FAC Explorer

Audit 39402

FY End
2022-06-30
Total Expended
$1.83M
Findings
8
Programs
8
Organization: Lessie Bates Davis Neighborhood House Inc. (IL)
Year: 2022 Accepted: 2023-02-07
Auditor: Kerber Eck & Braeckel LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
42109 2022-001 Significant Deficiency Yes B
42110 2022-001 Significant Deficiency Yes B
42111 2022-002 - - G
42112 2022-001 Significant Deficiency Yes B
618551 2022-001 Significant Deficiency Yes B
618552 2022-001 Significant Deficiency Yes B
618553 2022-002 - - G
618554 2022-001 Significant Deficiency Yes B

Programs

ALN Program Spent Major Findings
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $483,852 - 0
94.006 Americorps $422,029 Yes 2
93.558 Temporary Assistance for Needy Families $253,426 - 0
10.558 Child and Adult Care Food Program $117,454 - 0
93.600 Head Start $90,591 Yes 1
14.850 Public and Indian Housing $57,170 - 0
93.053 Nutrition Services Incentive Program $51,982 - 0
84.425 Education Stabilization Fund $35,683 - 0

Contacts

Name Title Type
CKQQNK1HALF8 Lisa Graves Auditee
6188740777 Gina M. Cochran Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain expenditures are not allowed or are limited to reimbursement. De Minimis Rate Used: Y Rate Explanation: The auditee elected to use the de minimis indirect cost rate of 10%. The accompanying schedule of expenditures of federal awards includes the federal award activity of Lessie Bates Davis Neighborhood House, Inc. (the Neighborhood House) under programs of the federal government for the year ended June 30, 2022. 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 the Neighborhood House, it is not intended and does not present the financial position, changes in net position, or cash flows of the Neighborhood House. Federal awards passed through other government agencies are included on the schedule.
Title: Noncash Assistance, Federal Insurance and Loan/Loan Guarantees Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain expenditures are not allowed or are limited to reimbursement. De Minimis Rate Used: Y Rate Explanation: The auditee elected to use the de minimis indirect cost rate of 10%. The Neighborhood House received $251,574 in local noncash assistance for the AmeriCorps program for the year ended June 30, 2022. The Neighborhood House did not receive any federal guaranteed loans or federal insurance for any of its programs for the year ended June 30, 2022.
Title: Subrecipients Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain expenditures are not allowed or are limited to reimbursement. De Minimis Rate Used: Y Rate Explanation: The auditee elected to use the de minimis indirect cost rate of 10%. The Neighborhood House did not pass any federal awards through to subrecipients during the year ended June 30, 2022.

