16-08, greed-Upon Procedures for Corporation Grants Awarded to Serve Illinois

Agreed-Upon Procedures for Corporation Grants Awarded to Serve Illinois OIG Report 16-08

The Office of Inspector General contracted with CliftonLarsenAllen to perform an agreed-upon procedures audit of the Serve Illinois Commission (SI) and three of their subgrantees, City Year Inc., Lutheran Social Services of Illinois (LSSI) and Lessie Bates Davis Neighborhood House on AmeriCorps grant awards from April 2013 to December 2014.   
 
The audit identified the following findings:
 

  • Inadequate subgrantee monitoring by SI.
  • Subgrantee’s noncompliance with federal standards based on its financial management system
  • related to accounting, recording, and reporting grant costs.
  • Improper National Service Criminal History checks.
  • Timesheet-related deficiencies.

 
The audit questioned over $422,000 in reported costs with the preponderance of these costs related to the procedures used by subgrantees to conduct National Service Criminal History Checks for members and staff.  
 
The audit identified SI’s inadequate subgrantee monitoring as a significant internal control weakness which contributed to LSSI’s noncompliance with federal standards.  SI’s response to the draft report did not directly address the significant issues found with LSSI, but merely made excuses for the long-standing weakness identified.