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Audit 41440

FY End
2022-09-30
Total Expended
$11.15M
Findings
18
Programs
8
Organization: Lutheran Family Services in the Carolinas and Affiliates (NC)
Year: 2022 Accepted: 2023-04-06
Auditor: Forvis LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
44379 2022-001 Significant Deficiency - A
44380 2022-001 Significant Deficiency - A
44381 2022-001 Significant Deficiency - A
44382 2022-001 Significant Deficiency - A
44383 2022-001 Significant Deficiency - A
44384 2022-001 Significant Deficiency - A
44385 2022-001 Significant Deficiency - A
44386 2022-001 Significant Deficiency - A
44387 2022-001 Significant Deficiency - A
620821 2022-001 Significant Deficiency - A
620822 2022-001 Significant Deficiency - A
620823 2022-001 Significant Deficiency - A
620824 2022-001 Significant Deficiency - A
620825 2022-001 Significant Deficiency - A
620826 2022-001 Significant Deficiency - A
620827 2022-001 Significant Deficiency - A
620828 2022-001 Significant Deficiency - A
620829 2022-001 Significant Deficiency - A

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund $1.94M Yes 0
93.567 Refugee and Entrant Assistance_voluntary Agency Programs $1.43M Yes 1
93.566 Refugee and Entrant Assistance_state Administered Programs $202,456 - 0
19.510 U.s. Refugee Admissions Program $153,428 Yes 1
93.598 Services to Victims of A Severe Form of Trafficking $140,189 - 0
93.558 Temporary Assistance for Needy Families $132,982 - 0
93.676 Unaccompanied Alien Children Program $130,121 - 0
93.576 Refugee and Entrant Assistance_discretionary Grants $21,070 Yes 1

Contacts

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

Notes to SEFA

Title: 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, 2022 in accordance with the terms and conditions set by HRSA. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal and state awards (the Schedule) includes the federal and state 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, 2022. 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 the Center, 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 April 2022 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:Payment ReceivedReportingPeriod (PaymentsDeadlinePRF PortalPortalExceeding $10,000 inPeriod ofto UseReporting TimePeriodAggregate Received)AvailabilityFundsPeriodApril 10, 2020 toJanuary 1, 2020 July 1, 2021 toPeriod 1June 30, 2020to June 30, 2021June 30, 2021September 30, 2021July 1, 2020 toJanuary 1, 2020 toJanuary 1, 2022Period 2December 31, 2020to December 31, 2021December 31, 2021to March 31, 2022January 1, 2021 toJanuary 1, 2020 July 1, 2022 toPeriod 3June 30, 2021to June 30, 2022June 30, 2022September 30, 2022July 1, 2021 toJanuary 1, 2020January 1, 2023Period 4December 31, 2021to December 31, 2022December 31, 2022to March 31, 2023January 1, 2022 toJanuary 1, 2020July 1, 2023 toPeriod 5June 30, 2022to June 30, 2023June 30, 2023September 30, 2023July 1, 2022 toJanuary 1, 2020January 1, 2024Period 6December 31, 2022to December 31, 2023December 31, 2023to March 31, 2024January 1, 2023 toJanuary 1, 2020July 1, 2024 toPeriod 7June 30, 2023to June 30, 2024June 30, 2024September 30, 2024The accompanying Schedule includes those qualifying expenditures that were reported in the HRSA PRF portal for Period 2 and Period 3. Of that amount, approximately $1,800,000 and $1,500,000 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, 2022 and 2021, respectively.

Finding Details

Finding 2022-001
Finding 2022-001 Major Program: 19.150 US Refugee Admissions Program, 93.567 Refugee and Entrant Assistance Voluntary Agency, 93.576 Refugee and Entrant Assistance Discretionary Grants 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 2022-001
Finding 2022-001 Major Program: 19.150 US Refugee Admissions Program, 93.567 Refugee and Entrant Assistance Voluntary Agency, 93.576 Refugee and Entrant Assistance Discretionary Grants 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 2022-001
Finding 2022-001 Major Program: 19.150 US Refugee Admissions Program, 93.567 Refugee and Entrant Assistance Voluntary Agency, 93.576 Refugee and Entrant Assistance Discretionary Grants 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 2022-001
Finding 2022-001 Major Program: 19.150 US Refugee Admissions Program, 93.567 Refugee and Entrant Assistance Voluntary Agency, 93.576 Refugee and Entrant Assistance Discretionary Grants 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 2022-001
Finding 2022-001 Major Program: 19.150 US Refugee Admissions Program, 93.567 Refugee and Entrant Assistance Voluntary Agency, 93.576 Refugee and Entrant Assistance Discretionary Grants 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 2022-001
Finding 2022-001 Major Program: 19.150 US Refugee Admissions Program, 93.567 Refugee and Entrant Assistance Voluntary Agency, 93.576 Refugee and Entrant Assistance Discretionary Grants 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 2022-001
Finding 2022-001 Major Program: 19.150 US Refugee Admissions Program, 93.567 Refugee and Entrant Assistance Voluntary Agency, 93.576 Refugee and Entrant Assistance Discretionary Grants 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 2022-001
Finding 2022-001 Major Program: 19.150 US Refugee Admissions Program, 93.567 Refugee and Entrant Assistance Voluntary Agency, 93.576 Refugee and Entrant Assistance Discretionary Grants 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 2022-001
Finding 2022-001 Major Program: 19.150 US Refugee Admissions Program, 93.567 Refugee and Entrant Assistance Voluntary Agency, 93.576 Refugee and Entrant Assistance Discretionary Grants 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 2022-001
Finding 2022-001 Major Program: 19.150 US Refugee Admissions Program, 93.567 Refugee and Entrant Assistance Voluntary Agency, 93.576 Refugee and Entrant Assistance Discretionary Grants 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 2022-001
Finding 2022-001 Major Program: 19.150 US Refugee Admissions Program, 93.567 Refugee and Entrant Assistance Voluntary Agency, 93.576 Refugee and Entrant Assistance Discretionary Grants 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 2022-001
Finding 2022-001 Major Program: 19.150 US Refugee Admissions Program, 93.567 Refugee and Entrant Assistance Voluntary Agency, 93.576 Refugee and Entrant Assistance Discretionary Grants 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 2022-001
Finding 2022-001 Major Program: 19.150 US Refugee Admissions Program, 93.567 Refugee and Entrant Assistance Voluntary Agency, 93.576 Refugee and Entrant Assistance Discretionary Grants 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 2022-001
Finding 2022-001 Major Program: 19.150 US Refugee Admissions Program, 93.567 Refugee and Entrant Assistance Voluntary Agency, 93.576 Refugee and Entrant Assistance Discretionary Grants 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 2022-001
Finding 2022-001 Major Program: 19.150 US Refugee Admissions Program, 93.567 Refugee and Entrant Assistance Voluntary Agency, 93.576 Refugee and Entrant Assistance Discretionary Grants 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 2022-001
Finding 2022-001 Major Program: 19.150 US Refugee Admissions Program, 93.567 Refugee and Entrant Assistance Voluntary Agency, 93.576 Refugee and Entrant Assistance Discretionary Grants 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 2022-001
Finding 2022-001 Major Program: 19.150 US Refugee Admissions Program, 93.567 Refugee and Entrant Assistance Voluntary Agency, 93.576 Refugee and Entrant Assistance Discretionary Grants 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 2022-001
Finding 2022-001 Major Program: 19.150 US Refugee Admissions Program, 93.567 Refugee and Entrant Assistance Voluntary Agency, 93.576 Refugee and Entrant Assistance Discretionary Grants 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