FAC Explorer

Audit 340321

FY End
2024-09-30
Total Expended
$3.59M
Findings
16
Programs
6
Organization: North Country Food Bank, Inc. (MN)
Year: 2024 Accepted: 2025-01-29
Auditor: Brady Martz & Associates PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
520643 2024-002 Significant Deficiency - AB
520644 2024-002 Significant Deficiency - AB
520645 2024-002 Significant Deficiency - AB
520646 2024-003 Significant Deficiency - E
520647 2024-003 Significant Deficiency - E
520648 2024-003 Significant Deficiency - E
520649 2024-002 Significant Deficiency - AB
520650 2024-003 Significant Deficiency - E
1097085 2024-002 Significant Deficiency - AB
1097086 2024-002 Significant Deficiency - AB
1097087 2024-002 Significant Deficiency - AB
1097088 2024-003 Significant Deficiency - E
1097089 2024-003 Significant Deficiency - E
1097090 2024-003 Significant Deficiency - E
1097091 2024-002 Significant Deficiency - AB
1097092 2024-003 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
10.569 Emergency Food Assistance Program (food Commodities) $2.28M Yes 2
21.027 Coronavirus State and Local Fiscal Recovery Funds $458,041 - 0
10.565 Commodity Supplemental Food Program $150,148 Yes 2
10.568 Emergency Food Assistance Program (administrative Costs) $110,000 Yes 2
10.187 The Emergency Food Assistance Program (tefap) Commodity Credit Corporation Eligible Recipient Funds $61,290 - 0
10.576 Senior Farmers Market Nutrition Program $953 - 0

Contacts

Name Title Type
CHHTHS93MFR3 Susie Novak Boelter Auditee
2183997357 Ashley Engel Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the accompanying Schedule of Expenditures of Federal Awards (the Schedule) are reported on the accrual basis of accounting. Such expenditures are recognized following the applicable 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: N Rate Explanation: North Country Food Bank, Inc. has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Schedule includes the federal grant activity of North Country Food Bank, Inc. under programs of the federal government for the year ended September 30, 2024. The information in the 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 North Country Food Bank, Inc., it is not intended to and does not present the financial position, changes in net assets or cash flows of North Country Food Bank, Inc. The amounts reported on the Schedule have been reconciled to and are in agreement with amounts recorded in the accounting records from which the financial statements have been reported.
Title: SUBRECIPIENTS Accounting Policies: Expenditures reported on the accompanying Schedule of Expenditures of Federal Awards (the Schedule) are reported on the accrual basis of accounting. Such expenditures are recognized following the applicable 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: N Rate Explanation: North Country Food Bank, Inc. has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Organization passes certain federal awards received from the State of Minnesota to other not-for-profit agencies (subrecipients). The Organization reports expenditures of federal awards to subrecipients when incurred using the principles under the accrual basis of accounting. As a subrecipient, the Organization has certain compliance responsibilities, such as monitoring its subrecipients to help assure they use the subawards as authorized by laws, regulations, and the provisions of contracts or grant agreements, and that subrecipients achieve the award’s performance goals.

