Audit 309684

FY End
2023-12-31
Total Expended
$5.04M
Findings
2
Programs
1
Organization: Lutheran Sunset Ministries (TX)
Year: 2023 Accepted: 2024-06-24
Auditor: Wipfli LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
401758 2023-002 Material Weakness - L
978200 2023-002 Material Weakness - L

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $5.04M Yes 1

Contacts

Name Title Type
XQW1J9STMRJ1 Mike Hecker Auditee
2546758637 Kim Heller Auditor
No contacts on file

Notes to SEFA

Title: Note 1: Basis of Presentation Accounting Policies: Note 2: Expenditures on the Schedule are reported on the accrual basis of accounting and 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: N/A - USDA loan program. Monies were spent as received. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the Organization. The information in the Schedule is presented in accordance with requirements of the 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: Note 2: Summary of significant accounting policies Accounting Policies: Note 2: Expenditures on the Schedule are reported on the accrual basis of accounting and 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: N/A - USDA loan program. Monies were spent as received. Expenditures on the Schedule are reported on the accrual basis of accounting and 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.
Title: Note 3: Community Facilities Loans and Grants Accounting Policies: Note 2: Expenditures on the Schedule are reported on the accrual basis of accounting and 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: N/A - USDA loan program. Monies were spent as received. The Organization had outstanding loans with USDA as of December 31, 2023, with a balance of $4,933,567. The loan balance at the beginning of the year was included in the federal expenditures presented on the Schedule. There were no new loans received during the year ended December 31, 2023.
Title: Note 4: Community Facilities Loans and Grants Accounting Policies: Note 2: Expenditures on the Schedule are reported on the accrual basis of accounting and 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: N/A - USDA loan program. Monies were spent as received. The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Note 5: Subrecipients Accounting Policies: Note 2: Expenditures on the Schedule are reported on the accrual basis of accounting and 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: N/A - USDA loan program. Monies were spent as received. The Organization does not have any subrecipients of federal awards.

Finding Details

The Organization did not understand the compliance requirements set forth by the Office of Management and Budget which requires all organizations with a Community Facilities (CF) loan with an outstanding loan balance greater then $750,000 to require an audit under 2 CFR Subpart F.
The Organization did not understand the compliance requirements set forth by the Office of Management and Budget which requires all organizations with a Community Facilities (CF) loan with an outstanding loan balance greater then $750,000 to require an audit under 2 CFR Subpart F.