Finding 42870 (2022-005)

Significant Deficiency Repeat Finding
Requirement
M
Questioned Costs
-
Year
2022
Accepted
2023-05-08
Audit: 48560
Auditor: Abdo LLP

AI Summary

  • Core Issue: Violence Free Minnesota failed to include necessary information in subrecipient contracts, such as Single Audit requirements and ALN funding details.
  • Impacted Requirements: This violates 45 CFR 75.352, which mandates specific disclosures and audit confirmations for subrecipients.
  • Recommended Follow-Up: Review and update grant contracts to comply with 45 CFR 75.352, and ensure proper policies and staff capacity are in place before resuming funding to subrecipients.

Finding Text

Condition: Violence Free Minnesota did not include required information in subrecipient contracts, including informing subrecipients of the possible need for a Single Audit and informing the subrecipients of the ALN of funding. This was determined by looking at subrecipient contracts, noting the absence of required information. There was also an absence of documentation showing that subrecipients were confirmed to be audited if required. This is a repeat finding from prior year. Criteria: Violence Free Minnesota is required to disclose certain information in grant agreements to subrecipients and verify that subrecipient are audited if required, as defined by 45 CFR 75.352. Context: This finding is isolated to the major program. The Organization has since ended the practice of passing funds to subrecipients due to the complexity of the requirements. Cause: Violence Free Minnesota was not directly made aware of these requirements by State agencies. The Organization did not ensure that they were following all required controls and procedures required by Uniform Guidance. Effect: Subrecipients did not receive required information which could result in inappropriate acceptance or reporting of the award. Recommendation: Review 45 CFR 75.352 and integrate required information into grant contracts to subrecipients. We noted that the Organization has discontinued granting funds to subrecipients until the Organization attains the technical proficiency to ensure that the requirements are met. Views of Responsible Officials: Violence Free was not directly made aware that the funding they were issuing to organizations as a part of this award to be treated as subrecipient contracts. Management has decided not to accept any future grants with this language until proper policies are procedures are in place as well as sufficient staff capacity to ensure adequate oversight.

Corrective Action Plan

Violence Free Minnesota has no accepted any grants with subrecipients and will implement appropriate policies and procedures if accepting any in the future.

Categories

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 42871 2022-001
    Significant Deficiency
  • 42872 2022-002
    Significant Deficiency
  • 42873 2022-003
    Significant Deficiency
  • 42874 2022-004
    Significant Deficiency
  • 619312 2022-005
    Significant Deficiency Repeat
  • 619313 2022-001
    Significant Deficiency
  • 619314 2022-002
    Significant Deficiency
  • 619315 2022-003
    Significant Deficiency
  • 619316 2022-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.591 Family Violence Prevention and Services/state Domestic Violence Coalitions $371,866
93.671 Family Violence Prevention and Services/domestic Violence Shelter and Supportive Services $368,668
16.575 Crime Victim Assistance $161,416
16.590 Grants to Encourage Arrest Policies and Enforcement of Protection Orders Program $156,598
16.556 State Domestic Violence and Sexual Assault Coalitions $86,530
16.588 Violence Against Women Formula Grants $77,768
14.231 Emergency Solutions Grant Program $50,474
93.136 Injury Prevention and Control Research and State and Community Based Programs $21,329
16.582 Crime Victim Assistance/discretionary Grants $19,242
93.592 Family Violence Prevention and Services/discretionary $3,334
93.088 Advancing System Improvements for Key Issues in Women's Health $1,003