FAC Explorer

Audit 300324

FY End
2023-06-30
Total Expended
$24.34M
Findings
6
Programs
20
Organization: The Thresholds and Affiliated Organizations (IL)
Year: 2023 Accepted: 2024-03-29
Auditor: Plante & Moran PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
389331 2023-001 Material Weakness - L
389332 2023-002 Material Weakness - L
389333 2023-002 Material Weakness - L
965773 2023-001 Material Weakness - L
965774 2023-002 Material Weakness - L
965775 2023-002 Material Weakness - L

Programs

ALN Program Spent Major Findings
93.958 Block Grants for Community Mental Health Services $1.55M - 0
93.498 Covid-19 - Provider Relief Fund and American Rescue Plan Rural Distribution $1.42M Yes 1
93.150 Projects for Assistance in Transition From Homelessness (path) $840,733 - 0
14.181 Supportive Housing for Persons with Disabilities $732,797 Yes 0
14.157 Supportive Housing for the Elderly $423,250 - 0
14.195 Section 8 Housing Assistance Payments Program $361,664 - 0
93.696 Certified Community Behavioral Health Clinic Expansion Grants $337,624 Yes 0
21.027 Covid-19 - Coronavirus State and Local Fiscal Recovery Funds $200,000 - 0
93.136 Injury Prevention and Control Research and State and Community Based Programs $197,459 - 0
14.267 Continuum of Care Program $143,693 Yes 0
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $140,465 - 0
16.745 Criminal and Juvenile Justice and Mental Health Collaboration Program $111,024 - 0
16.838 Comprehensive Opioid Abuse Site-Based Program $79,727 - 0
93.959 Block Grants for Prevention and Treatment of Substance Abuse $71,701 - 0
64.033 Va Supportive Services for Veteran Families Program $57,567 - 0
93.433 Acl National Institute on Disability, Independent Living, and Rehabilitation Research $51,418 - 0
93.242 Mental Health Research Grants $20,526 - 0
14.231 Emergency Solutions Grant Program $7,503 - 0
14.239 Home Investment Partnerships Program $7,027 - 0
14.218 Community Development Block Grants/entitlement Grants $3,094 - 0

Contacts

Name Title Type
MHHKEPDZ5JR7 Al Shoreibah Auditee
7735725262 Toni Diprizio Auditor
No contacts on file

Notes to SEFA

Title: Adjustments and Transfers Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Thresholds and Affiliated Organizations (the “Agency”) under programs of the federal government for the year ended June 30, 2023. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the “Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of the Agency, it is not intended to and does not present the financial position, changes in net assets, functional expenses, or cash flows of the Agency.The Agency's consolidated financial statements include the operations of THI 8 and THI 13. The Schedule excludes those operations because they receive a separate financial statement audit and a separate single audit as required by Uniform Guidance.Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement, except for expenditures related to Assistance Listing Number (ALN) 93.498, Provider Relief Fund (PRF). PRF does not apply the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, and frequently asked questions as outlined in the Compliance Supplement, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, but rather applies the U.S. Department of Health and Human Services’ guidance. The pass through entity identifying numbers are presented where available. The Agency has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs as allowed under Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Agency has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs as allowed under Uniform Guidance. During the year ended June 30, 2023, there were no transfers of grant overpayments.
Title: Noncash Assistance Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Thresholds and Affiliated Organizations (the “Agency”) under programs of the federal government for the year ended June 30, 2023. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the “Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of the Agency, it is not intended to and does not present the financial position, changes in net assets, functional expenses, or cash flows of the Agency.The Agency's consolidated financial statements include the operations of THI 8 and THI 13. The Schedule excludes those operations because they receive a separate financial statement audit and a separate single audit as required by Uniform Guidance.Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement, except for expenditures related to Assistance Listing Number (ALN) 93.498, Provider Relief Fund (PRF). PRF does not apply the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, and frequently asked questions as outlined in the Compliance Supplement, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, but rather applies the U.S. Department of Health and Human Services’ guidance. The pass through entity identifying numbers are presented where available. The Agency has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs as allowed under Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Agency has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs as allowed under Uniform Guidance. The Agency neither received nor disbursed federal awards in the form of nonmonetary assistance for the year ended June 30, 2023, including federal insurances.
Title: Loans Balances Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Thresholds and Affiliated Organizations (the “Agency”) under programs of the federal government for the year ended June 30, 2023. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the “Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of the Agency, it is not intended to and does not present the financial position, changes in net assets, functional expenses, or cash flows of the Agency.The Agency's consolidated financial statements include the operations of THI 8 and THI 13. The Schedule excludes those operations because they receive a separate financial statement audit and a separate single audit as required by Uniform Guidance.Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement, except for expenditures related to Assistance Listing Number (ALN) 93.498, Provider Relief Fund (PRF). PRF does not apply the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, and frequently asked questions as outlined in the Compliance Supplement, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, but rather applies the U.S. Department of Health and Human Services’ guidance. The pass through entity identifying numbers are presented where available. The Agency has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs as allowed under Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Agency has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs as allowed under Uniform Guidance. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. The balances of loans outstanding at June 30, 2023 relates to ALN 14.181, U.S. Department of Housing and Urban Development Supportive Housing for Persons with Disabilities in the amount of $3,903,900.

