FAC Explorer

Audit 301814

FY End
2023-06-30
Total Expended
$930,013
Findings
2
Programs
5
Organization: Chicago Association for Retarded Citizens (IL)
Year: 2023 Accepted: 2024-04-01
Auditor: Rsm US

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
391202 2023-001 Significant Deficiency - B
967644 2023-001 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
93.667 Social Services Block Grant $338,955 Yes 1
93.958 Block Grants for Community Mental Health Services $310,245 - 0
93.498 Provider Relief Fund $127,328 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $100,000 - 0
97.036 Disaster Grants Public Assistance - (presidentially Declared Disasters) $53,485 - 0

Contacts

Name Title Type
P4SMKDME8335 Dennis James Auditee
3125064807 Craig Wories 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: N/A The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Envision Unlimited under programs of the federal government for the year ended June 30, 2023. The information in this 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Envision Unlimited, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Envision Unlimited. There were no federal awards expended for non-cash assistance, insurance or any loans or loan guarantees outstanding at year-end, related to expenditures of federal awards.
Title: Summary of Significant Accounting Polices 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: N/A 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Indirect Cost Rate 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: N/A Envision Unlimited has elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance
Title: Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution, ALN 93.498 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: N/A For the federal awards related to the Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution (ALN 93.498) program, the U.S. Department of Health and Human Services (HHS) has indicated the amounts on the schedule be reported corresponding to reporting requirements of the Health Resources and Services Administration (HRSA) PRF Reporting Portal. Payments from HHS for PRF are assigned to “Payment Received Periods” (each, a Period) based upon the date each payment from the PRF was received. Each Period has a specified Period of Availability and timing of reporting requirements. Entities report into the HRSA PRF Reporting Portal after each Period’s deadline to use the funds (i.e., after the end of the Period of Availability). The accompanying Schedule includes $127,328 of Period 4 distributions received between July 1, 2021 and December 31, 2021. The Period 4 distributions have been reported by Envision Unlimited in the HRSA PRF Reporting Portal as used during the corresponding Period of Availability in accordance with guidance from HHS. These amounts were recognized as revenue within Fees and Grants from Governmental Agencies – Department of Human Services is Envision Unlimited’s consolidated financial statements for the year ended June 30, 2022.
Title: Disaster Grants – Public Assistance (Presidentially Declared Disasters), ALN 97.036 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: N/A After a Presidential-Declared Disaster, FEMA provides a Public Assistance Grant to reimburse eligible costs associated with repair, replacement, or restoration of disaster damaged facilities. Nonfederal entities must record expenditures on the SEFA when 1) FEMA has approved the nonfederal entity’s project worksheet, and 2) the nonfederal entity has incurred eligible expenditures. For the fiscal year ended June 30, 2023, a total of $53,485 for approved eligible expenditures was included on the SEFA under ALN 97.036, which all represented costs incurred in prior fiscal years that were approved by FEMA in the current fiscal year.

Finding Details

Finding 2023-001
III. Federal Award Findings and Questioned Costs Finding 2023-001: Certification over payroll cost allocation Federal Grantor U.S. Department of Health and Human Services Pass-Through Grantor Illinois Department of Human Services Federal Assistance Listing Number ALN: 93.667 Program Title Social Services Block Grant Contract Number FSCWJ00302 Award Year 2022-2023 Criteria 2 CFR 200.430(i) Standards for Documentation of Personnel Expenses (1) Charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Budget estimates (i.e., estimates determined before the services are performed) alone do not qualify as support for charges to federal awards, but may be used for interim accounting purposes, provided that the non-federal entity's system of internal controls includes processes to review after-the-fact interim charges made to a federal award based on budget estimates. All necessary adjustment must be made such that the final amount charged to the federal award is accurate, allowable, and properly allocated. Condition Envision Unlimited allocated staff salaries and related fringe benefits to the federal program based on budgeted estimates which were determined before the services were performed. There was no employee certification or documented review of actual time and effort incurred for the payroll costs charged to the grant at the time audit procedures were performed. Subsequently, in December 2023, employee certifications were obtained and reviewed by supervisors for all grant payroll costs charged during the award year and were provided to the auditors. Cause Program directors at Envision Unlimited assert that they are aware of time and effort allocated to this federal program and that informal reviews take place to ensure that actual time and effort incurred does not differ from that which was budgeted and allocated in advance. However, internal controls were not in place to formally certify and document reviews to provide evidence of this process. Effect No adjustments were determined to be necessary. However, insufficient internal controls over time and effort reporting, such as the lack of employee certification or documented review of actual time and effort incurred for the payroll costs charged to the grant, could result in noncompliance with federal regulations and the loss of future federal funding. Questions Costs:No questioned costs were identified. Repeat Finding No Recommendation We recommend that a system be put in place to allow employees whose salaries and related fringe benefits are allocated to federal programs to certify that their actual time and effort does not differ from that which was budgeted and allocated to the program, in advance. This self-certification should be reviewed by and approved by the employees’ direct supervisor to assert that the time and effort allocated is accurate. These certifications and their reviews should take place on, at least, a quarterly basis and be completed in a timely fashion following the end of the related quarter. Views of Responsible Officials Management is in agreement with this finding. See corrective action plan.
Finding 2023-001
III. Federal Award Findings and Questioned Costs Finding 2023-001: Certification over payroll cost allocation Federal Grantor U.S. Department of Health and Human Services Pass-Through Grantor Illinois Department of Human Services Federal Assistance Listing Number ALN: 93.667 Program Title Social Services Block Grant Contract Number FSCWJ00302 Award Year 2022-2023 Criteria 2 CFR 200.430(i) Standards for Documentation of Personnel Expenses (1) Charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Budget estimates (i.e., estimates determined before the services are performed) alone do not qualify as support for charges to federal awards, but may be used for interim accounting purposes, provided that the non-federal entity's system of internal controls includes processes to review after-the-fact interim charges made to a federal award based on budget estimates. All necessary adjustment must be made such that the final amount charged to the federal award is accurate, allowable, and properly allocated. Condition Envision Unlimited allocated staff salaries and related fringe benefits to the federal program based on budgeted estimates which were determined before the services were performed. There was no employee certification or documented review of actual time and effort incurred for the payroll costs charged to the grant at the time audit procedures were performed. Subsequently, in December 2023, employee certifications were obtained and reviewed by supervisors for all grant payroll costs charged during the award year and were provided to the auditors. Cause Program directors at Envision Unlimited assert that they are aware of time and effort allocated to this federal program and that informal reviews take place to ensure that actual time and effort incurred does not differ from that which was budgeted and allocated in advance. However, internal controls were not in place to formally certify and document reviews to provide evidence of this process. Effect No adjustments were determined to be necessary. However, insufficient internal controls over time and effort reporting, such as the lack of employee certification or documented review of actual time and effort incurred for the payroll costs charged to the grant, could result in noncompliance with federal regulations and the loss of future federal funding. Questions Costs:No questioned costs were identified. Repeat Finding No Recommendation We recommend that a system be put in place to allow employees whose salaries and related fringe benefits are allocated to federal programs to certify that their actual time and effort does not differ from that which was budgeted and allocated to the program, in advance. This self-certification should be reviewed by and approved by the employees’ direct supervisor to assert that the time and effort allocated is accurate. These certifications and their reviews should take place on, at least, a quarterly basis and be completed in a timely fashion following the end of the related quarter. Views of Responsible Officials Management is in agreement with this finding. See corrective action plan.