FAC Explorer

Audit 308350

FY End
2023-06-30
Total Expended
$752,009
Findings
2
Programs
4
Organization: Southern Illinois Center for Independent Living (IL)
Year: 2023 Accepted: 2024-06-07
Auditor: Kerber Eck & Braeckel LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
400235 2023-001 Significant Deficiency - P
976677 2023-001 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
93.369 Acl Independent Living State Grants $409,257 Yes 1
93.432 Acl Centers for Independent Living $177,253 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $119,132 - 0
84.177 Rehabilitation Services_independent Living Services for Older Individuals Who Are Blind $46,367 - 0

Contacts

Name Title Type
HESKM4B7QJA8 Steven Johnson Auditee
6184573318 Anna Guetersloh Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 | BASIS OF PRESENTATION Accounting Policies: 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. De Minimis Rate Used: N Rate Explanation: The auditee uses a rate of 53.85% in accordance with a non-profit rate agreement with the Department of Health and Human Serivces. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Southern Illinois Center for Independent Living under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with 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 Southern Illinois Center for Independent Living, it is not intended to and does not present the financial position, changes in net position, or cash flows of Southern Illinois Center for Independent Living.
Title: NOTE 2 | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: 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. De Minimis Rate Used: N Rate Explanation: The auditee uses a rate of 53.85% in accordance with a non-profit rate agreement with the Department of Health and Human Serivces. 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.
Title: NOTE 3 | SUBRECIPIENTS Accounting Policies: 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. De Minimis Rate Used: N Rate Explanation: The auditee uses a rate of 53.85% in accordance with a non-profit rate agreement with the Department of Health and Human Serivces. As required by Uniform Guidance section 310(b)(5), Southern Illinois Center for Independent Living did not provide any amount of federal funds to subrecipients during fiscal year ended June 30, 2023.
Title: NOTE 4 | INDIRECT COST RATE Accounting Policies: 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. De Minimis Rate Used: N Rate Explanation: The auditee uses a rate of 53.85% in accordance with a non-profit rate agreement with the Department of Health and Human Serivces. The Center has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: NOTE 5 | NON-CASH ASSISTANCE, INSURANCE OR LOANS Accounting Policies: 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. De Minimis Rate Used: N Rate Explanation: The auditee uses a rate of 53.85% in accordance with a non-profit rate agreement with the Department of Health and Human Serivces. As required by Uniform Guidance section 310(b)(6), Southern Illinois Center for Independent Living did not receive or administer any insurance and had no loans or loan guarantees outstanding at year ended June 30, 2023. There was no non-cash assistance received for the fiscal year ended June 30, 2023.

Finding Details

Finding 2023-001
Criteria Entities that receive federal grants or programs are required to know the source of all grants and awards as the requirements of the U.S. Office of Management and Budget’s (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Final Rule (Uniform Guidance). Entities must be able to document the key components of the schedule of expenditures of federal awards. Condition The schedule of expenditures of federal awards provided by management included only the name of the program and amount spent. It did not include key information required (organized by federal program or agency, details of sub-recipients, pass through entities and their number, or CFDA numbers) under Uniform Guidance. In addition, federal funds that were expended in a prior fiscal year were incorrectly included in the schedule provided by management. Context Management has all the information to complete the schedule of federal awards in compliance with the Uniform Guidance but had not compiled it prior to the start of the audit. In addition, notification from one of the granting agencies during the financial audit indicated that the portion of some of the grants considered federal funding had been updated. Cause Southern Illinois Center for Independent Living has not had an audit requirement under Uniform Guidance in several years and therefore the current finance director has not had to previously provide the detailed information previously. Effect The audit firm assisted with compiling all the necessary information to ensure the schedule of federal awards was complete and accurate. In addition, if the error in federal awards had not been discovered, the result could have been inaccurate reporting of federal expenditures. Recommendation We recommend management incorporate proper training and education on the information and amounts that must be outlined in the schedule of federal awards and further we recommend that management prepare the schedule at least annually including in those years when they are not required to have an audit of federal awards under the Uniform Guidance. Management’s Response Management has a corrective action plan in place to address the finding as follows: •Management will prepare the schedule of expenditures of federal awards as part of the year end closing process each year to determine their audit requirements under the Uniform Guidance and provide the schedule to the audit firm during the financial audit process.
Finding 2023-001
Criteria Entities that receive federal grants or programs are required to know the source of all grants and awards as the requirements of the U.S. Office of Management and Budget’s (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Final Rule (Uniform Guidance). Entities must be able to document the key components of the schedule of expenditures of federal awards. Condition The schedule of expenditures of federal awards provided by management included only the name of the program and amount spent. It did not include key information required (organized by federal program or agency, details of sub-recipients, pass through entities and their number, or CFDA numbers) under Uniform Guidance. In addition, federal funds that were expended in a prior fiscal year were incorrectly included in the schedule provided by management. Context Management has all the information to complete the schedule of federal awards in compliance with the Uniform Guidance but had not compiled it prior to the start of the audit. In addition, notification from one of the granting agencies during the financial audit indicated that the portion of some of the grants considered federal funding had been updated. Cause Southern Illinois Center for Independent Living has not had an audit requirement under Uniform Guidance in several years and therefore the current finance director has not had to previously provide the detailed information previously. Effect The audit firm assisted with compiling all the necessary information to ensure the schedule of federal awards was complete and accurate. In addition, if the error in federal awards had not been discovered, the result could have been inaccurate reporting of federal expenditures. Recommendation We recommend management incorporate proper training and education on the information and amounts that must be outlined in the schedule of federal awards and further we recommend that management prepare the schedule at least annually including in those years when they are not required to have an audit of federal awards under the Uniform Guidance. Management’s Response Management has a corrective action plan in place to address the finding as follows: •Management will prepare the schedule of expenditures of federal awards as part of the year end closing process each year to determine their audit requirements under the Uniform Guidance and provide the schedule to the audit firm during the financial audit process.