FAC Explorer

Audit 320984

FY End
2023-12-31
Total Expended
$1.05M
Findings
2
Programs
1
Organization: Northland Counseling Center, INC (MN)
Year: 2023 Accepted: 2024-09-25
Auditor: Sterle & CO LTD

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
498243 2023-001 Significant Deficiency Yes P
1074685 2023-001 Significant Deficiency Yes P

Programs

ALN Program Spent Major Findings
93.696 Certified Community Behavioral Health Clinic Expansion Grants $1.05M Yes 1

Contacts

Name Title Type
F7D4NHLH27K6 Krislynn Watson Auditee
2183226160 Jeffrey Sterle Auditor
No contacts on file

Notes to SEFA

Title: Basis of presentaion Accounting Policies: see attached De Minimis Rate Used: Y Rate Explanation: see attached The accompanying schedule of expensitures of federal awards includes the federal award activity of the Center 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 this schedule presents only a selected portion of the operations of the Center, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Center.
Title: Summary of Significant Accounting Policies Accounting Policies: see attached De Minimis Rate Used: Y Rate Explanation: see attached Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost prinicples 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: see attached De Minimis Rate Used: Y Rate Explanation: see attached The Center has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2023-001
Lack of segregation of duties - Significant deficency Condition: Lack of segregation of duties over financial processes. Criteria: For an effective control system, division of accounting duties should exist to prevent errors or misappropirations from going undetected in the course of employees performing their assigned duties. Context: The lack of segregation of duties exists within the Center as a whole over its accounting and reporting functions. This is a common circumstance in nornprofit organizations of a similar size. Effect: Errors or misappropriations could occur and go undetected for a period of time. Questioned Costs: Not applicable Cause: Limited number of staff available to appropriately divde duties. Recommendation: The Center's governing board should be cognizant of the issue and provide appropirate oversight. Management should provide reasonable oversight to accounting functions including accounts payble disbursements, reconciliations, and reporting including journal entry preparation. Views of Responsible Officials and Corrective Actions: The Center agress with the recommendations.
Finding 2023-001
Lack of segregation of duties - Significant deficency Condition: Lack of segregation of duties over financial processes. Criteria: For an effective control system, division of accounting duties should exist to prevent errors or misappropirations from going undetected in the course of employees performing their assigned duties. Context: The lack of segregation of duties exists within the Center as a whole over its accounting and reporting functions. This is a common circumstance in nornprofit organizations of a similar size. Effect: Errors or misappropriations could occur and go undetected for a period of time. Questioned Costs: Not applicable Cause: Limited number of staff available to appropriately divde duties. Recommendation: The Center's governing board should be cognizant of the issue and provide appropirate oversight. Management should provide reasonable oversight to accounting functions including accounts payble disbursements, reconciliations, and reporting including journal entry preparation. Views of Responsible Officials and Corrective Actions: The Center agress with the recommendations.