FAC Explorer

Audit 337365

FY End
2024-09-30
Total Expended
$4.48M
Findings
8
Programs
9
Organization: Goodwill Industries, Inc. / Easter Seals Minnesota (MN)
Year: 2024 Accepted: 2025-01-13
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
518897 2024-002 Significant Deficiency - AB
518898 2024-002 Significant Deficiency - AB
518899 2024-002 Significant Deficiency - AB
518900 2024-002 Significant Deficiency - AB
1095339 2024-002 Significant Deficiency - AB
1095340 2024-002 Significant Deficiency - AB
1095341 2024-002 Significant Deficiency - AB
1095342 2024-002 Significant Deficiency - AB

Programs

ALN Program Spent Major Findings
93.558 Temporary Assistance for Needy Families $688,047 Yes 0
17.274 Youthbuild $261,969 - 0
17.258 Wioa Adult Program $150,000 - 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $85,523 - 0
96.008 Social Security - Work Incentives Planning and Assistance Program $54,971 - 0
17.278 Wioa Dislocated Worker Formula Grants $38,334 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $33,750 - 0
17.259 Wioa Youth Activities $27,607 - 0
17.720 Disability Employment Policy Development $13,793 - 0

Contacts

Name Title Type
H2SQFQ8H4AV1 Jeff Uecker Auditee
6512554906 Hannah Horn Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - Basis of Presentation Accounting Policies: Expenditures reported in the Schedule are reported on the modified accrual basis of accounting, except for subrecipient expenditures, which are recorded on the cash basis. When applicable, 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. De Minimis Rate Used: N Rate Explanation: Goodwill-Easter Seals Minnesota has not elected to use the 10% de minimis cost rate. The accompanying consolidated schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Goodwill-Easter Seals Minnesota, under programs of the federal government for the year ended September 30, 2024. The information 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 Goodwill-Easter Seals Minnesota, it is not intended to, and does not, present the consolidated financial position, changes in net assets, or cash flows of Goodwill-Easter Seals Minnesota.
Title: Note 2 - Summary of Significant Accounting Policies Accounting Policies: Expenditures reported in the Schedule are reported on the modified accrual basis of accounting, except for subrecipient expenditures, which are recorded on the cash basis. When applicable, 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. De Minimis Rate Used: N Rate Explanation: Goodwill-Easter Seals Minnesota has not elected to use the 10% de minimis cost rate. Expenditures reported in the Schedule are reported on the modified accrual basis of accounting, except for subrecipient expenditures, which are recorded on the cash basis. When applicable, 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.
Title: Note 3 - Indirect Cost Rate Accounting Policies: Expenditures reported in the Schedule are reported on the modified accrual basis of accounting, except for subrecipient expenditures, which are recorded on the cash basis. When applicable, 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. De Minimis Rate Used: N Rate Explanation: Goodwill-Easter Seals Minnesota has not elected to use the 10% de minimis cost rate. Goodwill-Easter Seals Minnesota has not elected to use the 10% de minimis cost rate.

