FAC Explorer

Audit 38130

FY End
2022-12-31
Total Expended
$2.12M
Findings
2
Programs
3
Organization: Cedar Valley Services, Inc. (MN)
Year: 2022 Accepted: 2023-04-09
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
39861 2022-003 Material Weakness - B
616303 2022-003 Material Weakness - B

Programs

ALN Program Spent Major Findings
20.509 Formula Grants for Rural Areas and Tribal Transit Program $1.37M Yes 1
93.498 Provider Relief Fund $675,716 - 0
20.500 Federal Transit_capital Investment Grants $70,984 - 0

Contacts

Name Title Type
LF6KH8AFEE11 Kris Burkey Auditee
5074330863 Lindsay Tweeten Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 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 toreimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards includes the federal awardactivity of Cedar Valley Services, Inc. under programs of the federal government for the year ended December 31, 2022. 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 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 3 SUBRECIPIENT PAYMENTS, NONCASH ASSISTANCE, INSURANCE, AND LOANS 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 toreimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The purpose of the schedule of expenditures of federal awards is to present a summary ofCedar Valley Services, Inc.s federal grant activity. Cedar Valley Services, Inc. did notprovide any federal awards to subrecipients for the year ended December 31, 2022

Finding Details

Finding 2022-003
2022 ? 003: Allowable Costs/Cost Principles Federal agency: U.S. Department of Transportation Federal program: Formula Grants for Rural Areas Assistance Listing Number: 20.509C Award Period: 1/1/2022 ? 12/31/2022 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Uniform Guidance allows nonprofit organizations to use an indirect cost rate allocation that is approved by the grantor. The costs being allocated must not include unallowable costs. Condition: The Organization?s indirect cost calculation does not match the cost allocation approved by the state. This has resulted in less indirect costs being allocated to the grant compared to what is allowed based on the approved allocation plan. In addition, advertising and depreciation costs are included in the amount allocated to the grant which are not allowable costs. Questioned costs: None Context: We selected three months of allocation calculations, noting none of them to match the Organization?s cost allocation policy approved by the grantor. Cause: The Organization has not taken steps to correct the calculation being used to allocate indirect costs. Effect: Using the current cost allocation method versus the approved plan has resulted in less costs being allocated to the grant than what is allowed under the plan. This has resulted in the Organization needing to pay back unused funds that could have otherwise been allocated to the grant. Repeat Finding: No Recommendation: We recommend the Organization review its policy and determine if there needs to be an amendment to its policy, or the calculations need to be updated to reflect the approved policy. Views of responsible officials and planned corrective actions: There is no disagreement with the finding.
Finding 2022-003
2022 ? 003: Allowable Costs/Cost Principles Federal agency: U.S. Department of Transportation Federal program: Formula Grants for Rural Areas Assistance Listing Number: 20.509C Award Period: 1/1/2022 ? 12/31/2022 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Uniform Guidance allows nonprofit organizations to use an indirect cost rate allocation that is approved by the grantor. The costs being allocated must not include unallowable costs. Condition: The Organization?s indirect cost calculation does not match the cost allocation approved by the state. This has resulted in less indirect costs being allocated to the grant compared to what is allowed based on the approved allocation plan. In addition, advertising and depreciation costs are included in the amount allocated to the grant which are not allowable costs. Questioned costs: None Context: We selected three months of allocation calculations, noting none of them to match the Organization?s cost allocation policy approved by the grantor. Cause: The Organization has not taken steps to correct the calculation being used to allocate indirect costs. Effect: Using the current cost allocation method versus the approved plan has resulted in less costs being allocated to the grant than what is allowed under the plan. This has resulted in the Organization needing to pay back unused funds that could have otherwise been allocated to the grant. Repeat Finding: No Recommendation: We recommend the Organization review its policy and determine if there needs to be an amendment to its policy, or the calculations need to be updated to reflect the approved policy. Views of responsible officials and planned corrective actions: There is no disagreement with the finding.