasonable assurance that the subrecipient administered the subaward in compliance with the terms and conditions of the subaward. In addition, passthrough entities should have comprehensive monitoring policies and procedures in place which is risk based. Condition: PHIMC has subrecipient monitoring policies and procedures, but there is a lack of documentation in place to determine if those policies and procedures are being completely followed as well as lack of documentation of the monitoring. In addition, formal agreements between PHIMC and the subrecipient were not located for all subrecipients. Context: PHIMC provides funding to approximately 10-12 subrecipients. Cause: As a result of turnover in the finance department not all documentation could be found and certain documentation was not completed in full. Questions Costs: None. Effect: There is a risk the terms and conditions of all awards provided to subrecipients are not in compliance with the terms and conditions of the award. Recommendation: We recommend PHIMC evaluate their current subrecipient monitoring policies andprocedures and ensure they are comprehensive and actual monitoring is documented. Views of Responsible Officials: In conjunction with the hiring of a professional services firm for accounting and finance support, PHIMC will evaluate subrecipient monitoring policies and procedures