Finding Details

Finding 2024-002
Department of Health and Human Services Temporary Assistance for Needy Families, 93.558, Affects awards FAST X for the year ending 12/31/2024 and Benefits Cliff for the year ending 12/31/2024 under assistance listing 93.558 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Significant Deficiency in Internal Control over Compliance Criteria: CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Goodwill-Easter Seals Minnesota’s internal control structure should be designed to properly follow the allocation policy for employees’ pay to each grant in accordance with the policy established by Goodwill-Easter Seals Minnesota. Condition: Goodwill-Easter Seals Minnesota has an internal control system designed to detect or prevent improper allocation of employees pay to grants in a timely manner in accordance with their established policy, however, during the year for two pay periods tested, it did not identify errors in the process. Cause: Goodwill-Easter Seals Minnesota has a process for allocating employee wages based on hours worked. The controls in place did not operate as designed and failed to detect errors in the allocation of employee pay to the grants. Effect: Employees had some of their pay allocated improperly and not in accordance with the policy established. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of seven pay periods out of 26 were selected for testing which accounted for $1,458,797 of $2,490,122 of federal program expenditures. Repeat Finding from Prior Year: No Recommendation: We recommend that management develop a more extensive review over payroll allocation to ensure pay is properly allocated to each grant in accordance with the policy established by Goodwill-Easter Seals Minnesota. Views of Responsible Officials: Management agrees with this finding.
Finding 2024-002
Department of Health and Human Services Temporary Assistance for Needy Families, 93.558, Affects awards FAST X for the year ending 12/31/2024 and Benefits Cliff for the year ending 12/31/2024 under assistance listing 93.558 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Significant Deficiency in Internal Control over Compliance Criteria: CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Goodwill-Easter Seals Minnesota’s internal control structure should be designed to properly follow the allocation policy for employees’ pay to each grant in accordance with the policy established by Goodwill-Easter Seals Minnesota. Condition: Goodwill-Easter Seals Minnesota has an internal control system designed to detect or prevent improper allocation of employees pay to grants in a timely manner in accordance with their established policy, however, during the year for two pay periods tested, it did not identify errors in the process. Cause: Goodwill-Easter Seals Minnesota has a process for allocating employee wages based on hours worked. The controls in place did not operate as designed and failed to detect errors in the allocation of employee pay to the grants. Effect: Employees had some of their pay allocated improperly and not in accordance with the policy established. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of seven pay periods out of 26 were selected for testing which accounted for $1,458,797 of $2,490,122 of federal program expenditures. Repeat Finding from Prior Year: No Recommendation: We recommend that management develop a more extensive review over payroll allocation to ensure pay is properly allocated to each grant in accordance with the policy established by Goodwill-Easter Seals Minnesota. Views of Responsible Officials: Management agrees with this finding.
Finding 2024-002
Department of Health and Human Services Temporary Assistance for Needy Families, 93.558, Affects awards FAST X for the year ending 12/31/2024 and Benefits Cliff for the year ending 12/31/2024 under assistance listing 93.558 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Significant Deficiency in Internal Control over Compliance Criteria: CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Goodwill-Easter Seals Minnesota’s internal control structure should be designed to properly follow the allocation policy for employees’ pay to each grant in accordance with the policy established by Goodwill-Easter Seals Minnesota. Condition: Goodwill-Easter Seals Minnesota has an internal control system designed to detect or prevent improper allocation of employees pay to grants in a timely manner in accordance with their established policy, however, during the year for two pay periods tested, it did not identify errors in the process. Cause: Goodwill-Easter Seals Minnesota has a process for allocating employee wages based on hours worked. The controls in place did not operate as designed and failed to detect errors in the allocation of employee pay to the grants. Effect: Employees had some of their pay allocated improperly and not in accordance with the policy established. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of seven pay periods out of 26 were selected for testing which accounted for $1,458,797 of $2,490,122 of federal program expenditures. Repeat Finding from Prior Year: No Recommendation: We recommend that management develop a more extensive review over payroll allocation to ensure pay is properly allocated to each grant in accordance with the policy established by Goodwill-Easter Seals Minnesota. Views of Responsible Officials: Management agrees with this finding.
Finding 2024-002
Department of Health and Human Services Temporary Assistance for Needy Families, 93.558, Affects awards FAST X for the year ending 12/31/2024 and Benefits Cliff for the year ending 12/31/2024 under assistance listing 93.558 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Significant Deficiency in Internal Control over Compliance Criteria: CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Goodwill-Easter Seals Minnesota’s internal control structure should be designed to properly follow the allocation policy for employees’ pay to each grant in accordance with the policy established by Goodwill-Easter Seals Minnesota. Condition: Goodwill-Easter Seals Minnesota has an internal control system designed to detect or prevent improper allocation of employees pay to grants in a timely manner in accordance with their established policy, however, during the year for two pay periods tested, it did not identify errors in the process. Cause: Goodwill-Easter Seals Minnesota has a process for allocating employee wages based on hours worked. The controls in place did not operate as designed and failed to detect errors in the allocation of employee pay to the grants. Effect: Employees had some of their pay allocated improperly and not in accordance with the policy established. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of seven pay periods out of 26 were selected for testing which accounted for $1,458,797 of $2,490,122 of federal program expenditures. Repeat Finding from Prior Year: No Recommendation: We recommend that management develop a more extensive review over payroll allocation to ensure pay is properly allocated to each grant in accordance with the policy established by Goodwill-Easter Seals Minnesota. Views of Responsible Officials: Management agrees with this finding.
