FAC Explorer

Audit 291833

FY End
2023-09-30
Total Expended
$19.26M
Findings
6
Programs
46
Organization: Lutheran Social Service of Minnesota and Affiliates (MN)
Year: 2023 Accepted: 2024-02-23
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
370239 2023-001 Material Weakness - H
370240 2023-002 Significant Deficiency - B
370241 2023-001 Material Weakness - H
946681 2023-001 Material Weakness - H
946682 2023-002 Significant Deficiency - B
946683 2023-001 Material Weakness - H

Programs

ALN Program Spent Major Findings
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $1.76M Yes 0
19.510 U.s. Refugee Admissions Program $1.15M - 0
94.016 Senior Companion Program $1.03M - 0
93.576 Refugee and Entrant Assistance_discretionary Grants $988,808 Yes 0
93.599 Chafee Education and Training Vouchers Program (etv) $868,943 Yes 1
94.011 Foster Grandparent Program $849,701 - 0
93.567 Refugee and Entrant Assistance_voluntary Agency Programs $770,900 Yes 0
93.498 Provider Relief Fund $750,616 Yes 0
93.623 Basic Center Grant $629,646 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $530,157 - 0
93.550 Transitional Living for Homeless Youth $499,903 - 0
93.557 Education and Prevention Grants to Reduce Sexual Abuse of Runaway, Homeless and Street Youth $449,272 - 0
93.568 Low-Income Home Energy Assistance $350,985 - 0
93.053 Nutrition Services Incentive Program $242,057 Yes 0
99.U19 Housing Stability Counseling Program $229,034 - 0
14.239 Home Investment Partnerships Program $200,000 - 0
93.060 Competitive Abstinence Education (cae) $169,432 - 0
16.320 Services for Trafficking Victims $151,012 - 0
93.866 Aging Research $149,513 - 0
14.267 Continuum of Care Program $146,976 Yes 1
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $141,558 - 0
93.556 Promoting Safe and Stable Families $136,633 - 0
93.434 Every Student Succeeds Act/preschool Development Grants $127,614 - 0
93.788 Opioid Str $125,606 - 0
93.268 Immunization Cooperative Agreements $103,753 - 0
21.023 Emergency Rental Assistance Program $103,219 - 0
93.092 Affordable Care Act (aca) Personal Responsibility Education Program $89,558 - 0
94.017 Senior Demonstration Program $83,206 - 0
84.425 Education Stabilization Fund $81,812 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $81,388 - 0
93.566 Refugee and Entrant Assistance_state Administered Programs $75,680 - 0
93.575 Child Care and Development Block Grant $68,059 - 0
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $66,610 - 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $66,417 - 0
93.676 Unaccompanied Alien Children Program $55,958 - 0
93.052 National Family Caregiver Support, Title Iii, Part E $50,953 - 0
97.024 Emergency Food and Shelter National Board Program $44,228 - 0
14.231 Emergency Solutions Grant Program $38,589 - 0
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $34,455 Yes 0
14.169 Housing Counseling Assistance Program $32,179 - 0
93.959 Block Grants for Prevention and Treatment of Substance Abuse $30,000 - 0
93.598 Services to Victims of A Severe Form of Trafficking $18,040 - 0
14.218 Community Development Block Grants/entitlement Grants $9,738 - 0
10.558 Child and Adult Care Food Program $9,638 - 0
16.034 Coronavirus Emergency Supplemental Funding Program $5,543 - 0
10.569 Emergency Food Assistance Program (food Commodities) $384 - 0

