FAC Explorer

Audit 36092

FY End
2022-12-31
Total Expended
$812,068
Findings
2
Programs
2
Organization: Minnesota Teen Challenge, Inc. (MN)
Year: 2022 Accepted: 2023-08-06
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
33330 2022-002 Significant Deficiency - AB
609772 2022-002 Significant Deficiency - AB

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund $687,715 Yes 1
93.276 Drug-Free Communities Support Program Grants $124,353 - 0

Contacts

Name Title Type
NLW5AHFLMCS3 Twila Jensen Auditee
6122386351 Ashley Brandt-Duda Auditor
No contacts on file

Notes to SEFA

Title: Note A Basis of Presentation Accounting Policies: Note B Significant Accounting PoliciesExpenditures reported on the schedule are reported on the accrual basis of accounting. 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The Organization 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 Minnesota Teen Challenge, Inc. (the Organization) under programs of the federal government for the year ended December 31, 2022. 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 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 D Provider Relief Funds Accounting Policies: Note B Significant Accounting PoliciesExpenditures reported on the schedule are reported on the accrual basis of accounting. 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10% de minimis cost rate. The Organization received amounts from the U.S. Department of Health and Human Services (HHS) through the Provider Relief Fund (PRF) program (Federal Financial Assistance Listing/CFDA #93.498) during the year ended December 31, 2021, totaling $687,715. The Organization incurred eligible expenditures, and therefore, recognized revenues totaling $229,739 for the year ended December 31, 2021, and $457,976 for the year ended December 31, 2022, on the consolidated financial statements. In accordance with the 2022 compliance supplement, the PRF expenditures recognized on the schedule are based on the reporting to HHS for Period 4, defined as payments received during July 1, 2021, to December 31, 2021, of $687,715.

Finding Details

Finding 2022-002
2022-002 Department of Health and Human Services Federal Assistance Listing #93.498 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year ? Period 4 TIN #411517351 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Significant Deficiency in Internal Control over Compliance Criteria: 2 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 conditions of the federal award. Condition: The Organization claimed a portion of expenses that benefited the period outside of the period of availability for period 4 which was January 1, 2020, to December 31, 2022. Cause: The Organization did not have an internal control process in place to ensure that allowable expenses excluded costs incurred near the end of the period of availability relating to the next fiscal year. Effect: The Organization incorrectly calculated the amount of certain expenses reported. Questioned Costs: There were no questioned costs in excess of $25,000 required to be reported. Context: A nonstatistical sample of 65 out of 344 ($167,277) direct program expenditures were tested for activities allowed or unallowed and allowable costs/cost principles. Of these 65 items, there was an error in one of the expenditures tested relating to $24,996 of costs benefiting 2023 and this error was determined to be isolated in nature. Repeat Finding from Prior Years: No Recommendation: We recommend that the Organization enhance internal control policies to ensure all cash disbursements are reviewed and approved prior to payment to ensure that all payments are necessary, correct, meet the requirements of the federal program including an assessment of the period of availability, and are properly recorded in the reports required to be submitted to the federal agency. Views of Responsible Officials: Management agrees with the finding.
Finding 2022-002
2022-002 Department of Health and Human Services Federal Assistance Listing #93.498 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year ? Period 4 TIN #411517351 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Significant Deficiency in Internal Control over Compliance Criteria: 2 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 conditions of the federal award. Condition: The Organization claimed a portion of expenses that benefited the period outside of the period of availability for period 4 which was January 1, 2020, to December 31, 2022. Cause: The Organization did not have an internal control process in place to ensure that allowable expenses excluded costs incurred near the end of the period of availability relating to the next fiscal year. Effect: The Organization incorrectly calculated the amount of certain expenses reported. Questioned Costs: There were no questioned costs in excess of $25,000 required to be reported. Context: A nonstatistical sample of 65 out of 344 ($167,277) direct program expenditures were tested for activities allowed or unallowed and allowable costs/cost principles. Of these 65 items, there was an error in one of the expenditures tested relating to $24,996 of costs benefiting 2023 and this error was determined to be isolated in nature. Repeat Finding from Prior Years: No Recommendation: We recommend that the Organization enhance internal control policies to ensure all cash disbursements are reviewed and approved prior to payment to ensure that all payments are necessary, correct, meet the requirements of the federal program including an assessment of the period of availability, and are properly recorded in the reports required to be submitted to the federal agency. Views of Responsible Officials: Management agrees with the finding.