FAC Explorer

Audit 51194

FY End
2022-03-31
Total Expended
$1.87M
Findings
8
Programs
6
Organization: The Project of the Quad Cities, Inc. (IL)
Year: 2022 Accepted: 2022-11-09
Auditor: Anderson Lower Whitlow PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
47861 2022-001 Significant Deficiency Yes ABCEGJM
47862 2022-002 Significant Deficiency Yes ABCEGJM
47863 2022-001 Significant Deficiency Yes ABCEGJM
47864 2022-002 Significant Deficiency Yes ABCEGJM
624303 2022-001 Significant Deficiency Yes ABCEGJM
624304 2022-002 Significant Deficiency Yes ABCEGJM
624305 2022-001 Significant Deficiency Yes ABCEGJM
624306 2022-002 Significant Deficiency Yes ABCEGJM

Programs

ALN Program Spent Major Findings
93.917 Hiv Care Formula Grants $1.25M Yes 2
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $334,733 - 0
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $38,731 - 0
14.241 Housing Opportunities for Persons with Aids $20,935 - 0
16.575 Crime Victim Assistance $17,605 - 0
93.940 Hiv Prevention Activities_health Department Based $15,410 - 0

Contacts

Name Title Type
D1BEGNRECK79 Holly Parsons Auditee
5635812018 Matt Brumfield Auditor
No contacts on file

Notes to SEFA

Title: Subrecipients Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. Beginning in April 1, 2020, The Project of the Quad Cities, Inc. started providing grant funds to various subrecipients in the State of Illinois and in the State of Iowa. Federal financial assistance provided to a subrecipient is treated as an expenditure when it is paid to the subrecipient. The Project of the Quad Cities, Inc. has certain compliance responsibilities with respect to its subrecipients, including monitoring the subrecipients to help ensure they use the sub-awards as authorized by law, regulations and the provisions of the grant agreements.

