EIN: 363617906
UEI: UC4LQ8FNLQJ8
Audited by: Mahoney Ulbrich Christiansen & Russ, PA
Oversight agency: 93 [Department of Health and Human Services]
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Data as of September 2, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on January 6, 2026. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by July 6, 2026 (59 days ago).
What is a management decision? →FAC accepted this audit on February 28, 2025 — management decision was due August 28, 2025.
2024-001: Filing of Federal Reports SF-425 and OPR Federal Departments: Department of Health and Human Services Assistance Listing #: 93.612 Compliance and Internal Controls Significant Deficiency Category of Finding – Reporting Criteria – IPTF is required to submit Federal Financial Reports (SF-425) and Ongoing Progress Reports (OPR) semi-annually within 30 days of period end. Condition – The September 30, 2023 SF-425 and OPR reports were filed on November 8, 2023 and November 17, 2023, outside the 30 day filing requirement. Cause – IPTF faced turnover and transitioned responsibility of the individual submitting the SF-425 during the year. The deadline for the OPR report was overlooked. Effect – Failure to submit reports within the required period may result in IPTF’s status to be delinquent and not be able to draw down funds on the award. Recommendation – We recommend that management implement a formal process that clearly defines who is responsible for preparing and a separate individual responsible for reviewing these report, and make sure they are aware of the filing requirements to ensure that federal reports are prepared, reviewed, and submitted timely. Having two individuals responsible for this process will help mitigate the risk of missing a filing deadline due to turnover. Auditee’s comments and response – IPTF has hired and assigned an experienced individual to assist with all filing requirements within the organization in managing federal grants who will ensure the accounting records are prepared accurately and to ensure that these required reports are submitted on time. Responsible party for corrective action – Sharon Day, Executive Director Repeat finding – 2023-003
Show full finding ▾Hide full finding ▴2024-001: Filing of Federal Reports SF-425 and OPR Federal Departments: Department of Health and Human Services Assistance Listing #: 93.612 Compliance and Internal Controls Significant Deficiency Category of Finding – Reporting Criteria – IPTF is required to submit Federal Financial Reports (SF-425) and Ongoing Progress Reports (OPR) semi-annually within 30 days of period end. Condition – The September 30, 2023 SF-425 and OPR reports were filed on November 8, 2023 and November 17, 2023, outside the 30 day filing requirement. Cause – IPTF faced turnover and transitioned responsibility of the individual submitting the SF-425 during the year. The deadline for the OPR report was overlooked. Effect – Failure to submit reports within the required period may result in IPTF’s status to be delinquent and not be able to draw down funds on the award. Recommendation – We recommend that management implement a formal process that clearly defines who is responsible for preparing and a separate individual responsible for reviewing these report, and make sure they are aware of the filing requirements to ensure that federal reports are prepared, reviewed, and submitted timely. Having two individuals responsible for this process will help mitigate the risk of missing a filing deadline due to turnover. Auditee’s comments and response – IPTF has hired and assigned an experienced individual to assist with all filing requirements within the organization in managing federal grants who will ensure the accounting records are prepared accurately and to ensure that these required reports are submitted on time. Responsible party for corrective action – Sharon Day, Executive Director Repeat finding – 2023-003
2024-001: Filing of Federal Reports SF-425 and OPR Federal Departments: Department of Health and Human Services Assistance Listing #: 93.612 Compliance and Internal Controls Significant Deficiency Category of Finding – Reporting Name of contact person – Sharon Day, Executive Director Corrective action – IPTF has hired and assigned an experienced individual to assist with all filing requirements within the organization in managing federal grants who will ensure the accounting records are prepared accurately and to ensure that these required reports are submitted on time. Completion date – Management and the Board of Directors implemented the above as of January 2025.
2023-003
2024-002: Payroll Timecard Approval Federal Departments: Department of Health and Human Services Assistance Listing #: 93.612 and 93.959 Compliance and Internal Controls Significant Deficiency Category of Finding – Allowable Costs/ Cost Principles Criteria – 2 CFR § 200.430 requires that compensation for individual employees be reasonable for the services rendered, be consistently applied to both federal and non-federal activities, follows all of the Organizations written policies, and is adequately documented. Adequately documented as defined by the standard requires the charges must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition – During testing, we noticed multiple timecards for the Executive Director were not approved by the responsible individual so the required supervisors’ review of the timecard for accurate hours and allocations did not occur and was not documented. Cause – Controls in place did not operate as designed so hours charged to the grant were not properly reviewed for accuracy by responsible individuals. Effect – Salaries or wages may be overcharged or undercharged to grant if program allocation is not documented. If the granting agency ever questioned costs, IPTF may not be able to prove that all the funds requested for reimbursement from the agency were for activities allowed under the grant. Context – A nonstatistical sample of 28 payroll transactions were selected for testing. Timecard approval was performed by an unauthorized individual for 7 transactions. Recommendation – We recommend the management implement and enforce a review process to ensure all timecards are reviewed by the responsible individual or responsible individuals in a timely manner. Auditee’s comments and response – IPTF has hired and assigned an experienced individual within the organization who has the responsibility of reviewing and approving the Executive Director's timecard prior to processing. Responsible party for corrective action: Sharon Day, Executive Director Repeat finding – 2023-005
Show full finding ▾Hide full finding ▴2024-002: Payroll Timecard Approval Federal Departments: Department of Health and Human Services Assistance Listing #: 93.612 and 93.959 Compliance and Internal Controls Significant Deficiency Category of Finding – Allowable Costs/ Cost Principles Criteria – 2 CFR § 200.430 requires that compensation for individual employees be reasonable for the services rendered, be consistently applied to both federal and non-federal activities, follows all of the Organizations written policies, and is adequately documented. Adequately documented as defined by the standard requires the charges must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition – During testing, we noticed multiple timecards for the Executive Director were not approved by the responsible individual so the required supervisors’ review of the timecard for accurate hours and allocations did not occur and was not documented. Cause – Controls in place did not operate as designed so hours charged to the grant were not properly reviewed for accuracy by responsible individuals. Effect – Salaries or wages may be overcharged or undercharged to grant if program allocation is not documented. If the granting agency ever questioned costs, IPTF may not be able to prove that all the funds requested for reimbursement from the agency were for activities allowed under the grant. Context – A nonstatistical sample of 28 payroll transactions were selected for testing. Timecard approval was performed by an unauthorized individual for 7 transactions. Recommendation – We recommend the management implement and enforce a review process to ensure all timecards are reviewed by the responsible individual or responsible individuals in a timely manner. Auditee’s comments and response – IPTF has hired and assigned an experienced individual within the organization who has the responsibility of reviewing and approving the Executive Director's timecard prior to processing. Responsible party for corrective action: Sharon Day, Executive Director Repeat finding – 2023-005
2024-002: Payroll Timecard Approval Federal Departments: Department of Health and Human Services Assistance Listing #: 93.612 and 93.959 Compliance and Internal Controls Significant Deficiency Category of Finding – Allowable Costs/ Cost Principles Name of contact person – Sharon Day, Executive Director Corrective action – IPTF has hired and assigned an experienced individual within the organization who has the responsibility of reviewing and approving the Executive Director's timecard prior to processing. Completion date – Management and the Board of Directors implemented the above as of February 2024.
