FAC Explorer

Finding 996915 (2022-003)

Material Weakness
Requirement
AB
Questioned Costs
-
Year
2022
Accepted
2023-06-14
Audit: 312261
Organization: Lutheran Community Services Northwest (WA)
Auditor: Clark Nuber P S

AI Summary

  • Core Issue: There is a material weakness in internal controls over compliance, leading to unallowable costs charged to federal awards.
  • Impacted Requirements: 19 out of 142 transactions tested did not meet the criteria outlined in Title 2 U.S. Code of Federal Regulations Part 200, resulting in questioned costs totaling $196,910.
  • Recommended Follow-Up: Provide additional training for staff on compliance and strengthen record retention controls to ensure proper documentation and authorization of costs.

Finding Text

Finding 2022-003Material weakness in internal controls over compliance for allowable activities and costs and material non-compliance inthe Coronavirus State and Local Fiscal Recovery Fund program.Federal Agencies: Department of Justice; Department of the TreasuryProgram Titles: Crime Victim Assistance; Coronavirus State and Local Fiscal Recovery FundAssistance Listing Numbers: 16.575; 21.027Award Numbers: 22-31219-018, 22-31310-140, 22-31219-019, F19-31219-553, 8152, DA-239Award Periods: VariousCriteriaCharges to federal awards must meet the requirements of Title 2 U.S. Code of Federal Regulations Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Subpart E - Cost Principles.Condition/Context for EvaluationDuring our audit we identified that a total of 19 of 142 transactions (79 non-payroll transactions and 63 for payrolltransactions) tested for allowable costs and activities did not meet the requirements of Title 2 U.S. Code of FederalRegulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal AwardsSubpart E - Cost Principles. Below is a disaggregation of the exceptions identified:- Thirteen of the non-payroll transactions tested did not have documentation available to support the allocationof the expense to the program in accordance with 2 CFR 200.405.- Three of the non-payroll transactions tested did not meet the reasonable and necessary criteria of 2 CFR200.403.- Two of the payroll transactions tested was charged to the federal award based upon allocations determinedbefore services were performed with no process to identify significant changes in the corresponding workactivity in accordance with 2 CFR 200.430(i).- Two of the transactions tested did not have adequate documentation to support the item of cost in accordancewith the criteria at 200.403(g).- One of the transactions tested the cost incurred represented a reimbursement for costs in excess of theallowable amount per the Organization?s policies and procedures and did not meet the criteria of 2 CFR 200.403.Our sample was not a statistical sample.Effect or Potential EffectThe Organization charged costs to the federal awards that were unallowable. Questioned CostsActual questioned costs identified during the audit totaled the amounts below by award:Assistance Pass-Through KnownListing Pass-Through Award QuestionedNumber Funder Number Costs21.027 State of Oregon Department of Administrative Services 8152 $ 1921027 King County Regional Homelessness Authority DA-239 $ 3,808CauseInternal controls were not operating effectively to ensure only allowable costs were charged to the federal awards.Repeat FindingNot applicable.RecommendationWe recommend that the Organization provide additional training to employees to ensure that controls operate effectivelyso that only allowable costs are authorized to be charged to federal awards and that record retention controls arestrengthened to ensure documentation and policies are retained to support the distribution of charges between projects.Views of Responsible Officials of AuditeeManagement agrees with the finding and has provided the accompanying corrective action plan.

