FAC Explorer

Audit 257571

FY End
2022-06-30
Total Expended
$13.31M
Findings
12
Programs
7
Organization: United Food Bank (AZ)
Year: 2022 Accepted: 2022-11-07
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
252559 2022-001 Significant Deficiency Yes E
252560 2022-002 Significant Deficiency - I
252561 2022-001 Significant Deficiency Yes E
252562 2022-002 Significant Deficiency - I
252563 2022-001 Significant Deficiency Yes E
252564 2022-002 Significant Deficiency - I
829001 2022-001 Significant Deficiency Yes E
829002 2022-002 Significant Deficiency - I
829003 2022-001 Significant Deficiency Yes E
829004 2022-002 Significant Deficiency - I
829005 2022-001 Significant Deficiency Yes E
829006 2022-002 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
10.569 Emergency Food Assistance Program (food Commodities) $9.08M Yes 2
10.568 Emergency Food Assistance Program (administrative Costs) $1.78M Yes 2
10.565 Commodity Supplemental Food Program $1.23M Yes 2
21.019 Coronavirus Relief Fund $854,906 - 0
93.667 Social Services Block Grant $213,328 - 0
93.558 Temporary Assistance for Needy Families $90,346 - 0
97.024 Emergency Food and Shelter National Board Program $56,834 - 0

Contacts

Name Title Type
DWXVJD5F6W74 Megan Montalvo Auditee
4803984474 Jacqueline Eckman, CPA Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as toreimbursement. Negative amounts shown on the Schedule, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. United Food Bank has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of United Food Bank under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of United Food Bank and Waste Not, it is not intended to and does not present the financial position, changes in net assets, or cash flows of United Food Bank and Waste Not.
Title: Federal Assistance Listing Numbers Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as toreimbursement. Negative amounts shown on the Schedule, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. United Food Bank has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The program titles and federal assistance listing numbers were obtained from the 2022 Catalog of Federal Domestic Assistance.
Title: Subrecipients Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as toreimbursement. Negative amounts shown on the Schedule, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. United Food Bank has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. There were no subrecipient payments during the year.

Finding Details

Finding 2022-001
2022-001 U.S. Department of Agriculture, Food, and Nutrition Service Emergency Food Assistance Program Assistance Listing Number: 10.568/10.569 Passed Through: The Arizona Department of Economic Security Pass Through Number: CtR052634 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding ? Significant Deficiency in Internal Control Over Compliance Condition/Context ? Internal control procedures over eligibility requirements for 1 of 40 eligibility sheets tested indicated there was no certifying signature by the eligible recipient agency volunteer, there was no evidence of secondary review by the distribution agency program officials. Criteria ? In accordance with the Compliance Supplement, Part 6 ? Internal Control, 2 CFR section 200.303 requires that nonfederal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the nonfederal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Cause ? Clerical oversight. Effect ? Noncompliance with the Compliance Supplement and Uniform Guidance. Repeat Finding ? Yes Questioned Costs ? None Recommendation ? Distribution site files should be reviewed by a responsible individual for compliance with federal award requirements. The review should be documented. Additionally, training on applicable federal award requirements and internal control monitoring activities should be conducted with program staff and distribution agencies. View of Responsible Officials - There is no disagreement with the audit findings
Finding 2022-002
2022-002 U.S. Department of Agriculture, Food, and Nutrition Service Emergency Food Assistance Program Assistance Listing Number: 10.568/10.569 Passed Through: The Arizona Department of Economic Security Pass Through Number: CtR052634 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding ? Significant Deficiency in Internal Control Over Compliance Condition/Context ? Internal control procedures over procurement requirements did not ensure compliance with federal awards. For 1 of 8 vendors tested, there was no documented evidence that the vendor was reviewed and approved in accordance with the Organization?s procurement policy. Criteria ? In accordance with Uniform Guidance, 2 CFR 200.318(i) requires that an entity maintain records sufficient to detail history of procurement including the rationale for the method of procurement, contractor selection, and the basis for the contract price. 2 CFR 200.303(a) requires an entity to establish and maintain effective internal control over the Federal awards that provides reasonable assurance that the entity is managing the award in compliance with Federal statutes. Cause ? Clerical oversight. Effect ? Noncompliance with the Compliance Supplement and Uniform Guidance. Repeat Finding ? No Questioned Costs ? None Recommendation ? The Organization complete procurement forms or another form of documentation showing that a vendor was approved and that procurement processes were appropriately performed. View of Responsible Officials - There is no disagreement with the audit findings.
