FAC Explorer

Audit 324871

FY End
2024-06-30
Total Expended
$5.18M
Findings
4
Programs
5
Organization: Montana Food Bank Network, Inc. (MT)
Year: 2024 Accepted: 2024-10-16
Auditor: Jccs PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
502907 2024-001 Significant Deficiency - P
502908 2024-001 Significant Deficiency - P
1079349 2024-001 Significant Deficiency - P
1079350 2024-001 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
10.569 Emergency Food Assistance Program (food Commodities) $4.31M Yes 1
10.568 Emergency Food Assistance Program (administrative Costs) $642,160 Yes 1
10.187 The Emergency Food Assistance Program (tefap) Commodity Credit Corporation Eligible Recipient Funds $162,561 - 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $29,516 - 0
10.182 Pandemic Relief Activities: Local Food Purchase Agreements with States, Tribes, and Local Governments $26,858 - 0

Contacts

Name Title Type
RJTSGS2ELVY8 Clark Tower Auditee
4067213825 Greg Peck Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: 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 and/or OMB Circular A-122, Cost Principles for Non-Profit Organizations, wherein certain types of expenditures are not allowable or are limited to reimbursement. Donated food was valued above utilizing rates provided by Feeding America, specifically the fair market value of donated foods excluding non-food items as required by the USDA. For the year ended June 30, 2024, contributed food reported in the Schedule was valued at $1.74 per pound. See Note 1 of the accompanying financial statements for the determined per pound value of donated inventory for reporting within those statements. De Minimis Rate Used: N Rate Explanation: Montana Food Bank Network, Inc. did not elect to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the "Schedule) includes the federal award activity of Montana Food Bank Network, Inc. under programs of the federal government for the year ended June 30, 2024. 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 only presents a selected portion of operations of Montana Food Bank Network, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Montana Food Bank Network, Inc.
Title: Subrecipients Accounting Policies: 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 and/or OMB Circular A-122, Cost Principles for Non-Profit Organizations, wherein certain types of expenditures are not allowable or are limited to reimbursement. Donated food was valued above utilizing rates provided by Feeding America, specifically the fair market value of donated foods excluding non-food items as required by the USDA. For the year ended June 30, 2024, contributed food reported in the Schedule was valued at $1.74 per pound. See Note 1 of the accompanying financial statements for the determined per pound value of donated inventory for reporting within those statements. De Minimis Rate Used: N Rate Explanation: Montana Food Bank Network, Inc. did not elect to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Montana Food Bank Network, Inc. provided awards to subrecipients totaling $154,960 for the year ended June 30, 2024. Additionally, Montana Food Bank Network, Inc. distributed food to subrecipients valued at $4,314,310 for the year ended June 30, 2024.