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 420450 2022-002
    Significant Deficiency Repeat
  • 420451 2022-002
    Significant Deficiency Repeat
  • 420452 2022-002
    Significant Deficiency Repeat
  • 420453 2022-002
    Significant Deficiency Repeat
  • 420454 2022-005
    Significant Deficiency
  • 420455 2022-002
    Significant Deficiency Repeat
  • 420456 2022-002
    Significant Deficiency Repeat
  • 420457 2022-002
    Significant Deficiency Repeat
  • 420458 2022-002
    Significant Deficiency Repeat
  • 420459 2022-002
    Significant Deficiency Repeat
  • 420460 2022-002
    Significant Deficiency Repeat
  • 420461 2022-002
    Significant Deficiency Repeat
  • 420462 2022-002
    Significant Deficiency Repeat
  • 420463 2022-002
    Significant Deficiency Repeat
  • 420464 2022-002
    Significant Deficiency Repeat
  • 420465 2022-002
    Significant Deficiency Repeat
  • 420466 2022-002
    Significant Deficiency Repeat
  • 420467 2022-002
    Significant Deficiency Repeat
  • 420468 2022-002
    Significant Deficiency Repeat
  • 420469 2022-002
    Significant Deficiency Repeat
  • 420470 2022-002
    Significant Deficiency Repeat
  • 420471 2022-003
    Material Weakness
  • 420472 2022-003
    Material Weakness
  • 420473 2022-003
    Material Weakness
  • 420474 2022-003
    Material Weakness
  • 420475 2022-002
    Significant Deficiency Repeat
  • 420476 2022-002
    Significant Deficiency Repeat
  • 420477 2022-002
    Significant Deficiency Repeat
  • 420478 2022-002
    Significant Deficiency Repeat
  • 420479 2022-002
    Significant Deficiency Repeat
  • 420480 2022-003
    Material Weakness
  • 420481 2022-003
    Material Weakness
  • 420482 2022-006
    Significant Deficiency
  • 420483 2022-006
    Significant Deficiency
  • 420484 2022-002
    Significant Deficiency Repeat
  • 420485 2022-002
    Significant Deficiency Repeat
  • 420486 2022-002
    Significant Deficiency Repeat
  • 420487 2022-002
    Significant Deficiency Repeat
  • 420488 2022-002
    Significant Deficiency Repeat
  • 420489 2022-002
    Significant Deficiency Repeat
  • 420490 2022-002
    Significant Deficiency Repeat
  • 420491 2022-002
    Significant Deficiency Repeat
  • 420492 2022-002
    Significant Deficiency Repeat
  • 420493 2022-002
    Significant Deficiency Repeat
  • 420494 2022-002
    Significant Deficiency Repeat
  • 420495 2022-002
    Significant Deficiency Repeat
  • 420496 2022-002
    Significant Deficiency Repeat
  • 420497 2022-002
    Significant Deficiency Repeat
  • 420498 2022-002
    Significant Deficiency Repeat
  • 420499 2022-002
    Significant Deficiency Repeat
  • 420500 2022-002
    Significant Deficiency Repeat
  • 420501 2022-004
    Significant Deficiency
  • 420502 2022-004
    Significant Deficiency
  • 420503 2022-004
    Significant Deficiency
  • 996892 2022-002
    Significant Deficiency Repeat
  • 996893 2022-002
    Significant Deficiency Repeat
  • 996894 2022-002
    Significant Deficiency Repeat
  • 996895 2022-002
    Significant Deficiency Repeat
  • 996896 2022-005
    Significant Deficiency
  • 996897 2022-002
    Significant Deficiency Repeat
  • 996898 2022-002
    Significant Deficiency Repeat
  • 996899 2022-002
    Significant Deficiency Repeat
  • 996900 2022-002
    Significant Deficiency Repeat
  • 996901 2022-002
    Significant Deficiency Repeat
  • 996902 2022-002
    Significant Deficiency Repeat
  • 996903 2022-002
    Significant Deficiency Repeat
  • 996904 2022-002
    Significant Deficiency Repeat
  • 996905 2022-002
    Significant Deficiency Repeat
  • 996906 2022-002
    Significant Deficiency Repeat
  • 996907 2022-002
    Significant Deficiency Repeat
  • 996908 2022-002
    Significant Deficiency Repeat
  • 996909 2022-002
    Significant Deficiency Repeat
  • 996910 2022-002
    Significant Deficiency Repeat
  • 996911 2022-002
    Significant Deficiency Repeat
  • 996912 2022-002
    Significant Deficiency Repeat
  • 996913 2022-003
    Material Weakness
  • 996914 2022-003
    Material Weakness
  • 996916 2022-003
    Material Weakness
  • 996917 2022-002
    Significant Deficiency Repeat
  • 996918 2022-002
    Significant Deficiency Repeat
  • 996919 2022-002
    Significant Deficiency Repeat
  • 996920 2022-002
    Significant Deficiency Repeat
  • 996921 2022-002
    Significant Deficiency Repeat
  • 996922 2022-003
    Material Weakness
  • 996923 2022-003
    Material Weakness
  • 996924 2022-006
    Significant Deficiency
  • 996925 2022-006
    Significant Deficiency
  • 996926 2022-002
    Significant Deficiency Repeat
  • 996927 2022-002
    Significant Deficiency Repeat
  • 996928 2022-002
    Significant Deficiency Repeat
  • 996929 2022-002
    Significant Deficiency Repeat
  • 996930 2022-002
    Significant Deficiency Repeat
  • 996931 2022-002
    Significant Deficiency Repeat
  • 996932 2022-002
    Significant Deficiency Repeat
  • 996933 2022-002
    Significant Deficiency Repeat
  • 996934 2022-002
    Significant Deficiency Repeat
  • 996935 2022-002
    Significant Deficiency Repeat
  • 996936 2022-002
    Significant Deficiency Repeat
  • 996937 2022-002
    Significant Deficiency Repeat
  • 996938 2022-002
    Significant Deficiency Repeat
  • 996939 2022-002
    Significant Deficiency Repeat
  • 996940 2022-002
    Significant Deficiency Repeat
  • 996941 2022-002
    Significant Deficiency Repeat
  • 996942 2022-002
    Significant Deficiency Repeat
  • 996943 2022-004
    Significant Deficiency
  • 996944 2022-004
    Significant Deficiency
  • 996945 2022-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
19.510 U.s. Refugee Admissions Program $1.52M
14.239 Home Investment Partnerships Program $1.46M
21.027 Coronavirus State and Local Fiscal Recovery Funds $572,359
93.498 Provider Relief Fund $438,460
93.604 Assistance for Torture Victims $384,770
97.010 Citizenship Education and Training $308,656
93.576 Refugee and Entrant Assistance_discretionary Grants $189,016
94.002 Retired and Senior Volunteer Program $187,729
93.676 Unaccompanied Alien Children Program $186,109
94.016 Senior Companion Program $185,642
14.218 Community Development Block Grants/entitlement Grants $170,782
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $157,980
14.267 Continuum of Care Program $120,946
16.017 Sexual Assault Services Formula Program $88,287
93.732 Mental and Behavioral Health Education and Training Grants $86,900
93.914 Hiv Emergency Relief Project Grants $85,988
93.667 Social Services Block Grant $60,439
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $53,695
14.231 Emergency Solutions Grant Program $45,000
16.575 Crime Victim Assistance $30,369
16.588 Violence Against Women Formula Grants $24,132
93.011 National Organizations of State and Local Officials $22,996
14.241 Housing Opportunities for Persons with Aids $7,148
21.019 Coronavirus Relief Fund $4,988
93.497 Family Violence Prevention and Services/ Sexual Assault/rape Crisis Services and Supports $4,135