Finding 582884 (2023-001)

Significant Deficiency
Requirement
H
Questioned Costs
-
Year
2023
Accepted
2023-12-23
Audit: 8383
Organization: Breaking Free (MN)
Auditor: Abdo

AI Summary

  • Issue: Noncompliance with the period of performance for expensing items was identified during the audit.
  • Impact: The Organization took out two months of rent in advance, leading to ineligible expenses as per grantor guidelines.
  • Follow-up: We recommend the Organization reviews and strengthens internal processes for accounting and compliance with grant terms.

Finding Text

Condition: During our audit, we noted noncompliance around period of performance. Criteria: Management should have a procedure in place to verify the period in which they are allowed to expense items. Cause: The Organization did not have sufficient funds to cover Rent for August, because of this they took out two months worth of rent when their period of performance began in September. Effect: The Grantor told them this was not allowable and that they were only able to use the grant funds in the proper periods. Recommendation: We recommend the Organization reviews internal processes and ensure that there are proper accounting and review policies and systems.

Categories

Period of Performance

Other Findings in this Audit

  • 6442 2023-001
    Significant Deficiency
  • 6443 2023-002
    Significant Deficiency
  • 582885 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.267 Continuum of Care Program $481,362
16.575 Crime Victim Assistance $170,376
21.027 Coronavirus State and Local Fiscal Recovery Funds $107,522
14.231 Emergency Solutions Grant Program $29,685
16.320 Services for Trafficking Victims $13,638
14.871 Section 8 Housing Choice Vouchers $7,000