Finding Details

Finding 2024-001
FINDING 2024-001: UNCONDITIONAL AND CONDITIONAL PROMISES TO GIVE Condition and Criteria: During the current year audit, we discovered an unconditional promise to give awarded prior to year-end that was not properly accrued as a receivable and revenue. Additionally, we discovered a conditional promise to give, in which the underlying conditions of the award had not been met prior to year-end, had been improperly accrued as a receivable and revenue. Per ASC 958-605-25-8, unconditional promises to give shall be recognized as revenue when the promise is received. Per ASC 958-605-25-11, conditional promises to give shall be recognized as revenue when the condition or conditions on which they depend are substantially met. Cause: Internal controls were not in place to recognize unconditional and conditional promises to give in accordance with U.S. generally accepted accounting principles. Effect: Assets and net assets were overstated by $205,000. This deficiency has the potential effect of overstating or understating resources available to the Organization. Recommendation: We recommend the Organization implement procedures, such as the use of a check list, that can be attached to all major promises to give to ensure proper reporting in accordance with U.S. generally accepted accounting principles. This checklist could include items such as the name of the resource provider, the date the promise to give was received, corresponding payment schedule for multi-year promises to give, whether or not there are any conditions related to the underlying promise to give, and mechanisms for tracking any conditions such as the nature of the underlying condition and when conditions must be satisfied.
Finding 2024-001
FINDING 2024-001: UNCONDITIONAL AND CONDITIONAL PROMISES TO GIVE Condition and Criteria: During the current year audit, we discovered an unconditional promise to give awarded prior to year-end that was not properly accrued as a receivable and revenue. Additionally, we discovered a conditional promise to give, in which the underlying conditions of the award had not been met prior to year-end, had been improperly accrued as a receivable and revenue. Per ASC 958-605-25-8, unconditional promises to give shall be recognized as revenue when the promise is received. Per ASC 958-605-25-11, conditional promises to give shall be recognized as revenue when the condition or conditions on which they depend are substantially met. Cause: Internal controls were not in place to recognize unconditional and conditional promises to give in accordance with U.S. generally accepted accounting principles. Effect: Assets and net assets were overstated by $205,000. This deficiency has the potential effect of overstating or understating resources available to the Organization. Recommendation: We recommend the Organization implement procedures, such as the use of a check list, that can be attached to all major promises to give to ensure proper reporting in accordance with U.S. generally accepted accounting principles. This checklist could include items such as the name of the resource provider, the date the promise to give was received, corresponding payment schedule for multi-year promises to give, whether or not there are any conditions related to the underlying promise to give, and mechanisms for tracking any conditions such as the nature of the underlying condition and when conditions must be satisfied.
Finding 2024-001
FINDING 2024-001: UNCONDITIONAL AND CONDITIONAL PROMISES TO GIVE Condition and Criteria: During the current year audit, we discovered an unconditional promise to give awarded prior to year-end that was not properly accrued as a receivable and revenue. Additionally, we discovered a conditional promise to give, in which the underlying conditions of the award had not been met prior to year-end, had been improperly accrued as a receivable and revenue. Per ASC 958-605-25-8, unconditional promises to give shall be recognized as revenue when the promise is received. Per ASC 958-605-25-11, conditional promises to give shall be recognized as revenue when the condition or conditions on which they depend are substantially met. Cause: Internal controls were not in place to recognize unconditional and conditional promises to give in accordance with U.S. generally accepted accounting principles. Effect: Assets and net assets were overstated by $205,000. This deficiency has the potential effect of overstating or understating resources available to the Organization. Recommendation: We recommend the Organization implement procedures, such as the use of a check list, that can be attached to all major promises to give to ensure proper reporting in accordance with U.S. generally accepted accounting principles. This checklist could include items such as the name of the resource provider, the date the promise to give was received, corresponding payment schedule for multi-year promises to give, whether or not there are any conditions related to the underlying promise to give, and mechanisms for tracking any conditions such as the nature of the underlying condition and when conditions must be satisfied.
Finding 2024-001
FINDING 2024-001: UNCONDITIONAL AND CONDITIONAL PROMISES TO GIVE Condition and Criteria: During the current year audit, we discovered an unconditional promise to give awarded prior to year-end that was not properly accrued as a receivable and revenue. Additionally, we discovered a conditional promise to give, in which the underlying conditions of the award had not been met prior to year-end, had been improperly accrued as a receivable and revenue. Per ASC 958-605-25-8, unconditional promises to give shall be recognized as revenue when the promise is received. Per ASC 958-605-25-11, conditional promises to give shall be recognized as revenue when the condition or conditions on which they depend are substantially met. Cause: Internal controls were not in place to recognize unconditional and conditional promises to give in accordance with U.S. generally accepted accounting principles. Effect: Assets and net assets were overstated by $205,000. This deficiency has the potential effect of overstating or understating resources available to the Organization. Recommendation: We recommend the Organization implement procedures, such as the use of a check list, that can be attached to all major promises to give to ensure proper reporting in accordance with U.S. generally accepted accounting principles. This checklist could include items such as the name of the resource provider, the date the promise to give was received, corresponding payment schedule for multi-year promises to give, whether or not there are any conditions related to the underlying promise to give, and mechanisms for tracking any conditions such as the nature of the underlying condition and when conditions must be satisfied.