Lutheran Social Service of Minnesota and AffiliatesNon-Profit

Federal Agency: Corporation for National and Community Service Federal Program Name: AmeriCorps Seniors Senior Companion Programs (SCP) Assistance Listing Number: 94.016 Federal Award Identification Number and Year: 22SCEMN002 Award Period: July 1, 2024 – September 30, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or specific requirement: 45 CFR 2552.43 states to receive a stipend, a Foster Grandparent may not have an annual income from all sources, after deducting allowable medical expenses, which exceeds the program's income eligibility guideline for the State in which he or she resides. The income eligibility guideline for each State is 200 percent of the poverty line, as set forth in 42 U.S.C. 9902 (2). Condition: During our audit testing, we noted one participant did not meet the income eligibility guidelines. Context: We tested 40 participants during the fiscal year, noting one participant did not meet the income eligibility guideline. Cause: The program coordinator did not change the volunteer type to the correct category at the annual income review for the participant. Effect: The program participant was reimbursed after they were no longer eligible for a total of $2,461. Repeat Finding: No Recommendation: We recommend that additional review procedures are put in place to ensure the volunteer type is accurate based on their income review. Views of responsible officials: There is no disagreement with the audit finding.

Federal Agency: Department of Health and Human Services Federal Program Name: Special Programs for the Aging-Title III, Part C-Nutrition Services Assistance Listing Number: 93.045 Federal Award Identification Number and Year: 316-24-00C1-042, 316-24-00C2-043, 316-25-00C1-042, 316-25-00C2-043 and 316-25-00C3-042 Pass-Through Agency: MN River Agency on Aging Pass-Through Number(s): 316-24-00C1-042, 316-24-00C2-043, 316-25-00C1-042, 316-25-00C2-043 and 316-25-00C3-042 Award Period: January 1, 2024 – December 31, 2024 & January 1, 2025 – December 31, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or specific requirement: 2 CFR 200.306 requires that any amounts used for required cost sharing must be verifiable in the subrecipient’s records and allowable under subpart E. 2 CFR 200.303 requires that non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: During our audit testing, we observed discrepancies between the hours reported by volunteers and the hours submitted for the grant at two sites. There were also 3 volunteer logs that could not be located related to two sites. Additionally, there was not documentation of the signoff on the volunteer logs by the site coordinator for two sites. Context: We reviewed 40 volunteer logs for reported hours. Differences in the hours reported were between 0.25 and 0.75 hours. Cause: In 2024, funding cuts led to temporary disruptions, resulting in staff reductions and affecting documentation practices in a particular timeframe. Regarding the hours reported that did not align with the volunteer log, the site coordinator believed the volunteer had underreported their hours and adjusted them accordingly, but there was not documentation of the change. Additionally, there was one instance where a data entry error contributed to the discrepancies. Effect: Hours reported for volunteer time could be incorrect. This grant requires a cost share of 15% be provided and the required cost share of 15% was exceeded so there was not an effect of meeting the required cost share. Repeat Finding: No Recommendation: We recommend additional training to ensure documentation is kept for the volunteer logs and the review. We also recommend documentation for any discrepancies between hours reported vs. the volunteer log. Views of responsible officials: There is no disagreement with the audit finding.

Federal Agency: Department of Housing and Urban Development Federal Program Name: Continuum of Care Program Assistance Listing Number: 14.267 Federal Award Identification Numbers: MN0087L5K052114, MN0014L5K002114, MN0186L5K112110 Award Periods: 4/1/22-3/31/23; 7/1/22-6/30/23; 8/1/22-7/31/23 Type of Finding: • Material Weakness in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR 200.1 defines period of performance as the total estimated time interval between the start of an initial Federal award and the planned end date. Costs recorded to a grant must not be incurred prior to the start of the period of performance unless authorized by the federal awarding agency. Costs recorded to a grant must also not be incurred after the period of performance. Condition: During our audit testing, we noted costs were charged outside of the period of performance for three different awards. Questioned costs: $5,645 Context: We tested 40 transactions from the beginning of the period of performance, noting 2 exceptions where grants were charged for costs incurred prior to the period of performance. We tested 40 transactions from the ending of the period of performance, noting 3 exceptions where grants were charged after the period of performance. Cause: Invoices were charged based on payment date instead of the incurred date. Effect: Grants were charged for costs outside the period of performance. Management repaid the questioned costs to the grantor during the audit. Repeat finding: Not a repeat finding Recommendation: We recommend the Organization put procedures in place to identify the performance period when charging invoices to grants, particularly during the start and end of the period of performance. Views of responsible officials: There is no disagreement with the audit finding.

Federal Agency: Department of Health and Human Services Federal Program Name: Chafee Education and Training Vouchers Program Assistance Listing Number: 93.599 Pass-Through Agency: MN Dept. of Human Services Pass-Through Number: GRK%157729 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 2 CFR 200.303 requires that non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: During our audit testing, we noted that there was not evidence of an internal control (supervisor approval of time and effort charged to the federal grant) for some transactions. Context: We tested 12 payroll time and effort reports. We were provided documentation supporting the time charged to the grant, but there was not evidence of a supervisory review on 6 of the reports. Cause: Time and effort reports were reviewed by a supervisor, who then sent to an email inbox once they approved. We were able to view the email approvals for recent time periods, however, emails were deleted in the system after six months so we were unable to view the approval from earlier in the year. Effect: Internal controls were not properly documented. Repeat finding: Not a repeat finding Recommendation: We recommend the Organization put procedures in place to retain documentation of supervisory approval of time and effort reports. Views of responsible officials: There is no disagreement with the audit finding.