Audit 26205

FY End
2022-09-30
Total Expended
$24.68M
Findings
10
Programs
6
Organization: Second Harvest Heartland (MN)
Year: 2022 Accepted: 2022-12-26

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
36221 2022-001 Significant Deficiency - A
36222 2022-002 Significant Deficiency - I
36223 2022-002 Significant Deficiency - I
36224 2022-001 Significant Deficiency - A
36225 2022-002 Significant Deficiency - I
612663 2022-001 Significant Deficiency - A
612664 2022-002 Significant Deficiency - I
612665 2022-002 Significant Deficiency - I
612666 2022-001 Significant Deficiency - A
612667 2022-002 Significant Deficiency - I

Contacts

Name Title Type
FBFXHRX4FNJ6 Dan Fuhrman Auditee
6512097901 Wendy Harden Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit Organization, or the costprinciples contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements For Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The auditee used the 10% de minimis cost rate.

Finding Details

Information on the Federal Program: Assistance Listing Number 21.027?American Rescue Plan Act (ARPA) Coronavirus State and Local Fiscal Recovery Funds, U.S. Department of the Treasury. Pass-Through Entities and Award Numbers: Minnesota Department of Agriculture, award number 207317 Minnesota Department of Human Services, award number 208490. Compliance Requirement: Allowable Costs. Type of Finding: Significant deficiency in internal control over compliance. Criteria: 2 CFR 200.303 of Subpart D, "Post Federal Award Requirements Standards for Financial and Program Management," of the Uniform Guidance requires a nonfederal entity to establish and maintain effective internal control over the federal award that provides reasonable assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award, including Activities Allowed or Unallowed, Allowable Costs and Cost Principles. Condition: Processes and procedures in place to track spending on the grant did not include a specifically documented review or approval of item numbers or purchase orders. Cause: One individual places purchase orders and enters purchase information in a tracking spreadsheet. Invoices are prepared from the tracking spreadsheet. Item numbers are created to track allowable items but no review is required. A manager has overall oversight but no specific review is documented. Effect or Potential Effect: Unallowable costs or activities could be charged to the grant. Questioned Costs: None Context: No documented review or approval control was identified. Repeat Finding: No Recommendation: We recommend the sourcing director begin reviewing purchase orders and item numbers used in the program and document such review on at least a monthly basis. Views of Responsible Officials: Agree and controls have now been implemented.
Information on the Federal Program: Assistance Listing Number 21.027?American Rescue Plan Act (ARPA) Coronavirus State and Local Fiscal Recovery Funds, U.S. Department of the Treasury. Pass-Through Entities and Award Numbers: Minnesota Department of Agriculture, award numbers 207317 and 207957; Minnesota Department of Human Services, award number 208490. Compliance Requirement: Procurement and Suspension and Debarment Type of Finding: Significant deficiency in internal control over compliance. Criteria: 2 CFR 200.303 of Subpart D, "Post Federal Award Requirements Standards for Financial and Program Management," of the Uniform Guidance requires a nonfederal entity to establish and maintain effective internal control over the federal award that provides reasonable assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award, including Procurement and Suspension and Debarment. Condition: There was not a policy in place to require checking whether vendors paid with grant funds were suspended or debarred. Cause: While the organization regularly purchases food and contracts with vendors to prepare meals, these purchases had not formerly been federally funded and all requirements of the new grant agreement had not been scrutinized to ensure controls related to suspension and debarment were in place. Effect or Potential Effect: A vendor paid with federal funds could have been suspended or debarred. Questioned Costs: None Context: No policy or process to check vendors against the suspension and debarment lists was identified. Repeat Finding: No Recommendation: We recommend the organization create a policy to check vendors against suspension and debarment lists and perform checks prior to initial purchasing and on a regular basis. Views of Responsible Officials: Agree and controls have now been implemented.
Information on the Federal Program: Assistance Listing Number 21.027?American Rescue Plan Act (ARPA) Coronavirus State and Local Fiscal Recovery Funds, U.S. Department of the Treasury. Pass-Through Entities and Award Numbers: Minnesota Department of Agriculture, award numbers 207317 and 207957; Minnesota Department of Human Services, award number 208490. Compliance Requirement: Procurement and Suspension and Debarment Type of Finding: Significant deficiency in internal control over compliance. Criteria: 2 CFR 200.303 of Subpart D, "Post Federal Award Requirements Standards for Financial and Program Management," of the Uniform Guidance requires a nonfederal entity to establish and maintain effective internal control over the federal award that provides reasonable assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award, including Procurement and Suspension and Debarment. Condition: There was not a policy in place to require checking whether vendors paid with grant funds were suspended or debarred. Cause: While the organization regularly purchases food and contracts with vendors to prepare meals, these purchases had not formerly been federally funded and all requirements of the new grant agreement had not been scrutinized to ensure controls related to suspension and debarment were in place. Effect or Potential Effect: A vendor paid with federal funds could have been suspended or debarred. Questioned Costs: None Context: No policy or process to check vendors against the suspension and debarment lists was identified. Repeat Finding: No Recommendation: We recommend the organization create a policy to check vendors against suspension and debarment lists and perform checks prior to initial purchasing and on a regular basis. Views of Responsible Officials: Agree and controls have now been implemented.
