FAC Explorer

Audit 357836

FY End
2024-08-31
Total Expended
$5.22M
Findings
6
Programs
9
Organization: Northwest Community Action, Inc. (MN)
Year: 2024 Accepted: 2025-06-02
Auditor: Brady Martz & Associates PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
562238 2024-002 Significant Deficiency Yes L
562239 2024-002 Significant Deficiency Yes L
562240 2024-002 Significant Deficiency Yes L
1138680 2024-002 Significant Deficiency Yes L
1138681 2024-002 Significant Deficiency Yes L
1138682 2024-002 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
93.600 Head Start $2.73M Yes 1
93.568 Low-Income Home Energy Assistance $894,475 - 0
93.276 Drug-Free Communities Support Program Grants $156,756 - 0
81.042 Weatherization Assistance for Low-Income Persons $121,106 - 0
10.558 Child and Adult Care Food Program $33,659 - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $17,443 - 0
93.569 Community Services Block Grant $12,250 - 0
97.024 Emergency Food and Shelter National Board Program $4,975 - 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $1,741 - 0

Contacts

Name Title Type
E6ASZKQGTZP4 Sharon Milner Auditee
2185283258 Ashley Engel Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reports as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The Agency and Subsidiary has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Northwest Community Action, Inc. and Subsidiary under programs of the federal government for the year ended August 31, 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 Northwest Community Action, Inc. and Subsidiary, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Northwest Community Action, Inc. and Subsidiary.
Title: AGENCY OR PASS-THROUGH NUMBER Accounting Policies: 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reports as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The Agency and Subsidiary has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Pass-through entity identifying numbers are presented where available.
Title: ELIGIBILITY DETERMINATIONS Accounting Policies: 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reports as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The Agency and Subsidiary has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Agency assists the State of Minnesota with eligibility determinations for the Low-Income Home Energy Assistance and Low-Income Household Water Assistance programs. Client benefits for Low-Income Home Energy Assistance and Low-Income Household Water Assistance participants are subsequently paid directly by the State of Minnesota. For the year ended August 31, 2023, client benefits in the amount of $870,319 were paid by the state. These amounts are considered federal awards to the Agency and are included in the schedule of expenditures of federal awards but are not included in the consolidated statement of activities.

