FAC Explorer

Audit 302111

FY End
2023-06-30
Total Expended
$5.12M
Findings
2
Programs
5
Organization: Open Arms of Minnesota (MN)
Year: 2023 Accepted: 2024-04-01
Auditor: Harrington Langer and Associat

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
391704 2023-003 Material Weakness - A
968146 2023-003 Material Weakness - A

Programs

ALN Program Spent Major Findings
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $3.38M - 0
93.914 Hiv Emergency Relief Project Grants $462,792 - 0
93.917 Hiv Care Formula Grants $399,588 Yes 1
93.053 Nutrition Services Incentive Program $87,816 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $69,592 Yes 0

Contacts

Name Title Type
LHY7KKLHAB15 Leah Hebert Welles Auditee
6122390570 Nichole Fairbanks 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 principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Open Arms of Minnesota 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 (the Schedule) includes the federal award activity of Open Arms of Minnesota 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 Open Arms of Minnesota, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Open Arms of Minnesota.
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: 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. De Minimis Rate Used: N Rate Explanation: Open Arms of Minnesota has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. 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.
Title: INDIRECT COST RATE Accounting Policies: 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. De Minimis Rate Used: N Rate Explanation: Open Arms of Minnesota has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Open Arms of Minnesota has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2023-003
2023-3 Assistance Listing 93.917 HIV Care Formula Grants (Ryan White HIV/Aids Program Part B) Allowable Cost/Cost Principles Condition and Perspective Information: Accounting records do not accurately reflect the amounts reported on program reimbursement requests. The Organization did not have supporting timesheets for salary allocations. The Organization used budget allocations that were not supported by actual results. Criteria: Accounting records should be an accurate representation of the financial activity throughout the year as evidenced in the general ledger. Allowable costs are to be supported by detailed records and allocations are supported by actual results. Cause: Budget were believed to be fair estimates. Effect: Noncompliance with Allowable Cost/Cost Principles. Questioned Costs: Unknown. Repeated Finding: No. Recommendation: The Organization should record the actual amounts spent by each program and government funding source in their accounting records. Views of responsible officials of the auditee: Open Arms Minnesota processes and systems are structured around meal production, as such management is unable to adequately segregate program expenses for one grant. There is no disagreement with the audit finding. Summary of Corrective Action Plan: The Organization will prepare grant reimbursements using the percentage of meals prepared for allocation of allowable costs. They will also use information that is supported by the general ledger to prepare grant reimbursements.
Finding 2023-003
2023-3 Assistance Listing 93.917 HIV Care Formula Grants (Ryan White HIV/Aids Program Part B) Allowable Cost/Cost Principles Condition and Perspective Information: Accounting records do not accurately reflect the amounts reported on program reimbursement requests. The Organization did not have supporting timesheets for salary allocations. The Organization used budget allocations that were not supported by actual results. Criteria: Accounting records should be an accurate representation of the financial activity throughout the year as evidenced in the general ledger. Allowable costs are to be supported by detailed records and allocations are supported by actual results. Cause: Budget were believed to be fair estimates. Effect: Noncompliance with Allowable Cost/Cost Principles. Questioned Costs: Unknown. Repeated Finding: No. Recommendation: The Organization should record the actual amounts spent by each program and government funding source in their accounting records. Views of responsible officials of the auditee: Open Arms Minnesota processes and systems are structured around meal production, as such management is unable to adequately segregate program expenses for one grant. There is no disagreement with the audit finding. Summary of Corrective Action Plan: The Organization will prepare grant reimbursements using the percentage of meals prepared for allocation of allowable costs. They will also use information that is supported by the general ledger to prepare grant reimbursements.