Audit 355335

FY End
2023-12-31
Total Expended
$3.06M
Findings
6
Programs
16
Organization: Illuminate Colorado (CO)
Year: 2023 Accepted: 2025-05-02
Auditor: Hinkle & Company

Organization Exclusion Status:

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Contacts

Name Title Type
NYL1XHHDXLQ1 Jade Woodard Auditee
3034133460 Jim Hinkle Auditor
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Notes to SEFA

Title: Basis of Presentation 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. De Minimis Rate Used: N Rate Explanation: Illuminate uses a % of Modified Total Direct costs The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal awards activity of Illuminate Colorado under programs for 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 Illuminate Colorado, it is not intended to and does not present the financial position, changes in net position, or cash flows of Illuminate Colorado.
Title: Summary of Significant Accounting Policies 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. De Minimis Rate Used: N Rate Explanation: Illuminate uses a % of Modified Total Direct costs 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.

Finding Details

Federal Program: Assistance Listing #93.590 - Community-based Child Abuse Prevention Grant Program Assistance Listing #93.912 - Rural Communities Opioid Response Program Criteria: Non-federal entities must minimize the time elapsing between the transfer of funds from the US Treasury or pass-through entity and disbursement by the non-federal entity for direct program or project costs and the proportionate share of allowable indirect costs, whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means (2 CFR section 200.305(b)). Condition: Illuminate Colorado has established a policy to time Federal drawdown requests to ensure that Federal cash on hand is sufficient to be disbursed to third party vendors within 10 days of receipt. 2 out of 49 program disbursements to external vendors were made 79 to 90 days after receipt of funds for Community-based Child Abuse Prevention Grant program. 32 out of 46 program disbursements to external vendors were made 14 to 186 days after receipt of funds for Rural Communities Opioid Response program. Questioned Costs: None. Cause and Effect: Illuminate Colorado experienced cashflow issues during 2023 resulting in usage of program receipts for other programs. In addition, vendors utilized for direct Federal assistance programs were not identified and prioritized for federal drawdown receipts. As a result, Illuminate Colorado did not minimize the time elapsing between the drawdown and transfer of funds from the US Treasury and disbursement by the non-federal entity for direct program or project costs. Recommendation: Since Illuminate Colorado is a direct recipient of federal program funds, we recommend Illuminate Colorado identify and pay external vendors participating in this program within 10 days of receipt of program funds in accordance with its financial policies and procedures. In addition, non-program cash flow should be increased to allow enough working capital to disburse program funds to external vendors utilized for this program. Management’s Response: Illuminate Colorado has improved invoicing procedures to ensure timely submission of invoices across the board to minimize time elapsed between submission of invoices to funders and reimbursement of those invoices. In addition, Illuminate Colorado has been seeking increased working capital via a larger line of credit or other sources to address cash flow issues. Finally, Illuminate Colorado is in process of developing a Standard Operating Procedure to ensure consistent identification of vendors utilized for direct Federal assistance programs in order to prioritize payment of those vendors with federal drawdown receipts.
Federal Program: Assistance Listing #93.590 - Community-based Child Abuse Prevention Grant Program Assistance Listing #93.912 - Rural Communities Opioid Response Program Criteria: Non-federal entities must minimize the time elapsing between the transfer of funds from the US Treasury or pass-through entity and disbursement by the non-federal entity for direct program or project costs and the proportionate share of allowable indirect costs, whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means (2 CFR section 200.305(b)). Condition: Illuminate Colorado has established a policy to time Federal drawdown requests to ensure that Federal cash on hand is sufficient to be disbursed to third party vendors within 10 days of receipt. 2 out of 49 program disbursements to external vendors were made 79 to 90 days after receipt of funds for Community-based Child Abuse Prevention Grant program. 