2023-005
FAC accepted this audit on March 22, 2024 — management decision was due September 22, 2024.
2023-001: Overspent Grant Federal Departments: Department of Health and Human Services Assistance Listing #: 93.243 Compliance and Internal Controls Material Weakness Category of Finding – Cash Management Criteria – 2 CFR § 200.302(b), requires entities to have written policies and procedures to accurately track grant accounting. Per the grant agreement, the grant must be earned on a reimbursement basis, which requires eligible expenditures to be incurred in order to earn the grant revenue. Condition – During fiscal year 2023, IPTF recorded $5,821 more revenue on the SAMSHA grant than the related eligible expenditures. Cause – IPTF had turnover in the contract accounting function/position. Multiple adjustments were made in the accounting software by the former contract accounting prior to the transition, which were difficult to trace back to and ultimately, actual costs incurred under the grant were miscalculated and overstated. Effect – As a result of this condition, IPTF was noncompliant with the grant and recognized more revenue than allowed based on eligible costs. Questioned Costs – $5,821 Recommendation – We recommend that management ensure internal financials are reviewed on a monthly basis to ensure completeness and accuracy, which includes having grant specific financials reviewed by the program managers. Also, we recommend contacting the grantor to discuss the need to repay the $5,821. Auditee’s comments and response – IPTF hired a new contract accountant in October 2022 and have since implemented processes to ensure accurate internal financial statements are prepared and reviewed by program managers on a monthly basis as required by their written financial policies. Responsible party for corrective action – Sharon Day, Executive Director Repeat finding – No
Show full finding ▾Hide full finding ▴2023-001: Overspent Grant Federal Departments: Department of Health and Human Services Assistance Listing #: 93.243 Compliance and Internal Controls Material Weakness Category of Finding – Cash Management Criteria – 2 CFR § 200.302(b), requires entities to have written policies and procedures to accurately track grant accounting. Per the grant agreement, the grant must be earned on a reimbursement basis, which requires eligible expenditures to be incurred in order to earn the grant revenue. Condition – During fiscal year 2023, IPTF recorded $5,821 more revenue on the SAMSHA grant than the related eligible expenditures. Cause – IPTF had turnover in the contract accounting function/position. Multiple adjustments were made in the accounting software by the former contract accounting prior to the transition, which were difficult to trace back to and ultimately, actual costs incurred under the grant were miscalculated and overstated. Effect – As a result of this condition, IPTF was noncompliant with the grant and recognized more revenue than allowed based on eligible costs. Questioned Costs – $5,821 Recommendation – We recommend that management ensure internal financials are reviewed on a monthly basis to ensure completeness and accuracy, which includes having grant specific financials reviewed by the program managers. Also, we recommend contacting the grantor to discuss the need to repay the $5,821. Auditee’s comments and response – IPTF hired a new contract accountant in October 2022 and have since implemented processes to ensure accurate internal financial statements are prepared and reviewed by program managers on a monthly basis as required by their written financial policies. Responsible party for corrective action – Sharon Day, Executive Director Repeat finding – No
2023-001: Overspent Grant Federal Departments: Department of Health and Human Services Assistance Listing #: 93.243 Compliance and Internal Controls Material Weakness Category of Finding – Cash Management Name of contact person – Sharon Day, Executive Director Corrective action – IPTF hired a new contract accountant in October 2022 and have since implemented processes to ensure accurate internal financial statements are prepared and reviewed by program managers on a monthly basis as required by their written financial policies. Completion date – Management and the Board of Directors implemented the above as of January 2024.
