FAC Explorer

Audit 315729

FY End
2023-12-31
Total Expended
$779,465
Findings
2
Programs
5
Organization: Set Free Alaska, Inc. (AK)
Year: 2023 Accepted: 2024-07-23
Auditor: Altman Rogers & CO

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
479184 2023-001 Significant Deficiency - AB
1055626 2023-001 Significant Deficiency - AB

Programs

ALN Program Spent Major Findings
93.959 Block Grants for Prevention and Treatment of Substance Abuse $416,290 Yes 1
93.788 Opioid Str $186,648 - 0
93.958 Block Grants for Community Mental Health Services $100,000 - 0
16.838 Comprehensive Opioid Abuse Site-Based Program $61,526 - 0
14.251 Hud Community Project Fundimg $15,001 - 0

Contacts

Name Title Type
MQSKPGNXN325 Joy Stein Auditee
9073734732 Don Hanni Auditor
No contacts on file

Notes to SEFA

Title: 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: Set Free Alaska, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of federal awards (the “Schedule”) includes the federal award activity of Set Free Alaska, Inc. 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 Set Free Alaska, Inc., it is not intended to and does not present the financial position, changes in net assets or cash flows of Set Free Alaska, Inc.
Title: 2. Passed Through Awards 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: Set Free Alaska, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. No amounts were passed theough to subrecipients.

Finding Details

Finding 2023-001
Finding 2023-001 Internal Control Over Allowable Costs/Activities Federal Agency: U.S. Department of Health and Social Services Federal Program: Comprehensive Behavioral Health Treatment and Recovery ALN: 93.959 Award Numbers: 162-268-24008 (State of Alaska Pass through award), B08TI085791 (Federal Award Identification Number) Award Year: 2024 Type of Finding: Significant deficiency in internal control over compliance and noncompliance. Condition/Context: During our testing of internal controls over payroll transactions for compliance, we noted two (2) payroll transactions for the same employee where the employee was not paid the correct wage rate. This resulted in the employee being underpaid. Criteria: Adequate internal controls over payroll transactions should be in place to ensure that the personnel files are complete and updated as necessary, for approved pay rates. Cause: Lack of internal control over review of payrate changes. Effect or Potential Effect: Not updating personnel files as changes occur can result in a misstatement of expenditures due to employees being paid incorrectly or charged to funding sources for which their payroll is an unallowable cost. Questioned Costs: None reported. Repeat Finding: This is not a repeat finding and we consider it to be an isolated incident. Recommendation: We recommend the Organization adheres to its internal control polices to ensure adequate and accurate reporting of payroll transactions. Management response: Management concurs with finding, see corrective action plan.
Finding 2023-001
Finding 2023-001 Internal Control Over Allowable Costs/Activities Federal Agency: U.S. Department of Health and Social Services Federal Program: Comprehensive Behavioral Health Treatment and Recovery ALN: 93.959 Award Numbers: 162-268-24008 (State of Alaska Pass through award), B08TI085791 (Federal Award Identification Number) Award Year: 2024 Type of Finding: Significant deficiency in internal control over compliance and noncompliance. Condition/Context: During our testing of internal controls over payroll transactions for compliance, we noted two (2) payroll transactions for the same employee where the employee was not paid the correct wage rate. This resulted in the employee being underpaid. Criteria: Adequate internal controls over payroll transactions should be in place to ensure that the personnel files are complete and updated as necessary, for approved pay rates. Cause: Lack of internal control over review of payrate changes. Effect or Potential Effect: Not updating personnel files as changes occur can result in a misstatement of expenditures due to employees being paid incorrectly or charged to funding sources for which their payroll is an unallowable cost. Questioned Costs: None reported. Repeat Finding: This is not a repeat finding and we consider it to be an isolated incident. Recommendation: We recommend the Organization adheres to its internal control polices to ensure adequate and accurate reporting of payroll transactions. Management response: Management concurs with finding, see corrective action plan.