Audit 368547

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Refugee and Entrant Assistance State/Replacement Designee Administered Programs Assistance Listing Number: 93.566 Federal Award Identification Number and Year: 2301MNRSS 2024 Pass-Through Agency: State of Minnesota Pass-Through Numbers: GRK% 167302 Award Period: January 1, 2024 – December 31, 2024 Type of Finding:  Material Weakness in Internal Control over Compliance  Other Matters Criteria or Specific Requirement: Uniform Guidance section 200.332 states that every subaward agreement should include the following information at the time of the subaward:  Subrecipient’s unique entity identifier;  Assistance Listings number and Title; the pass-through entity must identify the dollar amount made available under each Federal award and the Assistance Listings Number at time of disbursement Condition: We noted that the subrecipient agreements did not include the entity's unique entity identifier or the assistance listing number and title. Questioned Costs: None Context: Five out of five subrecipients agreements selected for testing did not have proper documentation. Cause: The subrecipient agreements did not contain proper documentation. Effect: Incomplete agreements can cause subrecipients to submit inaccurate or incomplete reports, affecting the accuracy of overall grant reporting. Repeat Finding: See prior year finding 2023-004. Recommendation: Auditor recommends that KOM review the various subrecipient requirements with the individuals involved in this process to ensure they understand the requirements. Views of Responsible Officials: While there is no disagreement with the finding, the finding was first identified after the referenced grant had already expired. The subsequent response to the finding and its remedy have since addressed this issue. This finding was identified in the 2023 Single Audit presented to the Organization’s Board of Directors in October 2024. The federal award referenced in this finding expired on September 30, 2024. The Organization adjusted subaward agreement templates to include subrecipients’ UEI, federal assistance listings numbers and titles, and dollar amounts made available under the federal award. The Organization has ensured that all federal subaward agreements signed on or after October 1, 2024, include the required information.

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Refugee and Entrant Assistance State/Replacement Designee Administered Programs Assistance Listing Number: 93.566 Federal Award Identification Number and Year: 2301MNRSS 2024 Pass-Through Agency: State of Minnesota, Lutheran Social Services, and YMCA of the North Pass-Through Numbers: GRK% 167302, D2LNFU9KSHC6, D2LNFU9KSHC6, 258246, 258633, 258276 Award Period: January 1, 2024 – December 31, 2024 Type of Finding:  Material Weakness in Internal Control over Compliance  Other Matters Criteria or Specific Requirement: Clients must have a specific immigration status or classification and have had that status for less than five years. Condition: We noted that for two of the participants that we tested, there was no documentation on file of their immigration status to ensure that the individual was eligible to receive services. Questioned Costs: None Context: Two out of sixty participants selected for testing of eligibility did not have proper documentation. Cause: Support was not retained in the participant's file at the time of enrollment. Effect: Providing services to participants who are not eligible. Repeat Finding: See prior year finding 2023-005. Recommendation: Auditor recommends that KOM review all participant files to ensure proper documentation is retained supporting eligibility of applicants. We noted that there is currently a process in place to perform an annual review of random files to ensure that only eligible participants are being served, but we recommend that a process is implemented to ensure that there is proper review and approval of all applicants prior to the individual receiving services and that this review is retained. Views of Responsible Officials: There is no disagreement with the finding. The Organization has implemented enhanced processes for regular client file checks to ensure all clients have adequate documentation.