2023-002: Maintaining Invoices Federal Departments: Department of Health and Human Services Assistance Listing #: 93.939 Compliance and Internal Controls Material Weakness Category of Finding – Allowable Costs/ Cost Principles Criteria – Internal control procedures should ensure that approved invoices are maintained as documentation of allowable costs. Condition – IPTF has an internal control process designed to obtain and maintain approved invoices for allowable costs, but the controls did not operate as designed. Cause – IPTF faced turnover in the contract accountant position during the fiscal year. A disbursement paid around the time of this transition was missing proper supporting documentation. Effect – Unallowable expenses could be paid by the program or expenses could be paid multiple times by accident. Context – A nonstatistical sample of 20 transactions were selected for testing. The supporting invoice for one transaction could not be provided. Recommendation – We recommend the procedures related to obtaining and maintaining proper documentation be reviewed with applicable employees to ensure that required documentation is maintained. Auditee’s comments and response – IPTF hired a new contract accountant and began using bill.com to store documentation supporting all costs and to ensure the related approvals are maintained. Responsible party for corrective action – Sharon Day, Executive Director Repeat finding – No
Show full finding ▾Hide full finding ▴2023-002: Maintaining Invoices Federal Departments: Department of Health and Human Services Assistance Listing #: 93.939 Compliance and Internal Controls Material Weakness Category of Finding – Allowable Costs/ Cost Principles Criteria – Internal control procedures should ensure that approved invoices are maintained as documentation of allowable costs. Condition – IPTF has an internal control process designed to obtain and maintain approved invoices for allowable costs, but the controls did not operate as designed. Cause – IPTF faced turnover in the contract accountant position during the fiscal year. A disbursement paid around the time of this transition was missing proper supporting documentation. Effect – Unallowable expenses could be paid by the program or expenses could be paid multiple times by accident. Context – A nonstatistical sample of 20 transactions were selected for testing. The supporting invoice for one transaction could not be provided. Recommendation – We recommend the procedures related to obtaining and maintaining proper documentation be reviewed with applicable employees to ensure that required documentation is maintained. Auditee’s comments and response – IPTF hired a new contract accountant and began using bill.com to store documentation supporting all costs and to ensure the related approvals are maintained. Responsible party for corrective action – Sharon Day, Executive Director Repeat finding – No
2023-002: Maintaining Invoices Federal Departments: Department of Health and Human Services Assistance Listing #: 93.939 Compliance and Internal Controls Material Weakness Category of Finding – Allowable Costs/ Cost Principles Name of contact person – Sharon Day, Executive Director Corrective action – Auditee’s comments and response – IPTF hired a new contract accountant and began using bill.com to store documentation supporting all costs and to ensure the related approvals are maintained. Completion date – Management and the Board of Directors implemented the above as of January 2024.
2023-003: Filing of Federal Reports SF-425 Federal Departments: Department of Health and Human Services Assistance Listing #: 93.612 Compliance and Internal Controls Significant Deficiency Category of Finding – Reporting Criteria – IPTF is required to submit Federal Financial Reports (SF-425) semi-annually within 30 days of period end. Condition – The September 30, 2022 and March 30, 2023 SF-425 reports were filed on March 2, 2023 and May 1, 2023, outside the 30 day filing requirement. Cause – IPTF had turnover in the contract accountant. After taking over, the new contract accountant was not aware of their responsibility for these federal reporting requirements. Effect – Failure to submit reports within the required period may result in IPTF’s status to be delinquent and not be able to draw down funds on the award. Recommendation – We recommend that management implement a formal process that clearly defines who is responsible for preparing these reports and to ensure that federal reports are prepared and reviewed timely. Auditee’s comments and response – IPTF hired a new contract accountant, who is responsible for ensuring that the accounting records are prepared accurately and to ensure that these required reports are submitted on time. Responsible party for corrective action – Sharon Day, Executive Director Repeat finding – 2022-003
Show full finding ▾Hide full finding ▴2023-003: Filing of Federal Reports SF-425 Federal Departments: Department of Health and Human Services Assistance Listing #: 93.612 Compliance and Internal Controls Significant Deficiency Category of Finding – Reporting Criteria – IPTF is required to submit Federal Financial Reports (SF-425) semi-annually within 30 days of period end. Condition – The September 30, 2022 and March 30, 2023 SF-425 reports were filed on March 2, 2023 and May 1, 2023, outside the 30 day filing requirement. Cause – IPTF had turnover in the contract accountant. After taking over, the new contract accountant was not aware of their responsibility for these federal reporting requirements. Effect – Failure to submit reports within the required period may result in IPTF’s status to be delinquent and not be able to draw down funds on the award. Recommendation – We recommend that management implement a formal process that clearly defines who is responsible for preparing these reports and to ensure that federal reports are prepared and reviewed timely. Auditee’s comments and response – IPTF hired a new contract accountant, who is responsible for ensuring that the accounting records are prepared accurately and to ensure that these required reports are submitted on time. Responsible party for corrective action – Sharon Day, Executive Director Repeat finding – 2022-003
2023-003: Filing of Federal Reports SF-425 Federal Departments: Department of Health and Human Services Assistance Listing #: 93.612 Compliance and Internal Controls Significant Deficiency Category of Finding – Reporting Name of contact person – Sharon Day, Executive Director Corrective action – IPTF hired a new contract accountant, who is responsible for ensuring that the accounting records are prepared accurately and to ensure that these required reports are submitted on time. Completion date – Management and the Board of Directors implemented the above as of January 2024.
