FAC Explorer

Audit 329857

FY End
2024-06-30
Total Expended
$7.40M
Findings
4
Programs
28
Organization: Lutheran Social Services of South Dakota (SD)
Year: 2024 Accepted: 2024-11-25
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
512113 2024-002 Significant Deficiency Yes L
512114 2024-003 Material Weakness Yes E
1088555 2024-002 Significant Deficiency Yes L
1088556 2024-003 Material Weakness Yes E

Programs

ALN Program Spent Major Findings
93.566 Refugee and Entrant Assistance_state Administered Programs $2.72M Yes 2
19.510 U.s. Refugee Admissions Program $870,207 Yes 0
10.766 Community Facilities Loans and Grants $830,708 - 0
21.023 Emergency Rental Assistance Program $677,500 Yes 0
16.832 Children of Incarcerated Parents Web Portal $258,535 - 0
84.002 Adult Education - Basic Grants to States $231,920 - 0
21.019 Coronavirus Relief Fund $213,814 - 0
93.623 Basic Center Grant $212,568 - 0
93.092 Affordable Care Act (aca) Personal Responsibility Education Program $195,761 - 0
97.010 Citizenship Education and Training $138,959 - 0
14.169 Housing Counseling Assistance Program $136,140 - 0
93.060 Competitive Abstinence Education (cae) $119,764 - 0
93.583 Refugee and Entrant Assistance_wilson/fish Program $110,616 - 0
93.567 Refugee and Entrant Assistance_voluntary Agency Programs $107,499 - 0
10.555 National School Lunch Program $101,914 - 0
93.235 Affordable Care Act (aca) Abstinence Education Program $89,800 - 0
10.553 School Breakfast Program $63,947 - 0
16.021 Justice Systems Response to Families $57,826 - 0
84.425 Education Stabilization Fund $52,793 - 0
16.575 Crime Victim Assistance $43,391 - 0
16.540 Juvenile Justice and Delinquency Prevention_allocation to States $37,414 - 0
93.557 Education and Prevention Grants to Reduce Sexual Abuse of Runaway, Homeless and Street Youth $35,518 - 0
10.558 Child and Adult Care Food Program $19,834 - 0
93.959 Block Grants for Prevention and Treatment of Substance Abuse $18,964 - 0
16.017 Sexual Assault Services Formula Program $9,714 - 0
20.600 State and Community Highway Safety $7,237 - 0
93.575 Child Care and Development Block Grant $2,697 - 0
93.671 Family Violence Prevention and Services/domestic Violence Shelter and Supportive Services $2,494 - 0

Contacts

Name Title Type
MD2KLELPQ8Q1 Nathan Beyer Auditee
6054447508 Judon Mettler Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported in the schedule are reported on the accrual basis of accounting, except for subrecipient expenditures, which are recorded on the cash basis. 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. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10% de minimis cost rate. The accompanying consolidated schedule of expenditures of federal awards (the schedule) includes the federal award activity of Lutheran Social Services of South Dakota, Inc. (the Organization) under programs of the federal government for the year ended June 30, 2024. 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 consolidated financial position, changes in net assets or cash flows of the Organization.
Title: Amounts Reported on the Consolidated Schedule of Expenditures of Federal Awards Accounting Policies: Expenditures reported in the schedule are reported on the accrual basis of accounting, except for subrecipient expenditures, which are recorded on the cash basis. 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. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10% de minimis cost rate. Federal reimbursements for the Child Nutrition Cluster are not based upon specific expenditures. The federal expenditures reported on the consolidated schedule are based on type of meal and eligible number of meals served. Federal reimbursements for the Sexual Assault Services Formula Program, FFAL #16.017, Crime Victim Assistance, FFAL #16.575, and COVID-19 Family Violence Prevention and Services / Domestic Violence Shelter and Supportive Services, FFAL #93.671 are not based upon specific expenditures. The federal expenditures reported on the consolidated schedule are based upon the length of session and eligible number of sessions provided.
Title: Loans Outstanding Accounting Policies: Expenditures reported in the schedule are reported on the accrual basis of accounting, except for subrecipient expenditures, which are recorded on the cash basis. 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. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10% de minimis cost rate. Total expenditures as reported on the consolidated schedule of expenditures of federal awards under the Rural Development Program Community Facilities Loans and Grants represent the beginning of the year loan balance. There were no loan advances during the year ended June 30, 2024. As of June 30, 2024, the Organization has a $748,924 outstanding loan balance with the United States Department of Agriculture.

