FAC Explorer

Audit 349065

FY End
2024-06-30
Total Expended
$2.88M
Findings
8
Programs
8
Organization: Community Action Program Region Vii, Inc. (ND)
Year: 2024 Accepted: 2025-03-27
Auditor: Brady Martz & Associates PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
538037 2024-003 Significant Deficiency - C
538038 2024-003 Significant Deficiency - C
538039 2024-003 Significant Deficiency - C
538040 2024-003 Significant Deficiency - C
1114479 2024-003 Significant Deficiency - C
1114480 2024-003 Significant Deficiency - C
1114481 2024-003 Significant Deficiency - C
1114482 2024-003 Significant Deficiency - C

Programs

ALN Program Spent Major Findings
93.568 Low-Income Home Energy Assistance $335,365 Yes 1
64.033 Va Supportive Services for Veteran Families Program $209,759 - 0
81.042 Weatherization Assistance for Low-Income Persons $45,636 - 0
14.241 Housing Opportunities for Persons with Aids $42,331 - 0
93.569 Community Services Block Grant $11,908 - 0
93.917 Hiv Care Formula Grants $6,411 - 0
14.218 Community Development Block Grants/entitlement Grants $6,068 - 0
32.011 Affordable Connectivity Outreach Grant Program $1,255 - 0

Contacts

Name Title Type
GMZNE8N47KE5 Andrea Werner Auditee
7012582240 Daryl Heizelman Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards (the Schedule) are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Community Action Program Region VII, Inc. has not elected to use the 10-percent de minimis cost rate as allowed under the Uniform Guidance. The accompanying Schedule includes the federal grant activity of Community Action Program Region VII, Inc. 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 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 Community Action Program Region VII Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Community Action Program Region VII, Inc.
Title: RECONCILIATION OF FEDERAL EXPENSES OF THE SEFA Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards (the Schedule) are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Community Action Program Region VII, Inc. has not elected to use the 10-percent de minimis cost rate as allowed under the Uniform Guidance. Reconciliation of federal expenses to the SEFA is as follows: Total expenses per program CSBG $ 475,253 LIHEAP 1,521,992 CDBG / TBRA 13,558 HOPWA / ND Rents 232,226 DOE 444,079 SSVF 209,921 Other Federal 7,666 Total expenses by federal programs 2,904,695 Add: Fixed assets capitalized with federal funds 76,716 Less: Non-federal expenses (102,718) Total federal expenses per the SEFA $ 2,878,693

