Audit 20448

FY End

2022-09-30

Total Expended

$835,190

Findings

2

Programs

1

Organization: Moka Corporation and Affiliate (MI)

Year: 2022 Accepted: 2023-06-19

Auditor: Rehmann Robson LLC

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
16541	2022-001	Significant Deficiency	-	BC
592983	2022-001	Significant Deficiency	-	BC

ALN	Program	Spent	Major	Findings
93.498	Provider Relief Fund	$835,190	Yes	1

Contacts

Name	Title	Type
RGBLU2ADUA98	Bryan Voss	Auditee
2318309376	Paul Matz, Cpa, Cgfm	Auditor
No contacts on file

Notes to SEFA

Title: PROVIDER RELIEF FUNDS Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of MOKA Corporation and Affiliate (the Organization) under programs of the federal government for the year ended September 30, 2022. The information in the 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization. Expenditures reported on the Schedule are reported on the accrual basis of accounting, which is described in Note 1 to the Organization's consolidated financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance or other applicable guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Organization received $835,190 from the U.S. Department of Health and Human Services (HHS) through the Provider Relief Fund (PRF) program (Assistance Listing Number 93.498) during the year ended September 30, 2021. The Organization incurred and reported eligible expenditures totaling $835,190 for the year ended September 30, 2021 in the financial statements, and recorded revenue for the year ended September 30, 2022 in connection with the portal reporting, which was considered a significant barrier to recognition. In accordance with the compliance supplement, the PRF expenditures recognized on the Schedule are based on the reporting to HHS for Period 2 (expenditures through December 31, 2021) as required under the PRF program.

Finding Details

Finding 2022-001

2022-001 ? Written Policies and Procedures Required by the Uniform Grant Guidance Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Control over Compliance (Allowable Costs/Costs Principles, Cash Management. Program. Provider Relief Fund; U.S. Department of Health and Human Services; CFDA Number 93.498. Criteria. The Uniform Guidance requires a non-federal entity that has expended federal awards for a grant awarded on or after December 26, 2014 to have written policies pertaining to various areas, including: 1) Payments (draws of federal funds and how to minimize the time elapsing between the receipt of federal funds and the disbursement to contractors/employees/subrecipients) (?200.302 (6)); 2) Procurement (including bidding and a conflict of interest policy) (?200.318); 3) Allowability of costs charged to federal programs (?200.302 (7)); 4) Compensation (personnel and benefits policy) (?200.430 and ?200.431); and 5) Travel costs (including mileage and per diem) (?200.474). Condition. Although the Organization has processes in place to cover these areas, there are not formal written policies covering payments and allowability of costs charged to federal programs that address all of the areas required by the Uniform Guidance. Cause. This condition appears to be the result of a time lag in identifying the requirement and developing a plan for compliance. Effect. As a result of this condition, the Organization did not fully comply with the Uniform Guidance applicable. Questioned Costs. No costs were required to be questioned as a result of this finding inasmuch as our testing did not reveal any unallowed costs or excess cash draws. Recommendation. We recommend that the Organization draft the required policies as soon as practical, but no later than the end of fiscal year 2023. View of Responsible Officials. MOKA policies related to use and oversight of all funds available to the Organization will be reviewed and appropriate details included as needed to fully meet and comply with the Section 200.511 requirements. The adjustments to MOKA?s policies will be reviewed and completed prior to 9/30/2023. MOKA?s internal policy review structure will be followed to ensure ongoing compliance with these requirements.

Finding 2022-001

2022-001 ? Written Policies and Procedures Required by the Uniform Grant Guidance Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Control over Compliance (Allowable Costs/Costs Principles, Cash Management. Program. Provider Relief Fund; U.S. Department of Health and Human Services; CFDA Number 93.498. Criteria. The Uniform Guidance requires a non-federal entity that has expended federal awards for a grant awarded on or after December 26, 2014 to have written policies pertaining to various areas, including: 1) Payments (draws of federal funds and how to minimize the time elapsing between the receipt of federal funds and the disbursement to contractors/employees/subrecipients) (?200.302 (6)); 2) Procurement (including bidding and a conflict of interest policy) (?200.318); 3) Allowability of costs charged to federal programs (?200.302 (7)); 4) Compensation (personnel and benefits policy) (?200.430 and ?200.431); and 5) Travel costs (including mileage and per diem) (?200.474). Condition. Although the Organization has processes in place to cover these areas, there are not formal written policies covering payments and allowability of costs charged to federal programs that address all of the areas required by the Uniform Guidance. Cause. This condition appears to be the result of a time lag in identifying the requirement and developing a plan for compliance. Effect. As a result of this condition, the Organization did not fully comply with the Uniform Guidance applicable. Questioned Costs. No costs were required to be questioned as a result of this finding inasmuch as our testing did not reveal any unallowed costs or excess cash draws. Recommendation. We recommend that the Organization draft the required policies as soon as practical, but no later than the end of fiscal year 2023. View of Responsible Officials. MOKA policies related to use and oversight of all funds available to the Organization will be reviewed and appropriate details included as needed to fully meet and comply with the Section 200.511 requirements. The adjustments to MOKA?s policies will be reviewed and completed prior to 9/30/2023. MOKA?s internal policy review structure will be followed to ensure ongoing compliance with these requirements.