FAC Explorer

Audit 319229

FY End
2023-12-31
Total Expended
$1.32M
Findings
4
Programs
2
Organization: Nutrition Services, Inc. (MN)
Year: 2023 Accepted: 2024-09-10
Auditor: Abdo LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
496352 2023-002 Significant Deficiency - P
496353 2023-003 Significant Deficiency Yes J
1072794 2023-002 Significant Deficiency - P
1072795 2023-003 Significant Deficiency Yes J

Programs

ALN Program Spent Major Findings
93.045 Special Programs for the Aging, Title Iii, Part C, Nutrition Services $1.18M Yes 1
93.053 Nutrition Services Incentive Program $145,351 Yes 1

Contacts

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

Notes to SEFA

Title: Note 2: Summary of Significant Accounting Policies for Expenditures 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: During the year ended December 31, 2023, the Organization did not elect to use the 10% de minimis indirect cost rate. 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.
Title: Note 1: 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: During the year ended December 31, 2023, the Organization did not elect to use the 10% de minimis indirect 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, 2023. 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: Note 3: 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: During the year ended December 31, 2023, the Organization did not elect to use the 10% de minimis indirect cost rate. Pass-through entity identifying numbers are presented where available.
Title: Note 4: 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: During the year ended December 31, 2023, the Organization did not elect to use the 10% de minimis indirect cost rate. No federal expenditures presented in this schedule were provided to subrecipients.

Finding Details

Finding 2023-002
Condition: During our audit, a material adjustment was needed to adjust accounts to correct balances at year end. Significant accounts affected include grants receivable and federal revenue accounts. Management should have procedures in place to identify misstatements in the financial statements. As a result of the processes and procedures in place, the financials were not being properly updated for grants receivable and federal revenue accounts. Accounts were materially misstated. The audit firm noted the misstatement and presented an adjusting journal entry to correct the misstatement during the audit. We recommend the Organization review and update its year-end processes to ensure all accounts are current at year end. Management agrees with the finding.
Finding 2023-003
Condition: During our audit, we noted that management did not implement internal controls over volunteer time. It was noted while testing key controls over the sampled population of volunteer time used to meet the matching requirement for the major program tested. The sampled population was deteremined to be statistically valid. Criteria: The Organization must establish and maintain effective internal controls over the financial award that provides reasonable assurance that the non-Federal entity is managing the Federal Award in compliance with Federal Statutes, regulations, and the terms and conditions of the Federal award per CFR § 200.303. These requirements detail the information that must be included in the Organization's internal controls. Cause: Management did not design and implement internal controls to review and reconcile volunteer time. Effect: The absence of controls over volunteer time incurred lead to an increase risk of errors and noncompliance in the financial statements which could misrepresent the Organization's financial statements. Reccomendation: We recommend that the Organization perform and document a monthly review and/or reconciliation over the volunteer time recorded to ensure the volunteer time is complete and accurate. Views of Responsible Officials: Management agrees with the finding.
Finding 2023-002
Condition: During our audit, a material adjustment was needed to adjust accounts to correct balances at year end. Significant accounts affected include grants receivable and federal revenue accounts. Management should have procedures in place to identify misstatements in the financial statements. As a result of the processes and procedures in place, the financials were not being properly updated for grants receivable and federal revenue accounts. Accounts were materially misstated. The audit firm noted the misstatement and presented an adjusting journal entry to correct the misstatement during the audit. We recommend the Organization review and update its year-end processes to ensure all accounts are current at year end. Management agrees with the finding.
Finding 2023-003
Condition: During our audit, we noted that management did not implement internal controls over volunteer time. It was noted while testing key controls over the sampled population of volunteer time used to meet the matching requirement for the major program tested. The sampled population was deteremined to be statistically valid. Criteria: The Organization must establish and maintain effective internal controls over the financial award that provides reasonable assurance that the non-Federal entity is managing the Federal Award in compliance with Federal Statutes, regulations, and the terms and conditions of the Federal award per CFR § 200.303. These requirements detail the information that must be included in the Organization's internal controls. Cause: Management did not design and implement internal controls to review and reconcile volunteer time. Effect: The absence of controls over volunteer time incurred lead to an increase risk of errors and noncompliance in the financial statements which could misrepresent the Organization's financial statements. Reccomendation: We recommend that the Organization perform and document a monthly review and/or reconciliation over the volunteer time recorded to ensure the volunteer time is complete and accurate. Views of Responsible Officials: Management agrees with the finding.