Chicago Department of Family and Support Services Did Not Always Charge Allowable Costs to the Community Services Block Grant - Recovery Act Program

Under the American Recovery and Reinvestment Act of 2009 (Recovery Act), the Illinois Department of Commerce and Economic Opportunity (State) was awarded $47.2 million in Community Services Block Grant (CSBG) funds for fiscal years 2009 and 2010. For the period May 1, 2009, through September 30, 2010, the State awarded the City of Chicago, Department of Family and Support Services (Agency), $19.4 million in CSBG Recovery Act funds.

Of the $3.2 million of CSBG Recovery Act costs that the State claimed for the Agency's program expenditures and that we reviewed, $3 million was allowable under the terms of the Recovery Act award and applicable Federal requirements. However, the State claimed $40,000 in unallowable costs on behalf of the Agency which were inadequately documented or incorrectly charged. In addition, the State claimed $152,000 on behalf of the Agency for subcontractor costs that may not have been allocable to the Recovery Act award and thus were potentially unallowable.