32 out of 46 program disbursements to external vendors were made 14 to 186 days after receipt of funds for Rural Communities Opioid Response program. Questioned Costs: None. Cause and Effect: Illuminate Colorado experienced cashflow issues during 2023 resulting in usage of program receipts for other programs. In addition, vendors utilized for direct Federal assistance programs were not identified and prioritized for federal drawdown receipts. As a result, Illuminate Colorado did not minimize the time elapsing between the drawdown and transfer of funds from the US Treasury and disbursement by the non-federal entity for direct program or project costs. Recommendation: Since Illuminate Colorado is a direct recipient of federal program funds, we recommend Illuminate Colorado identify and pay external vendors participating in this program within 10 days of receipt of program funds in accordance with its financial policies and procedures. In addition, non-program cash flow should be increased to allow enough working capital to disburse program funds to external vendors utilized for this program. Management’s Response: Illuminate Colorado has improved invoicing procedures to ensure timely submission of invoices across the board to minimize time elapsed between submission of invoices to funders and reimbursement of those invoices. In addition, Illuminate Colorado has been seeking increased working capital via a larger line of credit or other sources to address cash flow issues. Finally, Illuminate Colorado is in process of developing a Standard Operating Procedure to ensure consistent identification of vendors utilized for direct Federal assistance programs in order to prioritize payment of those vendors with federal drawdown receipts.
Federal Program: Assistance Listing #93.912 - Rural Communities Opioid Response Program Criteria: In accordance with the Federal Funding Accountability and Transparency Act (Pub. L. No. 109-282), as amended by Section 6202 of Pub. L. No. 110-252, that are codified in 2 CFR Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Condition: Illuminate Colorado was a direct recipient of Rural Communities Opioid Response Program funds. Illuminate Colorado made first-tier subawards of more than $30,000 to two subrecipients to carry out part of the Rural Communities Opioid Response Program These firsttier subawards were not reported to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Questioned Costs: None. Cause and Effect: Primary Project Director and Primary Program Manager assigned to this grant were both out on parental leave during Q4 of 2023 when this Federal Grant was being initiated internally. Back up personnel assigned to provide coverage during the leave and review the terms and conditions of the award did not identify the Federal Funding Accountability and Transparency Act Persons reporting requirements. Recommendation: We recommend Illuminate Colorado communicate Federal Funding Accountability and Transparency Act reporting requirements to program management. This can be communicated by flowcharting/decision tree. Management’s Response: Illuminate Colorado has developed a new process for initiating federal grants that includes a review of Terms and Conditions by multiple individuals to ensure all required Terms and Conditions are identified and implemented. This process includes documentation of compliance with requirements for subrecipients.
Federal Program: Assistance Listing #93.590 - Community-based Child Abuse Prevention Grant Program Assistance Listing #93.912 - Rural Communities Opioid Response Program Criteria: Non-federal entities must minimize the time elapsing between the transfer of funds from the US Treasury or pass-through entity and disbursement by the non-federal entity for direct program or project costs and the proportionate share of allowable indirect costs, whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means (2 CFR section 200.305(b)). Condition: Illuminate Colorado has established a policy to time Federal drawdown requests to ensure that Federal cash on hand is sufficient to be disbursed to third party vendors within 10 days of receipt. 2 out of 49 program disbursements to external vendors were made 79 to 90 days after receipt of funds for Community-based Child Abuse Prevention Grant program. 32 out of 46 program disbursements to external vendors were made 14 to 186 days after receipt of funds for Rural Communities Opioid Response program. Questioned Costs: None. Cause and Effect: Illuminate Colorado experienced cashflow issues during 2023 resulting in usage of program receipts for other programs. In addition, vendors utilized for direct Federal assistance programs were not identified and prioritized for federal drawdown receipts. As a result, Illuminate Colorado did not minimize the time elapsing between the drawdown and transfer of funds from the US Treasury and disbursement by the non-federal entity for direct program or project costs. Recommendation: Since Illuminate Colorado is a direct recipient of federal program funds, we recommend Illuminate Colorado identify and pay external vendors participating in this program within 10 days of receipt of program funds in accordance with its financial policies and procedures. In addition, non-program cash flow should be increased to allow enough working capital to disburse program funds to external vendors utilized for this program. Management’s Response: Illuminate Colorado has improved invoicing procedures to ensure timely submission of invoices across the board to minimize time elapsed between submission of invoices to funders and reimbursement of those invoices. In addition, Illuminate Colorado has been seeking increased working capital via a larger line of credit or other sources to address cash flow issues. Finally, Illuminate Colorado is in process of developing a Standard Operating Procedure to ensure consistent identification of vendors utilized for direct Federal assistance programs in order to prioritize payment of those vendors with federal drawdown receipts.
