FAC Explorer

Audit 33008

FY End
2022-06-30
Total Expended
$2.87M
Findings
4
Programs
6
Organization: Independent Living Services, Inc. (AR)
Year: 2022 Accepted: 2023-07-04
Auditor: Conner & Sartain PA

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
30533 2022-001 - - L
30534 2022-001 - - L
606975 2022-001 - - L
606976 2022-001 - - L

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $1.16M Yes 1
10.558 Child and Adult Care Food Program $90,364 - 0
14.182 Section 8 New Construction and Substantial Rehabilitation $86,893 - 0
14.235 Supportive Housing Program $76,875 - 0
84.187 Supported Employment Services for Individuals with the Most Significant Disabilities $58,958 - 0
14.218 Community Development Block Grants/entitlement Grants $7,000 - 0

Contacts

Name Title Type
FXYGKV9G6DW3 Jessica Hutchison Auditee
5013586192 Steve W. Conner Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: NOTE 1 - BASIS OF PRESENTATION: The accompanying schedule of expenditures of federal and state awards includes the federal and state grant activity of Independent Living Services, Inc., Sheltered Living Services, Inc., Independent Living Services of Greenbrier, Inc. and Florentz Estates, Inc. and is presented on the modified accrual basis of accounting. The information in these schedules is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in these schedules may differ from amounts presented in, or used in the preparation of, the basic financial statements.NOTE 2 - SUMMARY OF SIGNIFICANT 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. Independent Living Services, Inc., Sheltered Living Services, Inc., Independent Living Services of Greenbrier, Inc. and Florentz Estates, Inc. have elected to not use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. NOTE 3 ALLOCATION OF AWARDS: The schedules of federal and state awards and related schedules have been prepared by allocating expenditures based upon the Organization's budget allocation percentages. This allocation method was necessary due to the fact the Organization does not separate Title Medicaid income and corresponding expenditures from its other related program revenues and expenditures. Thus, for purposes of the preparation of these schedules, expenditures were reallocated by this method. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. SECTION 8 NEW CONSTRUCTION AND SUBSTANTIAL REHABILITATION (14.182) - Balances outstanding at the end of the audit period were 28104. SECTION 8 NEW CONSTRUCTION AND SUBSTANTIAL REHABILITATION (14.182) - Balances outstanding at the end of the audit period were 7946. SECTION 8 NEW CONSTRUCTION AND SUBSTANTIAL REHABILITATION (14.182) - Balances outstanding at the end of the audit period were 86893. SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES (14.181) - Balances outstanding at the end of the audit period were 956400. SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES (14.181) - Balances outstanding at the end of the audit period were 1155700.

Finding Details

Finding 2022-001
OTHER MATTERS 2022-001 Late Submisson of the Data Collection Form Criteria: In accordance with audit 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,, The ILS Entities are required to submit the Data Collection Form with the Single Audit Resource Center within 9 months subsequent to the fiscal year end of the Entities. Condition: The Data Collection Form for the year ended June 30, 2022, has not been submitted to the Single Audit Resource Center as of the date of issuance of audited financial statements. Effect: The delay in reporting the Data Collection Form results in untimely data information that is relied upon by various Federal Agencies for their purposes, including monitoring of pass thru funding, performance obligations and future funding appropriations. Cause: Financial staffing for The ILS Entities, for the year ended June 30, 2022, was inadequate to record and report financial accounting information, in a timely manner. We determined that this was largely due to financial staff turnover or extended illness among key financial personnel. Recommendation: The ILS Entities need to increase their financial staffing levels, with qualified personnel, to a level that ensures that financial recording and reporting are maintained at a current position, so that the audited financial statements, and resulting Data Collection Form, are completed in a timely manner, for future fiscal years. Questioned Costs: None
Finding 2022-001
OTHER MATTERS 2022-001 Late Submisson of the Data Collection Form Criteria: In accordance with audit 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,, The ILS Entities are required to submit the Data Collection Form with the Single Audit Resource Center within 9 months subsequent to the fiscal year end of the Entities. Condition: The Data Collection Form for the year ended June 30, 2022, has not been submitted to the Single Audit Resource Center as of the date of issuance of audited financial statements. Effect: The delay in reporting the Data Collection Form results in untimely data information that is relied upon by various Federal Agencies for their purposes, including monitoring of pass thru funding, performance obligations and future funding appropriations. Cause: Financial staffing for The ILS Entities, for the year ended June 30, 2022, was inadequate to record and report financial accounting information, in a timely manner. We determined that this was largely due to financial staff turnover or extended illness among key financial personnel. Recommendation: The ILS Entities need to increase their financial staffing levels, with qualified personnel, to a level that ensures that financial recording and reporting are maintained at a current position, so that the audited financial statements, and resulting Data Collection Form, are completed in a timely manner, for future fiscal years. Questioned Costs: None
Finding 2022-001
OTHER MATTERS 2022-001 Late Submisson of the Data Collection Form Criteria: In accordance with audit 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,, The ILS Entities are required to submit the Data Collection Form with the Single Audit Resource Center within 9 months subsequent to the fiscal year end of the Entities. Condition: The Data Collection Form for the year ended June 30, 2022, has not been submitted to the Single Audit Resource Center as of the date of issuance of audited financial statements. Effect: The delay in reporting the Data Collection Form results in untimely data information that is relied upon by various Federal Agencies for their purposes, including monitoring of pass thru funding, performance obligations and future funding appropriations. Cause: Financial staffing for The ILS Entities, for the year ended June 30, 2022, was inadequate to record and report financial accounting information, in a timely manner. We determined that this was largely due to financial staff turnover or extended illness among key financial personnel. Recommendation: The ILS Entities need to increase their financial staffing levels, with qualified personnel, to a level that ensures that financial recording and reporting are maintained at a current position, so that the audited financial statements, and resulting Data Collection Form, are completed in a timely manner, for future fiscal years. Questioned Costs: None
Finding 2022-001
OTHER MATTERS 2022-001 Late Submisson of the Data Collection Form Criteria: In accordance with audit 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,, The ILS Entities are required to submit the Data Collection Form with the Single Audit Resource Center within 9 months subsequent to the fiscal year end of the Entities. Condition: The Data Collection Form for the year ended June 30, 2022, has not been submitted to the Single Audit Resource Center as of the date of issuance of audited financial statements. Effect: The delay in reporting the Data Collection Form results in untimely data information that is relied upon by various Federal Agencies for their purposes, including monitoring of pass thru funding, performance obligations and future funding appropriations. Cause: Financial staffing for The ILS Entities, for the year ended June 30, 2022, was inadequate to record and report financial accounting information, in a timely manner. We determined that this was largely due to financial staff turnover or extended illness among key financial personnel. Recommendation: The ILS Entities need to increase their financial staffing levels, with qualified personnel, to a level that ensures that financial recording and reporting are maintained at a current position, so that the audited financial statements, and resulting Data Collection Form, are completed in a timely manner, for future fiscal years. Questioned Costs: None