FAC Explorer

Audit 53779

FY End
2022-03-31
Total Expended
$1.26M
Findings
2
Programs
6
Organization: Alive, Inc. (MO)
Year: 2022 Accepted: 2022-12-05
Auditor: Linda A Howdeshell CPA

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
48419 2022-001 Material Weakness Yes B
624861 2022-001 Material Weakness Yes B

Programs

ALN Program Spent Major Findings
16.575 Crime Victim Assistance $1.10M Yes 1
16.590 Grants to Encourage Arrest Policies and Enforcement of Protection Orders Program $74,307 - 0
16.588 Violence Against Women Formula Grants $33,839 - 0
93.671 Family Violence Prevention and Services/domestic Violence Shelter and Supportive Services $31,868 - 0
93.558 Temporary Assistance for Needy Families $12,377 - 0
16.524 Legal Assistance for Victims $6,210 - 0

Contacts

Name Title Type
ZE6JCNDHQL99 Maggie Menefee Auditee
3149937080 Linda Howdeshell Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) summarizes the expenditures of ALIVE, Inc.s (ALIVE) under programs of the Federal Government for the year ended March 31, 2022. Expenditures of direct awards to ALIVE are reported in total by program. The formation in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulation Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in preparation of, the basic financial statements. ALIVE includes the amounts in the Schedule in the unrestricted net assets of ALIVEs Statement of Activities for the year ended March 31, 2022.The Schedule is prepared on the accrual basis of accounting. Expenditures are recognized following the cost accounting principles contained in the Uniform Guidance wherein certain types of expenditures are not allowable or are limited to reimbursement. Pass-through entity identifying numbers are presented where available.Direct expenses are recorded based upon actual expenses incurred that are allowable per the program requirements. Indirect expenses are allocated based upon recorded direct expenses. ALIVE has elected to use the 10 percent de minimus indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate.

Finding Details

Finding 2022-001
Finding 2022-001: Material Weakness in Compliance and Internal Controls Over Compliance for Unallowable Costs Federal Agency: U.S. Department of Justice Program Title: Victims of Crime Act CFDA Number: 16.575 Pass-Through Entity: Missouri Department of Social Services Award Number: ER130200006 Award Period: November 1, 2019 to March 31, 2022 Criteria ALIVE, Inc. is responsible for ensuring expenditures are not used multiple times for reimbursement from federally funded sources. Condition Subsequent to year end, it came to the attention of the auditor that ALIVE, Inc. applied for the Employee Retention Credit using expenditures that had been previously reimbursed by the federal grant for periods during the year ending March 31, 2022. Cause Failure to appropriately communicate with contracted individual who provides additional oversight, ALIVE, Inc. contracted with a third party who had a conflict of interest and inappropriately applied for the Employee Retention Credit. Effect Received funding of over $550,000 for expenditures previously reimbursed by federal sources. Repeat Finding Not Applicable. Questioned Costs $550,000 Recommendation ALIVE, Inc. needs to refund funds from the Employee Retention Credit immediately. ALIVE, Inc. also needs to hire and retain an individual who has nonprofit and federal award experience. Management needs to communicate more effectively and follow the guidance of those who have appropriate nonprofit and federal award experience. Response by Auditee In direct response to this finding, the Employee Retention Credit funds that were erroneously applied for and awarded to ALIVE through ERC Specialists were returned to the IRS on October 20, 2022.
Finding 2022-001
Finding 2022-001: Material Weakness in Compliance and Internal Controls Over Compliance for Unallowable Costs Federal Agency: U.S. Department of Justice Program Title: Victims of Crime Act CFDA Number: 16.575 Pass-Through Entity: Missouri Department of Social Services Award Number: ER130200006 Award Period: November 1, 2019 to March 31, 2022 Criteria ALIVE, Inc. is responsible for ensuring expenditures are not used multiple times for reimbursement from federally funded sources. Condition Subsequent to year end, it came to the attention of the auditor that ALIVE, Inc. applied for the Employee Retention Credit using expenditures that had been previously reimbursed by the federal grant for periods during the year ending March 31, 2022. Cause Failure to appropriately communicate with contracted individual who provides additional oversight, ALIVE, Inc. contracted with a third party who had a conflict of interest and inappropriately applied for the Employee Retention Credit. Effect Received funding of over $550,000 for expenditures previously reimbursed by federal sources. Repeat Finding Not Applicable. Questioned Costs $550,000 Recommendation ALIVE, Inc. needs to refund funds from the Employee Retention Credit immediately. ALIVE, Inc. also needs to hire and retain an individual who has nonprofit and federal award experience. Management needs to communicate more effectively and follow the guidance of those who have appropriate nonprofit and federal award experience. Response by Auditee In direct response to this finding, the Employee Retention Credit funds that were erroneously applied for and awarded to ALIVE through ERC Specialists were returned to the IRS on October 20, 2022.