Audit 24479

FY End
2022-06-30
Total Expended
$1.72M
Findings
12
Programs
6
Year: 2022 Accepted: 2023-01-16

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
29805 2022-003 Significant Deficiency Yes L
29806 2022-004 Significant Deficiency - L
29807 2022-005 Significant Deficiency - L
29808 2022-003 Significant Deficiency Yes L
29809 2022-004 Significant Deficiency - L
29810 2022-005 Significant Deficiency - L
606247 2022-003 Significant Deficiency Yes L
606248 2022-004 Significant Deficiency - L
606249 2022-005 Significant Deficiency - L
606250 2022-003 Significant Deficiency Yes L
606251 2022-004 Significant Deficiency - L
606252 2022-005 Significant Deficiency - L

Programs

Contacts

Name Title Type
QB3WLK4ANMZ2 Perry Lundon Auditee
7016626500 Ashley Engel Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported in the schedule are reported on the accrual basis of accounting. Suchexpenditures 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.Negative amounts shown on the Schedule represent adjustments or credits made in the normalcourse of business to amounts reported 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 thefederal award activity of the Dakota Prairie Community Action Agency, Inc. under programs ofthe federal government for the year ended June 30, 2022. The information is presented inaccordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards(Uniform Guidance). Because the schedule presents only a selected portion of the operations ofDakota Prairie Community Action Agency, Inc., it is not intended to and does not present thefinancial position, changes in net assets, or cash flows of Dakota Prairie Community ActionAgency, Inc.
Title: Financial Statement Reconciliation Accounting Policies: Expenditures reported in the schedule are reported on the accrual basis of accounting. Suchexpenditures 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.Negative amounts shown on the Schedule represent adjustments or credits made in the normalcourse of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Government grant review per the Statement of Activities for the year ended June 30, 2022 hasbeen reconciled to the total federal expenditures per the Schedule of Expenditures of FederalAwards as follows:Public support:Grants $ 1,763,549Contributions 54,454Less: non-federal grants (94,740)Total government grants $ 1,723,263Total federal expenditures on SEFA $ 1,723,263