Contacts

Name Title Type
D2LNFU9KSHC6 Drew Erickson Auditee
6512872590 Rachel Flanders Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Organization has a negotiated indirect cost rate that they use rather than the 10% de minimis rate under the Uniform Guidance. The accompanying schedule of expenditures of federal awards is prepared on the accrual basis of accounting. The purpose of the schedule of expenditures of federal awards (the Schedule) is to present a summary of those activities of Lutheran Social Service of Minnesota and Affiliates (the Organization) that have been financed by the United States Government (federal awards). Federal awards received directly from federal agencies are included in the Schedule. Additionally, all federal awards passed through from other entities have been included on the Schedule. Although the Organization is required to match certain grants, as defined in the grants, no such matching is included in the Schedule. The information in this Schedule is presented in accordance with the requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the consolidated financial position, statement of activities, or cash flows of the Organization.
Title: IN-KIND SUPPORT Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Organization has a negotiated indirect cost rate that they use rather than the 10% de minimis rate under the Uniform Guidance. The following shows the amount of in-kind support for volunteer hours obtained for the Senior Nutrition programs, Assistance Listing Numbers 93.045/93.053, which is required by the grant. (Program / Congregate / Home Delivered / Total) Land of the Dancing Sky / $46,810 / $85,055 / $131,865 Central MN Council on Aging / $15,243 / $55,707 / $70,950 MN River Agency on Aging / $51,389 / $259,769 / $311,158 Total / $113,442 / $400,531 / $513,973
Title: LOAN OUTSTANDING Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Organization has a negotiated indirect cost rate that they use rather than the 10% de minimis rate under the Uniform Guidance. The balance of the loans outstanding for the HOME Investment Partnership Program, Assistance Listing number 14.239, as of September 30, 2023 is $454,500.

