FAC Explorer

Finding 1173705 (2024-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2026-02-16
Audit: 387423
Organization: Lutheran Family Services of Nebraska, Inc. and Affiliates (NE)
Auditor: FRANKEL LLC

AI Summary

  • Core Issue: The Organization's internal controls failed to ensure a complete and accurate Schedule of Expenditures of Federal Awards (SEFA).
  • Impacted Requirements: This affects compliance with the Uniform Guidance, specifically section 200.510, which outlines SEFA preparation standards.
  • Recommended Follow-Up: Management should enhance awareness of SEFA reporting requirements and review internal controls to improve accuracy in future submissions.

Finding Text

Preparation of Schedule of Expenditures of Federal Awards Significant Deficiency Impacted Major Programs: 19.510 U.S. Refugee Admissions Program 93.558 Temporary Assistance For Needy Families (TANF) Criteria: Proper controls over financial reporting includes the ability to prepare the schedule of expenditures of federal awards (SEFA) and accompanying notes to the SEFA in accordance with the requirements of the Uniform Guidance, section 200.510, paragraph b. Condition: The Organization’s internal control system failed to provide for a complete an accurate SEFA being audited. Cause: Organization staff responsible for preparation of the SEFA had significant turnover during the period under audit and short thereafter. As such, the procedures and controls necessary to prepare an accurate SEFA were not in place. Effect: The initial SEFA prepared by management of the Organization improperly reported several awards which resulted in an overstatement of expenditures. Numerous revisions to the SEFA were required for complete and accurate presentation. Questioned Costs: None Repeat finding: No Recommendations: We recommend management continue to be aware of the financial reporting requirements relating to the Organization’s SEFA and review its processes and internal controls that impact the preparation of the SEFA. Response: Management agrees with the finding.

Corrective Action Plan

Management agrees with the finding. Both myself and our controller, David Stein, are in the process of reviewing and refining SEFA-related procedures to be published in our internal accounting operations documentation. This will be completed in anticipation of future audit periods (2025 and beyond) and completed within 120 days of the date of this correspondence. The improved documentation will insulate SEFA processes from staffing levels, turnover, and the reliance on specific individuals for completion.

Categories

Reporting

Other Findings in this Audit

  • 1173702 2024-001
    Material Weakness Repeat
  • 1173703 2024-001
    Material Weakness Repeat
  • 1173704 2024-001
    Material Weakness Repeat
  • 1173706 2024-002
    Material Weakness Repeat
  • 1173707 2024-002
    Material Weakness Repeat
  • 1173708 2024-002
    Material Weakness Repeat
  • 1173709 2024-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
19.510 U.S. REFUGEE ADMISSIONS PROGRAM $2.21M
93.696 CERTIFIED COMMUNITY BEHAVIORAL HEALTH CLINIC EXPANSION GRANTS $2.07M
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $1.88M
93.243 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $1.30M
93.567 REFUGEE AND ENTRANT ASSISTANCE VOLUNTARY AGENCY PROGRAMS $845,099
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $560,262
93.576 REFUGEE AND ENTRANT ASSISTANCE DISCRETIONARY GRANTS $499,819
93.556 MARYLEE ALLEN PROMOTING SAFE AND STABLE FAMILIES PROGRAM $425,354
93.676 UNACCOMPANIED CHILDREN PROGRAM $305,826
93.566 REFUGEE AND ENTRANT ASSISTANCE STATE/REPLACEMENT DESIGNEE ADMINISTERED PROGRAMS $195,243
93.505 AFFORDABLE CARE ACT (ACA) MATERNAL, INFANT, AND EARLY CHILDHOOD HOME VISITING PROGRAM $108,899
93.598 SERVICES TO VICTIMS OF A SEVERE FORM OF TRAFFICKING $56,968
93.958 BLOCK GRANTS FOR COMMUNITY MENTAL HEALTH SERVICES $39,103
93.959 BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE $8,028
93.092 AFFORDABLE CARE ACT (ACA) PERSONAL RESPONSIBILITY EDUCATION PROGRAM $1,060