Finding Details

Finding 2023-001
Assistance Listing, Federal Agency, and Program Name - 93.498, U.S. Department of Health and Human Services (HHS), Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF) Federal Award Identification Number and Year - N/A 2022 Pass through Entity - N/A Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - Per the Provider Relief Fund General and Targeted Distribution Post Payment Notice of Reporting Requirements dated October 27, 2022, recipients may choose to apply PRF payments toward lost revenue using one of three options up to the amount: Option i: of the difference between actual patient care revenues; Option ii: of the difference between budgeted (prior to March 27, 2020) and actual patient care revenues; or Option iii: calculated by any reasonable methodology of estimating revenues Condition - The Agency's controls in place for reporting submissions did not identify Provider Relief Fund General and Targeted Distribution Post Payment Notice of Reporting Requirements guidelines were not followed related to the lost revenue calculations. The Period 4 reporting submission for lost revenue did not follow the acceptable options outlined by HHS. Additionally, the Period 2 reporting submission, completed in the previous year, did not follow the acceptable options. Questioned Costs - None Identification of How Questioned Costs Were Computed N/A, refer to context below for additional information. Context - The Agency was required to submit one portal submission (Period 4), which contained lost revenue amounts during 2023. The Period 4 portal submission for lost revenue did not follow the acceptable options provided by HHS, as noted in the criteria above. The Agency reported to HHS it used option ii (2020 Budgeted Revenue) to calculate its lost revenue included in its portal submissions. However, the budgeted amounts for patient care revenue relating the Agency's fiscal years for 2021, 2022, and 2023 were not approved prior to March 27, 2020; therefore, option ii was not available to be used. The Agency should have selected option iii in its portal submissions. The Agency used the same methodology for the Period 2 portal submission, even though the budgets related to that full Period of Availability were not approved prior to March 27, 2020. As of June 30, 2023, the Agency was only required to complete portal submissions for Period 2 and Period 4. Cause and Effect - Review of the reporting guidance was not effective and led to the selection of a lost revenue methodology that was not available. As a result, the Agency selected an incorrect methodology option (option ii) for reporting lost revenue. Recommendation - We recommend that the Agency implement controls, including levels of review, to ensure that reports are completed and submitted in accordance with the guidelines established by HHS. Views of Responsible Officials and Corrective Action Plan - The Agency agrees option iii should have been used for portal submissions and will implement additional reviews over future award applications.
Finding 2023-002
Assistance Listing, Federal Agency, and Program Name - 93.958 U.S. Department of Health and Human Services, Block Grants for Community Mental Health Services Crisis Care System 93.959 U.S. Department of Health and Human Services, Block Grants for Community Mental Health Services Crisis Care System Federal Award Identification Number and Year - 45CBB04275, 2023 Pass through Entity - Illinois Department of Human Services (IDHS) Finding Type - Material weakness Repeat Finding - No Criteria - In accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200.510(b)(3) the schedule of expenditures of federal awards must provide total Federal awards expended for each individual Federal program and the Assistance Listings Number (ALN). Condition - An award passed through IDHS was not initially classified with the correct assistance listing number on the Schedule of Expenditures of Federal Awards (SEFA) by the Agency. The incorrect ALN was identified during audit procedures and corrected by the Agency. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A, refer to context below for additional information. Context - For one contract received from IDHS, $425,789 was shown as an expenditure under ALN 93.958 rather than ALN 93.959 as provided by IDHS in the confirmation sent to the Agency. Cause and Effect - Controls over review of the SEFA were not effective to identify the correct ALN. A correction was required for the SEFA to show the expenditure with the correct ALN to prevent the SEFA from showing expenditures under the incorrect ALN. Recommendation - We recommend the Agency review its controls over prepration of the SEFA to ensure all expenditures are shown with the correct ALN. Views of Responsible Officials and Planned Corrective Actions - The Agency agrees the expenditures were initially shown with the incorrect ALN and will implement additional review processes.
