Audit 338189

FY End
2024-06-30
Total Expended
$1.01M
Findings
2
Programs
2
Organization: Minnesota Recovery Connection (MN)
Year: 2024 Accepted: 2025-01-15
Auditor: Abdo

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
519338 2024-001 Material Weakness - AM
1095780 2024-001 Material Weakness - AM

Programs

Contacts

Name Title Type
TF7MAF46UNZ9 Cynthia Munguia Auditee
6125844158 Steve Anseth Auditor
No contacts on file

Notes to SEFA

Title: Note 1: Basis of Presentation Accounting Policies: Expenditures reported on this 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. De Minimis Rate Used: Y Rate Explanation: During the year ended June 30, 2024, the Organization has elected to implement the 10% de minimis indirect cost rate. The accompanying schedule of expenditures of federal awards includes state and local activity as well as the federal grant activity of the Organization under 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 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of operations of the Organization, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization.
Title: Note 2: Summary of Significant Accounting Policies for Expenditures Accounting Policies: Expenditures reported on this 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. De Minimis Rate Used: Y Rate Explanation: During the year ended June 30, 2024, the Organization has elected to implement the 10% de minimis indirect cost rate. Expenditures reported on this 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.
Title: Note 3: Pass-through Entity Identifying Numbers Accounting Policies: Expenditures reported on this 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. De Minimis Rate Used: Y Rate Explanation: During the year ended June 30, 2024, the Organization has elected to implement the 10% de minimis indirect cost rate. Pass-through entity identifying numbers are presented where available.
Title: Note 4: Subrecipients Accounting Policies: Expenditures reported on this 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. De Minimis Rate Used: Y Rate Explanation: During the year ended June 30, 2024, the Organization has elected to implement the 10% de minimis indirect cost rate. Federal expenditures provided to subrecipients are presented separately in the Schedule of Expenditures of Federal Awards.
Title: Note 5: Indirect Cost Accounting Policies: Expenditures reported on this 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. De Minimis Rate Used: Y Rate Explanation: During the year ended June 30, 2024, the Organization has elected to implement the 10% de minimis indirect cost rate. During the year ended June 30, 2024, the Organization has elected to implement the 10% de minimis indirect cost rate.

Finding Details

Condition: During our audit we noted that management did not have approval controls over invoices reimbursed by the federal program and approval of subrecipient monitoring reports. Criteria: The Organization must establish and maintain effective internal controls over the financial award that provides reasonable assurance that the non-Federal entity is managing the Federal Award in compliance with Federal statutes, regulations and the terms and conditions of the federal award per CFR 200.303. These requirements detail the information that must be included in the Organization's internal control. Cause: Management did not design and implement internal controls to document approval of invoices reimbursed by the federal program and subrecipient monitoring reports. Approvals were obtained verbally and were not documented. Effect: The absence of controls over disbursements and subrecipient monitoring incurred lead to an increased risk of errors and noncompliance in the financial statements, which could misrepresent the Organization's financial statements Recommendation: We recommend that the Organization implements a process to ensure that management documents all approvals and that approvals are occurring by proper personal.
Condition: During our audit we noted that management did not have approval controls over invoices reimbursed by the federal program and approval of subrecipient monitoring reports. Criteria: The Organization must establish and maintain effective internal controls over the financial award that provides reasonable assurance that the non-Federal entity is managing the Federal Award in compliance with Federal statutes, regulations and the terms and conditions of the federal award per CFR 200.303. These requirements detail the information that must be included in the Organization's internal control. Cause: Management did not design and implement internal controls to document approval of invoices reimbursed by the federal program and subrecipient monitoring reports. Approvals were obtained verbally and were not documented. Effect: The absence of controls over disbursements and subrecipient monitoring incurred lead to an increased risk of errors and noncompliance in the financial statements, which could misrepresent the Organization's financial statements Recommendation: We recommend that the Organization implements a process to ensure that management documents all approvals and that approvals are occurring by proper personal.