FAC Explorer

Audit 347009

FY End
2024-06-30
Total Expended
$1.10M
Findings
4
Programs
5
Organization: Southern Illinois Center for Independent Living (IL)
Year: 2024 Accepted: 2025-03-20
Auditor: Kerber Eck & Braeckel LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
529113 2024-002 Significant Deficiency - B
529114 2024-003 Significant Deficiency - P
1105555 2024-002 Significant Deficiency - B
1105556 2024-003 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
93.369 Acl Independent Living State Grants $391,135 Yes 2
21.027 Coronavirus State and Local Fiscal Recovery Funds $254,072 Yes 0
84.177 Rehabilitation Services Independent Living Services for Older Individuals Who Are Blind $175,368 - 0
93.432 Acl Centers for Independent Living $138,926 - 0
84.421 Disability Innovation Fund (dif) $26,593 - 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, 2024. 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, 2024.
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, 2024. There was no non-cash assistance received for the fiscal year ended June 30, 2024.

Finding Details

Finding 2024-002
Federal Program Name ACL Independent Living State Grants-ACL Title VII-Chapter 1, Part B CFDA # 93.369 Federal Agency Department of Human Services Criteria The Organization is responsible for ensuring all grant expense allocations are in accordance with the set cost allocation policy. Condition Instance 1: Timesheet was filled out incorrectly by an employee and was also approved by management. Instance 2: Entire asset costs were allocated to grant. Context Instance 1: Payroll is allocated based on employee hours worked on each grant. Some employees do not work on grant specific items so their time is recorded elsewhere. Instance 2: Property and equipment should be allocated to the grant through depreciation expense. Questioned Costs Instance 1: We believe this to be a one-time error. All other payroll allocations sampled were allocated correctly. The questioned costs for this occurrence is $600. Instance 2: Four assets were capitalized and allocated to the grant during the year for a total of $13,943. Cause Instance 1: Employee did not properly know how to record time and the error was overlooked by management. Instance 2: The internal cost allocation policy was not consistent with federal guidelines for property and equipment grant expenditures.Effect Instance 1: Incorrect allocation of payroll expense to grant. Instance 2: Cost allocation policy was not followed by management. Recommendation Instance 1: We recommend that employees are trained to properly fill out timesheets and that management goes through a more detailed approval process when approving timesheets. Instance 2: We recommend that management update the Organization’s cost allocation policy. Management’s Response Management agrees with the finding and will take steps to update the Organization’s cost allocation policy to match federal regulations.
Finding 2024-003
Federal Program Name ACL Independent Living State Grants-ACL Title VII-Chapter 1, Part B CFDA # 93.369 Federal Agency Department of Human Services Criteria The Organization is responsible for staying in compliance with equipment and real property management attribute related to the grant. To be considered in compliance, all property and equipment must be maintained in property records and reconciled to a physical inventory. Condition All assets were noted in the property records except for one. The assets was not able to be reconciled to the physical inventory taken during the year. Context Physical inventory is taken once a year at each location by room. We obtained the physical inventory records for the year as well as the master inventory list used to maintain inventory. Cause Management overlooked recording the asset in the master inventory list. Effect The potential negative impact of not following compliance standards for the grant could lead to revocation of the grant. Recommendation We recommend that management takes the time to go through the inventory master list and ensures all assets have been recorded and have reconciled to the physical inventory. Management’s Response Management agrees with this finding.
Finding 2024-002
Federal Program Name ACL Independent Living State Grants-ACL Title VII-Chapter 1, Part B CFDA # 93.369 Federal Agency Department of Human Services Criteria The Organization is responsible for ensuring all grant expense allocations are in accordance with the set cost allocation policy. Condition Instance 1: Timesheet was filled out incorrectly by an employee and was also approved by management. Instance 2: Entire asset costs were allocated to grant. Context Instance 1: Payroll is allocated based on employee hours worked on each grant. Some employees do not work on grant specific items so their time is recorded elsewhere. Instance 2: Property and equipment should be allocated to the grant through depreciation expense. Questioned Costs Instance 1: We believe this to be a one-time error. All other payroll allocations sampled were allocated correctly. The questioned costs for this occurrence is $600. Instance 2: Four assets were capitalized and allocated to the grant during the year for a total of $13,943. Cause Instance 1: Employee did not properly know how to record time and the error was overlooked by management. Instance 2: The internal cost allocation policy was not consistent with federal guidelines for property and equipment grant expenditures.Effect Instance 1: Incorrect allocation of payroll expense to grant. Instance 2: Cost allocation policy was not followed by management. Recommendation Instance 1: We recommend that employees are trained to properly fill out timesheets and that management goes through a more detailed approval process when approving timesheets. Instance 2: We recommend that management update the Organization’s cost allocation policy. Management’s Response Management agrees with the finding and will take steps to update the Organization’s cost allocation policy to match federal regulations.
Finding 2024-003
Federal Program Name ACL Independent Living State Grants-ACL Title VII-Chapter 1, Part B CFDA # 93.369 Federal Agency Department of Human Services Criteria The Organization is responsible for staying in compliance with equipment and real property management attribute related to the grant. To be considered in compliance, all property and equipment must be maintained in property records and reconciled to a physical inventory. Condition All assets were noted in the property records except for one. The assets was not able to be reconciled to the physical inventory taken during the year. Context Physical inventory is taken once a year at each location by room. We obtained the physical inventory records for the year as well as the master inventory list used to maintain inventory. Cause Management overlooked recording the asset in the master inventory list. Effect The potential negative impact of not following compliance standards for the grant could lead to revocation of the grant. Recommendation We recommend that management takes the time to go through the inventory master list and ensures all assets have been recorded and have reconciled to the physical inventory. Management’s Response Management agrees with this finding.