FAC Explorer

Audit 309846

FY End
2022-12-31
Total Expended
$3.18M
Findings
6
Programs
8
Organization: The Wayside House, Inc. and Subsidiary (MN)
Year: 2022 Accepted: 2024-06-25
Auditor: Baker Tilly US LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
401925 2022-002 Significant Deficiency - AB
401926 2022-003 Significant Deficiency - C
401927 2022-004 Significant Deficiency - L
978367 2022-002 Significant Deficiency - AB
978368 2022-003 Significant Deficiency - C
978369 2022-004 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
93.829 Section 223 Demonstration Programs to Improve Community Mental Health Services $1.10M Yes 3
93.788 Opioid Str $929,833 - 0
14.239 Home Investment Partnerships Program $600,000 - 0
14.218 Community Development Block Grants/entitlement Grants $180,800 - 0
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $146,795 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $102,708 - 0
16.034 Coronavirus Emergency Supplemental Funding Program $69,650 - 0
93.959 Block Grants for Prevention and Treatment of Substance Abuse $52,265 - 0

Contacts

Name Title Type
VADJLG5VNAC4 Andrea Vasquez Auditee
9524057190 Nicki Donlon Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: 1. Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes federal grant activity of The Wayside House, Inc. and Subsidiary under programs of the federal government for the year ended December 31, 2022. 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 this Schedule presents only a selected portion of the operations of The Wayside House, Inc. and Subsidiary, it is not intended to and does not present the financial position, changes in net assets or cash flows of The Wayside House, Inc. and Subsidiary. 2. Summary of Significant Accounting Policies Expenditures reported in 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. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Any indirect cost rates utilized were those dictatced by the underlying grant agreement The accompanying schedule of expenditures of federal awards (the Schedule) includes federal grant activity of The Wayside House, Inc. and Subsidiary under programs of the federal government for the year ended December 31, 2022. 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 this Schedule presents only a selected portion of the operations of The Wayside House, Inc. and Subsidiary, it is not intended to and does not present the financial position, changes in net assets or cash flows of The Wayside House, Inc. and Subsidiary.
Title: Summary of Significant Accounting Policies Accounting Policies: 1. Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes federal grant activity of The Wayside House, Inc. and Subsidiary under programs of the federal government for the year ended December 31, 2022. 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 this Schedule presents only a selected portion of the operations of The Wayside House, Inc. and Subsidiary, it is not intended to and does not present the financial position, changes in net assets or cash flows of The Wayside House, Inc. and Subsidiary. 2. Summary of Significant Accounting Policies Expenditures reported in 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. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Any indirect cost rates utilized were those dictatced by the underlying grant agreement Expenditures reported in 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. Pass-through entity identifying numbers are presented where available.
Title: Indirect Cost Rate Accounting Policies: 1. Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes federal grant activity of The Wayside House, Inc. and Subsidiary under programs of the federal government for the year ended December 31, 2022. 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 this Schedule presents only a selected portion of the operations of The Wayside House, Inc. and Subsidiary, it is not intended to and does not present the financial position, changes in net assets or cash flows of The Wayside House, Inc. and Subsidiary. 2. Summary of Significant Accounting Policies Expenditures reported in 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. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Any indirect cost rates utilized were those dictatced by the underlying grant agreement The Wayside House, Inc. and Subsidiary has not elected to use the 10% de minimis indirect cost rate.
Title: Loan and Loan Guarantee Program Accounting Policies: 1. Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes federal grant activity of The Wayside House, Inc. and Subsidiary under programs of the federal government for the year ended December 31, 2022. 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 this Schedule presents only a selected portion of the operations of The Wayside House, Inc. and Subsidiary, it is not intended to and does not present the financial position, changes in net assets or cash flows of The Wayside House, Inc. and Subsidiary. 2. Summary of Significant Accounting Policies Expenditures reported in 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. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Any indirect cost rates utilized were those dictatced by the underlying grant agreement The HOME Investment Partnerships Program loan has a 0.0% interest rate and is due on October 27, 2023 unless a release is provided by Hennepin County. The effective interest rate is 7.75% and the loan is secured by real property located at 1341 and 1349 Jersey Avenue, St. Louis Park. The discounted balance of the loan at December 31, 2022 is $562,592. The Assistance Listing number associated with the loan is 14.239. The Community Development Block Grants/Entitlement Grants Program loan has a 1.0% interest rate which is fully deferred and is due March 11, 2024. The effective interest rate is 5.0% and the loan is secured by real property located at 2120 Clinton Ave South, Minneapolis. The discounted balance of the loan at December 31, 2022 is $170,532. The Assistance Listing number associated with the loan is 14.218.

