Audit 339764

FY End

2023-12-31

Total Expended

$1.07M

Findings

2

Programs

1

Organization: I&f Incorporated Nfp (IL)

Year: 2023 Accepted: 2025-01-24

Auditor: Icl LLC

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
520210	2023-007	Material Weakness	-	ABHI
1096652	2023-007	Material Weakness	-	ABHI

ALN	Program	Spent	Major	Findings
21.027	Coronavirus State and Local Fiscal Recovery Funds	$1.07M	Yes	1

Contacts

Name	Title	Type
DBB7K12LJVK6	Susan Manuel	Auditee
3123999920	James Hill III	Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Note 1 – Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal award activity of Organization under programs of the federal government for the year ended December 31, 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 Organization, it is not intended to and does not present the financial position, changes in net assets or cash flow of Integrity and Fidelity, NFP. Note 2 – Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the accrual basis of accounting. The Organization has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. There were no federal awards expended for non-cash assistance, insurance or any loans or loan guarantees outstanding at year-end. Of the federal expenditures presented in the Schedule, the Organization did not provide any amounts to subrecipients. De Minimis Rate Used: Y Rate Explanation: There were no federal awards expended for non-cash assistance, insurance or any loans or loan guarantees outstanding at year-end. Of the federal expenditures presented in the Schedule, the Organization did not provide any amounts to subrecipients.

Finding Details

Finding 2023-007

FINDING 2023-007: LACK OF INTERNAL CONTROLS OVER COMPLIANCE (MATERIAL WEAKNESS) Condition The organization lacks sufficient internal controls to ensure compliance with applicable laws, regulations, and policies. Specifically, there are no formalized procedures for monitoring compliance activities, insufficient oversight mechanisms, and inadequate documentation of compliance-related actions. Criteria Government auditing standards require that organizations establish and maintain effective internal controls to ensure compliance with laws, regulations, and policies. Standards such as those outlined in the Federal Internal Control Standards (Green Book) emphasize the need for control activities, monitoring, and documentation to ensure compliance. Cause Although the organization has prepared a Finance and Administrative Policies and Procedures Manual (Effective July 1, 2023), that documents certain internal processes, the organization has not prioritized the development and implementation of a comprehensive compliance management framework for internal controls over compliance. Limited resources, competing priorities and lack of understanding of COSO and Green Book standards have contributed to the absence of adequate internal controls. Effect The lack of internal controls over compliance increases the risk of noncompliance with laws, regulations, and policies. This could result in financial penalties, reputational damage, and loss of funding. Recommendation The organization should design and implement a robust internal control framework for compliance that includes the following: 1. Establishing written policies and procedures for compliance activities. 2. Assigning responsibility for compliance monitoring to a designated individual or team. 3. Implementing regular compliance reviews. 4. Providing training to staff on compliance-related responsibilities. 5. Documenting and maintaining records of compliance activities. Management Response Management concurs with this finding and plans to remediate the finding described above as further explained in the corrective action plan.

Finding 2023-007

FINDING 2023-007: LACK OF INTERNAL CONTROLS OVER COMPLIANCE (MATERIAL WEAKNESS) Condition The organization lacks sufficient internal controls to ensure compliance with applicable laws, regulations, and policies. Specifically, there are no formalized procedures for monitoring compliance activities, insufficient oversight mechanisms, and inadequate documentation of compliance-related actions. Criteria Government auditing standards require that organizations establish and maintain effective internal controls to ensure compliance with laws, regulations, and policies. Standards such as those outlined in the Federal Internal Control Standards (Green Book) emphasize the need for control activities, monitoring, and documentation to ensure compliance. Cause Although the organization has prepared a Finance and Administrative Policies and Procedures Manual (Effective July 1, 2023), that documents certain internal processes, the organization has not prioritized the development and implementation of a comprehensive compliance management framework for internal controls over compliance. Limited resources, competing priorities and lack of understanding of COSO and Green Book standards have contributed to the absence of adequate internal controls. Effect The lack of internal controls over compliance increases the risk of noncompliance with laws, regulations, and policies. This could result in financial penalties, reputational damage, and loss of funding. Recommendation The organization should design and implement a robust internal control framework for compliance that includes the following: 1. Establishing written policies and procedures for compliance activities. 2. Assigning responsibility for compliance monitoring to a designated individual or team. 3. Implementing regular compliance reviews. 4. Providing training to staff on compliance-related responsibilities. 5. Documenting and maintaining records of compliance activities. Management Response Management concurs with this finding and plans to remediate the finding described above as further explained in the corrective action plan.