FAC Explorer

Audit 176721

FY End
2022-08-31
Total Expended
$5.49M
Findings
6
Programs
13
Organization: Northwest Community Action, Inc. (MN)
Year: 2022 Accepted: 2023-08-29
Auditor: Brady Martz & Associates PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
178490 2022-002 Significant Deficiency Yes L
178491 2022-002 Significant Deficiency Yes L
178492 2022-002 Significant Deficiency Yes L
754932 2022-002 Significant Deficiency Yes L
754933 2022-002 Significant Deficiency Yes L
754934 2022-002 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
93.600 Head Start $2.12M Yes 1
93.568 Low-Income Home Energy Assistance $1.78M - 0
93.276 Drug-Free Communities Support Program Grants $255,752 - 0
93.778 Medical Assistance Program $86,379 - 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $69,206 - 0
14.870 Resident Opportunity and Supportive Services - Service Coordinators $25,568 - 0
14.276 Youth Homelessness Demonstration Program $19,036 - 0
14.896 Family Self-Sufficiency Program $15,173 - 0
93.569 Community Services Block Grant $13,037 - 0
81.042 Weatherization Assistance for Low-Income Persons $7,561 - 0
97.024 Emergency Food and Shelter National Board Program $3,910 - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $3,575 - 0
10.558 Child and Adult Care Food Program $2,524 - 0

Contacts

Name Title Type
E6ASZKQGTZP4 Sharon Millner Auditee
2185283258 Ashley Engel Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in the Uniform Guidance, whereincertain types of expenditures are not allowable or are limited as to reimbursement. Negative amountsshown on the Schedule represent adjustments or credits made in the normal course of business toamounts reports as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal awardactivity of Northwest Community Action, Inc. and Subsidiary under programs of the federal governmentfor the year ended August 31, 2022. The information in this schedule is presented in accordance withthe requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform AdministrativeRequirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance).Because the schedule presents only a selected portion of the operations of Northwest Community Action,Inc. and Subsidiary, it is not intended to and does not present the financial position, changes in net assets,or cash flows of Northwest Community Action, Inc. and Subsidiary.
Title: CONTRIBUTED SERVICES Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in the Uniform Guidance, whereincertain types of expenditures are not allowable or are limited as to reimbursement. Negative amountsshown on the Schedule represent adjustments or credits made in the normal course of business toamounts reports as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Northwest Community Action, Inc. received significant amounts of services donated by volunteerscarrying out the program objectives. No amounts have been reflected in the financial statements forthese donated services because the contributed services do not meet the criteria for recognition.
Title: AGENCY OR PASS-THROUGH NUMBER Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in the Uniform Guidance, whereincertain types of expenditures are not allowable or are limited as to reimbursement. Negative amountsshown on the Schedule represent adjustments or credits made in the normal course of business toamounts reports as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Pass-through entity identifying numbers are presented where available.

