FAC Explorer

Audit 393557

FY End
2025-06-30
Total Expended
$1.59M
Findings
1
Programs
4
Organization: Northeast Iowa Mental Health Center (IA)
Year: 2025 Accepted: 2026-03-24
Auditor: HACKER NELSON & CO PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1182177 2025-001 Material Weakness Yes B

Programs

ALN Program Spent Major Findings
93.696 CERTIFIED COMMUNITY BEHAVIORAL HEALTH CLINIC EXPANSION GRANTS $1.18M Yes 1
93.959 BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE $172,804 Yes 0
93.788 OPIOID STR $153,347 Yes 0
93.958 BLOCK GRANTS FOR COMMUNITY MENTAL HEALTH SERVICES $81,426 Yes 0

Contacts

Name Title Type
JTF8L9FDA1N3 Bonnie Johnson Auditee
5633823649 Brent Berns Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of Northeast Iowa Mental Health Center under programs of the federal government for the year ended June 30, 2025. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (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 Northeast Iowa Mental Health Center, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Northeast Iowa Mental Health Center.
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. Pass-through entity identifying numbers is presented where available.
Northeast Iowa Mental Health Center has elected to use the 10% (prior to October 1, 2024) and 15% (following October 1, 2024) de minimis indirect cost rates as allowed under the Uniform Guidance for the Certified Community Behavioral Health Clinic Expansion Grants received from the U.S. Department of the Treasury. For all other grants, Northeast Iowa Mental Health Center has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2025-001
Condition: During our review of internal controls, the existing procedures are evaluated in order to determine that incompatible duties, from a control standpoint, are not performed by the same employee. This segregation of duties helps to prevent losses from employee error or dishonesty and therefore maximizes the accuracy of Northeast Iowa Mental Health Center’s financial statements. The financial, grant and payroll reporting is primarily the responsibility of one person. As a result, interruption of some accounting functions could occur if they were unable to perform their duties. Criteria: A properly designed segregation of duties allows entities to initiate, authorize, record, process, and report financial data reliably in accordance with generally accepted accounting principles. Cause: The concentration of closely related duties and responsibilities such as the recording and processing of cash receipts, processing payroll, preparing grant expenditure reports, preparing financial information for posting and analyzing financial information by a small staff makes it impossible to establish an adequate system of automatic internal checks on the accuracy and reliability of the accounting records. Effect: This deficiency results in a reasonable possibility that the Center would not be able to detect misstatements that would be material in relation to the financial statements in a timely period by employees in the normal course of performing their assigned functions. Recommendation: We realize that with a limited number of office employees, segregation of duties is difficult. However, the Center should review the operating procedures to obtain the maximum internal control possible under the circumstances. The Center should also consider the potential consequence of reliance on one person for financial, grant and payroll reporting. Repeat Finding: Yes. Views of Responsible Officials and Planned Corrective Actions: This issue is reviewed annually through the audit review with the Board of Directors. The Center has implemented a segregation of duties action plan effective June 30, 2025 to address this issue going forward.