FAC Explorer

Finding 400569 (2022-002)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2024-06-12
Audit: 308632
Organization: Lutheran Family Services of Nebraska, Inc. and Affiliates (NE)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The Organization lacks a proper internal control system for preparing an accurate Schedule of expenditures of federal awards.
  • Impacted Requirements: Financial reporting standards require a complete and accurate Schedule, which was not met due to missing and misclassified awards.
  • Recommended Follow-Up: Management should review and strengthen internal controls and processes related to the preparation of the Schedule to ensure compliance with financial reporting requirements.

Finding Text

Criteria: Proper controls over financial reporting includes the ability to prepare the schedule of expenditures of federal awards (Schedule) and accompanying notes to the Schedule. Condition: The Organization does not have an internal control system designed to provide for a complete an accurate Schedule being audited. As auditors, we were requested to assist with the preparation of the Schedule. Cause: Auditor assistance with preparation of the Schedule is not unusual as the Schedule has unique and specialized requirements and preparation is only required when the Organization meets a specified threshold of federal expenditures. Effect: The initial Schedule prepared by management of the Organization excluded two Federal awards and misclassified several awards in the schedule. Numerous revisions to the Schedule were required for complete and accurate presentation. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: No. Recommendation: We recommend management be aware of the financial reporting requirements relating to the Organization’s Schedule and review its processes and internal controls that impact the preparation of the Schedule. Views of Responsible Officials: Management agrees with the finding.

Corrective Action Plan

Condition: The Organization does not have an internal control system designed to provide for a complete and accurate schedule of expenditures of federal awards being audited. As auditors, we were requested to assist with the preparation of the Schedule. Planned Corrective Action: Management is reviewing and improving internal controls over preparation of the schedule of expenditures of federal awards required by the Uniform Guidance to ensure completeness and accuracy of reporting of federal awards expended. Contact Person: Amy Carolus, Chief Financial Officer Anticipated Completion Date: December 31, 2023

Categories

Reporting

Other Findings in this Audit

  • 400570 2022-002
    Material Weakness
  • 400571 2022-002
    Material Weakness
  • 400572 2022-003
    Material Weakness
  • 400573 2022-003
    Material Weakness
  • 400574 2022-003
    Material Weakness
  • 400575 2022-002
    Material Weakness
  • 400576 2022-002
    Material Weakness
  • 400577 2022-002
    Material Weakness
  • 400578 2022-002
    Material Weakness
  • 400579 2022-002
    Material Weakness
  • 400580 2022-002
    Material Weakness
  • 400581 2022-002
    Material Weakness
  • 400582 2022-002
    Material Weakness
  • 400583 2022-002
    Material Weakness
  • 400584 2022-002
    Material Weakness
  • 977011 2022-002
    Material Weakness
  • 977012 2022-002
    Material Weakness
  • 977013 2022-002
    Material Weakness
  • 977014 2022-003
    Material Weakness
  • 977015 2022-003
    Material Weakness
  • 977016 2022-003
    Material Weakness
  • 977017 2022-002
    Material Weakness
  • 977018 2022-002
    Material Weakness
  • 977019 2022-002
    Material Weakness
  • 977020 2022-002
    Material Weakness
  • 977021 2022-002
    Material Weakness
  • 977022 2022-002
    Material Weakness
  • 977023 2022-002
    Material Weakness
  • 977024 2022-002
    Material Weakness
  • 977025 2022-002
    Material Weakness
  • 977026 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.023 Emergency Rental Assistance Program $3.53M
93.829 Section 223 Demonstration Programs to Improve Community Mental Health Services $1.43M
93.558 Temporary Assistance for Needy Families $1.40M
19.510 U.s. Refugee Admissions Program $693,483
93.576 Refugee and Entrant Assistance_discretionary Grants $330,424
93.556 Promoting Safe and Stable Families $329,785
93.567 Refugee and Entrant Assistance_voluntary Agency Programs $284,527
93.696 Certified Community Behavioral Health Clinic Expansion Grants $199,169
93.598 Services to Victims of A Severe Form of Trafficking $188,907
16.745 Criminal and Juvenile Justice and Mental Health Collaboration Program $130,976
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $120,385
93.498 Provider Relief Fund $74,249
93.658 Foster Care_title IV-E $72,077
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $69,607
21.027 Coronavirus State and Local Fiscal Recovery Funds $50,000
93.958 Block Grants for Community Mental Health Services $41,349
93.959 Block Grants for Prevention and Treatment of Substance Abuse $24,000
93.092 Affordable Care Act (aca) Personal Responsibility Education Program $16,062
93.676 Unaccompanied Alien Children Program $10,541
93.566 Refugee and Entrant Assistance_state Administered Programs $4,113