OPTIONS INTERSTATE RESOURCE CENTER FOR INDEPENDENT LIVINGNon-Profit

2021-003 Finding ? Significant Deficiency Centers for Independent Living ? 93.432 ? Cash Management Criteria The Organization?s grants are on a cost reimbursement basis. Therefore, the Organization must incur the expenses before requesting reimbursement for those expenses. Condition In a sample of 8 reimbursement requests selected for testing, one reimbursement request exceeded the expenses incurred. Cause Oversight by management. One person prepares the reimbursement request report and submits it for reimbursement. There was no review of this reimbursement request and comparison to the supporting documentation, other than review by the preparer. Effect This resulted in the Organization receiving reimbursement for expenses that were not incurred. Questioned Costs Immaterial Context During the single audit, we selected 8 reimbursement requests for testing. 4 of the reimbursement requests selected for testing had been reviewed and approved by the Executive Director, but the other 4 were not reviewed as those reimbursement requests did not require the Executive Director to sign off on the reimbursement request. For 1 reimbursement request out of the 4 reimbursement requests that were not reviewed, we noted the amount requested for reimbursement exceeded the expenses incurred by $4,000. For the remaining 7 reimbursement requests, the expenses incurred were higher or equaled the amount requested. Repeat Finding This is not a repeat finding. Recommendation We recommend that all the reimbursement requests be reviewed and compared to the supporting documentation by someone other than the preparer before it is submitted for reimbursement. View of the Responsible Officials and Planned Corrective Actions The Organization agrees with the recommendation and will implement immediately.

Centers for Independent Living ? 93.432 ? Activities Allowed or Unallowed and Allowable Costs/Costs Principles Criteria The ?Basic Guidelines? section of 2 CFR Part 230, Attachment B Paragraph 8 requires charges to grants for salaries and wages to be based on documented payrolls approved by the Organization. Condition One employee?s payroll expense charged to the grant was not based on the approved wage rate for the employee. Cause The Organization did not have sufficient procedures in place to ensure that payroll changes are properly made in the payroll system. Effect The payroll expense charged to the grant was not supported by the approved payroll rates. Questioned Costs None Context A sample of 23 payroll transactions were selected for testing. One payroll transaction tested was calculated based on an incorrect wage rate. This employee had received a pay increase and the new rate had not been entered correctly into the payroll system. Repeat Finding This is not a repeat finding. Recommendation The Organization should review their procedures for updating payroll information in the payroll system to ensure all payroll changes are properly made. View of the Responsible Officials and Planned Corrective Actions The Organization agrees with the recommendation and will implement immediately.

Centers for Independent Living ? 93.432 ? Activities Allowed or Unallowed and Allowable Costs/Costs Principles Criteria The ?Basic Guidelines? section of 2 CFR Part 200, Subpart E Section 200.403, requires charges to federal awards to be necessary and reasonable for the performance of the federal award and be allocable thereto under these principles. Condition The Organization charged travel expense to the federal grant for a training that was later cancelled but the grant was not adjusted for this travel expense. Two journal entries were made moving costs to this federal grant, but there was no supporting documentation to support these journal entries. Costs for flower arrangements for the office were charged to the federal grant, which is not a necessary cost for this federal grant. Cause The Organization did not have sufficient procedures in place to ensure that supporting documentation was kept for journal entries and to ensure that only necessary and reasonable costs were charged to this grant. Travel expense that was not incurred was not adjusted out of grant expenditures. The Organization does not have a process in place for review and approval of electronic payments and journal entries. Effect The Organization charged costs to the grant that was not incurred ? travel expense, had no supporting documentation ? two journal entries and that was not a necessary and reasonable cost ? flower arrangements. Questioned Costs $8,753 which includes the two journal entries $8,300, flower arrangements cost $172 and the $1,726 travel expenses reduced by the amount grants were overspent $1,445. Context A sample of 40 transactions was selected for the single audit. One transaction was a check payment for travel expense for a training cost where the training was later cancelled, but this travel expense $1,726 was not adjusted out of grant expenditures. Two journal entries totaling $8,300 were made moving expenses to the grant, but there was no supporting documentation for these expenses. $172 for flower arrangements for the office was charged to the grant, when that is not a necessary cost for the grant. The Organization does not have a process in place for review and approval of electronic payments and journal entries. Only check payment are reviewed and approved by someone other than the preparer. Repeat Finding This is not a repeat finding. Recommendation The Organization should implement procedures to ensure that only necessary, reasonable costs and incurred costs are charged to the program. In addition, all program costs (check payments, electronic payments and journal entries) should be reviewed and approved by someone other than the preparer. View of the Responsible Officials and Planned Corrective Actions The Organization agrees with the recommendation and will implement immediately.

2021-006 Finding ? Significant Deficiency Centers for Independent Living ? 93.432 - Reporting Criteria Federal reporting requirements require the Organization to file its reporting package with the Federal Audit Clearinghouse within nine months of its fiscal year end. Condition The Organization?s reporting package was not filed with the Federal Audit Clearinghouse until March 2023. Cause The data collection form had been completed and was in the review process when the Executive Director ended up on extended leave due to unforeseen circumstances. Effect Noncompliance with reporting requirements. Questioned Costs None Context The Organization?s reporting package was not filed with the Federal Audit Clearinghouse until March 2023. Repeat Finding This is not a repeat finding. Recommendation The Organizations reporting package should be filed timely. View of the Responsible Officials and Planned Corrective Actions In future years, the reporting package will be submitted timely.