Finding Details

Finding 2022-002
2022-002 Reporting ? Significant Deficiency Federal Program ? Department of Health and Human Services (Project Head Start and Early Head Start, AL No. 93.600). Criteria ? The Uniform Guidance states that an auditee must submit a data collection form and audit reporting package to the Federal Audit Clearinghouse within the earlier of 30 days after receipt of the auditor?s report or nine months after the end of the audit period. Condition ? Northwest Community Action, Inc. and Subsidiary?s August 31, 2022 audited financial statements were not filed with the Federal Audit Clearinghouse within nine months of the Agency?s fiscal year-end. Questioned Costs ? None Context ? N/A Cause ? Significant staff turnover causing a delay in the start of the audit. Effect ? Northwest Community Action, Inc. and Subsidiary is not in compliance with Uniform Guidance requirements. Recommendation ? We recommend that Northwest Community Action, Inc. and Subsidiary ensure records are reconciled and available for audit within a timely manner at year-end.
Finding 2022-002
2022-002 Reporting ? Significant Deficiency Federal Program ? Department of Health and Human Services (Project Head Start and Early Head Start, AL No. 93.600). Criteria ? The Uniform Guidance states that an auditee must submit a data collection form and audit reporting package to the Federal Audit Clearinghouse within the earlier of 30 days after receipt of the auditor?s report or nine months after the end of the audit period. Condition ? Northwest Community Action, Inc. and Subsidiary?s August 31, 2022 audited financial statements were not filed with the Federal Audit Clearinghouse within nine months of the Agency?s fiscal year-end. Questioned Costs ? None Context ? N/A Cause ? Significant staff turnover causing a delay in the start of the audit. Effect ? Northwest Community Action, Inc. and Subsidiary is not in compliance with Uniform Guidance requirements. Recommendation ? We recommend that Northwest Community Action, Inc. and Subsidiary ensure records are reconciled and available for audit within a timely manner at year-end.
Finding 2022-002
2022-002 Reporting ? Significant Deficiency Federal Program ? Department of Health and Human Services (Project Head Start and Early Head Start, AL No. 93.600). Criteria ? The Uniform Guidance states that an auditee must submit a data collection form and audit reporting package to the Federal Audit Clearinghouse within the earlier of 30 days after receipt of the auditor?s report or nine months after the end of the audit period. Condition ? Northwest Community Action, Inc. and Subsidiary?s August 31, 2022 audited financial statements were not filed with the Federal Audit Clearinghouse within nine months of the Agency?s fiscal year-end. Questioned Costs ? None Context ? N/A Cause ? Significant staff turnover causing a delay in the start of the audit. Effect ? Northwest Community Action, Inc. and Subsidiary is not in compliance with Uniform Guidance requirements. Recommendation ? We recommend that Northwest Community Action, Inc. and Subsidiary ensure records are reconciled and available for audit within a timely manner at year-end.
Finding 2022-002
2022-002 Reporting ? Significant Deficiency Federal Program ? Department of Health and Human Services (Project Head Start and Early Head Start, AL No. 93.600). Criteria ? The Uniform Guidance states that an auditee must submit a data collection form and audit reporting package to the Federal Audit Clearinghouse within the earlier of 30 days after receipt of the auditor?s report or nine months after the end of the audit period. Condition ? Northwest Community Action, Inc. and Subsidiary?s August 31, 2022 audited financial statements were not filed with the Federal Audit Clearinghouse within nine months of the Agency?s fiscal year-end. Questioned Costs ? None Context ? N/A Cause ? Significant staff turnover causing a delay in the start of the audit. Effect ? Northwest Community Action, Inc. and Subsidiary is not in compliance with Uniform Guidance requirements. Recommendation ? We recommend that Northwest Community Action, Inc. and Subsidiary ensure records are reconciled and available for audit within a timely manner at year-end.
Finding 2022-002
2022-002 Reporting ? Significant Deficiency Federal Program ? Department of Health and Human Services (Project Head Start and Early Head Start, AL No. 93.600). Criteria ? The Uniform Guidance states that an auditee must submit a data collection form and audit reporting package to the Federal Audit Clearinghouse within the earlier of 30 days after receipt of the auditor?s report or nine months after the end of the audit period. Condition ? Northwest Community Action, Inc. and Subsidiary?s August 31, 2022 audited financial statements were not filed with the Federal Audit Clearinghouse within nine months of the Agency?s fiscal year-end. Questioned Costs ? None Context ? N/A Cause ? Significant staff turnover causing a delay in the start of the audit. Effect ? Northwest Community Action, Inc. and Subsidiary is not in compliance with Uniform Guidance requirements. Recommendation ? We recommend that Northwest Community Action, Inc. and Subsidiary ensure records are reconciled and available for audit within a timely manner at year-end.
Finding 2022-002
2022-002 Reporting ? Significant Deficiency Federal Program ? Department of Health and Human Services (Project Head Start and Early Head Start, AL No. 93.600). Criteria ? The Uniform Guidance states that an auditee must submit a data collection form and audit reporting package to the Federal Audit Clearinghouse within the earlier of 30 days after receipt of the auditor?s report or nine months after the end of the audit period. Condition ? Northwest Community Action, Inc. and Subsidiary?s August 31, 2022 audited financial statements were not filed with the Federal Audit Clearinghouse within nine months of the Agency?s fiscal year-end. Questioned Costs ? None Context ? N/A Cause ? Significant staff turnover causing a delay in the start of the audit. Effect ? Northwest Community Action, Inc. and Subsidiary is not in compliance with Uniform Guidance requirements. Recommendation ? We recommend that Northwest Community Action, Inc. and Subsidiary ensure records are reconciled and available for audit within a timely manner at year-end.