FAC Explorer

Audit 289534

FY End
2023-06-30
Total Expended
$3.39M
Findings
2
Programs
8
Organization: Northeast Iowa Food Bank (IA)
Year: 2023 Accepted: 2024-02-08
Auditor: Bergankdv LTD

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
366623 2023-002 Significant Deficiency Yes N
943065 2023-002 Significant Deficiency Yes N

Programs

ALN Program Spent Major Findings
10.569 Emergency Food Assistance Program (food Commodities) $2.72M Yes 1
97.024 Emergency Food and Shelter National Board Program $196,329 - 0
10.558 Child and Adult Care Food Program $114,263 - 0
10.568 Emergency Food Assistance Program (administrative Costs) $95,526 Yes 0
10.559 Summer Food Service Program for Children $70,469 - 0
10.182 Local Food Purchase Assistance $50,000 - 0
10.187 Emergency Food Assistance Program (commodity Credit Corporation Eligible Recipient) $12,960 - 0
14.218 Community Development Block Grants/entitlement Grants $5,800 - 0

Contacts

Name Title Type
XUC7VE96UT19 Barbara Prather Auditee
3192350507 Brian Aronson Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Northeast Iowa Food Bank under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations 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 Northeast Iowa Food Bank, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Northeast Iowa Food Bank. 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 to reimbursement. Northeast Iowa Food Bank consumed noncash assistance in the form of food commodities (Assistance Listing Number 10.569). These commodities, with fair value calculated at the time received, were consumed or distributed during the year ended June 30, 2023. De Minimis Rate Used: N Rate Explanation: Northeast Iowa Food Bank has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2023-002
Finding 2023-002: Accountability for USDA Foods Federal Program: Assistance listing number 10.569, Emergency Food Assistance Program – United States Department of Agriculture, passed through Iowa Department of Human Services Compliance Requirement: Special Tests and Provisions Criteria: A properly designed system of internal control over compliance allows entities to meet those requirements set forth by the federal government. Under the Emergency Food Assistance Program for Food Commodities, the Food Bank is required to maintain accurate and complete records with respect to the receipt, distribution/use, and inventory of USDA Foods, including end products process from USDA Foods in TEFAP. Condition: One of 25 USDA product orders tested was not recorded at the correct unit weight within the inventory system leading to overstatement of receipts and distributions of $9,274. Cause: The products per unit weight had not been updated within the inventory system since 2016. Questioned Costs: The results of this noncompliance did not result in any questioned costs. Potential Effect: Failure to maintain records required by 7 CFR section 250.19 is considered prima facie evidence of improper distribution or loss of USDA Foods, and the agency processor or entity is liable for the value of the food or replacement of the food in kind (7 CFR sections 250.16 and 250.19(a)). Recommendation: The Food Bank should review its procedures to ensure inventory items are weighed at least annually and ensure the system is updated for changes to comply with federal grant requirements. Responsible Official’s Response: Management agrees with the finding and the recommendation.
Finding 2023-002
Finding 2023-002: Accountability for USDA Foods Federal Program: Assistance listing number 10.569, Emergency Food Assistance Program – United States Department of Agriculture, passed through Iowa Department of Human Services Compliance Requirement: Special Tests and Provisions Criteria: A properly designed system of internal control over compliance allows entities to meet those requirements set forth by the federal government. Under the Emergency Food Assistance Program for Food Commodities, the Food Bank is required to maintain accurate and complete records with respect to the receipt, distribution/use, and inventory of USDA Foods, including end products process from USDA Foods in TEFAP. Condition: One of 25 USDA product orders tested was not recorded at the correct unit weight within the inventory system leading to overstatement of receipts and distributions of $9,274. Cause: The products per unit weight had not been updated within the inventory system since 2016. Questioned Costs: The results of this noncompliance did not result in any questioned costs. Potential Effect: Failure to maintain records required by 7 CFR section 250.19 is considered prima facie evidence of improper distribution or loss of USDA Foods, and the agency processor or entity is liable for the value of the food or replacement of the food in kind (7 CFR sections 250.16 and 250.19(a)). Recommendation: The Food Bank should review its procedures to ensure inventory items are weighed at least annually and ensure the system is updated for changes to comply with federal grant requirements. Responsible Official’s Response: Management agrees with the finding and the recommendation.