Finding Details

Finding 2022-001
2022-001: Segregation of Duties Criteria: Management is responsible for establishing and maintaining effective internal controls. Condition and Context: During our review and testing of internal controls, we noted that certain primary accounting functions or activities of the Organization are performed and/or approved by the same individual. Effect: The Organization?s internal control structure does not result in adequate segregation of duties to prevent losses from employee error and dishonesty. Cause: The Organization has a limited number of office personnel who have direct responsibilities for the recording and reconciling functions in the primary transaction cycles. Identification as a Repeat Findings: This is a repeat finding of 2021-001 and 2020-001. Recommendation: With a limited number of personnel and funds, segregation of duties is difficult. The Organization should continue to review its operating procedures to attempt to obtain the maximum internal control within the limited available resources. The Board should continue to closely monitor and perform periodic oversight of the Organization?s monthly financial activities. Response and Corrective Action Planned: The Project of the Quad Cities has implementing new accounting software which will tighten internal controls with a limited staff. We will apply features in the system that will reduce and eliminate risk to the Organization. The Board of Directors has recruited an experienced professional in the community to serve as Treasurer on the Board. Collaboration will continue with our independent accounting firm to ensure that we are following all appropriate accounting practices. Conclusion: Response accepted
Finding 2022-002
2022-002: Segregation of Duties Department of Health and Human Services: Pass-through Iowa Department of Public Health HIV Care Formula Grants (Ryan White HIV/AIDS Program Part B). CFDA ? 93.917 Pass-through Illinois Department of Public Health HIV Care Formula Grants (Ryan White HIV/AIDS Program Part B). CFDA ? 93.917 See finding 2022-001
Finding 2022-001
2022-001: Segregation of Duties Criteria: Management is responsible for establishing and maintaining effective internal controls. Condition and Context: During our review and testing of internal controls, we noted that certain primary accounting functions or activities of the Organization are performed and/or approved by the same individual. Effect: The Organization?s internal control structure does not result in adequate segregation of duties to prevent losses from employee error and dishonesty. Cause: The Organization has a limited number of office personnel who have direct responsibilities for the recording and reconciling functions in the primary transaction cycles. Identification as a Repeat Findings: This is a repeat finding of 2021-001 and 2020-001. Recommendation: With a limited number of personnel and funds, segregation of duties is difficult. The Organization should continue to review its operating procedures to attempt to obtain the maximum internal control within the limited available resources. The Board should continue to closely monitor and perform periodic oversight of the Organization?s monthly financial activities. Response and Corrective Action Planned: The Project of the Quad Cities has implementing new accounting software which will tighten internal controls with a limited staff. We will apply features in the system that will reduce and eliminate risk to the Organization. The Board of Directors has recruited an experienced professional in the community to serve as Treasurer on the Board. Collaboration will continue with our independent accounting firm to ensure that we are following all appropriate accounting practices. Conclusion: Response accepted
Finding 2022-002
2022-002: Segregation of Duties Department of Health and Human Services: Pass-through Iowa Department of Public Health HIV Care Formula Grants (Ryan White HIV/AIDS Program Part B). CFDA ? 93.917 Pass-through Illinois Department of Public Health HIV Care Formula Grants (Ryan White HIV/AIDS Program Part B). CFDA ? 93.917 See finding 2022-001
Finding 2022-001
2022-001: Segregation of Duties Criteria: Management is responsible for establishing and maintaining effective internal controls. Condition and Context: During our review and testing of internal controls, we noted that certain primary accounting functions or activities of the Organization are performed and/or approved by the same individual. Effect: The Organization?s internal control structure does not result in adequate segregation of duties to prevent losses from employee error and dishonesty. Cause: The Organization has a limited number of office personnel who have direct responsibilities for the recording and reconciling functions in the primary transaction cycles. Identification as a Repeat Findings: This is a repeat finding of 2021-001 and 2020-001. Recommendation: With a limited number of personnel and funds, segregation of duties is difficult. The Organization should continue to review its operating procedures to attempt to obtain the maximum internal control within the limited available resources. The Board should continue to closely monitor and perform periodic oversight of the Organization?s monthly financial activities. Response and Corrective Action Planned: The Project of the Quad Cities has implementing new accounting software which will tighten internal controls with a limited staff. We will apply features in the system that will reduce and eliminate risk to the Organization. The Board of Directors has recruited an experienced professional in the community to serve as Treasurer on the Board. Collaboration will continue with our independent accounting firm to ensure that we are following all appropriate accounting practices. Conclusion: Response accepted
Finding 2022-002
2022-002: Segregation of Duties Department of Health and Human Services: Pass-through Iowa Department of Public Health HIV Care Formula Grants (Ryan White HIV/AIDS Program Part B). CFDA ? 93.917 Pass-through Illinois Department of Public Health HIV Care Formula Grants (Ryan White HIV/AIDS Program Part B). CFDA ? 93.917 See finding 2022-001
Finding 2022-001
2022-001: Segregation of Duties Criteria: Management is responsible for establishing and maintaining effective internal controls. Condition and Context: During our review and testing of internal controls, we noted that certain primary accounting functions or activities of the Organization are performed and/or approved by the same individual. Effect: The Organization?s internal control structure does not result in adequate segregation of duties to prevent losses from employee error and dishonesty. Cause: The Organization has a limited number of office personnel who have direct responsibilities for the recording and reconciling functions in the primary transaction cycles. Identification as a Repeat Findings: This is a repeat finding of 2021-001 and 2020-001. Recommendation: With a limited number of personnel and funds, segregation of duties is difficult. The Organization should continue to review its operating procedures to attempt to obtain the maximum internal control within the limited available resources. The Board should continue to closely monitor and perform periodic oversight of the Organization?s monthly financial activities. Response and Corrective Action Planned: The Project of the Quad Cities has implementing new accounting software which will tighten internal controls with a limited staff. We will apply features in the system that will reduce and eliminate risk to the Organization. The Board of Directors has recruited an experienced professional in the community to serve as Treasurer on the Board. Collaboration will continue with our independent accounting firm to ensure that we are following all appropriate accounting practices. Conclusion: Response accepted
Finding 2022-002
2022-002: Segregation of Duties Department of Health and Human Services: Pass-through Iowa Department of Public Health HIV Care Formula Grants (Ryan White HIV/AIDS Program Part B). CFDA ? 93.917 Pass-through Illinois Department of Public Health HIV Care Formula Grants (Ryan White HIV/AIDS Program Part B). CFDA ? 93.917 See finding 2022-001