FAC Explorer

Audit 324851

FY End
2023-12-31
Total Expended
$934,094
Findings
4
Programs
4
Organization: Reset to Success Foundation, Inc. (IL)
Year: 2023 Accepted: 2024-10-16
Auditor: Stopp & Vanhoy CPAS and Business Advisors LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
502900 2023-001 Significant Deficiency - P
502901 2023-002 Significant Deficiency - L
1079342 2023-001 Significant Deficiency - P
1079343 2023-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
17.285 Registered Apprenticeship $801,732 Yes 2
17.278 Wioa Dislocated Worker Formula Grants $50,361 - 0
17.259 Wioa Youth Activities $42,241 - 0
17.258 Wioa Adult Program $39,760 - 0

Contacts

Name Title Type
HH4YXJVCHGP9 Sulbrena Day Auditee
6182136539 Mollie Malone, Cpa, Cgfm Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Purpose of Schedule and Reporting Entity: The accompanying Schedule of Expenditures of Federal Awards has been prepared to comply with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). This Uniform Guidance requires a schedule that provides total federal awards expended for each federal program and the assistance listing number or other identifying number when the assistance listing number is not available. This schedule includes all federal awards administered by the Reset to Success Foundation, Inc. d/b/a Midwest Career Source. Basis of Presentation: The Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards includes these definitions, which govern the contents of the schedule: Federal financial assistance means assistance that non-Federal entities receive or administer in the form of grants, loans, loan guarantees, property (including donated surplus property), cooperative agreements, interest subsidies, insurance, food commodities, direct appropriations, and other assistance, but does not include amounts received as reimbursement for services rendered to individuals. Federal award means Federal financial assistance and Federal cost-reimbursement contracts that non-Federal entities receive directly from Federal awarding agencies or indirectly from pass-through entities. It does not include procurement contracts, under grants or contracts, used to buy goods or services from vendors. Because the Schedule presents only a selected portion of operations of the Reset to Success Foundation, Inc. d/b/a Midwest Career Source, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Reset to Success Foundation, Inc. d/b/a Midwest Career Source. Basis of Accounting: The accompanying Schedule of Expenditures of Federal Awards is presented on the modified cash basis of accounting. Such expenditures are recognized following 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the financial statements. De Minimis Rate Used: N Rate Explanation: The entity does not request reimbursement of administrative costs under any federal award.