Finding Details

Finding 2024-002
Administration for Children and Families Federal Financial Assistance Listing #93.566, 2301SDRSSS, 10/01/2022 – 9/30/2024 Refugee and Entrant Assistance – State Administered Programs Reporting 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 the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. 2 CFR Part 170 establishes requirements for recipients’ reporting of information on subawards as required by the Federal Funding Accountability and Transparency Act of 2006 (FFATA). Condition: We noted the Federal funding Accountability and Transparency Act (FFATA) report filed for Huron School District included the incorrect Subaward Obligation/Action Date within the FFATA Subaward Reporting System. Cause: The Organization included the grant award end date within the reporting system due to misinterpretation of the required FFATA report information. Effect: Ineffective controls over this area of compliance could result in a reasonable possibility that the Organization would not be in compliance with the federal award as it relates to reporting. Questioned Costs: None reported. Context/Sampling: No sampling was performed over the FFATA reports. The quantity and subaward obligation errors were noted as follows: see table in report Repeat Finding from Prior Years: Yes, prior year finding 2023-003 Recommendation: We recommend that management review internal control procedures over reporting to ensure accurate information is reported. Views of Responsible Officials: Management is in agreement.
Finding 2024-003
Administration for Children and Families Federal Financial Assistance Listing #93.566, 2202SDRCMA, 10/01/2021 – 9/30/2023 Federal Financial Assistance Listing #93.566, 2302SDRCMA, 10/01/2022 – 9/30/2024 Federal Financial Assistance Listing #93.566, 2402SDRCMA, 10/01/2023 – 9/30/2025 Refugee and Entrant Assistance – State Administered Programs Eligibility Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: We noted the following matters during testing which affected 6 participant files; a) One instance in which a family was overpaid for one month due to the family obtaining employment. b) One instance in which a family was underpaid for one month based upon their family size and eligibility for the month. Additionally, documentation was not retained to support one month’s redetermination of eligibility and check copies for two months were not retained to support the payment to the family. c) Three instances in which a family was underpaid based upon their family size and eligibility for the month. d) One instance in which a check was written to a family who out-migrated from the state of South Dakota and the family did not cash the check; however, the expenses remained to be charged under the Refugee Cash Assistance program. Cause: The Organization experienced staff turnover along with an increase in refugee arrivals during the fiscal year creating an increase in the workload of staff members. Effect: Ineffective controls over this area of compliance could result in a reasonable possibility that the Organization would provide services to ineligible participants and the Organization would not detect ineligibility in a timely manner. Questioned Costs: $37 Context/Sampling: A nonstatistical sample of 60 participant case files out of more than 250 participant case files were selected for testing which included $152,317 of participant payments out of $694,763. Repeat Finding from Prior Year: Yes, prior year finding 2023-004 Recommendation: We recommend that management review the Organization’s policies, procedures and controls over eligibility with applicable program employees to ensure compliance with the federal program. View of Responsible Officials: Management is in agreement.
Finding 2024-002
Administration for Children and Families Federal Financial Assistance Listing #93.566, 2301SDRSSS, 10/01/2022 – 9/30/2024 Refugee and Entrant Assistance – State Administered Programs Reporting 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 the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. 2 CFR Part 170 establishes requirements for recipients’ reporting of information on subawards as required by the Federal Funding Accountability and Transparency Act of 2006 (FFATA). Condition: We noted the Federal funding Accountability and Transparency Act (FFATA) report filed for Huron School District included the incorrect Subaward Obligation/Action Date within the FFATA Subaward Reporting System. Cause: The Organization included the grant award end date within the reporting system due to misinterpretation of the required FFATA report information. Effect: Ineffective controls over this area of compliance could result in a reasonable possibility that the Organization would not be in compliance with the federal award as it relates to reporting. Questioned Costs: None reported. Context/Sampling: No sampling was performed over the FFATA reports. The quantity and subaward obligation errors were noted as follows: see table in report Repeat Finding from Prior Years: Yes, prior year finding 2023-003 Recommendation: We recommend that management review internal control procedures over reporting to ensure accurate information is reported. Views of Responsible Officials: Management is in agreement.
Finding 2024-003
Administration for Children and Families Federal Financial Assistance Listing #93.566, 2202SDRCMA, 10/01/2021 – 9/30/2023 Federal Financial Assistance Listing #93.566, 2302SDRCMA, 10/01/2022 – 9/30/2024 Federal Financial Assistance Listing #93.566, 2402SDRCMA, 10/01/2023 – 9/30/2025 Refugee and Entrant Assistance – State Administered Programs Eligibility Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: We noted the following matters during testing which affected 6 participant files; a) One instance in which a family was overpaid for one month due to the family obtaining employment. b) One instance in which a family was underpaid for one month based upon their family size and eligibility for the month. Additionally, documentation was not retained to support one month’s redetermination of eligibility and check copies for two months were not retained to support the payment to the family. c) Three instances in which a family was underpaid based upon their family size and eligibility for the month. d) One instance in which a check was written to a family who out-migrated from the state of South Dakota and the family did not cash the check; however, the expenses remained to be charged under the Refugee Cash Assistance program. Cause: The Organization experienced staff turnover along with an increase in refugee arrivals during the fiscal year creating an increase in the workload of staff members. Effect: Ineffective controls over this area of compliance could result in a reasonable possibility that the Organization would provide services to ineligible participants and the Organization would not detect ineligibility in a timely manner. Questioned Costs: $37 Context/Sampling: A nonstatistical sample of 60 participant case files out of more than 250 participant case files were selected for testing which included $152,317 of participant payments out of $694,763. Repeat Finding from Prior Year: Yes, prior year finding 2023-004 Recommendation: We recommend that management review the Organization’s policies, procedures and controls over eligibility with applicable program employees to ensure compliance with the federal program. View of Responsible Officials: Management is in agreement.