Audit 333474

FY End
2024-06-30
Total Expended
$26.28M
Findings
2
Programs
7
Organization: Mid-South Food Bank (TN)
Year: 2024 Accepted: 2024-12-18

Organization Exclusion Status:

Checking exclusion status...

Contacts

Name Title Type
K7K6KBJXYDQ6 Richard Gill Auditee
9015270841 Alexandra Sinkular Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 - BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Cost rate was set to a dollar figure by the USDA The accompanying schedule of expenditures of federal awards and state financial assistance (the "Schedule") includes the federal grant activity of the Mid-South Food Bank and Subsidiary (the “Organization”) 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 presents only a selected portion of the 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 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Cost rate was set to a dollar figure by the USDA Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available.
Title: NOTE 3 - FOOD DISTRIBUTION Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Cost rate was set to a dollar figure by the USDA Non-monetary assistance is reported in the Schedule as determined by the Tennessee Department of Agriculture and the Mississippi Department of Human Services.
Title: NOTE 4 – SUB-RECIPIENTS Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Cost rate was set to a dollar figure by the USDA All of the commodities distributed were done so to eligible recipient agencies considered to be sub_x0002_recipients of the Org
Title: NOTE 5 – DE MINIMIS INDIRECT COST RATE Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Cost rate was set to a dollar figure by the USDA The Organization did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

2024-001: Material Weakness – Reporting – Relating to the Food Distribution Cluster – (10.568/10.569). This is a repeat finding, the original finding was 2018-005 and the prior year finding was 2023-001. Criteria: The Organization is required to submit monthly reports to the Tennessee Department of Agriculture and the Mississippi Department of Human Services within 10 business days following the month being reported, showing receipts and disbursements of USDA food (TN) or expenditures incurred for the month (MS). Additionally, the Organization is required to notify USDA representatives within 48 hours upon receipt of goods. Condition: Management did not submit the monthly USDA reports timely. Additionally, management did not meet the 48-hour notification requirement. Context: Management did not submit the USDA reports to the Tennessee Department of Agriculture for 2 of the 12 months tested and did not submit the reports to the Mississippi Department of Human Services for 7 of the 12 months tested for the year ended June 30, 2024, within the proper time period. Additionally, there were six instances where the Organization did not notify USDA representatives within the 48-hour requirement for receipt of goods out of 80. Cause: This condition appears to be due to the lack of oversight for supplying proper support to regulatory authorities. Effect: The Organization is not in compliance with this requirement. Questioned Costs: Unknown Recommendation: We recommend the Organization submit these reports timely to the respective agency. View of Responsible Official: See Management’s Corrective Action Plan.
2024-001: Material Weakness – Reporting – Relating to the Food Distribution Cluster – (10.568/10.569). This is a repeat finding, the original finding was 2018-005 and the prior year finding was 2023-001. Criteria: The Organization is required to submit monthly reports to the Tennessee Department of Agriculture and the Mississippi Department of Human Services within 10 business days following the month being reported, showing receipts and disbursements of USDA food (TN) or expenditures incurred for the month (MS). Additionally, the Organization is required to notify USDA representatives within 48 hours upon receipt of goods. Condition: Management did not submit the monthly USDA reports timely. Additionally, management did not meet the 48-hour notification requirement. Context: Management did not submit the USDA reports to the Tennessee Department of Agriculture for 2 of the 12 months tested and did not submit the reports to the Mississippi Department of Human Services for 7 of the 12 months tested for the year ended June 30, 2024, within the proper time period. Additionally, there were six instances where the Organization did not notify USDA representatives within the 48-hour requirement for receipt of goods out of 80. Cause: This condition appears to be due to the lack of oversight for supplying proper support to regulatory authorities. Effect: The Organization is not in compliance with this requirement. Questioned Costs: Unknown Recommendation: We recommend the Organization submit these reports timely to the respective agency. View of Responsible Official: See Management’s Corrective Action Plan.