Audit 297360

FY End
2023-06-30
Total Expended
$9.74M
Findings
2
Programs
2
Year: 2023 Accepted: 2024-03-25
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
384231 2023-003 Significant Deficiency Yes N
960673 2023-003 Significant Deficiency Yes N

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $9.72M Yes 1
93.498 Provider Relief Fund $18,323 - 0

Contacts

Name Title Type
CVKCH9VSYSP5 Amy Kreidt Auditee
7014835000 Brad Dejong 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. When applicable, 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The Organization does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of St. Luke's Home and St. Luke's Home Foundation (Organization) under programs of the federal government for the year ended June 30, 2023. The information is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations 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 financial position, changes in net assets, or cash flows of the Organization.
Title: Loan Programs Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The Organization does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate. Expenditures reported on this schedule consist of the beginning of the year outstanding loan balance plus advances made on the loans during the year, if applicable. The loan is guaranteed by the United States Department of Agriculture (USDA) for 90% of the loan principal. Total expenditures reported represents 90% of the beginning of the year outstanding loan balances. The outstanding balance as of June 30, 2023, for this loan was $10,368,928, of which 90% totals $9,332,035.

Finding Details

Department of Agriculture Federal Assistance Listing #10.766 Community Facilities Loans and Grants Cluster Special Tests and Provisions Significant Deficiency in Internal Control over Compliance Criteria 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal awards. Condition During our testing, there was no formal review separate from the preparer over the reserve fund reconciliations or debt service coverage ratio for the federal program. Cause The Organization did not have an adequate internal control policy in place to ensure review and approval over the reserve funds or debt service coverage ratio. Effect The lack of adequate policies governing review increases the risk that employees participating in the federal award administration may not be able to detect and correct noncompliance in a timely manner. Questioned Costs None reported. Context Sampling was not used. Repeat Finding from Prior Years Yes, Finding 2022‐003 Recommendation We recommend the Organization enhance internal control policies to ensure that formal documentation of reviews is present. Views of Responsible Officials Management agrees with the finding
Department of Agriculture Federal Assistance Listing #10.766 Community Facilities Loans and Grants Cluster Special Tests and Provisions Significant Deficiency in Internal Control over Compliance Criteria 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal awards. Condition During our testing, there was no formal review separate from the preparer over the reserve fund reconciliations or debt service coverage ratio for the federal program. Cause The Organization did not have an adequate internal control policy in place to ensure review and approval over the reserve funds or debt service coverage ratio. Effect The lack of adequate policies governing review increases the risk that employees participating in the federal award administration may not be able to detect and correct noncompliance in a timely manner. Questioned Costs None reported. Context Sampling was not used. Repeat Finding from Prior Years Yes, Finding 2022‐003 Recommendation We recommend the Organization enhance internal control policies to ensure that formal documentation of reviews is present. Views of Responsible Officials Management agrees with the finding