Information on the Federal Program: Assistance Listing Number 21.027?American Rescue Plan Act (ARPA) Coronavirus State and Local Fiscal Recovery Funds, U.S. Department of the Treasury. Pass-Through Entities and Award Numbers: Minnesota Department of Agriculture, award number 207317 Minnesota Department of Human Services, award number 208490. Compliance Requirement: Allowable Costs. Type of Finding: Significant deficiency in internal control over compliance. Criteria: 2 CFR 200.303 of Subpart D, "Post Federal Award Requirements Standards for Financial and Program Management," of the Uniform Guidance requires a nonfederal entity to establish and maintain effective internal control over the federal award that provides reasonable assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award, including Activities Allowed or Unallowed, Allowable Costs and Cost Principles. Condition: Processes and procedures in place to track spending on the grant did not include a specifically documented review or approval of item numbers or purchase orders. Cause: One individual places purchase orders and enters purchase information in a tracking spreadsheet. Invoices are prepared from the tracking spreadsheet. Item numbers are created to track allowable items but no review is required. A manager has overall oversight but no specific review is documented. Effect or Potential Effect: Unallowable costs or activities could be charged to the grant. Questioned Costs: None Context: No documented review or approval control was identified. Repeat Finding: No Recommendation: We recommend the sourcing director begin reviewing purchase orders and item numbers used in the program and document such review on at least a monthly basis. Views of Responsible Officials: Agree and controls have now been implemented.
Information on the Federal Program: Assistance Listing Number 21.027?American Rescue Plan Act (ARPA) Coronavirus State and Local Fiscal Recovery Funds, U.S. Department of the Treasury. Pass-Through Entities and Award Numbers: Minnesota Department of Agriculture, award numbers 207317 and 207957; Minnesota Department of Human Services, award number 208490. Compliance Requirement: Procurement and Suspension and Debarment Type of Finding: Significant deficiency in internal control over compliance. Criteria: 2 CFR 200.303 of Subpart D, "Post Federal Award Requirements Standards for Financial and Program Management," of the Uniform Guidance requires a nonfederal entity to establish and maintain effective internal control over the federal award that provides reasonable assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award, including Procurement and Suspension and Debarment. Condition: There was not a policy in place to require checking whether vendors paid with grant funds were suspended or debarred. Cause: While the organization regularly purchases food and contracts with vendors to prepare meals, these purchases had not formerly been federally funded and all requirements of the new grant agreement had not been scrutinized to ensure controls related to suspension and debarment were in place. Effect or Potential Effect: A vendor paid with federal funds could have been suspended or debarred. Questioned Costs: None Context: No policy or process to check vendors against the suspension and debarment lists was identified. Repeat Finding: No Recommendation: We recommend the organization create a policy to check vendors against suspension and debarment lists and perform checks prior to initial purchasing and on a regular basis. Views of Responsible Officials: Agree and controls have now been implemented.
Information on the Federal Program: Assistance Listing Number 21.027?American Rescue Plan Act (ARPA) Coronavirus State and Local Fiscal Recovery Funds, U.S. Department of the Treasury. Pass-Through Entities and Award Numbers: Minnesota Department of Agriculture, award number 207317 Minnesota Department of Human Services, award number 208490. Compliance Requirement: Allowable Costs. Type of Finding: Significant deficiency in internal control over compliance. Criteria: 2 CFR 200.303 of Subpart D, "Post Federal Award Requirements Standards for Financial and Program Management," of the Uniform Guidance requires a nonfederal entity to establish and maintain effective internal control over the federal award that provides reasonable assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award, including Activities Allowed or Unallowed, Allowable Costs and Cost Principles. Condition: Processes and procedures in place to track spending on the grant did not include a specifically documented review or approval of item numbers or purchase orders. Cause: One individual places purchase orders and enters purchase information in a tracking spreadsheet. Invoices are prepared from the tracking spreadsheet. Item numbers are created to track allowable items but no review is required. A manager has overall oversight but no specific review is documented. Effect or Potential Effect: Unallowable costs or activities could be charged to the grant. Questioned Costs: None Context: No documented review or approval control was identified. Repeat Finding: No Recommendation: We recommend the sourcing director begin reviewing purchase orders and item numbers used in the program and document such review on at least a monthly basis. Views of Responsible Officials: Agree and controls have now been implemented.