Finding 2023-002
Assistance Listing, Federal Agency, and Program Name - 93.958 U.S. Department of Health and Human Services, Block Grants for Community Mental Health Services Crisis Care System 93.959 U.S. Department of Health and Human Services, Block Grants for Community Mental Health Services Crisis Care System Federal Award Identification Number and Year - 45CBB04275, 2023 Pass through Entity - Illinois Department of Human Services (IDHS) Finding Type - Material weakness Repeat Finding - No Criteria - In accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200.510(b)(3) the schedule of expenditures of federal awards must provide total Federal awards expended for each individual Federal program and the Assistance Listings Number (ALN). Condition - An award passed through IDHS was not initially classified with the correct assistance listing number on the Schedule of Expenditures of Federal Awards (SEFA) by the Agency. The incorrect ALN was identified during audit procedures and corrected by the Agency. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A, refer to context below for additional information. Context - For one contract received from IDHS, $425,789 was shown as an expenditure under ALN 93.958 rather than ALN 93.959 as provided by IDHS in the confirmation sent to the Agency. Cause and Effect - Controls over review of the SEFA were not effective to identify the correct ALN. A correction was required for the SEFA to show the expenditure with the correct ALN to prevent the SEFA from showing expenditures under the incorrect ALN. Recommendation - We recommend the Agency review its controls over prepration of the SEFA to ensure all expenditures are shown with the correct ALN. Views of Responsible Officials and Planned Corrective Actions - The Agency agrees the expenditures were initially shown with the incorrect ALN and will implement additional review processes.
Finding 2023-001
Assistance Listing, Federal Agency, and Program Name - 93.498, U.S. Department of Health and Human Services (HHS), Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF) Federal Award Identification Number and Year - N/A 2022 Pass through Entity - N/A Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - Per the Provider Relief Fund General and Targeted Distribution Post Payment Notice of Reporting Requirements dated October 27, 2022, recipients may choose to apply PRF payments toward lost revenue using one of three options up to the amount: Option i: of the difference between actual patient care revenues; Option ii: of the difference between budgeted (prior to March 27, 2020) and actual patient care revenues; or Option iii: calculated by any reasonable methodology of estimating revenues Condition - The Agency's controls in place for reporting submissions did not identify Provider Relief Fund General and Targeted Distribution Post Payment Notice of Reporting Requirements guidelines were not followed related to the lost revenue calculations. The Period 4 reporting submission for lost revenue did not follow the acceptable options outlined by HHS. Additionally, the Period 2 reporting submission, completed in the previous year, did not follow the acceptable options. Questioned Costs - None Identification of How Questioned Costs Were Computed N/A, refer to context below for additional information. Context - The Agency was required to submit one portal submission (Period 4), which contained lost revenue amounts during 2023. The Period 4 portal submission for lost revenue did not follow the acceptable options provided by HHS, as noted in the criteria above. The Agency reported to HHS it used option ii (2020 Budgeted Revenue) to calculate its lost revenue included in its portal submissions. However, the budgeted amounts for patient care revenue relating the Agency's fiscal years for 2021, 2022, and 2023 were not approved prior to March 27, 2020; therefore, option ii was not available to be used. The Agency should have selected option iii in its portal submissions. The Agency used the same methodology for the Period 2 portal submission, even though the budgets related to that full Period of Availability were not approved prior to March 