Finding Text
Federal Agency: Department of Health and Human Services
Federal Program Title: Refugee and Entrant Assistance Discretionary Grants
Assistance Listing Number: 93.576
Pass-Through Agency: Lutheran Immigration & Refugee Services
Pass-Through Number(s): 90ZM003101, 90ZM003102, 90ZR007401, 90ZR007402, 90Z1014104,
90Z0107301, 90RP0 124-02, 90RP0-124-03 & 90RP0 124-01
Award Period: September 30, 2022 – September 29, 2024
Type of Finding: Material Weaknesses in Internal Control over Compliance
Criteria or Specific Requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award Section 200.303 requires entities to establish and maintain effective internal controls over Federal Awards.
Condition: During our testing we noted internal controls over drawdown requests were not always properly
followed.
Questioned Costs: None
Context: 6 of 13 drawdown requests in our sample were missing approvals.
Cause: LSI has a limited number of individuals in the finance department and has experienced significant turnover in the finance department.
Effect: The lack of internal controls over cash management provides an opportunity for noncompliance.
Repeat Finding: Yes – see 2022-006.
Recommendation: We recommend LSI design controls to ensure an adequate review process is in place for all drawdown requests.
Views of Responsible Officials: There is no disagreement with the audit finding.