Finding Details

Finding 2024-003
2024-003: Segregation of Duties – Significant Deficiency AL # 93.568 – LIHEAP – Low Income Home Energy Assistance Program C: Cash Management Criteria The Region is required to maintain internal controls at a level where underlying support for federal award reimbursement requests can developed and a determination can be made that the federal awards are getting disbursed properly in accordance with grant requirements. Condition There is a lack of internal control around the review and approval of reimbursement requests by someone other than the preparer. Cause The Region is subject to size and budget constraints limiting the number of personnel within the financial department. Questioned Costs $0 Effect There is an increased risk of material misstatement to the organization’s financial statements. Recommendation We recommend the Region review their internal controls over grants to determine if additional procedures can be implemented that are cost effective. The board should constantly be aware of this condition. Compensating controls that mitigate the related risks could be (or are) provided through appropriate oversight of the performance of these functions and review of grant disbursements by individuals with knowledge of current grants and grant requirements. Views of Responsible Officials and Planned Corrective Actions We agree with this finding. We will improve monitoring and implement new procedures to properly segregate accounting functions as much as possible for the small size of the Region. Indication of Repeat Finding This is not a repeat finding from the prior year.
Finding 2024-003
2024-003: Segregation of Duties – Significant Deficiency AL # 93.568 – LIHEAP – Low Income Home Energy Assistance Program C: Cash Management Criteria The Region is required to maintain internal controls at a level where underlying support for federal award reimbursement requests can developed and a determination can be made that the federal awards are getting disbursed properly in accordance with grant requirements. Condition There is a lack of internal control around the review and approval of reimbursement requests by someone other than the preparer. Cause The Region is subject to size and budget constraints limiting the number of personnel within the financial department. Questioned Costs $0 Effect There is an increased risk of material misstatement to the organization’s financial statements. Recommendation We recommend the Region review their internal controls over grants to determine if additional procedures can be implemented that are cost effective. The board should constantly be aware of this condition. Compensating controls that mitigate the related risks could be (or are) provided through appropriate oversight of the performance of these functions and review of grant disbursements by individuals with knowledge of current grants and grant requirements. Views of Responsible Officials and Planned Corrective Actions We agree with this finding. We will improve monitoring and implement new procedures to properly segregate accounting functions as much as possible for the small size of the Region. Indication of Repeat Finding This is not a repeat finding from the prior year.
Finding 2024-003
2024-003: Segregation of Duties – Significant Deficiency AL # 93.568 – LIHEAP – Low Income Home Energy Assistance Program C: Cash Management Criteria The Region is required to maintain internal controls at a level where underlying support for federal award reimbursement requests can developed and a determination can be made that the federal awards are getting disbursed properly in accordance with grant requirements. Condition There is a lack of internal control around the review and approval of reimbursement requests by someone other than the preparer. Cause The Region is subject to size and budget constraints limiting the number of personnel within the financial department. Questioned Costs $0 Effect There is an increased risk of material misstatement to the organization’s financial statements. Recommendation We recommend the Region review their internal controls over grants to determine if additional procedures can be implemented that are cost effective. The board should constantly be aware of this condition. Compensating controls that mitigate the related risks could be (or are) provided through appropriate oversight of the performance of these functions and review of grant disbursements by individuals with knowledge of current grants and grant requirements. Views of Responsible Officials and Planned Corrective Actions We agree with this finding. We will improve monitoring and implement new procedures to properly segregate accounting functions as much as possible for the small size of the Region. Indication of Repeat Finding This is not a repeat finding from the prior year.
Finding 2024-003
2024-003: Segregation of Duties – Significant Deficiency AL # 93.568 – LIHEAP – Low Income Home Energy Assistance Program C: Cash Management Criteria The Region is required to maintain internal controls at a level where underlying support for federal award reimbursement requests can developed and a determination can be made that the federal awards are getting disbursed properly in accordance with grant requirements. Condition There is a lack of internal control around the review and approval of reimbursement requests by someone other than the preparer. Cause The Region is subject to size and budget constraints limiting the number of personnel within the financial department. Questioned Costs $0 Effect There is an increased risk of material misstatement to the organization’s financial statements. Recommendation We recommend the Region review their internal controls over grants to determine if additional procedures can be implemented that are cost effective. The board should constantly be aware of this condition. Compensating controls that mitigate the related risks could be (or are) provided through appropriate oversight of the performance of these functions and review of grant disbursements by individuals with knowledge of current grants and grant requirements. Views of Responsible Officials and Planned Corrective Actions We agree with this finding. We will improve monitoring and implement new procedures to properly segregate accounting functions as much as possible for the small size of the Region. Indication of Repeat Finding This is not a repeat finding from the prior year.
