FAC Explorer

Audit 289423

FY End
2023-06-30
Total Expended
$2.18M
Findings
2
Programs
6
Organization: Womenventure (MN)
Year: 2023 Accepted: 2024-02-08
Auditor: Mayer Hoffman McCann PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
366587 2023-001 Significant Deficiency - L
943029 2023-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
59.046 Microloan Program $1.06M Yes 1
21.024 Community Development Financial Institutions Rapid Response Program (cdfi Rrp) $580,713 - 0
59.043 Women's Business Ownership Assistance $224,390 - 0
21.020 Community Development Financial Institutions Program $180,458 - 0
21.025 Small Dollar Loan Program $69,486 - 0
93.575 Child Care and Development Block Grant $64,719 - 0

Contacts

Name Title Type
NJE5B1U82XP8 Karla Dross Auditee
6122249540 Brian Barsi 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. Such expenditures are recognized following the cost principle contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Organization has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of WomenVenture (the Organization) under programs of the federal government for the year ended June 30, 2023. 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, (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.
Title: Program Income Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principle contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Organization has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. In accordance with terms of the U.S. Department of the Treasury and U.S. Small Business Administration agreements, program income was used to reduce the amount of federal funds used to fund additional loans to borrowers. Program income earned on federal grant programs was not included in the schedule of expenditures of federal awards.
Title: Federal Loans Payable Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principle contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Organization has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The federal loan program listed subsequently is administered directly by the Organization and balances and transactions relating to this program are included in the Organization's basic financial statements. Loans outstanding at the beginning of the year and loans made during the year as well as the administrative cost allowance are included in the federal expenditures presented in the Schedule. The balance of loans outstanding at June 30, 2023 consists of: See the Notes to the SEFA for chart/table

Finding Details

Finding 2023-001
Finding - Reporting: Microloan Program, #59.046, Technical Assistance Grant. June 2023 Award Year, U.S. Small Business Administration Criteria or Specific Requirement Non-federal entities receiving federal awards must establish and maintain internal controls over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with the federal statutes, regulations, and the terms and conditions of the federal awards (2 CFR Section 200.303) Condition and Context Two quarterly reports and SF-425 reports were tested for the Microloan Technical Assistance grant. We noted that the CFO was preparing and signing the reports, but supervisory review of the completed reports was not performed prior to submission to the Small Business Administration. We did note that the underlying general ledger data that is used for preparing these reports is recorded by accounting staff and the data is reviewed by the CFO. Cause Staff turnover and shortages caused difficulty in segregating the preparation and review of the reports. Effect or Potential Effect Misstatements in the reports could go undetected. Questioned Costs None noted. Identification as a Repeat Finding Not a repeat finding. Recommendation We recommend procedures be implemented to include a supervisory review of reports to assure accuracy and completeness of the data and information included in the reports. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Finding 2023-001
Finding - Reporting: Microloan Program, #59.046, Technical Assistance Grant. June 2023 Award Year, U.S. Small Business Administration Criteria or Specific Requirement Non-federal entities receiving federal awards must establish and maintain internal controls over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with the federal statutes, regulations, and the terms and conditions of the federal awards (2 CFR Section 200.303) Condition and Context Two quarterly reports and SF-425 reports were tested for the Microloan Technical Assistance grant. We noted that the CFO was preparing and signing the reports, but supervisory review of the completed reports was not performed prior to submission to the Small Business Administration. We did note that the underlying general ledger data that is used for preparing these reports is recorded by accounting staff and the data is reviewed by the CFO. Cause Staff turnover and shortages caused difficulty in segregating the preparation and review of the reports. Effect or Potential Effect Misstatements in the reports could go undetected. Questioned Costs None noted. Identification as a Repeat Finding Not a repeat finding. Recommendation We recommend procedures be implemented to include a supervisory review of reports to assure accuracy and completeness of the data and information included in the reports. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.