FAC Explorer

Audit 352974

FY End
2021-06-30
Total Expended
$869,620
Findings
4
Programs
4
Organization: Kanawha Valley Collective Inc. (WV)
Year: 2021 Accepted: 2025-04-08
Auditor: Gray Griffith & Mays A C

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
554365 2021-002 Material Weakness - L
554366 2021-003 Material Weakness - L
1130807 2021-002 Material Weakness - L
1130808 2021-003 Material Weakness - L

Programs

ALN Program Spent Major Findings
93.788 Opioid Str $381,225 Yes 2
14.231 Emergency Solutions Grant Program $271,670 Yes 0
14.267 Continuum of Care Program $162,968 Yes 0
14.218 Community Development Block Grants/entitlement Grants $53,757 Yes 0

Contacts

Name Title Type
PBZLBE2MNRR2 Traci Strickland Auditee
3043466638 J. Ryan Lindsay Auditor
No contacts on file

Notes to SEFA

Title: 1 Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Kanawha Valley Collective, Inc. (the “Organization”), under programs of the federal government for the year ended June 30, 2021. 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 the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. Expenditures reported on the Schedule are reported on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit Organizations, or 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 are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: For the purposes of charging indirect costs to deferral awards, the Organization has not elected to use the 10 percent de minimus cost rate as permitted by Section 200.414 of the Uniform Guidance. 1 – BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Kanawha Valley Collective, Inc. (the “Organization”), under programs of the federal government for the year ended June 30, 2021. 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 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: 2 Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Kanawha Valley Collective, Inc. (the “Organization”), under programs of the federal government for the year ended June 30, 2021. 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 the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. Expenditures reported on the Schedule are reported on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit Organizations, or 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 are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: For the purposes of charging indirect costs to deferral awards, the Organization has not elected to use the 10 percent de minimus cost rate as permitted by Section 200.414 of the Uniform Guidance. 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit Organizations, or 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 are limited as to reimbursement.
Title: 3 Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Kanawha Valley Collective, Inc. (the “Organization”), under programs of the federal government for the year ended June 30, 2021. 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 the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. Expenditures reported on the Schedule are reported on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit Organizations, or 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 are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: For the purposes of charging indirect costs to deferral awards, the Organization has not elected to use the 10 percent de minimus cost rate as permitted by Section 200.414 of the Uniform Guidance. 3 – INDIRECT COST RATE For the purposes of charging indirect costs to deferral awards, the Organization has not elected to use the 10 percent de minimus cost rate as permitted by Section 200.414 of the Uniform Guidance.

