FAC Explorer

Audit 13088

FY End
2022-12-31
Total Expended
$1.09M
Findings
2
Programs
4
Organization: Karen Organization of Minnesota (MN)
Year: 2022 Accepted: 2024-01-23
Auditor: Mahoney

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
9504 2022-001 Significant Deficiency Yes P
585946 2022-001 Significant Deficiency Yes P

Programs

ALN Program Spent Major Findings
93.566 Refugee and Entrant Assistance_state Administered Programs $922,344 Yes 1
84.425 Education Stabilization Fund $88,509 - 0
93.052 National Family Caregiver Support, Title Iii, Part E $63,796 - 0
20.205 Highway Planning and Construction $20,099 - 0

Contacts

Name Title Type
FMVNCKLUM7Q2 Alexis Walstad Auditee
6512023120 Marc Kotsonas Auditor
No contacts on file

Notes to SEFA

Title: Note 1: Basis of Presentation Accounting Policies: (1) Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. (2) Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: KOM has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal grant activity of Karen Organization of Minnesota (KOM) under programs of the federal government for the year ended December 31, 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 (the Uniform Guidance). Because the schedule presents only a selected portion of the operations of KOM, it is not intended to and does not present the financial position, changes in net assets or cash flows of KOM.

Finding Details

Finding 2022-001
2022-001 Internal Control over Revenue Process – Significant Deficiency Criteria – Grants and contributions are recognized when the donor makes an unconditional promise to give to KOM or when qualifying expenditures have been incurred. Condition – Grants and contributions were not properly recorded in the accounting records at the time of commitment or occurrence of expenditures. Cause – There was a breakdown in communication between management and its contracted accounting staff. Effect – A material misstatement of the financial statements occurred and was not detected. Recommendation – Management either allow its contracted accounting staff to access donor correspondence or develop a procedure whereby significant funding awards are communicated to contracted accounting staff to help determine the proper accounting treatment. Auditee's comments and response – Management and its contracted accounting staff will monitor financial reports and activities of KOM to ensure proper recording. Responsible party for the corrective action – Alexis Walstad, Co-Executive Director
Finding 2022-001
2022-001 Internal Control over Revenue Process – Significant Deficiency Criteria – Grants and contributions are recognized when the donor makes an unconditional promise to give to KOM or when qualifying expenditures have been incurred. Condition – Grants and contributions were not properly recorded in the accounting records at the time of commitment or occurrence of expenditures. Cause – There was a breakdown in communication between management and its contracted accounting staff. Effect – A material misstatement of the financial statements occurred and was not detected. Recommendation – Management either allow its contracted accounting staff to access donor correspondence or develop a procedure whereby significant funding awards are communicated to contracted accounting staff to help determine the proper accounting treatment. Auditee's comments and response – Management and its contracted accounting staff will monitor financial reports and activities of KOM to ensure proper recording. Responsible party for the corrective action – Alexis Walstad, Co-Executive Director