Audit 294179

FY End

2023-08-31

Total Expended

$2.07M

Findings

2

Programs

1

Organization: Ablelight, Inc. (WI)

Year: 2023 Accepted: 2024-03-08

Auditor: Baker Tilly US LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
374489	2023-001	Material Weakness	-	B
950931	2023-001	Material Weakness	-	B

ALN	Program	Spent	Major	Findings
93.498	Provider Relief Fund and American Rescue Plan Rural Distribution	$2.07M	Yes	1

Contacts

Name	Title	Type
MWMATHNMNDS5	Errol Meinholz	Auditee
9202459275	Krista Pankop	Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and the State of New Jersey, Department of Treasury, OMB Circular 15-08, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: AbleLight has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal and state awards (the Schedule) includes the federal and state award activity of AbleLight Inc. (AbleLight) under programs of the federal and state government for the year ended August 31, 2023. The information in this Schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the State of New Jersey, Department of Treasury, OMB Circular 15-08. Because the Schedule presents only a selected portion of the operations of AbleLight, it is not intended to and does not present the financial position, changes in net assets or cash flows of AbleLight. Expenditures for the following consolidated subsidiaries of AbleLight are not included to meet the requirements contained in the Uniform Guidance and the State of New Jersey, Department of Treasury, OMB Circular 15-08 because they have separate audits or are not required to have an audit under Uniform Guidance and the State of New Jersey, Department of Treasury, OMB Circular 15-08: Faith Village, Inc., Faith Village IV, Inc., Good Shepherd Residence, Inc., Creating Possibilities, Inc., Good Shepherd of Washington, Good Shepherd of Washington II, Good Shepherd of Colorado I, Good Shepherd Corporation of Oregon, AbleLight Foundation Inc., Bethesda Cornerstone Village - Victoria, LLC, Cornerstone Village - Highland, LLC, Cornerstone Village - WI-I, LLC, Cornerstone Village NP MN, Inc., AbleLight Village, LLC, Cornerstone Village - Wauwatosa, LLC, AbleLight Residence Fremont, Inc., Cornerstone Village Managing Member - Wauwatosa, LLC, The Oregon Good Shepherd Lutheran Home, Inc.

Title: Provider Relief Fund and American Rescue Plan Rural Distribution Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and the State of New Jersey, Department of Treasury, OMB Circular 15-08, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: AbleLight has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Provider Relief Funds and American Rescue Plan funds of $582,188 and $1,490,167 are included in revenue on the consolidated statement of activities for the years ending August 31, 2023 and 2022, respectively. Based on guidance from the U.S. Department of Health and Human Services, these funds were required to be included in the schedule of expenditures of federal and state awards for the year ending August 31, 2023.

Finding Details

Finding 2023-001

Agency: U.S. Department of Health and Human Services Federal Assistance Listing or State ID Number: 93.498, COVID-19 Provider Relief Fund and American Rescue Plan Rural Distribution Criteria: According to the Provider Relief Fund and American Rescue Plan Rural Distribution Frequently Asked Questions, AbleLight is required to maintain adequate documentation to substantiate that program funds were used for health care-related expenses attributable to coronavirus or COVID-19. Statement of Condition: AbleLight's processes and controls did not ensure sufficient supporting documentation on certain expenses charged to the federal program was obtained and retained. Questioned Costs: The amount of known questioned costs totaled $650. The projected questioned costs are $26,394. Context: Of forty (40) non-payroll expenditures applied to the program that were tested, three (3) did not have sufficient documentation. Effect: AbleLight was not able to support the compliance with program requirements for a selection of expenses charged to the program. Cause: AbleLight's controls failed to identify and correct the lack of documentation supporting the expenses charged to the program. Recommendation: We recommend management review their processes and controls regarding the purchasing process to ensure that sufficient documentation is obtained and retained to support expenditures. Management Response: Management has evaluated its internal controls and processes around invoice and credit card charge backup documentation. Through new leadership over these functions, a cleaner file structure, and a new ERP system implementation in fiscal year 2024, management is confident weaknesses will be resolved.

Finding 2023-001

Agency: U.S. Department of Health and Human Services Federal Assistance Listing or State ID Number: 93.498, COVID-19 Provider Relief Fund and American Rescue Plan Rural Distribution Criteria: According to the Provider Relief Fund and American Rescue Plan Rural Distribution Frequently Asked Questions, AbleLight is required to maintain adequate documentation to substantiate that program funds were used for health care-related expenses attributable to coronavirus or COVID-19. Statement of Condition: AbleLight's processes and controls did not ensure sufficient supporting documentation on certain expenses charged to the federal program was obtained and retained. Questioned Costs: The amount of known questioned costs totaled $650. The projected questioned costs are $26,394. Context: Of forty (40) non-payroll expenditures applied to the program that were tested, three (3) did not have sufficient documentation. Effect: AbleLight was not able to support the compliance with program requirements for a selection of expenses charged to the program. Cause: AbleLight's controls failed to identify and correct the lack of documentation supporting the expenses charged to the program. Recommendation: We recommend management review their processes and controls regarding the purchasing process to ensure that sufficient documentation is obtained and retained to support expenditures. Management Response: Management has evaluated its internal controls and processes around invoice and credit card charge backup documentation. Through new leadership over these functions, a cleaner file structure, and a new ERP system implementation in fiscal year 2024, management is confident weaknesses will be resolved.