Finding 11563 (2023-001)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-02-02
Audit: 15370
Organization: Eventide (MN)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The Organization lacks a robust internal control system for preparing the consolidated schedule of expenditures of federal awards.
  • Impacted Requirements: Compliance with financial reporting standards is compromised, risking inaccuracies in the Schedule.
  • Recommended Follow-Up: Management should establish a clear preparer and reviewer process to enhance internal controls and ensure accurate reporting.

Finding Text

2023-001 Department of Health and Human Services Federal Assistance Listing #93.498 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year – Period 4 TIN #463364672, Period 4 TIN #410721640, Period 4 TIN #450275011, and Period 5 TIN #272608086 Department of Agriculture Federal Financial Assistance Listing #10.766 Community Facilities Loans and Grants Cluster Preparation of Consolidated Schedule of Expenditures of Federal Awards Significant Deficiency in Internal Control over Compliance - Other Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (Schedule) and accompanying notes to the Schedule. Condition: The Organization does not have an internal control system designed to provide for a complete and accurate consolidated schedule of expenditures of federal awards being audited. Cause: Auditor assistance with the preparation of the Schedule is not unusual, as the Schedule has unique and specialized requirements and preparation is only required when the Organization meets a specified threshold of federal expenditures. Effect: There is a reasonable possibility that the Organization would not be able to draft a Schedule that is correct without the assistance of the auditors. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: Yes, Finding 2022-001. Recommendation: We recommend management be aware of the financial reporting requirements relating to the Organization’s consolidated schedule of expenditures of federal awards and implement internal controls that consist of a preparer and reviewer. Views of Responsible Officials: Management agrees with the finding.

Corrective Action Plan

Finding 2023-001 Federal Agency Name: Department of Health and Human Services, Department of Agriculture Program Name: COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution, Community Facilities Loans and Grants Cluster CFDA #93.498, 10.766 Finding Summary: Eide Bailly LLP assisted in the preparation of our draft conso_lidated schedule of expenditures of federal awards and accompanying notes to the consolidated schedule of expenditures of federal awards. Responsible Individuals: Darin Ohe, CFO Corrective Action Plan: Eventide will work with auditors going forward to understand the requirements for the consolidated schedule of expenditures of federal awards. We will have someone outside of the preparation of the consolidated schedule of expenditures of federal awards provide a secondary review. Anticipated Completion Date: 09/30/24

Categories

Reporting Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 11564 2023-002
    Material Weakness Repeat
  • 11565 2023-001
    Significant Deficiency Repeat
  • 588005 2023-001
    Significant Deficiency Repeat
  • 588006 2023-002
    Material Weakness Repeat
  • 588007 2023-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
10.766 Community Facilities Loans and Grants $5.76M
93.498 Covid-19 Provider Relief Fund $870,377
14.157 Supportive Housing for the Elderly $136,761