Finding Details

AL# 93.568 Criteria ? Section 200.507 (b) (2) of the Uniform Guidance requires that the auditee prepare the schedule of expenditure of federal awards (SEFA). Internal controls should be adequately designed and implemented to allow for the accurate and timely preparation of the SEFA. Condition ? For the year ended June 30, 2022, we reconciled the auditee prepared SEFA to underlying general ledger amounts and other records. In doing this, we noted that the expenditures were materially incorrect. Cause ? Internal controls are not designed to allow for the reconciliation of fund expenses to grant awards. Effect or Potential Effect ? As the entity?s auditors, we were requested to assist in the preparation of the SEFA and required notes. Questioned Costs ? None noted. Context ? The auditee-prepared SEFA listed expenditures for the entire grant award regardless of the fiscal year and all expenses incurred after the grant funds were exhausted. Repeat Finding ? This is a repeat finding of 2021-003 from the prior year. Recommendation ? The entity should pull the internal fund income statements by fiscal year and reconcile to the grant awards on a regular basis.
AL# 93.568 Criteria ? The granting agency requires that the grantee prepare financial and production status reports on a monthly basis. Internal controls should be adequately designed and implemented to allow for the accurate and timely preparation of these reports. Condition ? For the year ended June 30, 2022, we identified monthly grant reports that were not reviewed prior to being submitted to the granting agency. Cause ? Internal controls, while appropriately designed, are not effectively communicated and entity staff have not been adequately trained on their roles within internal controls surrounding grant reporting. Effect or Potential Effect ? There is the potential that grant reports will be submitted that are not accurate or are misleading. Questioned Costs ? None noted. Context ? As part of our testing, we selected four months to view documentation to support the independent review of the grant reports prior to being filed with the granting agency. Of the four months selected for testing, we were unable to view documentation for three of those months. Repeat Finding ? This is a not a repeat finding. Recommendation ? Entity management and staff involved in the preparation of the grant reports should review the internal controls related to grant reports to allow for appropriate training and implementation of established internal controls.
AL# 93.568 Criteria ? An appropriate system of internal controls allows for the review and approval of all expense items including those recorded through journal entries. Condition ? For the year ended June 30, 2022, we requested support for the review and approval of expense items, invoiced or journal entries, that were reimbursed under the grant. Cause ? Internal controls were not appropriately designed to incorporate a review of journal entries within the general ledger. Effect or Potential Effect ? There is the potential that a journal entry will be calculated incorrectly or based on unallowable costs and will be coded to the grant and reimbursed resulting in unallowed or questioned costs being reimbursed under the grant. Questioned Costs ? None noted. Context ? Of the 40 individual expense items we selected for testing, we noted six that were journal entries and not independently reviewed for accuracy or allowability. Repeat Finding ? This is not a repeat finding. Recommendation ? The entity should incorporate a step where any journal entries recorded in the general ledger are reviewed by someone other than the preparer. This individual should be knowledgeable on the entity?s fiscal policies and grant compliance requirements.
AL# 93.568 Criteria ? Section 200.507 (b) (2) of the Uniform Guidance requires that the auditee prepare the schedule of expenditure of federal awards (SEFA). Internal controls should be adequately designed and implemented to allow for the accurate and timely preparation of the SEFA. Condition ? For the year ended June 30, 2022, we reconciled the auditee prepared SEFA to underlying general ledger amounts and other records. In doing this, we noted that the expenditures were materially incorrect. Cause ? Internal controls are not designed to allow for the reconciliation of fund expenses to grant awards. Effect or Potential Effect ? As the entity?s auditors, we were requested to assist in the preparation of the SEFA and required notes. Questioned Costs ? None noted. Context ? The auditee-prepared SEFA listed expenditures for the entire grant award regardless of the fiscal year and all expenses incurred after the grant funds were exhausted. Repeat Finding ? This is a repeat finding of 2021-003 from the prior year. Recommendation ? The entity should pull the internal fund income statements by fiscal year and reconcile to the grant awards on a regular basis.
AL# 93.568 Criteria ? The granting agency requires that the grantee prepare financial and production status reports on a monthly basis. Internal controls should be adequately designed and implemented to allow for the accurate and timely preparation of these reports. Condition ? For the year ended June 30, 2022, we identified monthly grant reports that were not reviewed prior to being submitted to the granting agency. Cause ? Internal controls, while appropriately designed, are not effectively communicated and entity staff have not been adequately trained on their roles within internal controls surrounding grant reporting. Effect or Potential Effect ? There is the potential that grant reports will be submitted that are not accurate or are misleading. Questioned Costs ? None noted. Context ? As part of our testing, we selected four months to view documentation to support the independent review of the grant reports prior to being filed with the granting agency. Of the four months selected for testing, we were unable to view documentation for three of those months. Repeat Finding ? This is a not a repeat finding. Recommendation ? Entity management and staff involved in the preparation of the grant reports should review the internal controls related to grant reports to allow for appropriate training and implementation of established internal controls.
AL# 93.568 Criteria ? An appropriate system of internal controls allows for the review and approval of all expense items including those recorded through journal entries. Condition ? For the year ended June 30, 2022, we requested support for the review and approval of expense items, invoiced or journal entries, that were reimbursed under the grant. Cause ? Internal controls were not appropriately designed to incorporate a review of journal entries within the general ledger. Effect or Potential Effect ? There is the potential that a journal entry will be calculated incorrectly or based on unallowable costs and will be coded to the grant and reimbursed resulting in unallowed or questioned costs being reimbursed under the grant. Questioned Costs ? None noted. Context ? Of the 40 individual expense items we selected for testing, we noted six that were journal entries and not independently reviewed for accuracy or allowability. Repeat Finding ? This is not a repeat finding. Recommendation ? The entity should incorporate a step where any journal entries recorded in the general ledger are reviewed by someone other than the preparer. This individual should be knowledgeable on the entity?s fiscal policies and grant compliance requirements.
