Finding 589163 (2022-003)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-03-29
Audit: 17548
Organization: The Inner Voice, Inc. (IL)

AI Summary

  • Core Issue: Inner Voice inaccurately reported $55,000 in federal funds on the Schedule of Expenditures of Federal Awards (SEFA) due to a lack of review and verification.
  • Impacted Requirements: The SEFA must be complete and accurate for proper financial reporting and audit testing, which was not met.
  • Recommended Follow-Up: Establish controls to review grant agreements and verify federal funds with funders before preparing the SEFA.

Finding Text

Federal Agency: Department of the Treasury Federal Program Name: American Rescue Plan Act Assistance Listing Number: 21.027 Federal Award Identification Number and Year: 2022ARPA-2022 Pass-Through Agency: Illinois Department of Human Services Pass-Through Number: FCSAH06332 Award Period: February 15, 2022 through June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Inner Voice must provide the Schedule of Expenditures of Federal Awards (SEFA). The schedule must be complete and accurate to provide for the basis of testing by the auditors as well as for accurate financial reporting to primary and secondary funders. Condition: During the course of our audit, Inner Voice identified $55,000 in payments originally classified as a nonfederal award until audit inquiries were raised and a confirmation was made with the funder. A change to the SEFA was required to adjust the amounts reflected as federal awards. Questioned costs: None. Context: The initial SEFA provided omitted $55,000 of federal funds passed through the Illinois Department of Human Services. Cause: A lack of review of passed through grant agreement for federal funds identified and no verification performed with funder in preparation of SEFA. Effect: The lack of review of grant agreements for federal funds results in an amount inaccurately omitted on the SEFA. Repeat Finding: This is not a repeat finding. Recommendation: We recommend Inner Voice establish controls to evaluate grant agreements to capture funds identified as federal. Upon preparation of the SEFA, verification with funders should be performed as needed. Views of responsible officials: We are in the process of discussing with the Board for hiring of a finance person to prepare the reports so that CFO can review and approve his/her work.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 12716 2022-001
    Material Weakness
  • 12717 2022-002
    Significant Deficiency
  • 12718 2022-004
    Significant Deficiency
  • 12719 2022-005
    Significant Deficiency
  • 12720 2022-006
    Significant Deficiency
  • 12721 2022-003
    Significant Deficiency
  • 589158 2022-001
    Material Weakness
  • 589159 2022-002
    Significant Deficiency
  • 589160 2022-004
    Significant Deficiency
  • 589161 2022-005
    Significant Deficiency
  • 589162 2022-006
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
17.805 Homeless Veterans Reintegration Project $498,884
64.024 Va Homeless Providers Grant and Per Diem Program $116,879
21.027 Coronavirus State and Local Fiscal Recovery Funds $55,000
14.218 Community Development Block Grants/entitlement Grants $33,496
14.267 Continuum of Care Program $24,465
97.024 Emergency Food and Shelter National Board Program $10,000
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $7,500
14.231 Emergency Solutions Grant Program $2,700