2022-003
2023-004: Lack of Payroll Documentation Federal Departments: Department of Health and Human Services Assistance Listing #: 93.612 and 93.939 Internal Controls Significant Deficiency Category of Finding – Allowable Costs/ Cost Principles Criteria – 2 CFR § 200.430 requires that compensation for individual employees be reasonable for the services rendered, be consistently applied to both federal and non-federal activities, follows all of the Organizations written policies, and is adequately documented. Adequately documented as defined by the standard requires the charges must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition – During our audit, we noticed multiple employees' approved pay rates were not retained or did not agree with the actual amount paid and recorded in accounting system. Cause – Procedure in place was not followed to ensure that all wage rates get approvals and are documented in employee personnel files. Effect – Employees may be paid using an inappropriate rate or using a rate that is disputed by the employee or employer. Salaries or wages may be overcharged or undercharged to grant if pay rates are not documented. Context – A nonstatistical sample of 30 payroll transactions were selected for testing. Employee’s actual pay rate did not agree or was not supported by approved pay rate for 19 transactions. Recommendation – We recommend the management review personnel files to ensure all required documentation is retained and accurate. We also recommend management review and update policies and procedures to ensure responsibilities are clear and future files are complete. Auditee’s comments and response – Management will review policies and procedures to ensure information is complete and up-to-date. Responsible party for corrective action: Sharon Day, Executive Director Repeat finding – No
Show full finding ▾Hide full finding ▴2023-004: Lack of Payroll Documentation Federal Departments: Department of Health and Human Services Assistance Listing #: 93.612 and 93.939 Internal Controls Significant Deficiency Category of Finding – Allowable Costs/ Cost Principles Criteria – 2 CFR § 200.430 requires that compensation for individual employees be reasonable for the services rendered, be consistently applied to both federal and non-federal activities, follows all of the Organizations written policies, and is adequately documented. Adequately documented as defined by the standard requires the charges must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition – During our audit, we noticed multiple employees' approved pay rates were not retained or did not agree with the actual amount paid and recorded in accounting system. Cause – Procedure in place was not followed to ensure that all wage rates get approvals and are documented in employee personnel files. Effect – Employees may be paid using an inappropriate rate or using a rate that is disputed by the employee or employer. Salaries or wages may be overcharged or undercharged to grant if pay rates are not documented. Context – A nonstatistical sample of 30 payroll transactions were selected for testing. Employee’s actual pay rate did not agree or was not supported by approved pay rate for 19 transactions. Recommendation – We recommend the management review personnel files to ensure all required documentation is retained and accurate. We also recommend management review and update policies and procedures to ensure responsibilities are clear and future files are complete. Auditee’s comments and response – Management will review policies and procedures to ensure information is complete and up-to-date. Responsible party for corrective action: Sharon Day, Executive Director Repeat finding – No
2023-004: Lack of Payroll Documentation Federal Departments: Department of Health and Human Services Assistance Listing #: 93.612 and 93.939 Internal Controls Significant Deficiency Category of Finding – Allowable Costs/ Cost Principles Name of contact person – Sharon Day, Executive Director Corrective action – Management will review policies and procedures to ensure information is complete and up-to-date. Completion date – Management and the Board of Directors implemented the above as of January 2024.
2023-005: Payroll Timecard Approval Federal Departments: Department of Health and Human Services Assistance Listing #: 93.612 and 93.939 Compliance and Internal Controls Significant Deficiency Category of Finding – Allowable Costs/ Cost Principles Criteria – 2 CFR § 200.430 requires that compensation for individual employees be reasonable for the services rendered, be consistently applied to both federal and non-federal activities, follows all of the Organizations written policies, and is adequately documented. Adequately documented as defined by the standard requires the charges must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition – During testing, we noticed multiple timecards not approved by the responsible individual so the required supervisors’ review of the timecard for accurate hours and allocations did not occur and was not documented. Cause – Controls in place did not operate as designed so hours charged to the grant were not properly reviewed for accuracy by responsible individuals. Effect – Salaries or wages may be overcharged or undercharged to grant if program allocation is not documented. If the granting agency ever questioned costs, IPTF may not be able to prove that all the funds requested for reimbursement from the agency were for activities allowed under the grant. Context – A nonstatistical sample of 30 payroll transactions were selected for testing. Timecard approval was missing or performed by an unauthorized individual for 7 transactions. Recommendation – We recommend the management implement and enforce a review process to ensure all timecards are reviewed by responsible individual. Auditee’s comments and response – Management will review policies and procedures to ensure all timecards are reviewed by responsible individual. Responsible party for corrective action: Sharon Day, Executive Director Repeat finding – No
Show full finding ▾Hide full finding ▴2023-005: Payroll Timecard Approval Federal Departments: Department of Health and Human Services Assistance Listing #: 93.612 and 93.939 Compliance and Internal Controls Significant Deficiency Category of Finding – Allowable Costs/ Cost Principles Criteria – 2 CFR § 200.430 requires that compensation for individual employees be reasonable for the services rendered, be consistently applied to both federal and non-federal activities, follows all of the Organizations written policies, and is adequately documented. Adequately documented as defined by the standard requires the charges must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition – During testing, we noticed multiple timecards not approved by the responsible individual so the required supervisors’ review of the timecard for accurate hours and allocations did not occur and was not documented. Cause – Controls in place did not operate as designed so hours charged to the grant were not properly reviewed for accuracy by responsible individuals. Effect – Salaries or wages may be overcharged or undercharged to grant if program allocation is not documented. If the granting agency ever questioned costs, IPTF may not be able to prove that all the funds requested for reimbursement from the agency were for activities allowed under the grant. Context – A nonstatistical sample of 30 payroll transactions were selected for testing. Timecard approval was missing or performed by an unauthorized individual for 7 transactions. Recommendation – We recommend the management implement and enforce a review process to ensure all timecards are reviewed by responsible individual. Auditee’s comments and response – Management will review policies and procedures to ensure all timecards are reviewed by responsible individual. Responsible party for corrective action: Sharon Day, Executive Director Repeat finding – No
2023-005: Payroll Timecard Approval Federal Departments: Department of Health and Human Services Assistance Listing #: 93.612 and 93.939 Compliance and Internal Controls Significant Deficiency Category of Finding – Allowable Costs/ Cost Principles Name of contact person – Sharon Day, Executive Director Corrective action – Management will review policies and procedures to ensure all timecards are reviewed by responsible individual. Completion date – Management and the Board of Directors implemented the above as of January 2024.