Finding Details

Finding 2024-002
2024-002 Reporting – Significant Deficiency Federal Program – Department of Health and Human Services (Project Head Start and Early Head Start, AL No. 93.600). Criteria – Head Start requirements state that by the 30th calendar day following the end of each semi-annual period, each grantee must submit a SF-425, Federal Financial Report. The requirements also state that an annual SF-425 Federal Financial Report be submitted no later than 120 calendar days after the end of the project period. Condition – The Agency did not file their semi-annual SF-425, Federal Financial Reports dated January 31, 2024 and July 31, 2024 timely. The Agency also did not file their annual SF-425, Federal Financial Report dated July 31, 2024 timely. Questioned Costs – None Context – This program requires semi-annual SF-425 reports to be submitted within 30 days after the end of the semi-annual period. This program also requires an annual SF-425 report to be submitted within 120 days after the end of the project period. We selected all three SF-425 reports to test and noted that none had been filed by the due date. Cause – The Agency does not have a system in place to ensure all reports are filed timely. Effect – The Agency is not in compliance with reporting for Head Start. Repeat Finding – This is a repeat finding. Recommendation – We recommend that internal controls over submission of the SF-425 report be implemented to ensure timely reporting. Views of Responsible Officials and Planned Corrective Actions - See corrective action plan for response.
Finding 2024-002
2024-002 Reporting – Significant Deficiency Federal Program – Department of Health and Human Services (Project Head Start and Early Head Start, AL No. 93.600). Criteria – Head Start requirements state that by the 30th calendar day following the end of each semi-annual period, each grantee must submit a SF-425, Federal Financial Report. The requirements also state that an annual SF-425 Federal Financial Report be submitted no later than 120 calendar days after the end of the project period. Condition – The Agency did not file their semi-annual SF-425, Federal Financial Reports dated January 31, 2024 and July 31, 2024 timely. The Agency also did not file their annual SF-425, Federal Financial Report dated July 31, 2024 timely. Questioned Costs – None Context – This program requires semi-annual SF-425 reports to be submitted within 30 days after the end of the semi-annual period. This program also requires an annual SF-425 report to be submitted within 120 days after the end of the project period. We selected all three SF-425 reports to test and noted that none had been filed by the due date. Cause – The Agency does not have a system in place to ensure all reports are filed timely. Effect – The Agency is not in compliance with reporting for Head Start. Repeat Finding – This is a repeat finding. Recommendation – We recommend that internal controls over submission of the SF-425 report be implemented to ensure timely reporting. Views of Responsible Officials and Planned Corrective Actions - See corrective action plan for response.
Finding 2024-002
2024-002 Reporting – Significant Deficiency Federal Program – Department of Health and Human Services (Project Head Start and Early Head Start, AL No. 93.600). Criteria – Head Start requirements state that by the 30th calendar day following the end of each semi-annual period, each grantee must submit a SF-425, Federal Financial Report. The requirements also state that an annual SF-425 Federal Financial Report be submitted no later than 120 calendar days after the end of the project period. Condition – The Agency did not file their semi-annual SF-425, Federal Financial Reports dated January 31, 2024 and July 31, 2024 timely. The Agency also did not file their annual SF-425, Federal Financial Report dated July 31, 2024 timely. Questioned Costs – None Context – This program requires semi-annual SF-425 reports to be submitted within 30 days after the end of the semi-annual period. This program also requires an annual SF-425 report to be submitted within 120 days after the end of the project period. We selected all three SF-425 reports to test and noted that none had been filed by the due date. Cause – The Agency does not have a system in place to ensure all reports are filed timely. Effect – The Agency is not in compliance with reporting for Head Start. Repeat Finding – This is a repeat finding. Recommendation – We recommend that internal controls over submission of the SF-425 report be implemented to ensure timely reporting. Views of Responsible Officials and Planned Corrective Actions - See corrective action plan for response.
Finding 2024-002
2024-002 Reporting – Significant Deficiency Federal Program – Department of Health and Human Services (Project Head Start and Early Head Start, AL No. 93.600). Criteria – Head Start requirements state that by the 30th calendar day following the end of each semi-annual period, each grantee must submit a SF-425, Federal Financial Report. The requirements also state that an annual SF-425 Federal Financial Report be submitted no later than 120 calendar days after the end of the project period. Condition – The Agency did not file their semi-annual SF-425, Federal Financial Reports dated January 31, 2024 and July 31, 2024 timely. The Agency also did not file their annual SF-425, Federal Financial Report dated July 31, 2024 timely. Questioned Costs – None Context – This program requires semi-annual SF-425 reports to be submitted within 30 days after the end of the semi-annual period. This program also requires an annual SF-425 report to be submitted within 120 days after the end of the project period. We selected all three SF-425 reports to test and noted that none had been filed by the due date. Cause – The Agency does not have a system in place to ensure all reports are filed timely. Effect – The Agency is not in compliance with reporting for Head Start. Repeat Finding – This is a repeat finding. Recommendation – We recommend that internal controls over submission of the SF-425 report be implemented to ensure timely reporting. Views of Responsible Officials and Planned Corrective Actions - See corrective action plan for response.
Finding 2024-002
2024-002 Reporting – Significant Deficiency Federal Program – Department of Health and Human Services (Project Head Start and Early Head Start, AL No. 93.600). Criteria – Head Start requirements state that by the 30th calendar day following the end of each semi-annual period, each grantee must submit a SF-425, Federal Financial Report. The requirements also state that an annual SF-425 Federal Financial Report be submitted no later than 120 calendar days after the end of the project period. Condition – The Agency did not file their semi-annual SF-425, Federal Financial Reports dated January 31, 2024 and July 31, 2024 timely. The Agency also did not file their annual SF-425, Federal Financial Report dated July 31, 2024 timely. Questioned Costs – None Context – This program requires semi-annual SF-425 reports to be submitted within 30 days after the end of the semi-annual period. This program also requires an annual SF-425 report to be submitted within 120 days after the end of the project period. We selected all three SF-425 reports to test and noted that none had been filed by the due date. Cause – The Agency does not have a system in place to ensure all reports are filed timely. Effect – The Agency is not in compliance with reporting for Head Start. Repeat Finding – This is a repeat finding. Recommendation – We recommend that internal controls over submission of the SF-425 report be implemented to ensure timely reporting. Views of Responsible Officials and Planned Corrective Actions - See corrective action plan for response.
Finding 2024-002
2024-002 Reporting – Significant Deficiency Federal Program – Department of Health and Human Services (Project Head Start and Early Head Start, AL No. 93.600). Criteria – Head Start requirements state that by the 30th calendar day following the end of each semi-annual period, each grantee must submit a SF-425, Federal Financial Report. The requirements also state that an annual SF-425 Federal Financial Report be submitted no later than 120 calendar days after the end of the project period. Condition – The Agency did not file their semi-annual SF-425, Federal Financial Reports dated January 31, 2024 and July 31, 2024 timely. The Agency also did not file their annual SF-425, Federal Financial Report dated July 31, 2024 timely. Questioned Costs – None Context – This program requires semi-annual SF-425 reports to be submitted within 30 days after the end of the semi-annual period. This program also requires an annual SF-425 report to be submitted within 120 days after the end of the project period. We selected all three SF-425 reports to test and noted that none had been filed by the due date. Cause – The Agency does not have a system in place to ensure all reports are filed timely. Effect – The Agency is not in compliance with reporting for Head Start. Repeat Finding – This is a repeat finding. Recommendation – We recommend that internal controls over submission of the SF-425 report be implemented to ensure timely reporting. Views of Responsible Officials and Planned Corrective Actions - See corrective action plan for response.