FAC Explorer

Audit 2767

FY End
2022-12-31
Total Expended
$1.07M
Findings
6
Programs
2
Organization: Nutrition Services, Inc. (MN)
Year: 2022 Accepted: 2023-11-09
Auditor: Abdo LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1504 2022-001 Significant Deficiency Yes ABGLM
1505 2022-002 Significant Deficiency Yes ABGLM
1506 2022-003 Significant Deficiency - ABGLM
577946 2022-001 Significant Deficiency Yes ABGLM
577947 2022-002 Significant Deficiency Yes ABGLM
577948 2022-003 Significant Deficiency - ABGLM

Programs

ALN Program Spent Major Findings
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $924,148 Yes 3
93.053 Nutrition Services Incentive Program $145,169 Yes 0

Contacts

Name Title Type
J98LZJFWLY23 Larry Kroeger Auditee
5078355697 Jack Abdo Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on this schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in 2 CFR 200.516(a), Cost Principles for Non-Profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. 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 includes the federal grant activity of Nutrition Services, Inc. (the Organization) under programs of the federal government for the year ended December 31, 2022. The information in this schedule is presented in accordance with the requirement of the Uniform Guidance and Audits of States, Local Governments, and Non-Profit Organizations. Because the schedule presents only a selected portion of operations of the Organization, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization.
Title: Pass-Through Entity Identifying Numbers Accounting Policies: Expenditures reported on this schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in 2 CFR 200.516(a), Cost Principles for Non-Profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Pass-through entity identifying numbers are presented where available.
Title: Subrecipients Accounting Policies: Expenditures reported on this schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in 2 CFR 200.516(a), Cost Principles for Non-Profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. No federal expenditures presented in this schedule were provided to subrecipients.
Title: Indirect Cost Rate Accounting Policies: Expenditures reported on this schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in 2 CFR 200.516(a), Cost Principles for Non-Profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. During the year ended December 31, 2022, the Organization did not elect to use the 10% de minimis indirect cost rate.

Finding Details

Finding 2022-001
Context: This is a repeat finding from the prior year. During our audit procedures, we obtained an understanding of the Organization'sinternal control procedures and identified cash disbursements and cash receipts as areas with limited segregation of duties. Recomendation: We recognize the staff is not large enough to eliminate this deficienvy. It is important hat the Board of Directors be aware of this condition and monitors all financial statements. Views of Responsible Officals: Management agrees with the finding.
Finding 2022-002
Condition: During our audit, we noted errors related to calculations of federal expenditures on the Schedule of Expenditures of Federal Awards. Critera: Uniform Guidance requires proper reporting of federal expenditures. Cause: Management did not have the information needed to properly prepare the Schedule of Expenditures of Federal Awards. Effect: As a result, federal expenditures were understated by $196,086 on the Schedule of Expenditures of Federal Awards. Context: This is not a repeat finding from the prior year. During our audit procedures, we found that the expenditures reported on the Schedule of Expenditures of Federal Awards did not agree with the underlying support. The Schedule of Expenditures of Federal Awards has been corrected. Recommendation:We recommend that the Organization implement a review process to ensure correct reporting on the Schedule of Expenditures of Federal Awards prior to the audit, including a reconciliation between the Schedule of Expenditures of Federal Awards and the accounting system. Views of Responsible Officals: Management agrees with the finding.
Finding 2022-003
Condition: Supplemental information on the financial reports, including program income and program expenditures, did not agree with the underlying financial information. Criteria: Uniform Guidance requires that information reported on the financial reports agrees to the underlying financial information. Cause: There was no internal process to ensure the accuracy of the supplemental information on the financial reports. Effect: As a result, grantor records may contain inaccurate information based on the submitted financial reports. Context: This is a repeat finding from the prior year. During our audit procedures, we compared financial reports to the underlying financial information and found that the amounts did not agree. Recomendation: We recommend that the Organization implements a review process to tie the monthly, quarterly, and annual financial reports to the underlying financial records as the reports are prepared. Views of REsponsbile Officals: Management agrees with the finding.
Finding 2022-001
Context: This is a repeat finding from the prior year. During our audit procedures, we obtained an understanding of the Organization'sinternal control procedures and identified cash disbursements and cash receipts as areas with limited segregation of duties. Recomendation: We recognize the staff is not large enough to eliminate this deficienvy. It is important hat the Board of Directors be aware of this condition and monitors all financial statements. Views of Responsible Officals: Management agrees with the finding.
Finding 2022-002
Condition: During our audit, we noted errors related to calculations of federal expenditures on the Schedule of Expenditures of Federal Awards. Critera: Uniform Guidance requires proper reporting of federal expenditures. Cause: Management did not have the information needed to properly prepare the Schedule of Expenditures of Federal Awards. Effect: As a result, federal expenditures were understated by $196,086 on the Schedule of Expenditures of Federal Awards. Context: This is not a repeat finding from the prior year. During our audit procedures, we found that the expenditures reported on the Schedule of Expenditures of Federal Awards did not agree with the underlying support. The Schedule of Expenditures of Federal Awards has been corrected. Recommendation:We recommend that the Organization implement a review process to ensure correct reporting on the Schedule of Expenditures of Federal Awards prior to the audit, including a reconciliation between the Schedule of Expenditures of Federal Awards and the accounting system. Views of Responsible Officals: Management agrees with the finding.
Finding 2022-003
Condition: Supplemental information on the financial reports, including program income and program expenditures, did not agree with the underlying financial information. Criteria: Uniform Guidance requires that information reported on the financial reports agrees to the underlying financial information. Cause: There was no internal process to ensure the accuracy of the supplemental information on the financial reports. Effect: As a result, grantor records may contain inaccurate information based on the submitted financial reports. Context: This is a repeat finding from the prior year. During our audit procedures, we compared financial reports to the underlying financial information and found that the amounts did not agree. Recomendation: We recommend that the Organization implements a review process to tie the monthly, quarterly, and annual financial reports to the underlying financial records as the reports are prepared. Views of REsponsbile Officals: Management agrees with the finding.