FAC accepted this audit on February 10, 2023 — management decision was due August 10, 2023.
2022-001: Lack of Regular Preparation and Review of Reliable Internal Financial Statements Material Weakness Criteria ? Management is responsible for oversight of IPTF, which includes timely recording, processing, summarizing, and review of accounting data (i.e., maintaining and reviewing internal books and records). Good internal controls also requires the Board of Directors to meet regularly and review the financial status and results of operations of IPTF. Condition ? Monthly internal financial statements were not prepared or reviewed by management after the transition to an outside contract accountant beginning in January 2022. Management also only had board minutes indicating the board met twice during the year. Cause ? IPTF?s Finance Director retired during the year and an outside accounting firm was contracted to take over the role of the accounting department. During the transition, monthly internal financial statements were either not prepared by the contract accountant, or when prepared were done late and were full of errors. Corrections to reports with errors were not made on a timely basis. As relates to the board meetings, the Executive Director indicated that while the Board does not formally meet every quarter and in person, they stay in regular contact and are meeting via phone and email. No formal documentation of these phone and email meetings is currently maintained by IPTF as board minutes. Effect ? Without a regular review of financial statements, a misstatement could occur and not be detected by management. Without good documentation of meetings, it is easy for an issue to be missed or forgotten in later meeting. Recommendation ? We recommend that management implement a formal process to prepare and review internal financial statements for all reporting entities on a monthly basis. IPTF should also implement a process for ensuring the board meet at least quarterly, and that these meetings be properly documented. Auditee?s comments and response ? IPTF has hired a new contract accountant and will ensure they prepare internal financial statements on a monthly basis as required by their written financial policies and send to management for review. Also, the board will plan to meet quarterly and document meeting minutes. Responsible party for corrective action: Sharon Day, Executive Director
Show full finding ▾Hide full finding ▴2022-001: Lack of Regular Preparation and Review of Reliable Internal Financial Statements Material Weakness Criteria ? Management is responsible for oversight of IPTF, which includes timely recording, processing, summarizing, and review of accounting data (i.e., maintaining and reviewing internal books and records). Good internal controls also requires the Board of Directors to meet regularly and review the financial status and results of operations of IPTF. Condition ? Monthly internal financial statements were not prepared or reviewed by management after the transition to an outside contract accountant beginning in January 2022. Management also only had board minutes indicating the board met twice during the year. Cause ? IPTF?s Finance Director retired during the year and an outside accounting firm was contracted to take over the role of the accounting department. During the transition, monthly internal financial statements were either not prepared by the contract accountant, or when prepared were done late and were full of errors. Corrections to reports with errors were not made on a timely basis. As relates to the board meetings, the Executive Director indicated that while the Board does not formally meet every quarter and in person, they stay in regular contact and are meeting via phone and email. No formal documentation of these phone and email meetings is currently maintained by IPTF as board minutes. Effect ? Without a regular review of financial statements, a misstatement could occur and not be detected by management. Without good documentation of meetings, it is easy for an issue to be missed or forgotten in later meeting. Recommendation ? We recommend that management implement a formal process to prepare and review internal financial statements for all reporting entities on a monthly basis. IPTF should also implement a process for ensuring the board meet at least quarterly, and that these meetings be properly documented. Auditee?s comments and response ? IPTF has hired a new contract accountant and will ensure they prepare internal financial statements on a monthly basis as required by their written financial policies and send to management for review. Also, the board will plan to meet quarterly and document meeting minutes. Responsible party for corrective action: Sharon Day, Executive Director
Name of Contact Person ? Sharon Day, Executive Director Corrective action ? IPTF has hired a new contract accountant and will ensure they prepare internal financial statements on a monthly basis as required by their written financial policies and sent to management for review. Also, the board will plan to meet quarterly and document meeting minutes. Completion date ? Management and the Board of Directors implemented the above as of December 2022.
2022-002: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, nine adjustments were made to IPTF?s financial statements that in the aggregate, were material to the financial statements. Additionally, the financial statements for the year ended June 30, 2021 were restated during the current year due to a prior year error. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the IPTF?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? IPTF?s Finance Director retired during the year and an outside accounting firm was contracted to take over the role of the accounting department. This transition was not clean and certain closing entries that were typically made by the previous Finance Director were missed. Additionally, the existence of a multi-year pledge during the year ended June 30, 2020 was not properly communicated to the accounting department, resulting in the revenue being recorded when the payments were actually received instead of as revenue and receivable when originally pledged. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using IPTF?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend IPTF develop and implement a financial statement preparation, review and approval process to ensure that necessary adjustments and reconciliations are performed on a monthly basis. IPTF should also ensure that all documents related to pledges are obtained and communicated to the necessary member of management to ensure all transactions are recorded correctly. Auditee's comments and response ? IPTF has hired a new contract accountant and will ensure they establish the recommended procedures. Responsible party for corrective action: Sharon Day, Executive Director
Show full finding ▾Hide full finding ▴2022-002: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, nine adjustments were made to IPTF?s financial statements that in the aggregate, were material to the financial statements. Additionally, the financial statements for the year ended June 30, 2021 were restated during the current year due to a prior year error. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the IPTF?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? IPTF?s Finance Director retired during the year and an outside accounting firm was contracted to take over the role of the accounting department. This transition was not clean and certain closing entries that were typically made by the previous Finance Director were missed. Additionally, the existence of a multi-year pledge during the year ended June 30, 2020 was not properly communicated to the accounting department, resulting in the revenue being recorded when the payments were actually received instead of as revenue and receivable when originally pledged. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using IPTF?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend IPTF develop and implement a financial statement preparation, review and approval process to ensure that necessary adjustments and reconciliations are performed on a monthly basis. IPTF should also ensure that all documents related to pledges are obtained and communicated to the necessary member of management to ensure all transactions are recorded correctly. Auditee's comments and response ? IPTF has hired a new contract accountant and will ensure they establish the recommended procedures. Responsible party for corrective action: Sharon Day, Executive Director
Name of Contact Person ? Sharon Day, Executive Director Corrective action ? IPTF has hired a new contract accountant and will ensure they establish procedures to review internal books and records on a monthly basis and make all required adjustments as needed, to ensure that the information taken from the accounting records is complete and accurate. They will also ensure that all documents related to pledges are obtained and reviews to ensure all transactions are recorded correctly. Completion date ? Management and the Board of Directors implemented the above as of December 2022.
