FAC Explorer

Audit 392080

FY End
2023-12-31
Total Expended
$1.16M
Findings
1
Programs
1
Organization: Legacy Senior Services (MN)
Year: 2023 Accepted: 2026-03-16
Auditor: EIDE BAILLY LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1179663 2023-003 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
93.498 COVID 19 - PROVIDER RELIEF FUND AND AMERICAN RESCUE PLAN (ARP) RURAL DISTRIBUTION $1.16M Yes 1

Contacts

Name Title Type
Q5KJVVH97JC6 Stephanie Schmidt Auditee
9417767457 Ashley Brandt-Duda Auditor
No contacts on file

Notes to SEFA

The consolidated schedule of expenditures of federal awards includes the federal grant activity of Legacy Senior Services and Subsidiaries and its controlled entities (collectively, the Organization) which received federal financial assistance. Significant intercompany balances and transactions have been eliminated in the consolidated schedule of expenditures of federal awards. The following entities and their associated TIN numbers included within the schedule are as follows: LSS of Madison, LLC – TIN#201209404 and LSS of Marycrest, LLC – TIN#262181659. The following entities did not have expenditures of federal awards included within the schedule: LSS of Frazee, LLC – TIN#208729268 and LSS of Traverse, LLC – TIN#273274611 and TIN#800015864.
The Organization received amounts from the U.S. Department of Health and Human Services (HHS) through the COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution program (PRF) (Federal Financial Assistance Listing #93.498) during the years ended December 31, 2022, 2021, and 2020. The PRF expenditures are not recognized on the schedule until the expenditures are included in the reporting to HHS as required under the PRF program. The following summarizes the provider relief funds and the timing of when the amounts were recognized in the consolidated financial statements. Amounts Amounts Amounts Recognized in Recognized in Recognized in Federal Accordance with Accordance with Accordance with Financial GAAP for the GAAP for the GAAP for the Assistance Year Ended Year Ended Year Ended Listing December 31, 2020 December 31, 2021 December 31, 2022 Department of Health and Human Services Health Resources and Services Administration COVID-19 Provider Relief Fund and American Rescue Plan General and Targeted Distribution - Period 1 (not included in 2023 Schedule) 93.498 $ 9 71,687 $ - $ - COVID-19 Provider Relief Fund and American Rescue Plan General and Targeted Distribution - Period 2 (not included in 2023 Schedule) 93.498 443,258 123,963 - COVID-19 Provider Relief Fund and American Rescue Plan General and Targeted Distribution - Period 3 (not included in 2023 Schedule) 93.498 - 282,640 - COVID-19 Provider Relief Fund and American Rescue Plan General and Targeted Distribution - Period 4 (not included in 2023 Schedule) 93.498 - 345,929 1,267 COVID-19 Provider Relief Fund and American Rescue Plan General and Targeted Distribution - Period 5 (included in 2023 Schedule) 93.498 - - 1,155,011 Total Department of Health and Human Services $ 1,414,945 $ 7 52,532 $ 1,156,278 Federal Department/Program Title/Grant Name The total amount of PRF expenditures included on the schedule requires management to make estimates and assumptions that affect the reported amounts. Accordingly, such expenditures are considered a significant estimate. Estimates and assumptions may include reducing actual expenses by amounts that have been reimbursed or are obligated to be reimbursed by other sources and estimating marginal increases in expenses related to coronavirus. Actual amounts could differ from those estimates.

Finding Details

Finding 2023-003
Department of Health and Human Services Federal Financial Assistance Listing #93.498 COVID‐19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year –Period 5 TIN #201209404, Period 5 TIN #262181659 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 conditions of the federal award. Condition: The Organization’s special reports submitted to the Department of Health and Human Services (HHS) for Period 5 were not reviewed and approved by a separate individual outside of the preparer. Cause: The Organization did not have an adequate internal control policy in place to ensure review and approval over the preparation of HHS Period 5 reporting was documented. Effect: The lack of adequate policies governing review and approval 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: Key line items were tested on the Period 5 Department of Health and Human Services special reports. A total of two special reports were submitted and tested. Repeat Finding from Prior Years: Yes – 2021-002 Recommendation: We recommend the Organization implement a control process which includes a secondary review and approval of required reports to be submitted to the federal agency. Views of Responsible Officials: Management agrees with the finding.