Department of Health and Human Services
Lutheran Family Services of Virginia, Inc. and Subsidiaries d/b/a enCircle respectfully submits the following corrective action plan for the year ended June 30, 2023.
Name and address of independent public accounting firm:
Brown, Edwards & Company, L.L.P.
...
Department of Health and Human Services
Lutheran Family Services of Virginia, Inc. and Subsidiaries d/b/a enCircle respectfully submits the following corrective action plan for the year ended June 30, 2023.
Name and address of independent public accounting firm:
Brown, Edwards & Company, L.L.P.
3906 Electric Road
Roanoke, Virginia 24018
Audit Period: Year ending June 30, 2023
The finding from the June 30, 2023 schedule of findings and questioned costs is discussed below.
Findings – Financial Statement Audit
NONE.
Findings – Federal Award Programs Audits
Department of Health and Human Services
2023-001: Unaccompanied Alien Children – ALN #93.676, Activities Allowed/Unallowed; Allowable Costs and Period of Performance and controls over Activities Allowed/Unallowed; Allowable Costs and Period of Performance. Significant Deficiency
Criteria and Condition: Under the requirements of the Uniform Guidance, the drawdown of federal funds must be based on actual expenditures incurred.
Context: We tested twenty-five reimbursed amounts from various awards. We noted two instances where the Organization obtained federal funds without incurring the actual expenditure. We also noted one instance where the expenditure occurred outside of the budget period.
Cause: The Organization did not properly allocate expenditures within their general ledger and did not have an adequate review process in place.
Effect: The lack of an adequate review process can cause federal funds to be obtained prior to the actual expenditure is incurred.
Recommendation: We recommend that the Organization develop a review process to ensure the drawdown of federal funds does not occur before funds are expended and that the Organization submit expenditures incurred in the budget period.
Action Taken: Management has implemented enhanced review processes to ensure the drawdown of Federal funds does not occur before funds are expended and that enCircle submits only expenditures incurred during the budget period.
Name of Contact Person: David Pruett, Chief Financial Officer