2022-003: Filing of Federal Reports SF-425 and OPR Federal Departments: Department of Health and Human Services Assistance Listing #: 93.612 Internal Controls Significant Deficiency Category of Finding ? Reporting Criteria ? IPTF is responsible to submit Federal Financial Reports (SF-425) and Ongoing Progress Reports (OPR) semi-annually within 30 days of period end. Condition ? The March 30, 2022 SF-425 and OPR were filed on June 1, 2022, outside the 30 day filing requirement. Cause ? IPTF?s Finance Director retired during the year and an outside accounting firm was contracted to take over the role of the accounting department. After taking over, the contract accountant was not aware of these federal reporting requirements, and that they were responsible for them. Additionally, the information needed for filing these reports was not ready on-time due to the contract accountant?s inability to provide reliable and timely financial reports. Effect ? Failure to submit reports within the required period may result in IPTF?s status to be delinquent and not be able to draw down funds on the award. Recommendation ? We recommend that management implement a formal process to ensure that federal reports are prepared and reviewed timely. Auditee?s comments and response ? IPTF has hired a new contract accountant, who will be responsible for ensuring that the accounting records are prepared accurately and to ensure that these required reports are submitted on time. Responsible party for corrective action: Sharon Day, Executive Director
Show full finding ▾Hide full finding ▴2022-003: Filing of Federal Reports SF-425 and OPR Federal Departments: Department of Health and Human Services Assistance Listing #: 93.612 Internal Controls Significant Deficiency Category of Finding ? Reporting Criteria ? IPTF is responsible to submit Federal Financial Reports (SF-425) and Ongoing Progress Reports (OPR) semi-annually within 30 days of period end. Condition ? The March 30, 2022 SF-425 and OPR were filed on June 1, 2022, outside the 30 day filing requirement. Cause ? IPTF?s Finance Director retired during the year and an outside accounting firm was contracted to take over the role of the accounting department. After taking over, the contract accountant was not aware of these federal reporting requirements, and that they were responsible for them. Additionally, the information needed for filing these reports was not ready on-time due to the contract accountant?s inability to provide reliable and timely financial reports. Effect ? Failure to submit reports within the required period may result in IPTF?s status to be delinquent and not be able to draw down funds on the award. Recommendation ? We recommend that management implement a formal process to ensure that federal reports are prepared and reviewed timely. Auditee?s comments and response ? IPTF has hired a new contract accountant, who will be responsible for ensuring that the accounting records are prepared accurately and to ensure that these required reports are submitted on time. Responsible party for corrective action: Sharon Day, Executive Director
Name of Contact Person ? Sharon Day, Executive Director Corrective action ? IPTF has hired a new contract accountant, who will be responsible for ensuring that the accounting records are prepared accurately and timely to ensure that these required reports can be submitted on time. Completion date ? Management and the Board of Directors implemented the above as of December 2022.
2022-004: Lack of Controls Surrounding Allocation of Payroll Costs to Programs Federal Departments: Department of Health and Human Services Assistance Listing #: 93.612 Internal Controls Significant Deficiency Category of Finding ? Allowable Costs/ Cost Principles Criteria ? Federal awards must be expended for activities allowed under the grant and costs charged to the federal grants must be allowable and in accordance with applicable cost principles. Condition ? IPTF staff use timecards to track which programs they work on to ensure that costs are properly allocated to each grant. The timecards are provided to the Finance Director/contract accountant for input into the accounting software, which is used to prepare grant reimbursement requests. During testing, after the transition to a contract accountant, we noticed multiple payroll transactions where the amounts noted as worked on this grant during the period tested did not match the payroll that was allocated to the grant in the accounting software. Cause ? The contract accountant did not record payroll costs in the accounting software consistent with the timecards provided by staff. Effect ? Grants have been overcharged for payroll allocated to the wrong grant or over-recorded payroll costs. Recommendation ? We recommend that management design and implement a review process to ensure payroll allocated to grants is calculated and recorded properly. Auditee?s comments and response ? IPTF has hired a new contract accountant, who will be responsible for ensuring proper payroll allocation calculation and recording. Responsible party for corrective action: Sharon Day, Executive Director
Show full finding ▾Hide full finding ▴2022-004: Lack of Controls Surrounding Allocation of Payroll Costs to Programs Federal Departments: Department of Health and Human Services Assistance Listing #: 93.612 Internal Controls Significant Deficiency Category of Finding ? Allowable Costs/ Cost Principles Criteria ? Federal awards must be expended for activities allowed under the grant and costs charged to the federal grants must be allowable and in accordance with applicable cost principles. Condition ? IPTF staff use timecards to track which programs they work on to ensure that costs are properly allocated to each grant. The timecards are provided to the Finance Director/contract accountant for input into the accounting software, which is used to prepare grant reimbursement requests. During testing, after the transition to a contract accountant, we noticed multiple payroll transactions where the amounts noted as worked on this grant during the period tested did not match the payroll that was allocated to the grant in the accounting software. Cause ? The contract accountant did not record payroll costs in the accounting software consistent with the timecards provided by staff. Effect ? Grants have been overcharged for payroll allocated to the wrong grant or over-recorded payroll costs. Recommendation ? We recommend that management design and implement a review process to ensure payroll allocated to grants is calculated and recorded properly. Auditee?s comments and response ? IPTF has hired a new contract accountant, who will be responsible for ensuring proper payroll allocation calculation and recording. Responsible party for corrective action: Sharon Day, Executive Director
Name of Contact Person ? Sharon Day, Executive Director Corrective action ? IPTF has hired a new contract accountant, who will be responsible for ensuring proper payroll allocation calculation and recording. Completion date ? Management and the Board of Directors implemented the above as of December 2022.
