FAC Explorer

Audit 315994

FY End
2023-06-30
Total Expended
$17.16M
Findings
2
Programs
3
Organization: Feeding Illinois (IL)
Year: 2023 Accepted: 2024-07-25
Auditor: Kemper CPA Group

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
479460 2023-001 Material Weakness - N
1055902 2023-001 Material Weakness - N

Programs

ALN Program Spent Major Findings
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $16.60M Yes 1
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $370,950 - 0
10.568 Emergency Food Assistance Program (administrative Costs) $193,180 - 0

Contacts

Name Title Type
LQ7KSNMTPBJ6 Steve Ericson Auditee
6307688068 Michelle Smith Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - Basis of Presentation Accounting Policies: ACCRUAL BASIS OF ACCOUNTING De Minimis Rate Used: N Rate Explanation: THERE WERE NO ALLOCATED COSTS. The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Organization for the year ended June 30, 2023. Expenditures reported in the Schedule are reported on the same basis of accounting as the financial statements, although the basis for determining when federal awards are expended is presented in accordance with the requirements of the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented on this schedule may differ from amounts presented in or used in the preparation of the financial statements.
Title: Note 2 – Summary of Significant Accounting Policies Accounting Policies: ACCRUAL BASIS OF ACCOUNTING De Minimis Rate Used: N Rate Explanation: THERE WERE NO ALLOCATED COSTS. Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the accrual basis of accounting, which is described in Note 1 to the Organization’s financial statements. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement.
Title: Note 3 - Description of Major Federal Program Accounting Policies: ACCRUAL BASIS OF ACCOUNTING De Minimis Rate Used: N Rate Explanation: THERE WERE NO ALLOCATED COSTS. FEMA Feeding Mission – Allows for reimbursement of expenditures prior to or during a state of emergency such as the COVID-19 pandemic. The Mission is a special services program in addition to the normal TEFAP operations utilizing the existing staff and relationships to coordinate a more efficient response to the emergency requirements.
Title: Note 4 - Non-Cash Assistance Accounting Policies: ACCRUAL BASIS OF ACCOUNTING De Minimis Rate Used: N Rate Explanation: THERE WERE NO ALLOCATED COSTS. None
Title: Note 5 - Amount of Insurance Accounting Policies: ACCRUAL BASIS OF ACCOUNTING De Minimis Rate Used: N Rate Explanation: THERE WERE NO ALLOCATED COSTS. None
Title: Note 6 - Loans or Loan Guarantees Outstanding Accounting Policies: ACCRUAL BASIS OF ACCOUNTING De Minimis Rate Used: N Rate Explanation: THERE WERE NO ALLOCATED COSTS. None
Title: Note 7 – Indirect Cost Rate Accounting Policies: ACCRUAL BASIS OF ACCOUNTING De Minimis Rate Used: N Rate Explanation: THERE WERE NO ALLOCATED COSTS. The Organization has elected to not use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2023-001
Finding No.: 2023-001 Internal Control Over Grant Expenditures Federal Program Name: FEMA Feeding Mission CFDA Numbers: 97.036 Federal Agency: U.S. Department of Human Services Information on Federal Program: The objective of the FEMA Feeding Mission is to allow for reimbursement of expenditures prior to or during a state of emergency such as the COVID-19 pandemic. The Mission is a special services program in addition to the normal TEFAP operations utilizing the existing staff and relationships to coordinate a more efficient response to the emergency requirements. Criteria or Specific Requirement: The Organization is responsible for establishing and maintaining internal controls over grant expenditures to prevent error and fraud. Condition: The Organization lacked sufficient internal control over grant expenditures. During testing of grant expenditures, it was noted that 9 out of 9 reimbursements tested were modified by the State Agency overseeing the grant. Feeding Illinois did not properly calculate the number of expenditures for reimbursement. Questioned Costs: N/A Context: The control in place over grant expenditures did not operate effectively Effect: The Organization submitted grant expenditures both in excess of and less than amounts reimbursed. Cause: The Organization supplied a spreadsheet to the recipient food banks to gather data used for reimbursement for the grant. The spreadsheet was modified by the recipient food banks which caused errors in the spreadsheet upon return to the Organization. The errors were not found prior to submission to the State. Identification as a repeat finding, if applicable: N/A Recommendation: We recommend that the Organization perform a more detailed review of the information submitted to verify the accuracy prior to submission for reimbursement. Views of Responsible Officials: This specific emergency Program – FEMA Feeding Mission – was a one-time, pandemic-related, disaster-relief project that necessitated thousands of lines of information being entered and reviewed before submission. We acknowledge that during this process, due to the volume and urgency, some embedded formulas miscalculated totals that were inadvertently undetected by Feeding Illinois.
Finding 2023-001
Finding No.: 2023-001 Internal Control Over Grant Expenditures Federal Program Name: FEMA Feeding Mission CFDA Numbers: 97.036 Federal Agency: U.S. Department of Human Services Information on Federal Program: The objective of the FEMA Feeding Mission is to allow for reimbursement of expenditures prior to or during a state of emergency such as the COVID-19 pandemic. The Mission is a special services program in addition to the normal TEFAP operations utilizing the existing staff and relationships to coordinate a more efficient response to the emergency requirements. Criteria or Specific Requirement: The Organization is responsible for establishing and maintaining internal controls over grant expenditures to prevent error and fraud. Condition: The Organization lacked sufficient internal control over grant expenditures. During testing of grant expenditures, it was noted that 9 out of 9 reimbursements tested were modified by the State Agency overseeing the grant. Feeding Illinois did not properly calculate the number of expenditures for reimbursement. Questioned Costs: N/A Context: The control in place over grant expenditures did not operate effectively Effect: The Organization submitted grant expenditures both in excess of and less than amounts reimbursed. Cause: The Organization supplied a spreadsheet to the recipient food banks to gather data used for reimbursement for the grant. The spreadsheet was modified by the recipient food banks which caused errors in the spreadsheet upon return to the Organization. The errors were not found prior to submission to the State. Identification as a repeat finding, if applicable: N/A Recommendation: We recommend that the Organization perform a more detailed review of the information submitted to verify the accuracy prior to submission for reimbursement. Views of Responsible Officials: This specific emergency Program – FEMA Feeding Mission – was a one-time, pandemic-related, disaster-relief project that necessitated thousands of lines of information being entered and reviewed before submission. We acknowledge that during this process, due to the volume and urgency, some embedded formulas miscalculated totals that were inadvertently undetected by Feeding Illinois.