Finding Details

Finding 2023-001
Federal Grantor: U.S. Department of Labor; Pass-through Grantor: Illinois Department of Commerce; Federal Assistance Listing No.: All Programs; Program Title: All Programs. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires auditees to prepare an accurate Schedule of Expenditures of Federal Awards containing awards expended, assistance listing title and number, award number, name of the Federal agency, name of pass-through entity, and awards paid to subrecipients. Condition: During our audit, we noted that the Schedule of Expenditures of Federal Awards was not prepared with all of the required elements in accordance with 2 CFR 200. The Organization's current internal controls over preparation of the Schedule of Expenditures of Federal Awards are not sufficient enough to ensure correct reporting. Cause: Management failed to follow reporting requirements related to the Schedule of Expenditures of Federal Awards as outlined in 2 CFR 200. Effect: An accurate Schedule of Expenditure of Federal Awards was not prepared by management. Recommendation: We recommend management develop internal controls over reporting and consult with external consultants, if necessary, to ensure an accurate Schedule of Expenditures of Federal Awards is prepared. Management's Response: We will engage with an outside consultant/independent CPA firm to review and manage the internal control process. This corrective action will be implemented by December 31, 2024 by the Administrator and Board.
Finding 2023-002
Federal Grantor: U.S. Department of Labor; Pass-through Grantor: Not applicable.; Federal Assistance Listing No.: 17.285; Program Title: Registered Apprenticeship; Award Year: 2023; Compliance Requirement: Reporting; Known Questioned Costs: Not applicable. Criteria: As outlined in the Funding Opportunity Announcement, Funding Opportunity Number FOA-ETA-23.09 for the Registered Apprenticeship program, management is required to submit Quarterly Financial Reports utilizing Form ETA-9130. These reports are due by the 15th day of the second month after each calendar-year quarter. Federal expenditures must be reported on an accrual basis. If the recipient's accounting system is not on an accrual basis, the recipient must develop and report such accrual information through best estimates based on an analysis of documentation on hand. Condition: During our audit, we noted the Quarterly Financial Reports prepared for 2nd Quarter, 3rd Quarter, and 4th Quarter were prepared with errors due to timing of expenses requested for reimbursement. Cause: Management did not develop an adequate system for accounting and reporting of expenditures on the accrual basis as required by the instructions for Form ETA-9130. Effect: Reports prepared for 2nd Quarter, 3rd Quarter, and 4th Quarter contained inaccuracies. Recommendation: We recommend management develop an adequate system for accounting and reporting expenditures on the accrual basis of accounting as required by the instructions for Form ETA-9130. Additionally, we recommend management develop internal controls sufficient enough to ensure that the processes for accounting and reporting expenditures on an accrual basis of accounting are designed and operating effectively. Management's Response: We will engage with an outside consultant/independent CPA firm to review and manage the internal control process. This corrective action will be implemented by December 31, 2024 by the Administrator and Board.
Finding 2023-001
Federal Grantor: U.S. Department of Labor; Pass-through Grantor: Illinois Department of Commerce; Federal Assistance Listing No.: All Programs; Program Title: All Programs. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires auditees to prepare an accurate Schedule of Expenditures of Federal Awards containing awards expended, assistance listing title and number, award number, name of the Federal agency, name of pass-through entity, and awards paid to subrecipients. Condition: During our audit, we noted that the Schedule of Expenditures of Federal Awards was not prepared with all of the required elements in accordance with 2 CFR 200. The Organization's current internal controls over preparation of the Schedule of Expenditures of Federal Awards are not sufficient enough to ensure correct reporting. Cause: Management failed to follow reporting requirements related to the Schedule of Expenditures of Federal Awards as outlined in 2 CFR 200. Effect: An accurate Schedule of Expenditure of Federal Awards was not prepared by management. Recommendation: We recommend management develop internal controls over reporting and consult with external consultants, if necessary, to ensure an accurate Schedule of Expenditures of Federal Awards is prepared. Management's Response: We will engage with an outside consultant/independent CPA firm to review and manage the internal control process. This corrective action will be implemented by December 31, 2024 by the Administrator and Board.
Finding 2023-002
Federal Grantor: U.S. Department of Labor; Pass-through Grantor: Not applicable.; Federal Assistance Listing No.: 17.285; Program Title: Registered Apprenticeship; Award Year: 2023; Compliance Requirement: Reporting; Known Questioned Costs: Not applicable. Criteria: As outlined in the Funding Opportunity Announcement, Funding Opportunity Number FOA-ETA-23.09 for the Registered Apprenticeship program, management is required to submit Quarterly Financial Reports utilizing Form ETA-9130. These reports are due by the 15th day of the second month after each calendar-year quarter. Federal expenditures must be reported on an accrual basis. If the recipient's accounting system is not on an accrual basis, the recipient must develop and report such accrual information through best estimates based on an analysis of documentation on hand. Condition: During our audit, we noted the Quarterly Financial Reports prepared for 2nd Quarter, 3rd Quarter, and 4th Quarter were prepared with errors due to timing of expenses requested for reimbursement. Cause: Management did not develop an adequate system for accounting and reporting of expenditures on the accrual basis as required by the instructions for Form ETA-9130. Effect: Reports prepared for 2nd Quarter, 3rd Quarter, and 4th Quarter contained inaccuracies. Recommendation: We recommend management develop an adequate system for accounting and reporting expenditures on the accrual basis of accounting as required by the instructions for Form ETA-9130. Additionally, we recommend management develop internal controls sufficient enough to ensure that the processes for accounting and reporting expenditures on an accrual basis of accounting are designed and operating effectively. Management's Response: We will engage with an outside consultant/independent CPA firm to review and manage the internal control process. This corrective action will be implemented by December 31, 2024 by the Administrator and Board.