FAC Explorer

Audit 310050

FY End
2023-12-31
Total Expended
$1.47M
Findings
2
Programs
4
Organization: Project Reality (UT)
Year: 2023 Accepted: 2024-06-26
Auditor: Tanner LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
402857 2023-001 Significant Deficiency - P
979299 2023-001 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
93.696 Certified Community Behavioral Health Clinic Expansion Grants $1.22M Yes 1
93.829 Section 223 Demonstration Programs to Improve Community Mental Health Services $223,969 - 0
93.958 Block Grants for Community Mental Health Services $19,834 - 0
93.959 Block Grants for Prevention and Treatment of Substance Abuse $4,590 - 0

Contacts

Name Title Type
MUADG271HSL4 William Harrison Auditee
3858810170 Doug J. Hansen Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - 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. No federal financial assistance has been provided to subrecipients. De Minimis Rate Used: Y Rate Explanation: Project Reality has elected to use the 10% de minimis cost rate on certain grants. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Project Reality under programs of the federal government for the year ended December 31, 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 Project Reality, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of Project Reality.
Title: Note 2 - 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. No federal financial assistance has been provided to subrecipients. De Minimis Rate Used: Y Rate Explanation: Project Reality has elected to use the 10% de minimis cost rate on certain grants. 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. No federal financial assistance has been provided to subrecipients.
Title: Note 3 - 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. No federal financial assistance has been provided to subrecipients. De Minimis Rate Used: Y Rate Explanation: Project Reality has elected to use the 10% de minimis cost rate on certain grants. Project Reality has elected to use the 10% de minimis cost rate on certain grants.

Finding Details

Finding 2023-001
Criteria: The grant agreement specifies that no more than $30,000 is to be expended on prescription or over-the-counter medications during year one of the grant period. Condition: The Organization did not properly monitor the total amount of expenditures on prescription and over-the counter medications. Effect of Condition: Exenditures of $13,477 in excess of the limitation were used on prescription or over-the-counter medications. Perspective information: The Organization appears to have properly monitored other spending limitations for this grant and this finding was determined to be an isolated instance. Recommendation: The Organization should establish policies and procedures to carefully review funding limitations on a regular basis so that they are properly followed. Views of Responsible Officials: Management has acknowledged the finding and repaid $13,477 in excess expenditures to the U.S. Department of Health and Human Services in February 2024.
Finding 2023-001
Criteria: The grant agreement specifies that no more than $30,000 is to be expended on prescription or over-the-counter medications during year one of the grant period. Condition: The Organization did not properly monitor the total amount of expenditures on prescription and over-the counter medications. Effect of Condition: Exenditures of $13,477 in excess of the limitation were used on prescription or over-the-counter medications. Perspective information: The Organization appears to have properly monitored other spending limitations for this grant and this finding was determined to be an isolated instance. Recommendation: The Organization should establish policies and procedures to carefully review funding limitations on a regular basis so that they are properly followed. Views of Responsible Officials: Management has acknowledged the finding and repaid $13,477 in excess expenditures to the U.S. Department of Health and Human Services in February 2024.