FAC Explorer

Finding 31381 (2022-001)

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Requirement
M
Questioned Costs
-
Year
2022
Accepted
2023-04-24
Audit: 28140
Organization: Midland Area Agency on Aging (IL)
Auditor: Sikich LLP

AI Summary

  • Core Issue: The Area Agency failed to obtain and review the required audited financial statements from a subrecipient, leading to noncompliance.
  • Impacted Requirements: Annual monitoring of subrecipients mandates a review of their auditor's reports.
  • Recommended Follow-Up: Establish a process to ensure timely collection and review of all necessary reports from subrecipients.

Finding Text

Criteria: As part of the annual monitoring of subrecipients, a review of the subrecipients auditor?s report should be conducted. Condition: In testing one of four subrecipient monitoring files completed by the Area Agency, it was noted the Area Agency did not obtain and review the audited financial statements of the sub-recipient. We consider this to be a finding of noncompliance with the monitoring requirement. Questioned Costs: $0. Cause and Effect: Area Agency relied on the subrecipient to provide the report once completed and due to turnover at the subrecipient, the report was not sent. Recommendation: We recommend the Area Agency create a process to ensure all reports are obtained and reviewed. Views of Responsible Officials: Management agrees with this finding and response is included in the Corrective Action Plan.

Corrective Action Plan

Criteria: Audited financial statements of subrecipients should be obtained and reviewed as part of the annual monitoring process. Condition: In testing one of four subrecipient monitoring files completed by the Area Agency, it was noted the Area Agency did not obtain and review the audited financial statements of the sub-recipient. We consider this to be noncompliance with the monitoring requirement. Corrective Action Plan: Area Agency personnel have, and will continue to, attend training on the monitoring process and seek out guidance from the Illinois Department of Aging. In addition, the Area Agency will ensure all steps of the monitoring process have been completed. Responsible Individual: Heather Fontanez, Fiscal Manager. Implementation Date: Immediately

Categories

Subrecipient Monitoring

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
93.048 Special Programs for the Aging_title Iv_and Title Ii_discretionary Projects $236,508
93.053 Nutrition Services Incentive Program $117,900
93.324 State Health Insurance Assistance Program $80,504
93.052 National Family Caregiver Support, Title Iii, Part E $50,195
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $42,986
93.071 Medicare Enrollment Assistance Program $34,908
93.042 Special Programs for the Aging_title Vii, Chapter 2_long Term Care Ombudsman Services for Older Individuals $14,828
93.043 Special Programs for the Aging_title Iii, Part D_disease Prevention and Health Promotion Services $9,781
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $6,761
93.041 Special Programs for the Aging_title Vii, Chapter 3_programs for Prevention of Elder Abuse, Neglect, and Exploitation $4,914
10.576 Senior Farmers Market Nutrition Program $1,000