FAC accepted this audit on January 13, 2022 — management decision was due July 13, 2022.
FAC accepted this audit on January 18, 2021 — management decision was due July 18, 2021.
FAC accepted this audit on January 20, 2020 — management decision was due July 20, 2020.
2019-001 Lack of Adequate Controls to Produce Full Disclosure GAAP Basis Financial Statements Significant Deficiency Criteria ? Nonprofit organizations which receive federal awards are required to prepare financial statements in accordance with generally accepted accounting principles (GAAP). This is the responsibility of IPTF?s management. The preparation of financial statements in accordance with GAAP requires internal control over both (1) recording, processing, and summarizing accounting data (i.e. maintaining internal books and records), and (2) preparing financial statements, including related footnotes (i.e. external financial reporting). Condition ? As is the case with many smaller and medium-sized nonprofits, IPTF has historically relied on its independent external auditor to assist in the preparation of the financial statements and footnotes as part of its external financial reporting process. Accordingly, IPTF?s ability to prepare financial statements in accordance with GAAP is based, in part, on its reliance on its external auditors, who cannot by definition be considered a part of IPTF?s internal controls. Cause ? IPTF is a small nonprofit organization with an especially small administrative staff. The administrative staff have the proper training and experience for the day-to-day operations required by IPTF, however they are not degreed accountants and do not have the expertise to properly prepare GAAP financial statements and disclosures, which require extensive knowledge of constantly changing accounting pronouncements. The Board of Directors believe that requiring this would put undue stress on IPTF. Repeat Finding ? This finding was reported in the prior year as finding 2018-002. Effect ? As a result of this condition, IPTF?s internal controls over the preparation of financial statements in accordance with GAAP are incomplete. Instead, IPTF relies, in part, on its external auditors for assistance with this task. Recommendation ? IPTF should continue to monitor the outsourced services, making all related decisions, evaluating the adequacy and results of the services, and accepting responsibility for them. Auditee's comments and response ? The financial statements will continue to be prepared by an outside CPA firm at this time. Responsible party for corrective action: Jim Berling, Finance Manager
Show full finding ▾Hide full finding ▴2019-001 Lack of Adequate Controls to Produce Full Disclosure GAAP Basis Financial Statements Significant Deficiency Criteria ? Nonprofit organizations which receive federal awards are required to prepare financial statements in accordance with generally accepted accounting principles (GAAP). This is the responsibility of IPTF?s management. The preparation of financial statements in accordance with GAAP requires internal control over both (1) recording, processing, and summarizing accounting data (i.e. maintaining internal books and records), and (2) preparing financial statements, including related footnotes (i.e. external financial reporting). Condition ? As is the case with many smaller and medium-sized nonprofits, IPTF has historically relied on its independent external auditor to assist in the preparation of the financial statements and footnotes as part of its external financial reporting process. Accordingly, IPTF?s ability to prepare financial statements in accordance with GAAP is based, in part, on its reliance on its external auditors, who cannot by definition be considered a part of IPTF?s internal controls. Cause ? IPTF is a small nonprofit organization with an especially small administrative staff. The administrative staff have the proper training and experience for the day-to-day operations required by IPTF, however they are not degreed accountants and do not have the expertise to properly prepare GAAP financial statements and disclosures, which require extensive knowledge of constantly changing accounting pronouncements. The Board of Directors believe that requiring this would put undue stress on IPTF. Repeat Finding ? This finding was reported in the prior year as finding 2018-002. Effect ? As a result of this condition, IPTF?s internal controls over the preparation of financial statements in accordance with GAAP are incomplete. Instead, IPTF relies, in part, on its external auditors for assistance with this task. Recommendation ? IPTF should continue to monitor the outsourced services, making all related decisions, evaluating the adequacy and results of the services, and accepting responsibility for them. Auditee's comments and response ? The financial statements will continue to be prepared by an outside CPA firm at this time. Responsible party for corrective action: Jim Berling, Finance Manager
2019-001 Lack of Adequate Controls to Produce Full Disclosure GAAP Basis Financial Statements Name of contact person ? James Berling, Financial Manager Corrective action ? The financial statements will continue to be prepared by an outside CPA firm at this time. Management and the Board of Directors will continue to monitor the outsourced services, making all related management decisions, evaluating the adequacy and results of the services, and accepting responsibility for them. Proposed completion date ? Management and the Board of Directors will implement the above procedures immediately.