Finding Details

Finding 2022-002
Federal Program: Section 223 Demonstration Programs to Improve Community Mental Health Services Federal Agency: U.S. Department of Health and Human Services Pass-Through Entity: Not Applicable Assistance Listing Number (ALN): 93.829 Federal Award Number: H79SM083269 Federal Award Year: December 31, 2022 Criteria: 2 CFR 200.430(i)(1)(i) & (vii) state that charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; and support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one federal award, or a federal award and non-federal award Condition/Context: Six of the twenty-five personnel transactions that were tested did not have evidence of approval for the amount allocated to the federal program. The Organization experienced an unusually elevated level of turn-over of key personnel in business operations during the period of time that the control procedures lapsed as the individuals replacing those responsible for attaining allocation authorizations were not yet hired or fully trained in their assignments. The sample was not a statistically valid sample. Cause: The Organization's control process for monthly program allocation authorizations was not properly implemented during the months of May and June of 2022. Effect: Inadequate controls over the allocation of costs could result in unallowable costs being improperly applied to the federal program. Questioned Costs: None noted Recommendation: The Organization should have formal written procedure to ensure that all relevant authorization and reviews have been completed before allocating costs to federal programs. Views of responsible officials: Management agrees with the auditors' finding and will take action to implement controlling procedures over federal programs.
Finding 2022-003
Federal Program: Section 223 Demonstration Programs to Improve Community Mental Health Services Federal Agency: U.S. Department of Health and Human Services Pass-Through Entity: Not Applicable Assistance Listing Number (ALN): 93.829 Federal Award Number: H79SM083269 Federal Award Year: December 31, 2022 Criteria: 2 CFR 200.303 states that recipients of federal program funding must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework", issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition/Context: Evidence of proper segregation of duties or internal controls over the federal program's billing process could not be provided. Cause: The Organization's process for compiling the reimbursable expenditures and billing those amounts to the Federal awarding agency were completed by a single individual. Both this individual and the personnel that would have been responsible for reviewing and approving the amounts billed are no longer with the Organization. As such there was no evidence provided of segregation of duties or internal control over the amounts charged to the Federal program Effect: Inadequate controls over the cash management process could result in reimbursable costs billed to Federal programs that are inaccurate or unallowable. Questioned Costs: None noted Recommendation: The Organization should have formal policies that provide documentary evidence of proper segregation of duties and control structures over Federal program cash management. Views of responsible officials: Management agrees with the auditors' finding and will take action to implement controlling procedures over federal programs.
Finding 2022-004
Federal Program: Section 223 Demonstration Programs to Improve Community Mental Health Services Federal Agency: U.S. Department of Health and Human Services Pass-Through Entity: Not Applicable Assistance Listing Number (ALN): 93.829 Federal Award Number: H79SM083269 Federal Award Year: December 31, 2022 Criteria: 2 CFR 200.303 states that recipients of federal program funding must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework", issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition/Context: Evidence of proper segregation of duties over the federal program's reporting process could not be provided. Cause: The Organization's process for preparing and submitting required performance reporting was completed by a single individual. Both this individual and the personnel that would have been responsible for reviewing and approving reports submitted to the awarding agency are no longer employees of the Organization. As such there was no evidence provided of segregation of duties or internal control over reporting activities. Effect: Required reports submitted to the awarding agency could be inaccurate. Questioned Costs: None noted. Recommendation: The Organization should have formal policies that provide documentary evidence of proper segregation of duties and control structures over federal program reporting. Views of responsible officials: Management agrees with the auditors' finding and will take action to implement controlling procedures over federal programs.