Finding Details

Finding 2023-001
Federal Agency: Department of Housing and Urban Development Federal Program Name: Continuum of Care Program Assistance Listing Number: 14.267 Federal Award Identification Numbers: MN0087L5K052114, MN0014L5K002114, MN0186L5K112110 Award Periods: 4/1/22-3/31/23; 7/1/22-6/30/23; 8/1/22-7/31/23 Type of Finding: • Material Weakness in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR 200.1 defines period of performance as the total estimated time interval between the start of an initial Federal award and the planned end date. Costs recorded to a grant must not be incurred prior to the start of the period of performance unless authorized by the federal awarding agency. Costs recorded to a grant must also not be incurred after the period of performance. Condition: During our audit testing, we noted costs were charged outside of the period of performance for three different awards. Questioned costs: $5,645 Context: We tested 40 transactions from the beginning of the period of performance, noting 2 exceptions where grants were charged for costs incurred prior to the period of performance. We tested 40 transactions from the ending of the period of performance, noting 3 exceptions where grants were charged after the period of performance. Cause: Invoices were charged based on payment date instead of the incurred date. Effect: Grants were charged for costs outside the period of performance. Management repaid the questioned costs to the grantor during the audit. Repeat finding: Not a repeat finding Recommendation: We recommend the Organization put procedures in place to identify the performance period when charging invoices to grants, particularly during the start and end of the period of performance. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-002
Federal Agency: Department of Health and Human Services Federal Program Name: Chafee Education and Training Vouchers Program Assistance Listing Number: 93.599 Pass-Through Agency: MN Dept. of Human Services Pass-Through Number: GRK%157729 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 2 CFR 200.303 requires that non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: During our audit testing, we noted that there was not evidence of an internal control (supervisor approval of time and effort charged to the federal grant) for some transactions. Context: We tested 12 payroll time and effort reports. We were provided documentation supporting the time charged to the grant, but there was not evidence of a supervisory review on 6 of the reports. Cause: Time and effort reports were reviewed by a supervisor, who then sent to an email inbox once they approved. We were able to view the email approvals for recent time periods, however, emails were deleted in the system after six months so we were unable to view the approval from earlier in the year. Effect: Internal controls were not properly documented. Repeat finding: Not a repeat finding Recommendation: We recommend the Organization put procedures in place to retain documentation of supervisory approval of time and effort reports. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-001
Federal Agency: Department of Housing and Urban Development Federal Program Name: Continuum of Care Program Assistance Listing Number: 14.267 Federal Award Identification Numbers: MN0087L5K052114, MN0014L5K002114, MN0186L5K112110 Award Periods: 4/1/22-3/31/23; 7/1/22-6/30/23; 8/1/22-7/31/23 Type of Finding: • Material Weakness in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR 200.1 defines period of performance as the total estimated time interval between the start of an initial Federal award and the planned end date. Costs recorded to a grant must not be incurred prior to the start of the period of performance unless authorized by the federal awarding agency. Costs recorded to a grant must also not be incurred after the period of performance. Condition: During our audit testing, we noted costs were charged outside of the period of performance for three different awards. Questioned costs: $5,645 Context: We tested 40 transactions from the beginning of the period of performance, noting 2 exceptions where grants were charged for costs incurred prior to the period of performance. We tested 40 transactions from the ending of the period of performance, noting 3 exceptions where grants were charged after the period of performance. Cause: Invoices were charged based on payment date instead of the incurred date. Effect: Grants were charged for costs outside the period of performance. Management repaid the questioned costs to the grantor during the audit. Repeat finding: Not a repeat finding Recommendation: We recommend the Organization put procedures in place to identify the performance period when charging invoices to grants, particularly during the start and end of the period of performance. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-001
Federal Agency: Department of Housing and Urban Development Federal Program Name: Continuum of Care Program Assistance Listing Number: 14.267 Federal Award Identification Numbers: MN0087L5K052114, MN0014L5K002114, MN0186L5K112110 Award Periods: 4/1/22-3/31/23; 7/1/22-6/30/23; 8/1/22-7/31/23 Type of Finding: • Material Weakness in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR 200.1 defines period of performance as the total estimated time interval between the start of an initial Federal award and the planned end date. Costs recorded to a grant must not be incurred prior to the start of the period of performance unless authorized by the federal awarding agency. Costs recorded to a grant must also not be incurred after the period of performance. Condition: During our audit testing, we noted costs were charged outside of the period of performance for three different awards. Questioned costs: $5,645 Context: We tested 40 transactions from the beginning of the period of performance, noting 2 exceptions where grants were charged for costs incurred prior to the period of performance. We tested 40 transactions from the ending of the period of performance, noting 3 exceptions where grants were charged after the period of performance. Cause: Invoices were charged based on payment date instead of the incurred date. Effect: Grants were charged for costs outside the period of performance. Management repaid the questioned costs to the grantor during the audit. Repeat finding: Not a repeat finding Recommendation: We recommend the Organization put procedures in place to identify the performance period when charging invoices to grants, particularly during the start and end of the period of performance. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-002
Federal Agency: Department of Health and Human Services Federal Program Name: Chafee Education and Training Vouchers Program Assistance Listing Number: 93.599 Pass-Through Agency: MN Dept. of Human Services Pass-Through Number: GRK%157729 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 2 CFR 200.303 requires that non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: During our audit testing, we noted that there was not evidence of an internal control (supervisor approval of time and effort charged to the federal grant) for some transactions. Context: We tested 12 payroll time and effort reports. We were provided documentation supporting the time charged to the grant, but there was not evidence of a supervisory review on 6 of the reports. Cause: Time and effort reports were reviewed by a supervisor, who then sent to an email inbox once they approved. We were able to view the email approvals for recent time periods, however, emails were deleted in the system after six months so we were unable to view the approval from earlier in the year. Effect: Internal controls were not properly documented. Repeat finding: Not a repeat finding Recommendation: We recommend the Organization put procedures in place to retain documentation of supervisory approval of time and effort reports. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-001
Federal Agency: Department of Housing and Urban Development Federal Program Name: Continuum of Care Program Assistance Listing Number: 14.267 Federal Award Identification Numbers: MN0087L5K052114, MN0014L5K002114, MN0186L5K112110 Award Periods: 4/1/22-3/31/23; 7/1/22-6/30/23; 8/1/22-7/31/23 Type of Finding: • Material Weakness in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR 200.1 defines period of performance as the total estimated time interval between the start of an initial Federal award and the planned end date. Costs recorded to a grant must not be incurred prior to the start of the period of performance unless authorized by the federal awarding agency. Costs recorded to a grant must also not be incurred after the period of performance. Condition: During our audit testing, we noted costs were charged outside of the period of performance for three different awards. Questioned costs: $5,645 Context: We tested 40 transactions from the beginning of the period of performance, noting 2 exceptions where grants were charged for costs incurred prior to the period of performance. We tested 40 transactions from the ending of the period of performance, noting 3 exceptions where grants were charged after the period of performance. Cause: Invoices were charged based on payment date instead of the incurred date. Effect: Grants were charged for costs outside the period of performance. Management repaid the questioned costs to the grantor during the audit. Repeat finding: Not a repeat finding Recommendation: We recommend the Organization put procedures in place to identify the performance period when charging invoices to grants, particularly during the start and end of the period of performance. Views of responsible officials: There is no disagreement with the audit finding.