FAC Explorer

Audit 40816

FY End
2022-12-31
Total Expended
$1.70M
Findings
4
Programs
4
Organization: Northland Counseling Center, INC (MN)
Year: 2022 Accepted: 2023-09-27
Auditor: Sterle & CO LTD

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
46712 2022-001 Significant Deficiency Yes P
46713 2022-001 Significant Deficiency Yes P
623154 2022-001 Significant Deficiency Yes P
623155 2022-001 Significant Deficiency Yes P

Programs

ALN Program Spent Major Findings
93.696 Certified Community Behavioral Health Clinic Expansion Grants $150,980 - 0
93.498 Provider Relief Fund $40,713 - 0
93.829 Section 223 Demonstration Programs to Improve Community Mental Health Services $37,568 Yes 1
93.958 Block Grants for Community Mental Health Services $26,749 - 0

Contacts

Name Title Type
F7D4NHLH27K6 Krislynn Watson Auditee
2183226160 Jeffrey Sterle Auditor
No contacts on file

Notes to SEFA

Accounting Policies: NOTE 1 BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards includes the federal award activity of the Center 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 Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because this schedule presents only a selected portion of the operations of the Center, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Center. NOTE 2 SUMMARY OF SIGNIFICANT 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. NOTE 3 INDIRECT COST RATE The Center has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. NOTE 4 PROVIDER RELIEF FUNDS UNDER CFDA #93.498During 2021, the Center received $289,235 under a program directed by the U.S. Department of Health and Human Services for Provider Relief Funds. These funds are allowed to be used for lost revenue or expenses incurred in response to the coronavirus and resulting pandemic. The Center is reporting them within the current year SEFA as prescribed under HRSA reporting criteria under Period 4 of the distribution phases. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate.

Finding Details

Finding 2022-001
2022-001 Lack of segregation of duties - Significant Deficiency Condition: Lack of segregation of duties over financial processes. Criteria: For an effective control system, division of accounting duties should exist to prevent errors or misappropriations from going undetected in the course of employees performing their assigned duties. Context: The lack of segregation of duties exists within the Center as a whole over its accounting and reporting functions. This is a common circumstance in nonprofit organizations of similar size. Effect: Errors or misappropriations could occur and go undetected for a period of time. Questioned Costs: Not applicable Cause: Limited number of staff available to appropriately divide duties. Recommendation: The Center's governing board should be cognizant of the issue and provide appropriate oversight. Management should provide reasonable oversight to accounting functions including accounts payable disbursements, reconciliations, and reporting including journal entry preparation. Views of Responsible Officials and Corrective Actions: The Center agrees with the recommendations.
Finding 2022-001
2022-001 Lack of segregation of duties - Significant Deficiency Condition: Lack of segregation of duties over financial processes. Criteria: For an effective control system, division of accounting duties should exist to prevent errors or misappropriations from going undetected in the course of employees performing their assigned duties. Context: The lack of segregation of duties exists within the Center as a whole over its accounting and reporting functions. This is a common circumstance in nonprofit organizations of similar size. Effect: Errors or misappropriations could occur and go undetected for a period of time. Questioned Costs: Not applicable Cause: Limited number of staff available to appropriately divide duties. Recommendation: The Center's governing board should be cognizant of the issue and provide appropriate oversight. Management should provide reasonable oversight to accounting functions including accounts payable disbursements, reconciliations, and reporting including journal entry preparation. Views of Responsible Officials and Corrective Actions: The Center agrees with the recommendations.
Finding 2022-001
2022-001 Lack of segregation of duties - Significant Deficiency Condition: Lack of segregation of duties over financial processes. Criteria: For an effective control system, division of accounting duties should exist to prevent errors or misappropriations from going undetected in the course of employees performing their assigned duties. Context: The lack of segregation of duties exists within the Center as a whole over its accounting and reporting functions. This is a common circumstance in nonprofit organizations of similar size. Effect: Errors or misappropriations could occur and go undetected for a period of time. Questioned Costs: Not applicable Cause: Limited number of staff available to appropriately divide duties. Recommendation: The Center's governing board should be cognizant of the issue and provide appropriate oversight. Management should provide reasonable oversight to accounting functions including accounts payable disbursements, reconciliations, and reporting including journal entry preparation. Views of Responsible Officials and Corrective Actions: The Center agrees with the recommendations.
Finding 2022-001
2022-001 Lack of segregation of duties - Significant Deficiency Condition: Lack of segregation of duties over financial processes. Criteria: For an effective control system, division of accounting duties should exist to prevent errors or misappropriations from going undetected in the course of employees performing their assigned duties. Context: The lack of segregation of duties exists within the Center as a whole over its accounting and reporting functions. This is a common circumstance in nonprofit organizations of similar size. Effect: Errors or misappropriations could occur and go undetected for a period of time. Questioned Costs: Not applicable Cause: Limited number of staff available to appropriately divide duties. Recommendation: The Center's governing board should be cognizant of the issue and provide appropriate oversight. Management should provide reasonable oversight to accounting functions including accounts payable disbursements, reconciliations, and reporting including journal entry preparation. Views of Responsible Officials and Corrective Actions: The Center agrees with the recommendations.