Audit 297490

FY End
2023-09-30
Total Expended
$11.09M
Findings
8
Programs
8
Year: 2023 Accepted: 2024-03-26
Auditor: Forvis LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
384386 2023-002 Significant Deficiency Yes N
384387 2023-002 Significant Deficiency Yes N
384388 2023-002 Significant Deficiency Yes N
384389 2023-002 Significant Deficiency Yes N
960828 2023-002 Significant Deficiency Yes N
960829 2023-002 Significant Deficiency Yes N
960830 2023-002 Significant Deficiency Yes N
960831 2023-002 Significant Deficiency Yes N

Contacts

Name Title Type
EMJTMEKN8TR4 Kirby Nickerson Auditee
7046372870 Donald McNeill Auditor
No contacts on file

Notes to SEFA

Title: 1.         Basis of Presentation Accounting Policies: Expenditures are reported in the Schedule 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. Pass-through entity identifying numbers are presented where available. Expenditures for PRF are based upon the PRF report for the year ended September 30, 2023 in accordance with the terms and conditions set by HRSA. De Minimis Rate Used: N Rate Explanation: N/A The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Lutheran Family Services in the Carolinas, Mountain Ridge Home, Inc. Whittecar Home lnc., LSA Management, Inc., Lutheran Home - Albemarle, Inc., Lutheran Home - Hickory, Inc., Lutheran Home at Trinity Oaks, Inc., Lutheran Home - Hickory West, Inc., Lutheran Home - Winston Salem, Inc., Lutheran Home -Forsyth County, Inc., and Lutheran Home - Wilmington, Inc. (“Lutheran Services Carolinas”) under the programs of the federal government for the year ended September 30, 2023. The information in the Schedule 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 (the “Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of Lutheran Services Carolinas, it is not intended to and does not present the financial position and statements of operations and changes in net assets or cash flows of Lutheran Services Carolinas. As outlined in the May 2023 OMB Compliance Supplement, the amounts reported in the accompanying Schedule related to the Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution, Assistance Listing No. 93.498, are reported based upon the PRF reporting portal submission guidelines established by the U.S. Department of Health and Human Services, Health Resource and Service Administration (HRSA). Separate reporting periods were established by HRSA based on the dates of receipt of PRF payments. Each reporting period has a specific period of availability which begins on January 1, 2020 and extends through specified deadlines, as indicated below: The accompanying Schedule includes those qualifying expenditures that were reported in the HRSA PRF portal for Period 4. Of that amount, approximately $198,000 in PRF payments was recognized by Lutheran Services Carolinas in its statement of operations and changes in net assets as federal grants and other during the fiscal year ended September 30, 2023.
Title: 2.         Basis of Accounting Accounting Policies: Expenditures are reported in the Schedule 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. Pass-through entity identifying numbers are presented where available. Expenditures for PRF are based upon the PRF report for the year ended September 30, 2023 in accordance with the terms and conditions set by HRSA. De Minimis Rate Used: N Rate Explanation: N/A Expenditures are reported in the Schedule 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. Pass-through entity identifying numbers are presented where available. Expenditures for PRF are based upon the PRF report for the year ended September 30, 2023 in accordance with the terms and conditions set by HRSA.
Title: 3.         Indirect Cost Rate Accounting Policies: Expenditures are reported in the Schedule 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. Pass-through entity identifying numbers are presented where available. Expenditures for PRF are based upon the PRF report for the year ended September 30, 2023 in accordance with the terms and conditions set by HRSA. De Minimis Rate Used: N Rate Explanation: N/A Lutheran Services Carolinas has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: 4. Loans Outstanding Accounting Policies: Expenditures are reported in the Schedule 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. Pass-through entity identifying numbers are presented where available. Expenditures for PRF are based upon the PRF report for the year ended September 30, 2023 in accordance with the terms and conditions set by HRSA. De Minimis Rate Used: N Rate Explanation: N/A Lutheran Services Carolinas had the following loan balances outstanding at September 30, 2023 for loans that the grantor/pass-through grantor has still imposed continuing compliance requirements. Loans outstanding at the beginning of the year and loans made during the year are included in the SEFA. The balance of loans outstanding at September 30, 2022 consist of: Assistance Pass-Through Pass-Through Listing Entity Identifying Federal Program Title Number Number Expenditures Supportive Housing for the Elderly 14.157 N/A $ 131,953 Supportive Housing for Persons with Disabilities 14.181 N/A $ 249,800