Information on the Federal Program: Assistance Listing Number 21.027?American Rescue Plan Act (ARPA) Coronavirus State and Local Fiscal Recovery Funds, U.S. Department of the Treasury. Pass-Through Entities and Award Numbers: Minnesota Department of Agriculture, award numbers 207317 and 207957; Minnesota Department of Human Services, award number 208490. Compliance Requirement: Procurement and Suspension and Debarment Type of Finding: Significant deficiency in internal control over compliance. Criteria: 2 CFR 200.303 of Subpart D, "Post Federal Award Requirements Standards for Financial and Program Management," of the Uniform Guidance requires a nonfederal entity to establish and maintain effective internal control over the federal award that provides reasonable assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award, including Procurement and Suspension and Debarment. Condition: There was not a policy in place to require checking whether vendors paid with grant funds were suspended or debarred. Cause: While the organization regularly purchases food and contracts with vendors to prepare meals, these purchases had not formerly been federally funded and all requirements of the new grant agreement had not been scrutinized to ensure controls related to suspension and debarment were in place. Effect or Potential Effect: A vendor paid with federal funds could have been suspended or debarred. Questioned Costs: None Context: No policy or process to check vendors against the suspension and debarment lists was identified. Repeat Finding: No Recommendation: We recommend the organization create a policy to check vendors against suspension and debarment lists and perform checks prior to initial purchasing and on a regular basis. Views of Responsible Officials: Agree and controls have now been implemented.
Information on the Federal Program: Assistance Listing Number 21.027?American Rescue Plan Act (ARPA) Coronavirus State and Local Fiscal Recovery Funds, U.S. Department of the Treasury. Pass-Through Entities and Award Numbers: Minnesota Department of Agriculture, award numbers 207317 and 207957; Minnesota Department of Human Services, award number 208490. Compliance Requirement: Procurement and Suspension and Debarment Type of Finding: Significant deficiency in internal control over compliance. Criteria: 2 CFR 200.303 of Subpart D, "Post Federal Award Requirements Standards for Financial and Program Management," of the Uniform Guidance requires a nonfederal entity to establish and maintain effective internal control over the federal award that provides reasonable assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award, including Procurement and Suspension and Debarment. Condition: There was not a policy in place to require checking whether vendors paid with grant funds were suspended or debarred. Cause: While the organization regularly purchases food and contracts with vendors to prepare meals, these purchases had not formerly been federally funded and all requirements of the new grant agreement had not been scrutinized to ensure controls related to suspension and debarment were in place. Effect or Potential Effect: A vendor paid with federal funds could have been suspended or debarred. Questioned Costs: None Context: No policy or process to check vendors against the suspension and debarment lists was identified. Repeat Finding: No Recommendation: We recommend the organization create a policy to check vendors against suspension and debarment lists and perform checks prior to initial purchasing and on a regular basis. Views of Responsible Officials: Agree and controls have now been implemented.
Information on the Federal Program: Assistance Listing Number 21.027?American Rescue Plan Act (ARPA) Coronavirus State and Local Fiscal Recovery Funds, U.S. Department of the Treasury. Pass-Through Entities and Award Numbers: Minnesota Department of Agriculture, award number 207317 Minnesota Department of Human Services, award number 208490. Compliance Requirement: Allowable Costs. Type of Finding: Significant deficiency in internal control over compliance. Criteria: 2 CFR 200.303 of Subpart D, "Post Federal Award Requirements Standards for Financial and Program Management," of the Uniform Guidance requires a nonfederal entity to establish and maintain effective internal control over the federal award that provides reasonable assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award, including Activities Allowed or Unallowed, Allowable Costs and Cost Principles. Condition: Processes and procedures in place to track spending on the grant did not include a specifically documented review or approval of item numbers or purchase orders. Cause: One individual places purchase orders and enters purchase information in a tracking spreadsheet. Invoices are prepared from the tracking spreadsheet. Item numbers are created to track allowable items but no review is required. A manager has overall oversight but no specific review is documented. Effect or Potential Effect: Unallowable costs or activities could be charged to the grant. Questioned Costs: None Context: No documented review or approval control was identified. Repeat Finding: No Recommendation: We recommend the sourcing director begin reviewing purchase orders and item numbers used in the program and document such review on at least a monthly basis. Views of Responsible Officials: Agree and controls have now been implemented.
Information on the Federal Program: Assistance Listing Number 21.027?American Rescue Plan Act (ARPA) Coronavirus State and Local Fiscal Recovery Funds, U.S. Department of the Treasury. Pass-Through Entities and Award Numbers: Minnesota Department of Agriculture, award numbers 207317 and 207957; Minnesota Department of Human Services, award number 208490. Compliance Requirement: Procurement and Suspension and Debarment Type of Finding: Significant deficiency in internal control over compliance. Criteria: 2 CFR 200.303 of Subpart D, "Post Federal Award Requirements Standards for Financial and Program Management," of the Uniform Guidance requires a nonfederal entity to establish and maintain effective internal control over the federal award that provides reasonable assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award, including Procurement and Suspension and Debarment. Condition: There was not a policy in place to require checking whether vendors paid with grant funds were suspended or debarred. Cause: While the organization regularly purchases food and contracts with vendors to prepare meals, these purchases had not formerly been federally funded and all requirements of the new grant agreement had not been scrutinized to ensure controls related to suspension and debarment were in place. Effect or Potential Effect: A vendor paid with federal funds could have been suspended or debarred. Questioned Costs: None Context: No policy or process to check vendors against the suspension and debarment lists was identified. Repeat Finding: No Recommendation: We recommend the organization create a policy to check vendors against suspension and debarment lists and perform checks prior to initial purchasing and on a regular basis. Views of Responsible Officials: Agree and controls have now been implemented.