FAC Explorer

Audit 40985

FY End
2022-12-31
Total Expended
$7.43M
Findings
8
Programs
14
Organization: Northwest Regional Development Commission (MN)
Year: 2022 Accepted: 2023-06-28
Auditor: Brady Martz & Associates PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
45626 2022-001 Significant Deficiency - AB
45627 2022-002 Significant Deficiency - L
45628 2022-001 Significant Deficiency - AB
45629 2022-002 Significant Deficiency - L
622068 2022-001 Significant Deficiency - AB
622069 2022-002 Significant Deficiency - L
622070 2022-001 Significant Deficiency - AB
622071 2022-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
93.778 Medical Assistance Program $311,442 - 0
93.053 Nutrition Services Incentive Program $291,431 - 0
11.307 Economic Adjustment Assistance $207,751 Yes 2
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $174,531 - 0
20.513 Enhanced Mobility of Seniors and Individuals with Disabilities $98,693 - 0
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $94,003 - 0
97.067 Homeland Security Grant Program $92,000 - 0
93.071 Medicare Enrollment Assistance Program $58,372 - 0
11.302 Economic Development_support for Planning Organizations $38,241 - 0
93.324 State Health Insurance Assistance Program $36,317 - 0
93.043 Special Programs for the Aging_title Iii, Part D_disease Prevention and Health Promotion Services $25,000 - 0
20.505 Metropolitan Transportation Planning and State and Non-Metropolitan Planning and Research $19,214 - 0
93.052 National Family Caregiver Support, Title Iii, Part E $11,462 - 0
93.048 Special Programs for the Aging_title Iv_and Title Ii_discretionary Projects $11,401 - 0

Contacts

Name Title Type
UGD9JGAMWL23 Kalen Wiseth Auditee
2187459140 Matt Laughlin Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards are reported on themodified accrual basis of accounting, which is described in Note 1 to the Commissions basicfinancial statements. Such expenditures are recognized following the cost principles contained inthe Uniform Guidance, wherein certain types of expenditures are not allowable or are limited asto reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Commission's indirect cost allocation plan provides for allocation of personnel fringe benefitsand indirect expenses with rates of 38.91% and 12.00% respectively. The amounts shown in thefinancial statements for personnel fringe benefits and indirect expenses have been adjusted torepresent actual rates at 37.52% and 11.93%, respectively. The indirect cost allocation plan wasprepared in accordance with Title 2 U.S. Code of Federal Regulations Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. The accompanying schedule of expenditures of federal awards includes the federal award activityof the Northwest Regional Development Commission. The information in this schedule ispresented in accordance with Title 2 U.S. Code of Federal Regulations Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.Therefore, some amounts presented in this schedule may differ from amounts presented in thepreparation of the basic financial statements.
Title: REVOLVING LOAN FUND Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards are reported on themodified accrual basis of accounting, which is described in Note 1 to the Commissions basicfinancial statements. Such expenditures are recognized following the cost principles contained inthe Uniform Guidance, wherein certain types of expenditures are not allowable or are limited asto reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Commission's indirect cost allocation plan provides for allocation of personnel fringe benefitsand indirect expenses with rates of 38.91% and 12.00% respectively. The amounts shown in thefinancial statements for personnel fringe benefits and indirect expenses have been adjusted torepresent actual rates at 37.52% and 11.93%, respectively. The indirect cost allocation plan wasprepared in accordance with Title 2 U.S. Code of Federal Regulations Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. The value of the Revolving Loan Fund Program at December 31, 2022 was calculated as follows:CARESRLF GrantBalance of RLF loan outstandingat December 31, 2022 $ 2,725,472Cash and investment balance in the RLFat December 31, 2022 405,841COVID RLF Admin Expenses 85,306$ 3,216,619Federal Share (weighted average) 100%Value at December 31, 2022 $ 3,216,619