Finding 2022-001
2022-001 U.S. Department of Agriculture, Food, and Nutrition Service Emergency Food Assistance Program Assistance Listing Number: 10.568/10.569 Passed Through: The Arizona Department of Economic Security Pass Through Number: CtR052634 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding ? Significant Deficiency in Internal Control Over Compliance Condition/Context ? Internal control procedures over eligibility requirements for 1 of 40 eligibility sheets tested indicated there was no certifying signature by the eligible recipient agency volunteer, there was no evidence of secondary review by the distribution agency program officials. Criteria ? In accordance with the Compliance Supplement, Part 6 ? Internal Control, 2 CFR section 200.303 requires that nonfederal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the nonfederal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Cause ? Clerical oversight. Effect ? Noncompliance with the Compliance Supplement and Uniform Guidance. Repeat Finding ? Yes Questioned Costs ? None Recommendation ? Distribution site files should be reviewed by a responsible individual for compliance with federal award requirements. The review should be documented. Additionally, training on applicable federal award requirements and internal control monitoring activities should be conducted with program staff and distribution agencies. View of Responsible Officials - There is no disagreement with the audit findings
Finding 2022-002
2022-002 U.S. Department of Agriculture, Food, and Nutrition Service Emergency Food Assistance Program Assistance Listing Number: 10.568/10.569 Passed Through: The Arizona Department of Economic Security Pass Through Number: CtR052634 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding ? Significant Deficiency in Internal Control Over Compliance Condition/Context ? Internal control procedures over procurement requirements did not ensure compliance with federal awards. For 1 of 8 vendors tested, there was no documented evidence that the vendor was reviewed and approved in accordance with the Organization?s procurement policy. Criteria ? In accordance with Uniform Guidance, 2 CFR 200.318(i) requires that an entity maintain records sufficient to detail history of procurement including the rationale for the method of procurement, contractor selection, and the basis for the contract price. 2 CFR 200.303(a) requires an entity to establish and maintain effective internal control over the Federal awards that provides reasonable assurance that the entity is managing the award in compliance with Federal statutes. Cause ? Clerical oversight. Effect ? Noncompliance with the Compliance Supplement and Uniform Guidance. Repeat Finding ? No Questioned Costs ? None Recommendation ? The Organization complete procurement forms or another form of documentation showing that a vendor was approved and that procurement processes were appropriately performed. View of Responsible Officials - There is no disagreement with the audit findings.
Finding 2022-001
2022-001 U.S. Department of Agriculture, Food, and Nutrition Service Emergency Food Assistance Program Assistance Listing Number: 10.568/10.569 Passed Through: The Arizona Department of Economic Security Pass Through Number: CtR052634 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding ? Significant Deficiency in Internal Control Over Compliance Condition/Context ? Internal control procedures over eligibility requirements for 1 of 40 eligibility sheets tested indicated there was no certifying signature by the eligible recipient agency volunteer, there was no evidence of secondary review by the distribution agency program officials. Criteria ? In accordance with the Compliance Supplement, Part 6 ? Internal Control, 2 CFR section 200.303 requires that nonfederal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the nonfederal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Cause ? Clerical oversight. Effect ? Noncompliance with the Compliance Supplement and Uniform Guidance. Repeat Finding ? Yes Questioned Costs ? None Recommendation ? Distribution site files should be reviewed by a responsible individual for compliance with federal award requirements. The review should be documented. Additionally, training on applicable federal award requirements and internal control monitoring activities should be conducted with program staff and distribution agencies. View of Responsible Officials - There is no disagreement with the audit findings
Finding 2022-002
2022-002 U.S. Department of Agriculture, Food, and Nutrition Service Emergency Food Assistance Program Assistance Listing Number: 10.568/10.569 Passed Through: The Arizona Department of Economic Security Pass Through Number: CtR052634 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding ? Significant Deficiency in Internal Control Over Compliance Condition/Context ? Internal control procedures over procurement requirements did not ensure compliance with federal awards. For 1 of 8 vendors tested, there was no documented evidence that the vendor was reviewed and approved in accordance with the Organization?s procurement policy. Criteria ? In accordance with Uniform Guidance, 2 CFR 200.318(i) requires that an entity maintain records sufficient to detail history of procurement including the rationale for the method of procurement, contractor selection, and the basis for the contract price. 2 CFR 200.303(a) requires an entity to establish and maintain effective internal control over the Federal awards that provides reasonable assurance that the entity is managing the award in compliance with Federal statutes. Cause ? Clerical oversight. Effect ? Noncompliance with the Compliance Supplement and Uniform Guidance. Repeat Finding ? No Questioned Costs ? None Recommendation ? The Organization complete procurement forms or another form of documentation showing that a vendor was approved and that procurement processes were appropriately performed. View of Responsible Officials - There is no disagreement with the audit findings.