Finding Details

Finding 2024-002
2024-002 (Significant Deficiency) – Activities Allowed or Unallowed and Allowable Costs/Cost Principles Federal Program: AL 10.565, 10.568, and 10.569 Food Distribution Cluster Criteria: Per Uniform Guidance 2 CFR section 200.421, costs for public relations that are not specifically related to the federal award are unallowable. Condition: Food for the Organization’s community event was included in the population of expenses allocated to the grant. Cause: Management oversight Effect: The Organization charged unallowable expenses to the grant. Context: As part of the single audit testing, 40 transactions were selected for testing. One invoice tested was for food costs for the Organization’s 40th Anniversary community event. This is considered unallowable costs as it is costs for a public relations event that is not specifically related to the federal award. Questioned Costs: Immaterial Repeat Finding: No Recommendation: The Organization should review their policies and procedures for allocating expenses to grants and only charge allowable expenses. View of Responsible Officials: Management agrees with the recommendation and will review their procedures for allocating expenses to grants to ensure only allowable expenses are charged to the grant.
Finding 2024-002
2024-002 (Significant Deficiency) – Activities Allowed or Unallowed and Allowable Costs/Cost Principles Federal Program: AL 10.565, 10.568, and 10.569 Food Distribution Cluster Criteria: Per Uniform Guidance 2 CFR section 200.421, costs for public relations that are not specifically related to the federal award are unallowable. Condition: Food for the Organization’s community event was included in the population of expenses allocated to the grant. Cause: Management oversight Effect: The Organization charged unallowable expenses to the grant. Context: As part of the single audit testing, 40 transactions were selected for testing. One invoice tested was for food costs for the Organization’s 40th Anniversary community event. This is considered unallowable costs as it is costs for a public relations event that is not specifically related to the federal award. Questioned Costs: Immaterial Repeat Finding: No Recommendation: The Organization should review their policies and procedures for allocating expenses to grants and only charge allowable expenses. View of Responsible Officials: Management agrees with the recommendation and will review their procedures for allocating expenses to grants to ensure only allowable expenses are charged to the grant.
Finding 2024-002
2024-002 (Significant Deficiency) – Activities Allowed or Unallowed and Allowable Costs/Cost Principles Federal Program: AL 10.565, 10.568, and 10.569 Food Distribution Cluster Criteria: Per Uniform Guidance 2 CFR section 200.421, costs for public relations that are not specifically related to the federal award are unallowable. Condition: Food for the Organization’s community event was included in the population of expenses allocated to the grant. Cause: Management oversight Effect: The Organization charged unallowable expenses to the grant. Context: As part of the single audit testing, 40 transactions were selected for testing. One invoice tested was for food costs for the Organization’s 40th Anniversary community event. This is considered unallowable costs as it is costs for a public relations event that is not specifically related to the federal award. Questioned Costs: Immaterial Repeat Finding: No Recommendation: The Organization should review their policies and procedures for allocating expenses to grants and only charge allowable expenses. View of Responsible Officials: Management agrees with the recommendation and will review their procedures for allocating expenses to grants to ensure only allowable expenses are charged to the grant.
Finding 2024-003
Federal Program: AL 10.565, 10.568, and 10.569 Food Distribution Cluster Criteria: Per CSFP Eligibility requirements – section 247.9a, to be eligible for CSFP, individuals must be at least 60 years of age and meet the income eligibility requirements. The Organization makes the determination based on information obtained through applications submitted by participants. The Organization has an internal control policy of completing a file checklist for TEFAP Agency files to ensure all documents are in the file. Condition: The Organization was not able to locate one application selected for testing and the file checklist was not completed for one TEFAP Agency file. Cause: Management oversight Effect: The Organization could have made the wrong eligibility determination for one CSFP participant and could have missed required documentation for a TEFAP agency. Context: 40 CSFP applications were selected for testing. The Organization was unable to find one application selected for testing. 7 TEFAP Agency files were selected for testing. The file checklist was not completed for one file. However, all the required documents were in the file. Questioned Costs: None Repeat Finding: No Recommendation: The Organization should review their policies and procedures to ensure all applications are maintained and the file checklist is completed for all TEFAP Agency files. View of Responsible Officials: Management agrees with the recommendation and will review their procedures to ensure all applications are maintained and the file checklist is completed for all TEFAP Agency files.
Finding 2024-003
Federal Program: AL 10.565, 10.568, and 10.569 Food Distribution Cluster Criteria: Per CSFP Eligibility requirements – section 247.9a, to be eligible for CSFP, individuals must be at least 60 years of age and meet the income eligibility requirements. The Organization makes the determination based on information obtained through applications submitted by participants. The Organization has an internal control policy of completing a file checklist for TEFAP Agency files to ensure all documents are in the file. Condition: The Organization was not able to locate one application selected for testing and the file checklist was not completed for one TEFAP Agency file. Cause: Management oversight Effect: The Organization could have made the wrong eligibility determination for one CSFP participant and could have missed required documentation for a TEFAP agency. Context: 40 CSFP applications were selected for testing. The Organization was unable to find one application selected for testing. 7 TEFAP Agency files were selected for testing. The file checklist was not completed for one file. However, all the required documents were in the file. Questioned Costs: None Repeat Finding: No Recommendation: The Organization should review their policies and procedures to ensure all applications are maintained and the file checklist is completed for all TEFAP Agency files. View of Responsible Officials: Management agrees with the recommendation and will review their procedures to ensure all applications are maintained and the file checklist is completed for all TEFAP Agency files.
Finding 2024-003
