Legal Assistance for Victims Grant and Services for Human Trafficking Victims Grants Administered by the Heartland Alliance for Human Needs and Human Rights, Chicago, Illinois

Audit Report GR-50-08-002
January 2008
Office of the Inspector General

Executive Summary

The Office of the Inspector General, Audit Division, has completed an audit of three grants awarded to the Heartland Alliance for Human Needs and Human Rights (Heartland Alliance), a non-profit corporation located in Chicago, Illinois. The first grant, a Legal Assistance for Victims Grant, was awarded by the U.S. Department of Justice (DOJ), Office on Violence Against Women (OVW). The remaining two awards and one supplement were Services for Human Trafficking Victims Discretionary Grants awarded by the DOJ, Office of Justice Programs (OJP).1 The general purpose of all three grants was to assist victims of human trafficking in obtaining legal and social services.

As of September 30, 2006, Heartland Alliance was awarded a total of $2,039,397. At that time, Heartland Alliance’s records showed a total of $1,774,552 in grant-related costs, of which $1,632,221 had been reimbursed by OJP.

Our audit included a review of Heartland Alliance’s accomplishment of grant goals and its compliance with the following essential grant conditions: (1) accounting and internal controls, (2) grant drawdowns, (3) budget management and control, (4) grant expenditures, (5) grant match requirements, and (6) grant reporting. We tested the grant accounting records to determine if reimbursements claimed under the grants were allowable, supported, and in accordance with applicable laws, regulations, guidelines, and terms and conditions of the grants. Specifically, we tested federally reimbursable direct costs, such as consultant and contractual fees, supplies, and travel totaling $242,485; salary and fringe benefit costs of $21,534; and indirect costs of $175,610. In total, we reviewed $439,630, or about 26 percent of the $1,707,036 federally reimbursable expenditures as of September 30, 2006.2 In addition, we reviewed the grantee’s adherence to the match requirements in two of the three awards.

Our report contains 23 recommendations to address the preceding issues, which are discussed in detail in the Findings and Recommendations section of the report. Our audit objectives, scope, and methodology appear in Appendix II.


  1. At the time this grant was awarded in 2002, the Office on Violence Against Women was a program office within the Office of Justice Programs. The Office now reports to the Attorney General through the Office of the Associate Attorney General.

  2. The total amount reviewed is greater than the sum of the individual totals due to rounding.

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