Finding 2022-001
2022-001 U.S. Department of Agriculture, Food, and Nutrition Service Emergency Food Assistance Program Assistance Listing Number: 10.568/10.569 Passed Through: The Arizona Department of Economic Security Pass Through Number: CtR052634 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding ? Significant Deficiency in Internal Control Over Compliance Condition/Context ? Internal control procedures over eligibility requirements for 1 of 40 eligibility sheets tested indicated there was no certifying signature by the eligible recipient agency volunteer, there was no evidence of secondary review by the distribution agency program officials. Criteria ? In accordance with the Compliance Supplement, Part 6 ? Internal Control, 2 CFR section 200.303 requires that nonfederal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the nonfederal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Cause ? Clerical oversight. Effect ? Noncompliance with the Compliance Supplement and Uniform Guidance. Repeat Finding ? Yes Questioned Costs ? None Recommendation ? Distribution site files should be reviewed by a responsible individual for compliance with federal award requirements. The review should be documented. Additionally, training on applicable federal award requirements and internal control monitoring activities should be conducted with program staff and distribution agencies. View of Responsible Officials - There is no disagreement with the audit findings
Finding 2022-002
2022-002 U.S. Department of Agriculture, Food, and Nutrition Service Emergency Food Assistance Program Assistance Listing Number: 10.568/10.569 Passed Through: The Arizona Department of Economic Security Pass Through Number: CtR052634 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding ? Significant Deficiency in Internal Control Over Compliance Condition/Context ? Internal control procedures over procurement requirements did not ensure compliance with federal awards. For 1 of 8 vendors tested, there was no documented evidence that the vendor was reviewed and approved in accordance with the Organization?s procurement policy. Criteria ? In accordance with Uniform Guidance, 2 CFR 200.318(i) requires that an entity maintain records sufficient to detail history of procurement including the rationale for the method of procurement, contractor selection, and the basis for the contract price. 2 CFR 200.303(a) requires an entity to establish and maintain effective internal control over the Federal awards that provides reasonable assurance that the entity is managing the award in compliance with Federal statutes. Cause ? Clerical oversight. Effect ? Noncompliance with the Compliance Supplement and Uniform Guidance. Repeat Finding ? No Questioned Costs ? None Recommendation ? The Organization complete procurement forms or another form of documentation showing that a vendor was approved and that procurement processes were appropriately performed. View of Responsible Officials - There is no disagreement with the audit findings.
