FAC Explorer

Audit 331450

FY End
2024-06-30
Total Expended
$1.80M
Findings
2
Programs
6
Organization: Northeast Iowa Mental Health Center (IA)
Year: 2024 Accepted: 2024-12-09
Auditor: Hacker Nelson & CO PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
513575 2024-001 Significant Deficiency Yes B
1090017 2024-001 Significant Deficiency Yes B

Programs

ALN Program Spent Major Findings
93.696 Certified Community Behavioral Health Clinic Expansion Grants $1.25M Yes 1
93.959 Block Grants for Prevention and Treatment of Substance Abuse $269,666 - 0
93.788 Opioid Str $145,588 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $85,641 - 0
93.958 Block Grants for Community Mental Health Services $39,220 - 0
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $5,500 - 0

Contacts

Name Title Type
JTF8L9FDA1N3 Bonnie Johnson Auditee
5633823649 Brent Berns Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: In accordance with the requirements of Title 2 U.S. Code of Federal Fegualations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). De Minimis Rate Used: Y Rate Explanation: Entity has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance of the Certified Community Behavorial Health Clinic Expansion Grants received from the U.S. Department of Treasury. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of Northeast Iowa Mental Health Center udner programs of the federal government for the year ended June 30, 2024. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulatioins (CFR) Part 200, Uniform Administration Requirments, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Northeast Iowa Mental Health Center, it is not intended to and does not present the financial postitiion, changes in net assets, or cash flows of Northeast Iowa Mental Health Center.
Title: Summary of Significant Accounting Policies Accounting Policies: In accordance with the requirements of Title 2 U.S. Code of Federal Fegualations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). De Minimis Rate Used: Y Rate Explanation: Entity has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance of the Certified Community Behavorial Health Clinic Expansion Grants received from the U.S. Department of Treasury. 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. Pass-through entity identifying numbers is presented where available.
Title: Indirect Cost Rate Accounting Policies: In accordance with the requirements of Title 2 U.S. Code of Federal Fegualations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). De Minimis Rate Used: Y Rate Explanation: Entity has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance of the Certified Community Behavorial Health Clinic Expansion Grants received from the U.S. Department of Treasury. Northeast Iowa Mental Health Center has elected to use the 10% de minimus indirect cost rate as allowed under the Uniform Guidance for the Certified Community Behavorial Health Clinic Expanson Grants received from the U.S. Department of Treasury. For all other grants, Northeast Iowa Mental Health Center has elected not to use the 10% de minimus indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2024-001
Finding 2023-001 Segregation of Duties Condition:During our review of internal controls, the existing procedures are evaluated in order to determine that incompatible duties, from a conctrol standpoint, are not performed be the same employee. This segregation of duties helps to prevent losses from employee error or dishonestly and therefore maximizes the accuracy of Northeast Iowa Mental Health Center's financial statements. The financial, grant and payroll reporting is primarily the responsibility of one person. As a result, interruption of some accounting functions could occur if they were unable to perform their duties. Criteria: A property designed segregation of duties allows entities to initiate, authorize, record, process, and report financial data reliably in accordance with generatlly accepted accounting principles. Cause: The concentration of closely related duties and responsibilities such as the recording and processing of cash receipts, payroll processing, preparing grant expenditure reports, preparing financial information for posting and analyzing financial information by a small staff makes it impossible to establish an adequate system of automatic internal checks on the accuracy and reliability of the accounting records. Effect: This deficiency results in a reasonable possibility that the organization would not be able to detect misstatements that would be material in relation to the financial statements and/or federal award programs in a timely period by employees in the normal course of performing their assigned functions. Recommendation: We realize that with a limited number of office employees, segregation of duties is difficult. However, the Center should review the operating procedures to obtain the maximum internal control possible under the circumstaces. The Center should also consider the potential consequence of reliance on one personl for financial, grant and payroll reporting. Repeat Finding: yes. Views of Responsible Officals and Planned Corrective Actions: This issue is reviewed annually through the audit review with the Board of Directors. The size of the Center prevents further segregation of duties.
Finding 2024-001
Finding 2023-001 Segregation of Duties Condition:During our review of internal controls, the existing procedures are evaluated in order to determine that incompatible duties, from a conctrol standpoint, are not performed be the same employee. This segregation of duties helps to prevent losses from employee error or dishonestly and therefore maximizes the accuracy of Northeast Iowa Mental Health Center's financial statements. The financial, grant and payroll reporting is primarily the responsibility of one person. As a result, interruption of some accounting functions could occur if they were unable to perform their duties. Criteria: A property designed segregation of duties allows entities to initiate, authorize, record, process, and report financial data reliably in accordance with generatlly accepted accounting principles. Cause: The concentration of closely related duties and responsibilities such as the recording and processing of cash receipts, payroll processing, preparing grant expenditure reports, preparing financial information for posting and analyzing financial information by a small staff makes it impossible to establish an adequate system of automatic internal checks on the accuracy and reliability of the accounting records. Effect: This deficiency results in a reasonable possibility that the organization would not be able to detect misstatements that would be material in relation to the financial statements and/or federal award programs in a timely period by employees in the normal course of performing their assigned functions. Recommendation: We realize that with a limited number of office employees, segregation of duties is difficult. However, the Center should review the operating procedures to obtain the maximum internal control possible under the circumstaces. The Center should also consider the potential consequence of reliance on one personl for financial, grant and payroll reporting. Repeat Finding: yes. Views of Responsible Officals and Planned Corrective Actions: This issue is reviewed annually through the audit review with the Board of Directors. The size of the Center prevents further segregation of duties.