Audit 337506

FY End

2024-09-30

Total Expended

$31.23M

Findings

2

Programs

5

Organization: Second Harvest Heartland (MN)

Year: 2024 Accepted: 2025-01-13

Auditor: Schechter Dokken Kanter Andrews & Selcer LTD

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
519012	2024-001	Significant Deficiency	Yes	E
1095454	2024-001	Significant Deficiency	Yes	E

ALN	Program	Spent	Major	Findings
10.569	Emergency Food Assistance Program (food Commodities)	$14.30M	Yes	0
10.565	Commodity Supplemental Food Program	$5.51M	Yes	1
10.561	State Administrative Matching Grants for the Supplemental Nutrition Assistance Program	$995,399	Yes	0
10.568	Emergency Food Assistance Program (administrative Costs)	$481,000	Yes	0
10.576	Senior Farmers Market Nutrition Program	$6,722	-	0

Contacts

Name	Title	Type
FBFXHRX4FNJ6	Dan Fuhrman	Auditee
6512097901	Wendy Harden	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, as applicable, either the cost principles in OMB Circular A‐122, Cost Principles for Non‐Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Organization has elected to use the ten percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: 0.1 The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Organization under programs of the federal government for the year ended September 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. 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: 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, as applicable, either the cost principles in OMB Circular A‐122, Cost Principles for Non‐Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Organization has elected to use the ten percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: 0.1 Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A‐122, Cost Principles for Non‐Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Organization has elected to use the ten percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2024-001

Informa􀆟on on the Federal Program: Assistance Lis􀆟ng Number 10.565—Commodity Supplemental Food Program, U.S. Department of Agriculture Pass‐Through En􀆟􀆟es and Award Numbers: Minnesota Department of Health, award number 204642. Compliance Requirement: Eligibility Type of Finding: Significant deficiency in internal control over compliance Criteria: 2 CFR 200.303 of Subpart D, "Post Federal Award Requirements Standards for Financial and Program Management," of the Uniform Guidance requires a nonfederal en􀆟ty to establish and maintain effec􀆟ve internal control over the federal award that provides reasonable assurance that the en􀆟ty is managing the federal award in compliance with federal statutes, regula􀆟ons, and the terms and condi􀆟ons of the federal award, including Eligibility. Condi􀆟on: We requested eligibility forms for forty‐four par􀆟cipants to review for the signature of site partner personnel indica􀆟ng review of eligibility informa􀆟on on the form. Three of the forty‐four forms were unable to be located upon request. Eligibility informa􀆟on is input in ClientTrack so􀅌ware and the form should also be uploaded. Cause: Signed enrollment forms were not properly scanned into Sharepoint and had likely been disposed of. The signatures on these forms indicated the review of an agency partner indica􀆟ng the informa􀆟on included on the form is correct. Effect or Poten􀆟al Effect: An ineligible individual could receive a CSFP box. Ques􀆟oned Costs: None Context: Signed enrollment forms were not available for three of forty‐four par􀆟cipants selected. Repeat Finding: yes, 2023‐002 Recommenda􀆟on: We recommend that Second Harvest Heartland digitalize their CSFP enrollment forms for convenient access and provide review of the electronically filed form prior to disposal of the paper form. Views of Responsible Officials: Agree.

Finding 2024-001

Informa􀆟on on the Federal Program: Assistance Lis􀆟ng Number 10.565—Commodity Supplemental Food Program, U.S. Department of Agriculture Pass‐Through En􀆟􀆟es and Award Numbers: Minnesota Department of Health, award number 204642. Compliance Requirement: Eligibility Type of Finding: Significant deficiency in internal control over compliance Criteria: 2 CFR 200.303 of Subpart D, "Post Federal Award Requirements Standards for Financial and Program Management," of the Uniform Guidance requires a nonfederal en􀆟ty to establish and maintain effec􀆟ve internal control over the federal award that provides reasonable assurance that the en􀆟ty is managing the federal award in compliance with federal statutes, regula􀆟ons, and the terms and condi􀆟ons of the federal award, including Eligibility. Condi􀆟on: We requested eligibility forms for forty‐four par􀆟cipants to review for the signature of site partner personnel indica􀆟ng review of eligibility informa􀆟on on the form. Three of the forty‐four forms were unable to be located upon request. Eligibility informa􀆟on is input in ClientTrack so􀅌ware and the form should also be uploaded. Cause: Signed enrollment forms were not properly scanned into Sharepoint and had likely been disposed of. The signatures on these forms indicated the review of an agency partner indica􀆟ng the informa􀆟on included on the form is correct. Effect or Poten􀆟al Effect: An ineligible individual could receive a CSFP box. Ques􀆟oned Costs: None Context: Signed enrollment forms were not available for three of forty‐four par􀆟cipants selected. Repeat Finding: yes, 2023‐002 Recommenda􀆟on: We recommend that Second Harvest Heartland digitalize their CSFP enrollment forms for convenient access and provide review of the electronically filed form prior to disposal of the paper form. Views of Responsible Officials: Agree.