Finding 2024-002
Department of Health and Human Services Temporary Assistance for Needy Families, 93.558, Affects awards FAST X for the year ending 12/31/2024 and Benefits Cliff for the year ending 12/31/2024 under assistance listing 93.558 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Significant Deficiency in Internal Control over Compliance Criteria: CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Goodwill-Easter Seals Minnesota’s internal control structure should be designed to properly follow the allocation policy for employees’ pay to each grant in accordance with the policy established by Goodwill-Easter Seals Minnesota. Condition: Goodwill-Easter Seals Minnesota has an internal control system designed to detect or prevent improper allocation of employees pay to grants in a timely manner in accordance with their established policy, however, during the year for two pay periods tested, it did not identify errors in the process. Cause: Goodwill-Easter Seals Minnesota has a process for allocating employee wages based on hours worked. The controls in place did not operate as designed and failed to detect errors in the allocation of employee pay to the grants. Effect: Employees had some of their pay allocated improperly and not in accordance with the policy established. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of seven pay periods out of 26 were selected for testing which accounted for $1,458,797 of $2,490,122 of federal program expenditures. Repeat Finding from Prior Year: No Recommendation: We recommend that management develop a more extensive review over payroll allocation to ensure pay is properly allocated to each grant in accordance with the policy established by Goodwill-Easter Seals Minnesota. Views of Responsible Officials: Management agrees with this finding.
Finding 2024-002
Department of Health and Human Services Temporary Assistance for Needy Families, 93.558, Affects awards FAST X for the year ending 12/31/2024 and Benefits Cliff for the year ending 12/31/2024 under assistance listing 93.558 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Significant Deficiency in Internal Control over Compliance Criteria: CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Goodwill-Easter Seals Minnesota’s internal control structure should be designed to properly follow the allocation policy for employees’ pay to each grant in accordance with the policy established by Goodwill-Easter Seals Minnesota. Condition: Goodwill-Easter Seals Minnesota has an internal control system designed to detect or prevent improper allocation of employees pay to grants in a timely manner in accordance with their established policy, however, during the year for two pay periods tested, it did not identify errors in the process. Cause: Goodwill-Easter Seals Minnesota has a process for allocating employee wages based on hours worked. The controls in place did not operate as designed and failed to detect errors in the allocation of employee pay to the grants. Effect: Employees had some of their pay allocated improperly and not in accordance with the policy established. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of seven pay periods out of 26 were selected for testing which accounted for $1,458,797 of $2,490,122 of federal program expenditures. Repeat Finding from Prior Year: No Recommendation: We recommend that management develop a more extensive review over payroll allocation to ensure pay is properly allocated to each grant in accordance with the policy established by Goodwill-Easter Seals Minnesota. Views of Responsible Officials: Management agrees with this finding.
Finding 2024-002
Department of Health and Human Services Temporary Assistance for Needy Families, 93.558, Affects awards FAST X for the year ending 12/31/2024 and Benefits Cliff for the year ending 12/31/2024 under assistance listing 93.558 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Significant Deficiency in Internal Control over Compliance Criteria: CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Goodwill-Easter Seals Minnesota’s internal control structure should be designed to properly follow the allocation policy for employees’ pay to each grant in accordance with the policy established by Goodwill-Easter Seals Minnesota. Condition: Goodwill-Easter Seals Minnesota has an internal control system designed to detect or prevent improper allocation of employees pay to grants in a timely manner in accordance with their established policy, however, during the year for two pay periods tested, it did not identify errors in the process. Cause: Goodwill-Easter Seals Minnesota has a process for allocating employee wages based on hours worked. The controls in place did not operate as designed and failed to detect errors in the allocation of employee pay to the grants. Effect: Employees had some of their pay allocated improperly and not in accordance with the policy established. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of seven pay periods out of 26 were selected for testing which accounted for $1,458,797 of $2,490,122 of federal program expenditures. Repeat Finding from Prior Year: No Recommendation: We recommend that management develop a more extensive review over payroll allocation to ensure pay is properly allocated to each grant in accordance with the policy established by Goodwill-Easter Seals Minnesota. Views of Responsible Officials: Management agrees with this finding.
Finding 2024-002
Department of Health and Human Services Temporary Assistance for Needy Families, 93.558, Affects awards FAST X for the year ending 12/31/2024 and Benefits Cliff for the year ending 12/31/2024 under assistance listing 93.558 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Significant Deficiency in Internal Control over Compliance Criteria: CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Goodwill-Easter Seals Minnesota’s internal control structure should be designed to properly follow the allocation policy for employees’ pay to each grant in accordance with the policy established by Goodwill-Easter Seals Minnesota. Condition: Goodwill-Easter Seals Minnesota has an internal control system designed to detect or prevent improper allocation of employees pay to grants in a timely manner in accordance with their established policy, however, during the year for two pay periods tested, it did not identify errors in the process. Cause: Goodwill-Easter Seals Minnesota has a process for allocating employee wages based on hours worked. The controls in place did not operate as designed and failed to detect errors in the allocation of employee pay to the grants. Effect: Employees had some of their pay allocated improperly and not in accordance with the policy established. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of seven pay periods out of 26 were selected for testing which accounted for $1,458,797 of $2,490,122 of federal program expenditures. Repeat Finding from Prior Year: No Recommendation: We recommend that management develop a more extensive review over payroll allocation to ensure pay is properly allocated to each grant in accordance with the policy established by Goodwill-Easter Seals Minnesota. Views of Responsible Officials: Management agrees with this finding.