A federal audit of Rehab ministries discovers a lack of grant funds management

A federal audit of Rehab ministries discovers a lack of grant funds management

Canton – US Division of Justice audit on Reaching Above Ministries of Despair and Brokenness (Rehab) It discovered that the company lacked insurance policies and procedures for the correct administration of grant funds.

An audit report launched Wednesday by Inspector Normal Michael Horowitz pertains to an Workplace of Justice Applications grant of $672,528 awarded in 2020 to Rehab for the aim of figuring out and supporting victims of human trafficking.

rehab It began in Summit County and now serves Stark, Portage, Mahoning and Cuyahoga counties. The division has a canton workplace at One Middle for Management, 901 Tuscarawas St.E, and a non-resident reception heart for ladies in downtown Canton.

“On account of our audit, we concluded that Rehab didn’t adjust to all the award necessities we examined, however demonstrated applicable progress towards attaining the objectives and targets set forth within the cooperative settlement,” based on the Justice Division’s government abstract. “We discovered that Rehab didn’t adjust to fundamental grant phrases associated to monetary administration, use of funds, finances administration and management, withdrawals, and federal monetary reporting.”

Monk used $182,879 of the grant by the top of April 2022. The audit recognized $37338 in questionable makes use of, resembling unsubsidized matching prices, uncovered funds and different unauthorized bills. Amongst them have been:

  • $1,000 for in-group coaching that didn’t embrace certificates to doc attendance and completion of the coaching.
  • $114 for meals, a non-allowable expense, for 2 worker appreciation occasions.
  • $15 as a donation, which can also be not a certified use of funds, to a different nonprofit group.
  • $34.782 to match prices from Rehab that have been claimed however not correctly documented.

The grant and cooperation settlement runs by means of September 2023. To enhance oversight of the grant, the Division of Justice has suggested the Workplace of Justice Applications to:

  • Make sure that Rehab implements insurance policies and procedures, resembling sustaining payroll data and reward card purchases related to grant cash, to manage the federal award.
  • Reimbursement of $1,000 in unsupported coaching bills.
  • Treatment $1,556 in unauthorized direct prices and reward cash uncovered.
  • Make sure that Rahib data all prices within the basic ledger as they happen.
  • Treatment $34,782 in unsupported matching prices.
  • Make sure that the overall ledger in Rehab contains expense classes “that precisely symbolize the accredited finances classes so {that a} monk can verify that he has not exceeded the accredited finances quantities.”

A lot of the company’s authorities funding has beforehand been awarded by the state, and the Workplace of Justice Applications grant is the primary direct federal award, mentioned Greg Kolbeck, Rehab’s CEO. This was to associate with the Summit County Sheriff’s Division to create a file Summit County Anti-Human Trafficking Task Force.

“It appears to me that almost all of those findings are about spending not being tracked or spending not being accounted for in the best way federal grants require,” he mentioned, noting that the aim of the grant remains to be being fulfilled.

In instances just like the $1,000 coaching expense, Rehab tried to get certificates of completion afterward, however realized that the coaches do not present them. Kolbeck mentioned she has uncovered a “hole of understanding” that the division is now conscious of for future coaching.

To deal with coaching bills, he mentioned, Rehab plans to debit them from matching native funds required for the grant. The Justice Division report contains agreed choices for all six suggestions.

Kolbeck mentioned he was grateful for the federal funds that allowed Rahab to assist extra sex-trafficking victims within the space, however he wasn’t ready for the extent of monetary administration required. Consequently, the Ministry is discussing whether or not to use for the scholarship once more.

“This doesn’t imply that we don’t wish to proceed to run the duty drive on human trafficking, we definitely do,” he mentioned. “However will we wish to use this funding stream or will we wish to advance?”

You may attain Kelly at 330-580-8323 or [email protected] on Twitter: kbyerREP

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