Finding 2022-002
Federal Program: Section 223 Demonstration Programs to Improve Community Mental Health Services Federal Agency: U.S. Department of Health and Human Services Pass-Through Entity: Not Applicable Assistance Listing Number (ALN): 93.829 Federal Award Number: H79SM083269 Federal Award Year: December 31, 2022 Criteria: 2 CFR 200.430(i)(1)(i) & (vii) state that charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; and support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one federal award, or a federal award and non-federal award Condition/Context: Six of the twenty-five personnel transactions that were tested did not have evidence of approval for the amount allocated to the federal program. The Organization experienced an unusually elevated level of turn-over of key personnel in business operations during the period of time that the control procedures lapsed as the individuals replacing those responsible for attaining allocation authorizations were not yet hired or fully trained in their assignments. The sample was not a statistically valid sample. Cause: The Organization's control process for monthly program allocation authorizations was not properly implemented during the months of May and June of 2022. Effect: Inadequate controls over the allocation of costs could result in unallowable costs being improperly applied to the federal program. Questioned Costs: None noted Recommendation: The Organization should have formal written procedure to ensure that all relevant authorization and reviews have been completed before allocating costs to federal programs. Views of responsible officials: Management agrees with the auditors' finding and will take action to implement controlling procedures over federal programs.
Finding 2022-003
Federal Program: Section 223 Demonstration Programs to Improve Community Mental Health Services Federal Agency: U.S. Department of Health and Human Services Pass-Through Entity: Not Applicable Assistance Listing Number (ALN): 93.829 Federal Award Number: H79SM083269 Federal Award Year: December 31, 2022 Criteria: 2 CFR 200.303 states that recipients of federal program funding must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework", issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition/Context: Evidence of proper segregation of duties or internal controls over the federal program's billing process could not be provided. Cause: The Organization's process for compiling the reimbursable expenditures and billing those amounts to the Federal awarding agency were completed by a single individual. Both this individual and the personnel that would have been responsible for reviewing and approving the amounts billed are no longer with the Organization. As such there was no evidence provided of segregation of duties or internal control over the amounts charged to the Federal program Effect: Inadequate controls over the cash management process could result in reimbursable costs billed to Federal programs that are inaccurate or unallowable. Questioned Costs: None noted Recommendation: The Organization should have formal policies that provide documentary evidence of proper segregation of duties and control structures over Federal program cash management. Views of responsible officials: Management agrees with the auditors' finding and will take action to implement controlling procedures over federal programs.
Finding 2022-004
Federal Program: Section 223 Demonstration Programs to Improve Community Mental Health Services Federal Agency: U.S. Department of Health and Human Services Pass-Through Entity: Not Applicable Assistance Listing Number (ALN): 93.829 Federal Award Number: H79SM083269 Federal Award Year: December 31, 2022 Criteria: 2 CFR 200.303 states that recipients of federal program funding must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework", issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition/Context: Evidence of proper segregation of duties over the federal program's reporting process could not be provided. Cause: The Organization's process for preparing and submitting required performance reporting was completed by a single individual. Both this individual and the personnel that would have been responsible for reviewing and approving reports submitted to the awarding agency are no longer employees of the Organization. As such there was no evidence provided of segregation of duties or internal control over reporting activities. Effect: Required reports submitted to the awarding agency could be inaccurate. Questioned Costs: None noted. Recommendation: The Organization should have formal policies that provide documentary evidence of proper segregation of duties and control structures over federal program reporting. Views of responsible officials: Management agrees with the auditors' finding and will take action to implement controlling procedures over federal programs.