Audit 30304

FY End

2022-12-31

Total Expended

$2.46M

Findings

2

Programs

5

Organization: Alluma, INC (MN)

Year: 2022 Accepted: 2023-08-10

Auditor: Brady Martz & Associates PC

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
34215	2022-002	Significant Deficiency	Yes	AB
610657	2022-002	Significant Deficiency	Yes	AB

ALN	Program	Spent	Major
93.498	Provider Relief Fund	$268,330	-
21.027	Coronavirus State and Local Fiscal Recovery Funds	$112,530	-
93.150	Projects for Assistance in Transition From Homelessness (path)	$83,260	-
14.231	Emergency Solutions Grant Program	$41,773	-
93.958	Block Grants for Community Mental Health Services	$40,746	Yes

Contacts

Name	Title	Type
Z6NGYXJ8QPS9	Tammy Hickelzola	Auditee
2182813940	Nicole Heldstab	Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported in the schedule of expenditures of federal awards (the schedule) arereported on the accrual basis of accounting. Such expenditures are recognized following the costprinciples contained in the Uniform Guidance, wherein certain types of expenditures are notallowable or are limited as to reimbursement. Negative amounts shown on the Schedule representadjustments or credits made in the normal course of business to amounts reported asexpenditures in prior years. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10-percent de minimis indirect cost rate allowed by theUniform Guidance. The accompanying Schedule includes the federal award activity of Alluma, Inc. under programsof the federal government for the year ended December 31, 2022. The information 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 ofAlluma, Inc., it is not intended to and does not present the financial position, changes in operationsand net assets, or cash flows of Alluma, Inc.

Title: PROVIDER RELIEF FUND Accounting Policies: Expenditures reported in the schedule of expenditures of federal awards (the schedule) arereported on the accrual basis of accounting. Such expenditures are recognized following the costprinciples contained in the Uniform Guidance, wherein certain types of expenditures are notallowable or are limited as to reimbursement. Negative amounts shown on the Schedule representadjustments or credits made in the normal course of business to amounts reported asexpenditures in prior years. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10-percent de minimis indirect cost rate allowed by theUniform Guidance. Under the terms and conditions of the Provider Relief Fund and American Rescue Plan (ARP)Rural Distribution program (PRF) (ALN 93.498), the Organization is required to report COVID-19related expenses and lost revenue to the U.S. Department of Health and Human Services (HHS).Guidance from HHS has required the reporting of the COVID-19 related expenses and lostrevenue in certain reporting periods based on when the funds were received.The Schedule includes PRF expenditures of $268,330 for distributions received by theOrganization from November 23, 2021 to December 16, 2021. The Organization recognized allof the funds received in the Statement of Operations and Changes in Net Assets, as the termsand conditions of the PRF grant were satisfied as follows:Federal Grant Revenues $ 2,365,702Add: PRF recognized in prior period 97,064$ 2,462,766Total federal expenditures on SEFA $ 2,462,766

Finding Details

Finding 2022-002

2022-002: Significant Deficiency Emergency Solutions Grant Program ? 14.231 ? Allowable Costs / Activities Criteria The ?Basic Guidelines? section of 2 CFR Part 200, Subpart E Section 200.403, requires charges to federal awards to be necessary and reasonable for the performance of the federal award and be allocable thereto under these principles. Condition The Organization paid more than the invoice amount for one transaction. Cause The Organization did not have sufficient procedures in place to ensure that only necessary and reasonable costs were charged to this program. Effect The Organization charged costs to this federal program that were not necessary and reasonable for this federal program. Questioned Costs $4,532 Context A sample of 5 transactions were selected for testing this federal program to determine if the finding issued in the prior year has been resolved. For one transaction tested, the amount paid exceeded the invoice amount due to oversight. Repeat Finding Yes Recommendation The Organization should implement procedures to ensure that only necessary, reasonable costs and incurred costs are charged to the program. Views of Responsible Officials and Planned Corrective Actions The Organization agrees with the recommendation and will implement immediately.

Finding 2022-002

2022-002: Significant Deficiency Emergency Solutions Grant Program ? 14.231 ? Allowable Costs / Activities Criteria The ?Basic Guidelines? section of 2 CFR Part 200, Subpart E Section 200.403, requires charges to federal awards to be necessary and reasonable for the performance of the federal award and be allocable thereto under these principles. Condition The Organization paid more than the invoice amount for one transaction. Cause The Organization did not have sufficient procedures in place to ensure that only necessary and reasonable costs were charged to this program. Effect The Organization charged costs to this federal program that were not necessary and reasonable for this federal program. Questioned Costs $4,532 Context A sample of 5 transactions were selected for testing this federal program to determine if the finding issued in the prior year has been resolved. For one transaction tested, the amount paid exceeded the invoice amount due to oversight. Repeat Finding Yes Recommendation The Organization should implement procedures to ensure that only necessary, reasonable costs and incurred costs are charged to the program. Views of Responsible Officials and Planned Corrective Actions The Organization agrees with the recommendation and will implement immediately.