FAC Explorer

Audit 317614

FY End
2023-06-30
Total Expended
$801,737
Findings
4
Programs
2
Organization: A & E Association, Inc. 071-Hd092 (IL)
Year: 2023 Accepted: 2024-08-21
Auditor: Sikich CPA LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
484713 2023-002 Material Weakness - E
484714 2023-002 Material Weakness - E
1061155 2023-002 Material Weakness - E
1061156 2023-002 Material Weakness - E

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $683,800 Yes 1
14.181 Supportive Housing for Persons with Disabilities (rental Assistance Payments) $117,937 Yes 1

Contacts

Name Title Type
JBNZJWMA5117 Frances Baker Auditee
6309664001 Ray Krouse Auditor
No contacts on file

Notes to SEFA

Title: SECTION 811 CAPITAL ADVANCE Accounting Policies: The schedule of expenditures of federal awards 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 A&E Association, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of A&E Association, Inc. 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: N Rate Explanation: They also did not elect to use the 10% federal de minimis indirect cost rate. A&E Association, Inc.’s capital advance was funded in prior years and is subject to continuing compliance requirements. The amount has not changed for the year ended June 30, 2023.
Title: OTHER INFORMATION Accounting Policies: The schedule of expenditures of federal awards 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 A&E Association, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of A&E Association, Inc. 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: N Rate Explanation: They also did not elect to use the 10% federal de minimis indirect cost rate. A&E Association, Inc. did not receive any federal noncash assistance or provide any funding to subrecipients. They also did not have any federal insurance.

Finding Details

Finding 2023-002
2023-002 Material Weakness Related to Eligibility - Missing Documentation Criteria: Internal controls are required to be in place to ensure proper procedures are being followed and the Project is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Condition: During the eligibility testing of the audit, the following deficiencies were identified – certain tenant files are not kept on file within the required compliance timeframe. We consider this finding to be a material weakness with the Eligibility Compliance Requirement. Effect: The Project is not in compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistant provided. Cause: The Project experienced operational challenge and staffing transition to outsourced accountants during the period of audit. Recommendation: The Project should consider reevaluating their established procedures and controls currently in place to ensure full compliance in regard to eligibility and the timeliness of proper tenant files. The Project needs to correct the deficiencies noted in the tested files. Views of Responsible Officials: Management agrees with the findings and a response is included in the Corrective Action Plan.
Finding 2023-002
2023-002 Material Weakness Related to Eligibility - Missing Documentation Criteria: Internal controls are required to be in place to ensure proper procedures are being followed and the Project is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Condition: During the eligibility testing of the audit, the following deficiencies were identified – certain tenant files are not kept on file within the required compliance timeframe. We consider this finding to be a material weakness with the Eligibility Compliance Requirement. Effect: The Project is not in compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistant provided. Cause: The Project experienced operational challenge and staffing transition to outsourced accountants during the period of audit. Recommendation: The Project should consider reevaluating their established procedures and controls currently in place to ensure full compliance in regard to eligibility and the timeliness of proper tenant files. The Project needs to correct the deficiencies noted in the tested files. Views of Responsible Officials: Management agrees with the findings and a response is included in the Corrective Action Plan.
Finding 2023-002
2023-002 Material Weakness Related to Eligibility - Missing Documentation Criteria: Internal controls are required to be in place to ensure proper procedures are being followed and the Project is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Condition: During the eligibility testing of the audit, the following deficiencies were identified – certain tenant files are not kept on file within the required compliance timeframe. We consider this finding to be a material weakness with the Eligibility Compliance Requirement. Effect: The Project is not in compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistant provided. Cause: The Project experienced operational challenge and staffing transition to outsourced accountants during the period of audit. Recommendation: The Project should consider reevaluating their established procedures and controls currently in place to ensure full compliance in regard to eligibility and the timeliness of proper tenant files. The Project needs to correct the deficiencies noted in the tested files. Views of Responsible Officials: Management agrees with the findings and a response is included in the Corrective Action Plan.
Finding 2023-002
2023-002 Material Weakness Related to Eligibility - Missing Documentation Criteria: Internal controls are required to be in place to ensure proper procedures are being followed and the Project is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Condition: During the eligibility testing of the audit, the following deficiencies were identified – certain tenant files are not kept on file within the required compliance timeframe. We consider this finding to be a material weakness with the Eligibility Compliance Requirement. Effect: The Project is not in compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistant provided. Cause: The Project experienced operational challenge and staffing transition to outsourced accountants during the period of audit. Recommendation: The Project should consider reevaluating their established procedures and controls currently in place to ensure full compliance in regard to eligibility and the timeliness of proper tenant files. The Project needs to correct the deficiencies noted in the tested files. Views of Responsible Officials: Management agrees with the findings and a response is included in the Corrective Action Plan.