Finding 1224109 (2025-001)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2025

Accepted

2026-07-20

Audit: 407497

Organization: Lutheran Family & Children's Services of Missouri, INC (MO)

Auditor: UHY LLP

AI Summary

Answer: Management will enhance payroll allocation controls by implementing a two-step review process.
Trend: This change aims to improve accuracy in payroll data entry and alignment with the payroll register.
List: Starting fiscal year 2026, the Revenue Manager will input data, followed by a review and sign-off from the Sr. Accounting Manager.

Finding Text

Management will strengthen the review controls over the payroll allocation process to ensure salary amounts entered into the allocation spreadsheet agree with the payroll register data. This will be completed by adding a second level of review to the monthly process. The Revenue Manager will enter the payroll into the spreadsheet and compare the data to the payroll register to ensure accuracy. The Sr. Accounting Manager will review the payroll and sign-off on it to ensure accuracy of the data. This process will be effective beginning fiscal year 2026.

Corrective Action Plan

Corrective Action Plan: In our opinion, the matter resulted in human error and does not rise to the level of a finding. We believe the matter would be more appropriately addressed through disclosure in the financial statement footnotes rather than being reported as a finding. The Revenue Manager will enter the salaries from the payroll register into the allocation spreadsheet. The Sr. Accounting Manager will review the salaries and sign off on the allocation spreadsheet confirming the accuracy of the salaries.

Other Findings in this Audit

1224110 2025-002

Material Weakness Repeat
1224111 2025-003

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
93.558	TEMPORARY ASSISTANCE FOR NEEDY FAMILIES	$3.73M
10.558	CHILD AND ADULT CARE FOOD PROGRAM	$112,698