Finding Details

Finding 2022-001
2022-001: Significant Deficiency Economic Adjustment Assistance ? 11.307 ? Allowable Costs / Activities Criteria The Uniform Guidance requires charges to federal awards to be approved by the Organization and these approvals need to be documented. Condition One invoice tested was missing the approval documentation. Cause The Organization did not have sufficient procedures in place to ensure that approvals are documented for all expenses charged to grants. Effect One invoice charged to this federal program was missing the approval documentation. Questioned Costs None Context A sample of 46 transactions were selected for testing this federal program. Only one transaction tested was missing the approval documentation. Repeat Finding No Recommendation The Organization should implement procedures to ensure that all expenses are approved and this approval documentation is maintained. Views of Responsible Officials and Planned Corrective Actions The Organization agrees with the recommendation and will implement immediately.
Finding 2022-002
Economic Adjustment Assistance ? 11.307 ? Reporting Criteria Federal reporting requirements require all reports to be completed accurately. Condition A few errors were noted on two reports submitted for this grant. Cause The Organization did not have sufficient procedures in place to ensure that the reports were completed accurately. Effect Two reports were completed inaccurately, resulting in noncompliance with reporting requirements. Questioned Costs None Context Eleven reports were selected for testing. Only two reports tested ? ED-209 and ED-917 contained errors. With the ED-209 report, the Organization had a keying error where one loan issued was entered as $140,000 instead of $1,400,000, resulting in the understatement of Total Dollars Leveraged line item. With the ED-917 report, the reporting period was for July 2021 to June 2022, but loans from June 2021 were included in the report due to spreadsheet formula errors. The Organization contacted their Grantor and was able to correct the report and resubmit. Repeat Finding No Recommendation The Organization should implement procedures to ensure that reports are completed accurately and the person reviewing the report should compare information reported to the supporting documentation. Views of Responsible Officials and Planned Corrective Actions The Organization agrees with the recommendation and will implement immediately.
Finding 2022-001
2022-001: Significant Deficiency Economic Adjustment Assistance ? 11.307 ? Allowable Costs / Activities Criteria The Uniform Guidance requires charges to federal awards to be approved by the Organization and these approvals need to be documented. Condition One invoice tested was missing the approval documentation. Cause The Organization did not have sufficient procedures in place to ensure that approvals are documented for all expenses charged to grants. Effect One invoice charged to this federal program was missing the approval documentation. Questioned Costs None Context A sample of 46 transactions were selected for testing this federal program. Only one transaction tested was missing the approval documentation. Repeat Finding No Recommendation The Organization should implement procedures to ensure that all expenses are approved and this approval documentation is maintained. Views of Responsible Officials and Planned Corrective Actions The Organization agrees with the recommendation and will implement immediately.
Finding 2022-002
Economic Adjustment Assistance ? 11.307 ? Reporting Criteria Federal reporting requirements require all reports to be completed accurately. Condition A few errors were noted on two reports submitted for this grant. Cause The Organization did not have sufficient procedures in place to ensure that the reports were completed accurately. Effect Two reports were completed inaccurately, resulting in noncompliance with reporting requirements. Questioned Costs None Context Eleven reports were selected for testing. Only two reports tested ? ED-209 and ED-917 contained errors. With the ED-209 report, the Organization had a keying error where one loan issued was entered as $140,000 instead of $1,400,000, resulting in the understatement of Total Dollars Leveraged line item. With the ED-917 report, the reporting period was for July 2021 to June 2022, but loans from June 2021 were included in the report due to spreadsheet formula errors. The Organization contacted their Grantor and was able to correct the report and resubmit. Repeat Finding No Recommendation The Organization should implement procedures to ensure that reports are completed accurately and the person reviewing the report should compare information reported to the supporting documentation. Views of Responsible Officials and Planned Corrective Actions The Organization agrees with the recommendation and will implement immediately.
Finding 2022-001
2022-001: Significant Deficiency Economic Adjustment Assistance ? 11.307 ? Allowable Costs / Activities Criteria The Uniform Guidance requires charges to federal awards to be approved by the Organization and these approvals need to be documented. Condition One invoice tested was missing the approval documentation. Cause The Organization did not have sufficient procedures in place to ensure that approvals are documented for all expenses charged to grants. Effect One invoice charged to this federal program was missing the approval documentation. Questioned Costs None Context A sample of 46 transactions were selected for testing this federal program. Only one transaction tested was missing the approval documentation. Repeat Finding No Recommendation The Organization should implement procedures to ensure that all expenses are approved and this approval documentation is maintained. Views of Responsible Officials and Planned Corrective Actions The Organization agrees with the recommendation and will implement immediately.
Finding 2022-002
Economic Adjustment Assistance ? 11.307 ? Reporting Criteria Federal reporting requirements require all reports to be completed accurately. Condition A few errors were noted on two reports submitted for this grant. Cause The Organization did not have sufficient procedures in place to ensure that the reports were completed accurately. Effect Two reports were completed inaccurately, resulting in noncompliance with reporting requirements. Questioned Costs None Context Eleven reports were selected for testing. Only two reports tested ? ED-209 and ED-917 contained errors. With the ED-209 report, the Organization had a keying error where one loan issued was entered as $140,000 instead of $1,400,000, resulting in the understatement of Total Dollars Leveraged line item. With the ED-917 report, the reporting period was for July 2021 to June 2022, but loans from June 2021 were included in the report due to spreadsheet formula errors. The Organization contacted their Grantor and was able to correct the report and resubmit. Repeat Finding No Recommendation The Organization should implement procedures to ensure that reports are completed accurately and the person reviewing the report should compare information reported to the supporting documentation. Views of Responsible Officials and Planned Corrective Actions The Organization agrees with the recommendation and will implement immediately.
Finding 2022-001
2022-001: Significant Deficiency Economic Adjustment Assistance ? 11.307 ? Allowable Costs / Activities Criteria The Uniform Guidance requires charges to federal awards to be approved by the Organization and these approvals need to be documented. Condition One invoice tested was missing the approval documentation. Cause The Organization did not have sufficient procedures in place to ensure that approvals are documented for all expenses charged to grants. Effect One invoice charged to this federal program was missing the approval documentation. Questioned Costs None Context A sample of 46 transactions were selected for testing this federal program. Only one transaction tested was missing the approval documentation. Repeat Finding No Recommendation The Organization should implement procedures to ensure that all expenses are approved and this approval documentation is maintained. Views of Responsible Officials and Planned Corrective Actions The Organization agrees with the recommendation and will implement immediately.
Finding 2022-002
Economic Adjustment Assistance ? 11.307 ? Reporting Criteria Federal reporting requirements require all reports to be completed accurately. Condition A few errors were noted on two reports submitted for this grant. Cause The Organization did not have sufficient procedures in place to ensure that the reports were completed accurately. Effect Two reports were completed inaccurately, resulting in noncompliance with reporting requirements. Questioned Costs None Context Eleven reports were selected for testing. Only two reports tested ? ED-209 and ED-917 contained errors. With the ED-209 report, the Organization had a keying error where one loan issued was entered as $140,000 instead of $1,400,000, resulting in the understatement of Total Dollars Leveraged line item. With the ED-917 report, the reporting period was for July 2021 to June 2022, but loans from June 2021 were included in the report due to spreadsheet formula errors. The Organization contacted their Grantor and was able to correct the report and resubmit. Repeat Finding No Recommendation The Organization should implement procedures to ensure that reports are completed accurately and the person reviewing the report should compare information reported to the supporting documentation. Views of Responsible Officials and Planned Corrective Actions The Organization agrees with the recommendation and will implement immediately.