27, 2020. As of June 30, 2023, the Agency was only required to complete portal submissions for Period 2 and Period 4. Cause and Effect - Review of the reporting guidance was not effective and led to the selection of a lost revenue methodology that was not available. As a result, the Agency selected an incorrect methodology option (option ii) for reporting lost revenue. Recommendation - We recommend that the Agency implement controls, including levels of review, to ensure that reports are completed and submitted in accordance with the guidelines established by HHS. Views of Responsible Officials and Corrective Action Plan - The Agency agrees option iii should have been used for portal submissions and will implement additional reviews over future award applications.
Finding 2023-002
Assistance Listing, Federal Agency, and Program Name - 93.958 U.S. Department of Health and Human Services, Block Grants for Community Mental Health Services Crisis Care System 93.959 U.S. Department of Health and Human Services, Block Grants for Community Mental Health Services Crisis Care System Federal Award Identification Number and Year - 45CBB04275, 2023 Pass through Entity - Illinois Department of Human Services (IDHS) Finding Type - Material weakness Repeat Finding - No Criteria - In accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200.510(b)(3) the schedule of expenditures of federal awards must provide total Federal awards expended for each individual Federal program and the Assistance Listings Number (ALN). Condition - An award passed through IDHS was not initially classified with the correct assistance listing number on the Schedule of Expenditures of Federal Awards (SEFA) by the Agency. The incorrect ALN was identified during audit procedures and corrected by the Agency. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A, refer to context below for additional information. Context - For one contract received from IDHS, $425,789 was shown as an expenditure under ALN 93.958 rather than ALN 93.959 as provided by IDHS in the confirmation sent to the Agency. Cause and Effect - Controls over review of the SEFA were not effective to identify the correct ALN. A correction was required for the SEFA to show the expenditure with the correct ALN to prevent the SEFA from showing expenditures under the incorrect ALN. Recommendation - We recommend the Agency review its controls over prepration of the SEFA to ensure all expenditures are shown with the correct ALN. Views of Responsible Officials and Planned Corrective Actions - The Agency agrees the expenditures were initially shown with the incorrect ALN and will implement additional review processes.
Finding 2023-002
Assistance Listing, Federal Agency, and Program Name - 93.958 U.S. Department of Health and Human Services, Block Grants for Community Mental Health Services Crisis Care System 93.959 U.S. Department of Health and Human Services, Block Grants for Community Mental Health Services Crisis Care System Federal Award Identification Number and Year - 45CBB04275, 2023 Pass through Entity - Illinois Department of Human Services (IDHS) Finding Type - Material weakness Repeat Finding - No Criteria - In accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200.510(b)(3) the schedule of expenditures of federal awards must provide total Federal awards expended for each individual Federal program and the Assistance Listings Number (ALN). Condition - An award passed through IDHS was not initially classified with the correct assistance listing number on the Schedule of Expenditures of Federal Awards (SEFA) by the Agency. The incorrect ALN was identified during audit procedures and corrected by the Agency. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A, refer to context below for additional information. Context - For one contract received from IDHS, $425,789 was shown as an expenditure under ALN 93.958 rather than ALN 93.959 as provided by IDHS in the confirmation sent to the Agency. Cause and Effect - Controls over review of the SEFA were not effective to identify the correct ALN. A correction was required for the SEFA to show the expenditure with the correct ALN to prevent the SEFA from showing expenditures under the incorrect ALN. Recommendation - We recommend the Agency review its controls over prepration of the SEFA to ensure all expenditures are shown with the correct ALN. Views of Responsible Officials and Planned Corrective Actions - The Agency agrees the expenditures were initially shown with the incorrect ALN and will implement additional review processes.