2018-002
2019-002 Out of Date Written Financial Policies Federal Departments: All Programs Pass Through Agency: All Programs CFDA #: All Programs Noncompliance Category of Finding ? Other Criteria ? The Uniform Guidance requires that nonfederal entities establish certain written policies and procedures or standards of conduct to help ensure the entity?s compliance with the terms and conditions of its federal awards. Condition ? IPTF has written financial policies and procedures, but they are not in compliance with all the requirements outlined in the Uniform Guidance for the following specific requirements: ?200.302 Financial Management, ?200.305 Payment (Cash Management), and ?200.320 Methods of Procurement to be Followed. Cause ? An update to the financial policies and procedures was in process during fiscal year 2019. The process took longer than planned to get polices up to date with the Uniform Guidance and were not completed during fiscal year 2019. Effect ? Without documented policies and procedures, the risk of noncompliance with grant awards increases. Repeat finding - This finding was reported in the prior period as finding 2018-003. Questioned Costs ? There are no questioned costs. Recommendation ? We recommend that IPTF review the provisions contained in the Uniform Guidance and modify its policies in accordance with the requirements as it completes the project to update its policies and procedures. Management?s Response and Corrective Action ? IPTF completed an update of its policies and procedures subsequent to the June 30, 2019 year end. Responsible party for corrective action: Jim Berling, Finance Manager
Show full finding ▾Hide full finding ▴2019-002 Out of Date Written Financial Policies Federal Departments: All Programs Pass Through Agency: All Programs CFDA #: All Programs Noncompliance Category of Finding ? Other Criteria ? The Uniform Guidance requires that nonfederal entities establish certain written policies and procedures or standards of conduct to help ensure the entity?s compliance with the terms and conditions of its federal awards. Condition ? IPTF has written financial policies and procedures, but they are not in compliance with all the requirements outlined in the Uniform Guidance for the following specific requirements: ?200.302 Financial Management, ?200.305 Payment (Cash Management), and ?200.320 Methods of Procurement to be Followed. Cause ? An update to the financial policies and procedures was in process during fiscal year 2019. The process took longer than planned to get polices up to date with the Uniform Guidance and were not completed during fiscal year 2019. Effect ? Without documented policies and procedures, the risk of noncompliance with grant awards increases. Repeat finding - This finding was reported in the prior period as finding 2018-003. Questioned Costs ? There are no questioned costs. Recommendation ? We recommend that IPTF review the provisions contained in the Uniform Guidance and modify its policies in accordance with the requirements as it completes the project to update its policies and procedures. Management?s Response and Corrective Action ? IPTF completed an update of its policies and procedures subsequent to the June 30, 2019 year end. Responsible party for corrective action: Jim Berling, Finance Manager
2019-002 Out of Date Written Financial Policies Noncompliance Name of contact person: James Berling, Financial Manager Corrective Action: Subsequent to year end 06-30-19, Indigenous People Task Force adopted new financial and procurement policies.
2018-003
2019-003 Lack of Controls Surrounding Employee Credit Cards and Expense Reimbursements Federal Departments: Department of Health and Human Services CFDA #: 93.612 Internal Controls Significant Deficiency Category of Finding ? Allowable Costs/Cost Principles Criteria ? Federal awards must be expended for activities allowed under the grant and costs charged to the federal grants must be allowable and in accordance with the applicable cost principles. Condition ? IPTF allows credit card and employee reimbursement expenses to be charged to grants. IPTF has a policy to collect receipts from employees before making payments. However, during our testing, multiple expenses charged to the grant paid by credit cards or expense reimbursements were missing receipts. Additionally, IPTF?s policy requires the receipts to be submitted for reimbursement in a timely manner. During our testing, it was determined that the policy is not always followed as a significant reimbursement request was submitted several months after the fact. Cause ? Receipts were lost by employees or not submitted for reimbursement in a timely manner. Effect ? Without receipts, if the granting agency ever questions costs, IPTF will not be able to prove that they are allowable. Additionally, if costs are not reimbursed timely, expenses could end up charged to grants in different periods then when the costs were incurred or costs could be submitted after a grant was closed. Recommendation ? We recommend that IPTF review its credit card and reimbursement policy with staff, and be more stringent in enforcing the policy in relation to lost receipts and the timeliness of expense reimbursements. Management?s Response and Corrective Action ? IPTF plans to implement new controls are credit cards and expense reimbursements within the next fiscal year. Responsible party for corrective action: Jim Berling, Finance Manager
Show full finding ▾Hide full finding ▴2019-003 Lack of Controls Surrounding Employee Credit Cards and Expense Reimbursements Federal Departments: Department of Health and Human Services CFDA #: 93.612 Internal Controls Significant Deficiency Category of Finding ? Allowable Costs/Cost Principles Criteria ? Federal awards must be expended for activities allowed under the grant and costs charged to the federal grants must be allowable and in accordance with the applicable cost principles. Condition ? IPTF allows credit card and employee reimbursement expenses to be charged to grants. IPTF has a policy to collect receipts from employees before making payments. However, during our testing, multiple expenses charged to the grant paid by credit cards or expense reimbursements were missing receipts. Additionally, IPTF?s policy requires the receipts to be submitted for reimbursement in a timely manner. During our testing, it was determined that the policy is not always followed as a significant reimbursement request was submitted several months after the fact. Cause ? Receipts were lost by employees or not submitted for reimbursement in a timely manner. Effect ? Without receipts, if the granting agency ever questions costs, IPTF will not be able to prove that they are allowable. Additionally, if costs are not reimbursed timely, expenses could end up charged to grants in different periods then when the costs were incurred or costs could be submitted after a grant was closed. Recommendation ? We recommend that IPTF review its credit card and reimbursement policy with staff, and be more stringent in enforcing the policy in relation to lost receipts and the timeliness of expense reimbursements. Management?s Response and Corrective Action ? IPTF plans to implement new controls are credit cards and expense reimbursements within the next fiscal year. Responsible party for corrective action: Jim Berling, Finance Manager
2019-003 Lack of Controls Surrounding Employee Credit Cards and Expense Reimbursements Noncompliance Name of contact person: James Berling, Financial Manager Corrective Action: New policies for credit card and expense reimbursements controls will be added to our financial policies within the next three months. Proposed completion date: 03/15/2020
FAC accepted this audit on November 19, 2018 — management decision was due May 19, 2019.
GSA_MIGRATION
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