AL# 93.568 Criteria ? Section 200.507 (b) (2) of the Uniform Guidance requires that the auditee prepare the schedule of expenditure of federal awards (SEFA). Internal controls should be adequately designed and implemented to allow for the accurate and timely preparation of the SEFA. Condition ? For the year ended June 30, 2022, we reconciled the auditee prepared SEFA to underlying general ledger amounts and other records. In doing this, we noted that the expenditures were materially incorrect. Cause ? Internal controls are not designed to allow for the reconciliation of fund expenses to grant awards. Effect or Potential Effect ? As the entity?s auditors, we were requested to assist in the preparation of the SEFA and required notes. Questioned Costs ? None noted. Context ? The auditee-prepared SEFA listed expenditures for the entire grant award regardless of the fiscal year and all expenses incurred after the grant funds were exhausted. Repeat Finding ? This is a repeat finding of 2021-003 from the prior year. Recommendation ? The entity should pull the internal fund income statements by fiscal year and reconcile to the grant awards on a regular basis.
AL# 93.568 Criteria ? The granting agency requires that the grantee prepare financial and production status reports on a monthly basis. Internal controls should be adequately designed and implemented to allow for the accurate and timely preparation of these reports. Condition ? For the year ended June 30, 2022, we identified monthly grant reports that were not reviewed prior to being submitted to the granting agency. Cause ? Internal controls, while appropriately designed, are not effectively communicated and entity staff have not been adequately trained on their roles within internal controls surrounding grant reporting. Effect or Potential Effect ? There is the potential that grant reports will be submitted that are not accurate or are misleading. Questioned Costs ? None noted. Context ? As part of our testing, we selected four months to view documentation to support the independent review of the grant reports prior to being filed with the granting agency. Of the four months selected for testing, we were unable to view documentation for three of those months. Repeat Finding ? This is a not a repeat finding. Recommendation ? Entity management and staff involved in the preparation of the grant reports should review the internal controls related to grant reports to allow for appropriate training and implementation of established internal controls.
AL# 93.568 Criteria ? An appropriate system of internal controls allows for the review and approval of all expense items including those recorded through journal entries. Condition ? For the year ended June 30, 2022, we requested support for the review and approval of expense items, invoiced or journal entries, that were reimbursed under the grant. Cause ? Internal controls were not appropriately designed to incorporate a review of journal entries within the general ledger. Effect or Potential Effect ? There is the potential that a journal entry will be calculated incorrectly or based on unallowable costs and will be coded to the grant and reimbursed resulting in unallowed or questioned costs being reimbursed under the grant. Questioned Costs ? None noted. Context ? Of the 40 individual expense items we selected for testing, we noted six that were journal entries and not independently reviewed for accuracy or allowability. Repeat Finding ? This is not a repeat finding. Recommendation ? The entity should incorporate a step where any journal entries recorded in the general ledger are reviewed by someone other than the preparer. This individual should be knowledgeable on the entity?s fiscal policies and grant compliance requirements.
AL# 93.568 Criteria ? Section 200.507 (b) (2) of the Uniform Guidance requires that the auditee prepare the schedule of expenditure of federal awards (SEFA). Internal controls should be adequately designed and implemented to allow for the accurate and timely preparation of the SEFA. Condition ? For the year ended June 30, 2022, we reconciled the auditee prepared SEFA to underlying general ledger amounts and other records. In doing this, we noted that the expenditures were materially incorrect. Cause ? Internal controls are not designed to allow for the reconciliation of fund expenses to grant awards. Effect or Potential Effect ? As the entity?s auditors, we were requested to assist in the preparation of the SEFA and required notes. Questioned Costs ? None noted. Context ? The auditee-prepared SEFA listed expenditures for the entire grant award regardless of the fiscal year and all expenses incurred after the grant funds were exhausted. Repeat Finding ? This is a repeat finding of 2021-003 from the prior year. Recommendation ? The entity should pull the internal fund income statements by fiscal year and reconcile to the grant awards on a regular basis.
AL# 93.568 Criteria ? The granting agency requires that the grantee prepare financial and production status reports on a monthly basis. Internal controls should be adequately designed and implemented to allow for the accurate and timely preparation of these reports. Condition ? For the year ended June 30, 2022, we identified monthly grant reports that were not reviewed prior to being submitted to the granting agency. Cause ? Internal controls, while appropriately designed, are not effectively communicated and entity staff have not been adequately trained on their roles within internal controls surrounding grant reporting. Effect or Potential Effect ? There is the potential that grant reports will be submitted that are not accurate or are misleading. Questioned Costs ? None noted. Context ? As part of our testing, we selected four months to view documentation to support the independent review of the grant reports prior to being filed with the granting agency. Of the four months selected for testing, we were unable to view documentation for three of those months. Repeat Finding ? This is a not a repeat finding. Recommendation ? Entity management and staff involved in the preparation of the grant reports should review the internal controls related to grant reports to allow for appropriate training and implementation of established internal controls.
AL# 93.568 Criteria ? An appropriate system of internal controls allows for the review and approval of all expense items including those recorded through journal entries. Condition ? For the year ended June 30, 2022, we requested support for the review and approval of expense items, invoiced or journal entries, that were reimbursed under the grant. Cause ? Internal controls were not appropriately designed to incorporate a review of journal entries within the general ledger. Effect or Potential Effect ? There is the potential that a journal entry will be calculated incorrectly or based on unallowable costs and will be coded to the grant and reimbursed resulting in unallowed or questioned costs being reimbursed under the grant. Questioned Costs ? None noted. Context ? Of the 40 individual expense items we selected for testing, we noted six that were journal entries and not independently reviewed for accuracy or allowability. Repeat Finding ? This is not a repeat finding. Recommendation ? The entity should incorporate a step where any journal entries recorded in the general ledger are reviewed by someone other than the preparer. This individual should be knowledgeable on the entity?s fiscal policies and grant compliance requirements.