FAC Explorer

Audit 33699

FY End
2022-03-31
Total Expended
$2.20M
Findings
6
Programs
3
Organization: Nourishing Hope-Fka Lakeview (IL)
Year: 2022 Accepted: 2023-01-24
Auditor: Cohnreznick LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
32974 2022-001 Material Weakness Yes N
32975 2022-002 Significant Deficiency Yes E
32976 2022-003 Significant Deficiency Yes L
609416 2022-001 Material Weakness Yes N
609417 2022-002 Significant Deficiency Yes E
609418 2022-003 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
10.569 Emergency Food Assistance Program (food Commodities) $2.08M Yes 3
93.569 Community Services Block Grant $91,550 - 0
97.024 Emergency Food and Shelter National Board Program $26,359 - 0

Contacts

Name Title Type
L633YJ2L95L8 Kellie O'Connell Auditee
7735251777 John Van Stee 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal grant activity of Nourishing Hope under programs of the federal government for the year ended March 31, 2022. 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 Nourishing Hope, it is not intended to and does not present the financial position, changes in net assets or cash flows of Nourishing Hope.

Finding Details

Finding 2022-001
Finding No. 2022-001 Assistance Listing Number 10.569 ? Emergency Food Assistance Program, United States Department of Agriculture. Pass-Through Entity: Greater Chicago Food Depository Award Number: A00014 Compliance Requirements: Special Tests and Provisions Criteria Accurate and complete records must be maintained with respect to the receipt, distribution/use, and inventory of USDA Foods. Condition As of the beginning of the year, April 1, 2021, Nourishing Hope did not separately identify and track USDA food inventory from total inventory. Context The inventory as of March 31, 2021 did not identify USDA foods separate from foods received from other sources. Cause The cause of the finding is due to the Organization not accounting for USDA foods separately at the beginning of the year. Effect Nourishing Hope was not in compliance with the major program special tests and provision compliance requirements. Repeat Finding Yes - 2021-002 Recommendation Nourishing Hope should enhance their inventory procedures to account for USDA foods separate from foods received from other sources, which as of March 31, 2022, they have enhanced their procedures. Questioned Costs Recommendation
Finding 2022-002
Finding No. 2022-002 Assistance Listing Number 10.569 ? Emergency Food Assistance Program, United States Department of Agriculture. Pass-Through Entity: Greater Chicago Food Depository Award Number: A00014 Compliance Requirements: Eligibility Criteria Under the Emergency Food Assistance Program the Organization must certify household eligibility to receive USDA Foods for household consumption by applying income eligibility criteria established by the state agency. Condition During the year ended March 31, 2022, Nourishing Hope did not follow USDA Signature Sheet Guidelines and retain addresses from guests or their income eligibility. Context We sampled 40 guest recipient and tested for eligibility. 8of 40 did not have the required eligibility documented in regards to guests addresses and did not keep records of the eligibility status. Cause The cause of the finding is due to the Organization not keeping record of recipient eligibility status. Effect Nourishing Hope is not in compliance with the major program eligibility compliance requirements. Repeat Finding Yes - 2021-003 Recommendation Nourishing Hope should enhance their eligibility record keeping procedures in accordance with the program guidelines. Questioned Costs Not Applicable
Finding 2022-003
Finding No. 2022-003 Assistance Listing Number 10.569 ? Emergency Food Assistance Program, United States Department of Agriculture. Pass-Through Entity: Greater Chicago Food Depository Award Number: A00014 Compliance Requirements: Reporting Criteria The single audit was completed after the required due date, within nine months after its fiscal year end. Condition The single audit report is delinquent for the year ended March 31, 2022. Context The single audit report was not completed within the required timeframe for the year ended March 31, 2022. Cause The cause of the finding is due to the passthrough entity not providing timely the information to Nourishing Hope regarding federal awards received for the year ended March 31, 2022. Effect Nourishing Hope is not in compliance with the Uniform Guidance requirements requirements. Repeat Finding Yes - 2021-001 Recommendation Nourishing Hope should enhance their monitoring and reporting to ensure the single audit is reported timely. Questioned Costs Not Applicable Views of Responsible Officials The year ended March 31, 2022 was the second year Nourishing Hope was required to submit a single audit and was completed in conjunction with the first single audit for the year ended March 31, 2021, which resulted in a delay to submit the report on time. Nourishing Hope considers the control and compliance matter remediated in fiscal year 2023.
Finding 2022-001
Finding No. 2022-001 Assistance Listing Number 10.569 ? Emergency Food Assistance Program, United States Department of Agriculture. Pass-Through Entity: Greater Chicago Food Depository Award Number: A00014 Compliance Requirements: Special Tests and Provisions Criteria Accurate and complete records must be maintained with respect to the receipt, distribution/use, and inventory of USDA Foods. Condition As of the beginning of the year, April 1, 2021, Nourishing Hope did not separately identify and track USDA food inventory from total inventory. Context The inventory as of March 31, 2021 did not identify USDA foods separate from foods received from other sources. Cause The cause of the finding is due to the Organization not accounting for USDA foods separately at the beginning of the year. Effect Nourishing Hope was not in compliance with the major program special tests and provision compliance requirements. Repeat Finding Yes - 2021-002 Recommendation Nourishing Hope should enhance their inventory procedures to account for USDA foods separate from foods received from other sources, which as of March 31, 2022, they have enhanced their procedures. Questioned Costs Recommendation
Finding 2022-002
Finding No. 2022-002 Assistance Listing Number 10.569 ? Emergency Food Assistance Program, United States Department of Agriculture. Pass-Through Entity: Greater Chicago Food Depository Award Number: A00014 Compliance Requirements: Eligibility Criteria Under the Emergency Food Assistance Program the Organization must certify household eligibility to receive USDA Foods for household consumption by applying income eligibility criteria established by the state agency. Condition During the year ended March 31, 2022, Nourishing Hope did not follow USDA Signature Sheet Guidelines and retain addresses from guests or their income eligibility. Context We sampled 40 guest recipient and tested for eligibility. 8of 40 did not have the required eligibility documented in regards to guests addresses and did not keep records of the eligibility status. Cause The cause of the finding is due to the Organization not keeping record of recipient eligibility status. Effect Nourishing Hope is not in compliance with the major program eligibility compliance requirements. Repeat Finding Yes - 2021-003 Recommendation Nourishing Hope should enhance their eligibility record keeping procedures in accordance with the program guidelines. Questioned Costs Not Applicable
Finding 2022-003
Finding No. 2022-003 Assistance Listing Number 10.569 ? Emergency Food Assistance Program, United States Department of Agriculture. Pass-Through Entity: Greater Chicago Food Depository Award Number: A00014 Compliance Requirements: Reporting Criteria The single audit was completed after the required due date, within nine months after its fiscal year end. Condition The single audit report is delinquent for the year ended March 31, 2022. Context The single audit report was not completed within the required timeframe for the year ended March 31, 2022. Cause The cause of the finding is due to the passthrough entity not providing timely the information to Nourishing Hope regarding federal awards received for the year ended March 31, 2022. Effect Nourishing Hope is not in compliance with the Uniform Guidance requirements requirements. Repeat Finding Yes - 2021-001 Recommendation Nourishing Hope should enhance their monitoring and reporting to ensure the single audit is reported timely. Questioned Costs Not Applicable Views of Responsible Officials The year ended March 31, 2022 was the second year Nourishing Hope was required to submit a single audit and was completed in conjunction with the first single audit for the year ended March 31, 2021, which resulted in a delay to submit the report on time. Nourishing Hope considers the control and compliance matter remediated in fiscal year 2023.