Finding Details

Finding 2022-001
Federal Program: AmeriCorps, Headstart CFDA No.: 94.006, 93.600 Federal Agency: Corporation for National and Community Service, Department of Health and Human Services Pass-Through Entity: State of Illinois Department of Public Health, State of Illinois Department of Human Services, Southern Illinois University - Edwardsville Award No.: As listed on the Schedule of Expenditures of Federal Awards Award Period: Various Compliance Requirement: allowable costs Criteria: Employee benefits should be distributed equitably to federal programs and other activities, consistent with salary allocation and employee job descriptions. Condition: Certain employees? job descriptions are to work on more than one activity. Employees? salaries were distributed equitably between those different activities. However, the employees? benefits were not distributed equitably. Cause: The source of allocating benefits by activity is the payroll report. The payroll system was not updated to properly reflect the correct allocation of employee benefits. Effect: The request for reimbursements for the federal programs noted above were not correct. Recommendation: We recommend that the payroll report is reviewed to ensure that benefits are allocated appropriately, consistent with salary allocation, based on the employee?s job description.
Finding 2022-001
Federal Program: AmeriCorps, Headstart CFDA No.: 94.006, 93.600 Federal Agency: Corporation for National and Community Service, Department of Health and Human Services Pass-Through Entity: State of Illinois Department of Public Health, State of Illinois Department of Human Services, Southern Illinois University - Edwardsville Award No.: As listed on the Schedule of Expenditures of Federal Awards Award Period: Various Compliance Requirement: allowable costs Criteria: Employee benefits should be distributed equitably to federal programs and other activities, consistent with salary allocation and employee job descriptions. Condition: Certain employees? job descriptions are to work on more than one activity. Employees? salaries were distributed equitably between those different activities. However, the employees? benefits were not distributed equitably. Cause: The source of allocating benefits by activity is the payroll report. The payroll system was not updated to properly reflect the correct allocation of employee benefits. Effect: The request for reimbursements for the federal programs noted above were not correct. Recommendation: We recommend that the payroll report is reviewed to ensure that benefits are allocated appropriately, consistent with salary allocation, based on the employee?s job description.
Finding 2022-002
Federal Program: AmeriCorps CFDA No.: 94.006 Federal Agency: Corporation for National and Community Service Pass-Through Entity: State of Illinois Department of Public Health Award No.: As listed on the Schedule of Expenditures of Federal Awards Award Period: Various Compliance Requirement: Matching, Level of Effort, Earmarking Criteria: Level of services that are funded by AmeriCorps are required to be supplemented. This is satisfied by the aggregate expenditures for the program for the fiscal year must equal or exceed the aggregate expenditures for the program in the previous year, excluding federal assistance provided and any other amounts used to pay the remainder of program costs. Condition: Level of services funded by AmeriCorps were supplemented by the Neighborhood House but not to the extent that they equaled or exceeded the aggregate expenditures for the program in the previous year. Cause: The sources of supplementing the level of services funded by the federal program decreased during the current year due to the remaining effects COVID has had on the nation. Effect: Service provided by the federal program were underfunded, and therefore, were not able to assist as many individuals. Recommendation: We recommend that the funds needed to supplement the level of services funded by AmeriCorps be monitored s that the requirement for aggregate program expenditures in the current fiscal year equals or exceeds aggregate expenditures for the program in the previous year is satisfied.
Finding 2022-001
Federal Program: AmeriCorps, Headstart CFDA No.: 94.006, 93.600 Federal Agency: Corporation for National and Community Service, Department of Health and Human Services Pass-Through Entity: State of Illinois Department of Public Health, State of Illinois Department of Human Services, Southern Illinois University - Edwardsville Award No.: As listed on the Schedule of Expenditures of Federal Awards Award Period: Various Compliance Requirement: allowable costs Criteria: Employee benefits should be distributed equitably to federal programs and other activities, consistent with salary allocation and employee job descriptions. Condition: Certain employees? job descriptions are to work on more than one activity. Employees? salaries were distributed equitably between those different activities. However, the employees? benefits were not distributed equitably. Cause: The source of allocating benefits by activity is the payroll report. The payroll system was not updated to properly reflect the correct allocation of employee benefits. Effect: The request for reimbursements for the federal programs noted above were not correct. Recommendation: We recommend that the payroll report is reviewed to ensure that benefits are allocated appropriately, consistent with salary allocation, based on the employee?s job description.
Finding 2022-001
Federal Program: AmeriCorps, Headstart CFDA No.: 94.006, 93.600 Federal Agency: Corporation for National and Community Service, Department of Health and Human Services Pass-Through Entity: State of Illinois Department of Public Health, State of Illinois Department of Human Services, Southern Illinois University - Edwardsville Award No.: As listed on the Schedule of Expenditures of Federal Awards Award Period: Various Compliance Requirement: allowable costs Criteria: Employee benefits should be distributed equitably to federal programs and other activities, consistent with salary allocation and employee job descriptions. Condition: Certain employees? job descriptions are to work on more than one activity. Employees? salaries were distributed equitably between those different activities. However, the employees? benefits were not distributed equitably. Cause: The source of allocating benefits by activity is the payroll report. The payroll system was not updated to properly reflect the correct allocation of employee benefits. Effect: The request for reimbursements for the federal programs noted above were not correct. Recommendation: We recommend that the payroll report is reviewed to ensure that benefits are allocated appropriately, consistent with salary allocation, based on the employee?s job description.
Finding 2022-001
Federal Program: AmeriCorps, Headstart CFDA No.: 94.006, 93.600 Federal Agency: Corporation for National and Community Service, Department of Health and Human Services Pass-Through Entity: State of Illinois Department of Public Health, State of Illinois Department of Human Services, Southern Illinois University - Edwardsville Award No.: As listed on the Schedule of Expenditures of Federal Awards Award Period: Various Compliance Requirement: allowable costs Criteria: Employee benefits should be distributed equitably to federal programs and other activities, consistent with salary allocation and employee job descriptions. Condition: Certain employees? job descriptions are to work on more than one activity. Employees? salaries were distributed equitably between those different activities. However, the employees? benefits were not distributed equitably. Cause: The source of allocating benefits by activity is the payroll report. The payroll system was not updated to properly reflect the correct allocation of employee benefits. Effect: The request for reimbursements for the federal programs noted above were not correct. Recommendation: We recommend that the payroll report is reviewed to ensure that benefits are allocated appropriately, consistent with salary allocation, based on the employee?s job description.
Finding 2022-002
Federal Program: AmeriCorps CFDA No.: 94.006 Federal Agency: Corporation for National and Community Service Pass-Through Entity: State of Illinois Department of Public Health Award No.: As listed on the Schedule of Expenditures of Federal Awards Award Period: Various Compliance Requirement: Matching, Level of Effort, Earmarking Criteria: Level of services that are funded by AmeriCorps are required to be supplemented. This is satisfied by the aggregate expenditures for the program for the fiscal year must equal or exceed the aggregate expenditures for the program in the previous year, excluding federal assistance provided and any other amounts used to pay the remainder of program costs. Condition: Level of services funded by AmeriCorps were supplemented by the Neighborhood House but not to the extent that they equaled or exceeded the aggregate expenditures for the program in the previous year. Cause: The sources of supplementing the level of services funded by the federal program decreased during the current year due to the remaining effects COVID has had on the nation. Effect: Service provided by the federal program were underfunded, and therefore, were not able to assist as many individuals. Recommendation: We recommend that the funds needed to supplement the level of services funded by AmeriCorps be monitored s that the requirement for aggregate program expenditures in the current fiscal year equals or exceeds aggregate expenditures for the program in the previous year is satisfied.
Finding 2022-001
Federal Program: AmeriCorps, Headstart CFDA No.: 94.006, 93.600 Federal Agency: Corporation for National and Community Service, Department of Health and Human Services Pass-Through Entity: State of Illinois Department of Public Health, State of Illinois Department of Human Services, Southern Illinois University - Edwardsville Award No.: As listed on the Schedule of Expenditures of Federal Awards Award Period: Various Compliance Requirement: allowable costs Criteria: Employee benefits should be distributed equitably to federal programs and other activities, consistent with salary allocation and employee job descriptions. Condition: Certain employees? job descriptions are to work on more than one activity. Employees? salaries were distributed equitably between those different activities. However, the employees? benefits were not distributed equitably. Cause: The source of allocating benefits by activity is the payroll report. The payroll system was not updated to properly reflect the correct allocation of employee benefits. Effect: The request for reimbursements for the federal programs noted above were not correct. Recommendation: We recommend that the payroll report is reviewed to ensure that benefits are allocated appropriately, consistent with salary allocation, based on the employee?s job description.