Finding 1167429 (2025-003)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2025-12-31

AI Summary

  • Core Issue: Significant deficiencies in internal controls over compliance with federal award requirements were identified, particularly regarding participant file documentation.
  • Impacted Requirements: Compliance with 2 CFR 200.303(a) is at risk due to missing documentation for home visits and lack of proper expense approval processes.
  • Recommended Follow-Up: Management should review and strengthen policies and procedures for case file management to ensure adherence to federal program standards.

Finding Text

Passed through Lutheran Immigration and Refugee Service dba Global Refuge Federal Financial Assistance Listing #19.510, 323‐24‐00, 10/01/2023 – 9/30/2024 Federal Financial Assistance Listing #19.510, 323‐25‐00, 10/01/2024 – 9/30/2025 U.S. Refugee Admissions Program Special Tests and Provisions 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 the terms and conditions of the federal award. Condition: We noted the following matters during testing which affected 2 participant files: a) One instance was identified where documentation for both the initial home visit and the 30‐day followup home visit was missing from the participant file. No case activity or other documentation was able to be provided to indicate that these visits were conducted in accordance with the federal program. b) One instance was identified where an expense was paid and reimbursed under the grant without evidence of a formal request, invoice support, review, or approval. Cause: The Organization experienced an increase in refugee arrivals at the beginning of the fiscal year creating an increase in the workload of staff members along with employee turnover occurring toward the end of the fiscal year. Additionally, the Organization underwent a transitional phase from paper‐based documentation to a digital workflow using Salesforce. This system change likely contributed to deviations in established processes and internal controls. Effect: Ineffective controls over this area of compliance could result in a reasonable possibility that the Organization would not be in compliance with the federal award was it relates to case file management. Questioned Costs: $39 Context/Sampling: A nonstatistical sample of 18 participant files out of 117 total participant files were selected for testing. Repeat Finding from Prior Year: No Recommendation: We recommend that management review the Organization’s policies, procedures and controls over case file management with applicable program employees to ensure compliance with the federal program. View of Responsible Officials: Management is in agreement.

Corrective Action Plan

Federal Agency Name: Department of State Assistance Listing Number: 19.510 Program Name: U.S. Refugee Admissions Program Special Tests and Provisions Finding Summary: a. One instance was identified where documentation for both the initial home visit and the 30-day follow-up home visit was missing from the participant file. No case activity or other documentation was able to be provided to indicate that these visits were conducted in accordance with the federal program. b. One instance was identified where an expense was paid and reimbursed under the grant without evidence of a formal request, invoice support, review, or approval. Responsible Individuals: Nathan Beyer, Staci Jonson, Dana Boraas Corrective Action Plan: Procedures will be reviewed with staff to ensure staff are fully trained on required documentation needed to maintain a complete case file, and that documentation is being completed and retained. Anticipated Completion Date: December 31, 2025

Categories

Special Tests & Provisions HUD Housing Programs Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1167427 2025-001
    Material Weakness Repeat
  • 1167428 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.566 REFUGEE AND ENTRANT ASSISTANCE STATE/REPLACEMENT DESIGNEE ADMINISTERED PROGRAMS $2.43M
19.510 U.S. REFUGEE ADMISSIONS PROGRAM $784,095
10.766 COMMUNITY FACILITIES LOANS AND GRANTS $748,924
21.023 EMERGENCY RENTAL ASSISTANCE PROGRAM $669,541
84.002 ADULT EDUCATION - BASIC GRANTS TO STATES $272,471
93.576 REFUGEE AND ENTRANT ASSISTANCE DISCRETIONARY GRANTS $242,438
93.092 AFFORDABLE CARE ACT (ACA) PERSONAL RESPONSIBILITY EDUCATION PROGRAM $206,121
93.567 REFUGEE AND ENTRANT ASSISTANCE VOLUNTARY AGENCY PROGRAMS $184,945
93.623 BASIC CENTER GRANT $163,676
14.169 HOUSING COUNSELING ASSISTANCE PROGRAM $144,378
16.832 Children of Incarcerated Parents Web Portal $138,458
93.583 REFUGEE AND ENTRANT ASSISTANCE WILSON/FISH PROGRAM $116,143
10.555 NATIONAL SCHOOL LUNCH PROGRAM $102,568
21.019 CORONAVIRUS RELIEF FUND $99,899
97.010 CITIZENSHIP EDUCATION AND TRAINING $87,657
16.021 JUSTICE SYSTEMS RESPONSE TO FAMILIES $83,229
10.553 SCHOOL BREAKFAST PROGRAM $56,585
16.540 JUVENILE JUSTICE AND DELINQUENCY PREVENTION $55,011
93.235 TITLE V STATE SEXUAL RISK AVOIDANCE EDUCATION (TITLE V STATE SRAE) PROGRAM $27,303
16.575 CRIME VICTIM ASSISTANCE $20,876
16.017 SEXUAL ASSAULT SERVICES FORMULA PROGRAM $15,865
10.558 CHILD AND ADULT CARE FOOD PROGRAM $5,862
93.671 FAMILY VIOLENCE PREVENTION AND SERVICES/DOMESTIC VIOLENCE SHELTER AND SUPPORTIVE SERVICES $1,401
84.425 EDUCATION STABILIZATION FUND $77