Finding 2024-003
2024-003: Segregation of Duties – Significant Deficiency AL # 93.568 – LIHEAP – Low Income Home Energy Assistance Program C: Cash Management Criteria The Region is required to maintain internal controls at a level where underlying support for federal award reimbursement requests can developed and a determination can be made that the federal awards are getting disbursed properly in accordance with grant requirements. Condition There is a lack of internal control around the review and approval of reimbursement requests by someone other than the preparer. Cause The Region is subject to size and budget constraints limiting the number of personnel within the financial department. Questioned Costs $0 Effect There is an increased risk of material misstatement to the organization’s financial statements. Recommendation We recommend the Region review their internal controls over grants to determine if additional procedures can be implemented that are cost effective. The board should constantly be aware of this condition. Compensating controls that mitigate the related risks could be (or are) provided through appropriate oversight of the performance of these functions and review of grant disbursements by individuals with knowledge of current grants and grant requirements. Views of Responsible Officials and Planned Corrective Actions We agree with this finding. We will improve monitoring and implement new procedures to properly segregate accounting functions as much as possible for the small size of the Region. Indication of Repeat Finding This is not a repeat finding from the prior year.
Finding 2024-003
2024-003: Segregation of Duties – Significant Deficiency AL # 93.568 – LIHEAP – Low Income Home Energy Assistance Program C: Cash Management Criteria The Region is required to maintain internal controls at a level where underlying support for federal award reimbursement requests can developed and a determination can be made that the federal awards are getting disbursed properly in accordance with grant requirements. Condition There is a lack of internal control around the review and approval of reimbursement requests by someone other than the preparer. Cause The Region is subject to size and budget constraints limiting the number of personnel within the financial department. Questioned Costs $0 Effect There is an increased risk of material misstatement to the organization’s financial statements. Recommendation We recommend the Region review their internal controls over grants to determine if additional procedures can be implemented that are cost effective. The board should constantly be aware of this condition. Compensating controls that mitigate the related risks could be (or are) provided through appropriate oversight of the performance of these functions and review of grant disbursements by individuals with knowledge of current grants and grant requirements. Views of Responsible Officials and Planned Corrective Actions We agree with this finding. We will improve monitoring and implement new procedures to properly segregate accounting functions as much as possible for the small size of the Region. Indication of Repeat Finding This is not a repeat finding from the prior year.
Finding 2024-003
2024-003: Segregation of Duties – Significant Deficiency AL # 93.568 – LIHEAP – Low Income Home Energy Assistance Program C: Cash Management Criteria The Region is required to maintain internal controls at a level where underlying support for federal award reimbursement requests can developed and a determination can be made that the federal awards are getting disbursed properly in accordance with grant requirements. Condition There is a lack of internal control around the review and approval of reimbursement requests by someone other than the preparer. Cause The Region is subject to size and budget constraints limiting the number of personnel within the financial department. Questioned Costs $0 Effect There is an increased risk of material misstatement to the organization’s financial statements. Recommendation We recommend the Region review their internal controls over grants to determine if additional procedures can be implemented that are cost effective. The board should constantly be aware of this condition. Compensating controls that mitigate the related risks could be (or are) provided through appropriate oversight of the performance of these functions and review of grant disbursements by individuals with knowledge of current grants and grant requirements. Views of Responsible Officials and Planned Corrective Actions We agree with this finding. We will improve monitoring and implement new procedures to properly segregate accounting functions as much as possible for the small size of the Region. Indication of Repeat Finding This is not a repeat finding from the prior year.
Finding 2024-003
2024-003: Segregation of Duties – Significant Deficiency AL # 93.568 – LIHEAP – Low Income Home Energy Assistance Program C: Cash Management Criteria The Region is required to maintain internal controls at a level where underlying support for federal award reimbursement requests can developed and a determination can be made that the federal awards are getting disbursed properly in accordance with grant requirements. Condition There is a lack of internal control around the review and approval of reimbursement requests by someone other than the preparer. Cause The Region is subject to size and budget constraints limiting the number of personnel within the financial department. Questioned Costs $0 Effect There is an increased risk of material misstatement to the organization’s financial statements. Recommendation We recommend the Region review their internal controls over grants to determine if additional procedures can be implemented that are cost effective. The board should constantly be aware of this condition. Compensating controls that mitigate the related risks could be (or are) provided through appropriate oversight of the performance of these functions and review of grant disbursements by individuals with knowledge of current grants and grant requirements. Views of Responsible Officials and Planned Corrective Actions We agree with this finding. We will improve monitoring and implement new procedures to properly segregate accounting functions as much as possible for the small size of the Region. Indication of Repeat Finding This is not a repeat finding from the prior year.