Federal Program: Assistance Listing #93.590 - Community-based Child Abuse Prevention Grant Program Assistance Listing #93.912 - Rural Communities Opioid Response Program Criteria: Non-federal entities must minimize the time elapsing between the transfer of funds from the US Treasury or pass-through entity and disbursement by the non-federal entity for direct program or project costs and the proportionate share of allowable indirect costs, whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means (2 CFR section 200.305(b)). Condition: Illuminate Colorado has established a policy to time Federal drawdown requests to ensure that Federal cash on hand is sufficient to be disbursed to third party vendors within 10 days of receipt. 2 out of 49 program disbursements to external vendors were made 79 to 90 days after receipt of funds for Community-based Child Abuse Prevention Grant program. 32 out of 46 program disbursements to external vendors were made 14 to 186 days after receipt of funds for Rural Communities Opioid Response program. Questioned Costs: None. Cause and Effect: Illuminate Colorado experienced cashflow issues during 2023 resulting in usage of program receipts for other programs. In addition, vendors utilized for direct Federal assistance programs were not identified and prioritized for federal drawdown receipts. As a result, Illuminate Colorado did not minimize the time elapsing between the drawdown and transfer of funds from the US Treasury and disbursement by the non-federal entity for direct program or project costs. Recommendation: Since Illuminate Colorado is a direct recipient of federal program funds, we recommend Illuminate Colorado identify and pay external vendors participating in this program within 10 days of receipt of program funds in accordance with its financial policies and procedures. In addition, non-program cash flow should be increased to allow enough working capital to disburse program funds to external vendors utilized for this program. Management’s Response: Illuminate Colorado has improved invoicing procedures to ensure timely submission of invoices across the board to minimize time elapsed between submission of invoices to funders and reimbursement of those invoices. In addition, Illuminate Colorado has been seeking increased working capital via a larger line of credit or other sources to address cash flow issues. Finally, Illuminate Colorado is in process of developing a Standard Operating Procedure to ensure consistent identification of vendors utilized for direct Federal assistance programs in order to prioritize payment of those vendors with federal drawdown receipts.
Federal Program: Assistance Listing #93.912 - Rural Communities Opioid Response Program Criteria: In accordance with the Federal Funding Accountability and Transparency Act (Pub. L. No. 109-282), as amended by Section 6202 of Pub. L. No. 110-252, that are codified in 2 CFR Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Condition: Illuminate Colorado was a direct recipient of Rural Communities Opioid Response Program funds. Illuminate Colorado made first-tier subawards of more than $30,000 to two subrecipients to carry out part of the Rural Communities Opioid Response Program These firsttier subawards were not reported to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Questioned Costs: None. Cause and Effect: Primary Project Director and Primary Program Manager assigned to this grant were both out on parental leave during Q4 of 2023 when this Federal Grant was being initiated internally. Back up personnel assigned to provide coverage during the leave and review the terms and conditions of the award did not identify the Federal Funding Accountability and Transparency Act Persons reporting requirements. Recommendation: We recommend Illuminate Colorado communicate Federal Funding Accountability and Transparency Act reporting requirements to program management. This can be communicated by flowcharting/decision tree. Management’s Response: Illuminate Colorado has developed a new process for initiating federal grants that includes a review of Terms and Conditions by multiple individuals to ensure all required Terms and Conditions are identified and implemented. This process includes documentation of compliance with requirements for subrecipients.