Finding Details

Finding 2021-002
Information on the Federal Program: Assistance Listing Number 93.788—State Opioid Response, United States Department of Health and Human Services. Pass-Through Entity: West Virginia Department of Health and Human Resources. Award Number: G200736. Compliance Requirements: Eligibility, Reporting, Cash Management, Allowable Costs, Activities Allowed or Unallowed. Type of Finding: Material Weakness. Criteria: Program requirements state that the organization is required to submit quarterly reconciliations to the West Virginia Department of Health and Human Resources by the 15th of the month following the close of the quarter. Condition: For the year ended June 30, 2021, we reviewed the quarterly submitted schedules of payment program reconciliation reports provided by the Organization. The Organization could not produce documentation supporting their review of the reconciliations. Additionally, the reconciliations in total were arithmetically inaccurate and did not agree to the total expenditures for the period by a difference of $9,989. Cause: Program staff-maintained documentation separate from the accounting function and did not reconcile the information from their records to the accounting function’s records on a timely basis. Effect or Potential Effect: The amount of expenditures for this program as reported by the Organization to the West Virginia Department of Health and Human Resources was less than the actual expenditures by $9,989. Questioned Costs: $0. Context: Four quarterly reconciliations were required to be prepared and presented to the State of West Virginia. Repeat Finding: This is a new finding. Recommendation: The Organization should implement policies and procedures which require programmatic invoices to be recorded consistently in the accounting records. Then, the Organization should develop review control procedures that require reconciliation of grant expenditures prepared by the program employees to the accounting records prepared by the accounting function. The review
Finding 2021-003
Information on the Federal Program: Assistance Listing Number 93.788—State Opioid Response, United States Department of Health and Human Services. Pass-Through Entity: West Virginia Department of Health and Human Resources. Award Number: G200736. Compliance Requirements: Eligibility, Reporting, Cash Management, Allowable Costs, Activities Allowed or Unallowed. Type of Finding: Material Weakness. Criteria: A single audit is required to be completed and submitted to the Federal Audit Clearing house nine months after year-end. Condition: For the year ended June 30, 2021, we noted the Organization was unable to obtain the necessary resources to complete the single audit within the specified time-frame. Cause: The Organization was experiencing a period of growth and did not have the adequate internal accounting personnel to prepare records and supporting documentation in a timely manner. Effect or Potential Effect: Noncompliance with the single audit requirements. Questioned Costs: $0. Context: A single audit is required to be completed annually if the amount of federal awards expended reaches a certain threshold. Repeat Finding: This is a new finding. Recommendation: The Organization should implement policies and procedures which require a timely and complete financial statement close process.
Finding 2021-002
Information on the Federal Program: Assistance Listing Number 93.788—State Opioid Response, United States Department of Health and Human Services. Pass-Through Entity: West Virginia Department of Health and Human Resources. Award Number: G200736. Compliance Requirements: Eligibility, Reporting, Cash Management, Allowable Costs, Activities Allowed or Unallowed. Type of Finding: Material Weakness. Criteria: Program requirements state that the organization is required to submit quarterly reconciliations to the West Virginia Department of Health and Human Resources by the 15th of the month following the close of the quarter. Condition: For the year ended June 30, 2021, we reviewed the quarterly submitted schedules of payment program reconciliation reports provided by the Organization. The Organization could not produce documentation supporting their review of the reconciliations. Additionally, the reconciliations in total were arithmetically inaccurate and did not agree to the total expenditures for the period by a difference of $9,989. Cause: Program staff-maintained documentation separate from the accounting function and did not reconcile the information from their records to the accounting function’s records on a timely basis. Effect or Potential Effect: The amount of expenditures for this program as reported by the Organization to the West Virginia Department of Health and Human Resources was less than the actual expenditures by $9,989. Questioned Costs: $0. Context: Four quarterly reconciliations were required to be prepared and presented to the State of West Virginia. Repeat Finding: This is a new finding. Recommendation: The Organization should implement policies and procedures which require programmatic invoices to be recorded consistently in the accounting records. Then, the Organization should develop review control procedures that require reconciliation of grant expenditures prepared by the program employees to the accounting records prepared by the accounting function. The review
Finding 2021-003
Information on the Federal Program: Assistance Listing Number 93.788—State Opioid Response, United States Department of Health and Human Services. Pass-Through Entity: West Virginia Department of Health and Human Resources. Award Number: G200736. Compliance Requirements: Eligibility, Reporting, Cash Management, Allowable Costs, Activities Allowed or Unallowed. Type of Finding: Material Weakness. Criteria: A single audit is required to be completed and submitted to the Federal Audit Clearing house nine months after year-end. Condition: For the year ended June 30, 2021, we noted the Organization was unable to obtain the necessary resources to complete the single audit within the specified time-frame. Cause: The Organization was experiencing a period of growth and did not have the adequate internal accounting personnel to prepare records and supporting documentation in a timely manner. Effect or Potential Effect: Noncompliance with the single audit requirements. Questioned Costs: $0. Context: A single audit is required to be completed annually if the amount of federal awards expended reaches a certain threshold. Repeat Finding: This is a new finding. Recommendation: The Organization should implement policies and procedures which require a timely and complete financial statement close process.