Finding Details

Finding 2023-002 Major Program: 93.676 Unaccompanied Alien Children Program Expenditure Review – Activities Allowed, Allowable Costs SIGNIFICANT DEFICIENCY Criteria: Duties should be segregated and formally documented to provide reasonable assurance that transactions are handled appropriately. Condition: There was no formal documentation that a supervisor’s review took place over the expense prior to payment there was no indication of a second signature of approval on the Personnel Action Form. Effect: Lack of a formal supervisor review could result in incorrect charging of costs to grants. Cause: The exceptions were mainly due to a lack of enforcement of the designated controls. Recommendation: We recommend that management enforce the design of the control such that supervisors approve expenses and change forms regularly. Views of responsible officials and planned corrective actions: Management agrees with this finding. Please refer to the Corrective Action Plan. Questioned Costs: None
Finding 2023-002 Major Program: 93.676 Unaccompanied Alien Children Program Expenditure Review – Activities Allowed, Allowable Costs SIGNIFICANT DEFICIENCY Criteria: Duties should be segregated and formally documented to provide reasonable assurance that transactions are handled appropriately. Condition: There was no formal documentation that a supervisor’s review took place over the expense prior to payment there was no indication of a second signature of approval on the Personnel Action Form. Effect: Lack of a formal supervisor review could result in incorrect charging of costs to grants. Cause: The exceptions were mainly due to a lack of enforcement of the designated controls. Recommendation: We recommend that management enforce the design of the control such that supervisors approve expenses and change forms regularly. Views of responsible officials and planned corrective actions: Management agrees with this finding. Please refer to the Corrective Action Plan. Questioned Costs: None
Finding 2023-002 Major Program: 93.676 Unaccompanied Alien Children Program Expenditure Review – Activities Allowed, Allowable Costs SIGNIFICANT DEFICIENCY Criteria: Duties should be segregated and formally documented to provide reasonable assurance that transactions are handled appropriately. Condition: There was no formal documentation that a supervisor’s review took place over the expense prior to payment there was no indication of a second signature of approval on the Personnel Action Form. Effect: Lack of a formal supervisor review could result in incorrect charging of costs to grants. Cause: The exceptions were mainly due to a lack of enforcement of the designated controls. Recommendation: We recommend that management enforce the design of the control such that supervisors approve expenses and change forms regularly. Views of responsible officials and planned corrective actions: Management agrees with this finding. Please refer to the Corrective Action Plan. Questioned Costs: None
Finding 2023-002 Major Program: 93.676 Unaccompanied Alien Children Program Expenditure Review – Activities Allowed, Allowable Costs SIGNIFICANT DEFICIENCY Criteria: Duties should be segregated and formally documented to provide reasonable assurance that transactions are handled appropriately. Condition: There was no formal documentation that a supervisor’s review took place over the expense prior to payment there was no indication of a second signature of approval on the Personnel Action Form. Effect: Lack of a formal supervisor review could result in incorrect charging of costs to grants. Cause: The exceptions were mainly due to a lack of enforcement of the designated controls. Recommendation: We recommend that management enforce the design of the control such that supervisors approve expenses and change forms regularly. Views of responsible officials and planned corrective actions: Management agrees with this finding. Please refer to the Corrective Action Plan. Questioned Costs: None
Finding 2023-002 Major Program: 93.676 Unaccompanied Alien Children Program Expenditure Review – Activities Allowed, Allowable Costs SIGNIFICANT DEFICIENCY Criteria: Duties should be segregated and formally documented to provide reasonable assurance that transactions are handled appropriately. Condition: There was no formal documentation that a supervisor’s review took place over the expense prior to payment there was no indication of a second signature of approval on the Personnel Action Form. Effect: Lack of a formal supervisor review could result in incorrect charging of costs to grants. Cause: The exceptions were mainly due to a lack of enforcement of the designated controls. Recommendation: We recommend that management enforce the design of the control such that supervisors approve expenses and change forms regularly. Views of responsible officials and planned corrective actions: Management agrees with this finding. Please refer to the Corrective Action Plan. Questioned Costs: None
Finding 2023-002 Major Program: 93.676 Unaccompanied Alien Children Program Expenditure Review – Activities Allowed, Allowable Costs SIGNIFICANT DEFICIENCY Criteria: Duties should be segregated and formally documented to provide reasonable assurance that transactions are handled appropriately. Condition: There was no formal documentation that a supervisor’s review took place over the expense prior to payment there was no indication of a second signature of approval on the Personnel Action Form. Effect: Lack of a formal supervisor review could result in incorrect charging of costs to grants. Cause: The exceptions were mainly due to a lack of enforcement of the designated controls. Recommendation: We recommend that management enforce the design of the control such that supervisors approve expenses and change forms regularly. Views of responsible officials and planned corrective actions: Management agrees with this finding. Please refer to the Corrective Action Plan. Questioned Costs: None
Finding 2023-002 Major Program: 93.676 Unaccompanied Alien Children Program Expenditure Review – Activities Allowed, Allowable Costs SIGNIFICANT DEFICIENCY Criteria: Duties should be segregated and formally documented to provide reasonable assurance that transactions are handled appropriately. Condition: There was no formal documentation that a supervisor’s review took place over the expense prior to payment there was no indication of a second signature of approval on the Personnel Action Form. Effect: Lack of a formal supervisor review could result in incorrect charging of costs to grants. Cause: The exceptions were mainly due to a lack of enforcement of the designated controls. Recommendation: We recommend that management enforce the design of the control such that supervisors approve expenses and change forms regularly. Views of responsible officials and planned corrective actions: Management agrees with this finding. Please refer to the Corrective Action Plan. Questioned Costs: None
Finding 2023-002 Major Program: 93.676 Unaccompanied Alien Children Program Expenditure Review – Activities Allowed, Allowable Costs SIGNIFICANT DEFICIENCY Criteria: Duties should be segregated and formally documented to provide reasonable assurance that transactions are handled appropriately. Condition: There was no formal documentation that a supervisor’s review took place over the expense prior to payment there was no indication of a second signature of approval on the Personnel Action Form. Effect: Lack of a formal supervisor review could result in incorrect charging of costs to grants. Cause: The exceptions were mainly due to a lack of enforcement of the designated controls. Recommendation: We recommend that management enforce the design of the control such that supervisors approve expenses and change forms regularly. Views of responsible officials and planned corrective actions: Management agrees with this finding. Please refer to the Corrective Action Plan. Questioned Costs: None