Finding 2022-001
2022-001 U.S. Department of Agriculture, Food, and Nutrition Service Emergency Food Assistance Program Assistance Listing Number: 10.568/10.569 Passed Through: The Arizona Department of Economic Security Pass Through Number: CtR052634 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding ? Significant Deficiency in Internal Control Over Compliance Condition/Context ? Internal control procedures over eligibility requirements for 1 of 40 eligibility sheets tested indicated there was no certifying signature by the eligible recipient agency volunteer, there was no evidence of secondary review by the distribution agency program officials. Criteria ? In accordance with the Compliance Supplement, Part 6 ? Internal Control, 2 CFR section 200.303 requires that nonfederal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the nonfederal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Cause ? Clerical oversight. Effect ? Noncompliance with the Compliance Supplement and Uniform Guidance. Repeat Finding ? Yes Questioned Costs ? None Recommendation ? Distribution site files should be reviewed by a responsible individual for compliance with federal award requirements. The review should be documented. Additionally, training on applicable federal award requirements and internal control monitoring activities should be conducted with program staff and distribution agencies. View of Responsible Officials - There is no disagreement with the audit findings
Finding 2022-002
2022-002 U.S. Department of Agriculture, Food, and Nutrition Service Emergency Food Assistance Program Assistance Listing Number: 10.568/10.569 Passed Through: The Arizona Department of Economic Security Pass Through Number: CtR052634 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding ? Significant Deficiency in Internal Control Over Compliance Condition/Context ? Internal control procedures over procurement requirements did not ensure compliance with federal awards. For 1 of 8 vendors tested, there was no documented evidence that the vendor was reviewed and approved in accordance with the Organization?s procurement policy. Criteria ? In accordance with Uniform Guidance, 2 CFR 200.318(i) requires that an entity maintain records sufficient to detail history of procurement including the rationale for the method of procurement, contractor selection, and the basis for the contract price. 2 CFR 200.303(a) requires an entity to establish and maintain effective internal control over the Federal awards that provides reasonable assurance that the entity is managing the award in compliance with Federal statutes. Cause ? Clerical oversight. Effect ? Noncompliance with the Compliance Supplement and Uniform Guidance. Repeat Finding ? No Questioned Costs ? None Recommendation ? The Organization complete procurement forms or another form of documentation showing that a vendor was approved and that procurement processes were appropriately performed. View of Responsible Officials - There is no disagreement with the audit findings.
Finding 2022-001
2022-001 U.S. Department of Agriculture, Food, and Nutrition Service Emergency Food Assistance Program Assistance Listing Number: 10.568/10.569 Passed Through: The Arizona Department of Economic Security Pass Through Number: CtR052634 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding ? Significant Deficiency in Internal Control Over Compliance Condition/Context ? Internal control procedures over eligibility requirements for 1 of 40 eligibility sheets tested indicated there was no certifying signature by the eligible recipient agency volunteer, there was no evidence of secondary review by the distribution agency program officials. Criteria ? In accordance with the Compliance Supplement, Part 6 ? Internal Control, 2 CFR section 200.303 requires that nonfederal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the nonfederal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Cause ? Clerical oversight. Effect ? Noncompliance with the Compliance Supplement and Uniform Guidance. Repeat Finding ? Yes Questioned Costs ? None Recommendation ? Distribution site files should be reviewed by a responsible individual for compliance with federal award requirements. The review should be documented. Additionally, training on applicable federal award requirements and internal control monitoring activities should be conducted with program staff and distribution agencies. View of Responsible Officials - There is no disagreement with the audit findings
Finding 2022-002
2022-002 U.S. Department of Agriculture, Food, and Nutrition Service Emergency Food Assistance Program Assistance Listing Number: 10.568/10.569 Passed Through: The Arizona Department of Economic Security Pass Through Number: CtR052634 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding ? Significant Deficiency in Internal Control Over Compliance Condition/Context ? Internal control procedures over procurement requirements did not ensure compliance with federal awards. For 1 of 8 vendors tested, there was no documented evidence that the vendor was reviewed and approved in accordance with the Organization?s procurement policy. Criteria ? In accordance with Uniform Guidance, 2 CFR 200.318(i) requires that an entity maintain records sufficient to detail history of procurement including the rationale for the method of procurement, contractor selection, and the basis for the contract price. 2 CFR 200.303(a) requires an entity to establish and maintain effective internal control over the Federal awards that provides reasonable assurance that the entity is managing the award in compliance with Federal statutes. Cause ? Clerical oversight. Effect ? Noncompliance with the Compliance Supplement and Uniform Guidance. Repeat Finding ? No Questioned Costs ? None Recommendation ? The Organization complete procurement forms or another form of documentation showing that a vendor was approved and that procurement processes were appropriately performed. View of Responsible Officials - There is no disagreement with the audit findings.