Federal Program: AL 10.565, 10.568, and 10.569 Food Distribution Cluster Criteria: Per CSFP Eligibility requirements – section 247.9a, to be eligible for CSFP, individuals must be at least 60 years of age and meet the income eligibility requirements. The Organization makes the determination based on information obtained through applications submitted by participants. The Organization has an internal control policy of completing a file checklist for TEFAP Agency files to ensure all documents are in the file. Condition: The Organization was not able to locate one application selected for testing and the file checklist was not completed for one TEFAP Agency file. Cause: Management oversight Effect: The Organization could have made the wrong eligibility determination for one CSFP participant and could have missed required documentation for a TEFAP agency. Context: 40 CSFP applications were selected for testing. The Organization was unable to find one application selected for testing. 7 TEFAP Agency files were selected for testing. The file checklist was not completed for one file. However, all the required documents were in the file. Questioned Costs: None Repeat Finding: No Recommendation: The Organization should review their policies and procedures to ensure all applications are maintained and the file checklist is completed for all TEFAP Agency files. View of Responsible Officials: Management agrees with the recommendation and will review their procedures to ensure all applications are maintained and the file checklist is completed for all TEFAP Agency files.
Finding 2024-002
2024-002 (Significant Deficiency) – Activities Allowed or Unallowed and Allowable Costs/Cost Principles Federal Program: AL 10.565, 10.568, and 10.569 Food Distribution Cluster Criteria: Per Uniform Guidance 2 CFR section 200.421, costs for public relations that are not specifically related to the federal award are unallowable. Condition: Food for the Organization’s community event was included in the population of expenses allocated to the grant. Cause: Management oversight Effect: The Organization charged unallowable expenses to the grant. Context: As part of the single audit testing, 40 transactions were selected for testing. One invoice tested was for food costs for the Organization’s 40th Anniversary community event. This is considered unallowable costs as it is costs for a public relations event that is not specifically related to the federal award. Questioned Costs: Immaterial Repeat Finding: No Recommendation: The Organization should review their policies and procedures for allocating expenses to grants and only charge allowable expenses. View of Responsible Officials: Management agrees with the recommendation and will review their procedures for allocating expenses to grants to ensure only allowable expenses are charged to the grant.
Finding 2024-003
Federal Program: AL 10.565, 10.568, and 10.569 Food Distribution Cluster Criteria: Per CSFP Eligibility requirements – section 247.9a, to be eligible for CSFP, individuals must be at least 60 years of age and meet the income eligibility requirements. The Organization makes the determination based on information obtained through applications submitted by participants. The Organization has an internal control policy of completing a file checklist for TEFAP Agency files to ensure all documents are in the file. Condition: The Organization was not able to locate one application selected for testing and the file checklist was not completed for one TEFAP Agency file. Cause: Management oversight Effect: The Organization could have made the wrong eligibility determination for one CSFP participant and could have missed required documentation for a TEFAP agency. Context: 40 CSFP applications were selected for testing. The Organization was unable to find one application selected for testing. 7 TEFAP Agency files were selected for testing. The file checklist was not completed for one file. However, all the required documents were in the file. Questioned Costs: None Repeat Finding: No Recommendation: The Organization should review their policies and procedures to ensure all applications are maintained and the file checklist is completed for all TEFAP Agency files. View of Responsible Officials: Management agrees with the recommendation and will review their procedures to ensure all applications are maintained and the file checklist is completed for all TEFAP Agency files.
Finding 2024-002
2024-002 (Significant Deficiency) – Activities Allowed or Unallowed and Allowable Costs/Cost Principles Federal Program: AL 10.565, 10.568, and 10.569 Food Distribution Cluster Criteria: Per Uniform Guidance 2 CFR section 200.421, costs for public relations that are not specifically related to the federal award are unallowable. Condition: Food for the Organization’s community event was included in the population of expenses allocated to the grant. Cause: Management oversight Effect: The Organization charged unallowable expenses to the grant. Context: As part of the single audit testing, 40 transactions were selected for testing. One invoice tested was for food costs for the Organization’s 40th Anniversary community event. This is considered unallowable costs as it is costs for a public relations event that is not specifically related to the federal award. Questioned Costs: Immaterial Repeat Finding: No Recommendation: The Organization should review their policies and procedures for allocating expenses to grants and only charge allowable expenses. View of Responsible Officials: Management agrees with the recommendation and will review their procedures for allocating expenses to grants to ensure only allowable expenses are charged to the grant.
Finding 2024-002
2024-002 (Significant Deficiency) – Activities Allowed or Unallowed and Allowable Costs/Cost Principles Federal Program: AL 10.565, 10.568, and 10.569 Food Distribution Cluster Criteria: Per Uniform Guidance 2 CFR section 200.421, costs for public relations that are not specifically related to the federal award are unallowable. Condition: Food for the Organization’s community event was included in the population of expenses allocated to the grant. Cause: Management oversight Effect: The Organization charged unallowable expenses to the grant. Context: As part of the single audit testing, 40 transactions were selected for testing. One invoice tested was for food costs for the Organization’s 40th Anniversary community event. This is considered unallowable costs as it is costs for a public relations event that is not specifically related to the federal award. Questioned Costs: Immaterial Repeat Finding: No Recommendation: The Organization should review their policies and procedures for allocating expenses to grants and only charge allowable expenses. View of Responsible Officials: Management agrees with the recommendation and will review their procedures for allocating expenses to grants to ensure only allowable expenses are charged to the grant.
Finding 2024-002
2024-002 (Significant Deficiency) – Activities Allowed or Unallowed and Allowable Costs/Cost Principles Federal Program: AL 10.565, 10.568, and 10.569 Food Distribution Cluster Criteria: Per Uniform Guidance 2 CFR section 200.421, costs for public relations that are not specifically related to the federal award are unallowable. Condition: Food for the Organization’s community event was included in the population of expenses allocated to the grant. Cause: Management oversight Effect: The Organization charged unallowable expenses to the grant. Context: As part of the single audit testing, 40 transactions were selected for testing. One invoice tested was for food costs for the Organization’s 40th Anniversary community event. This is considered unallowable costs as it is costs for a public relations event that is not specifically related to the federal award. Questioned Costs: Immaterial Repeat Finding: No Recommendation: The Organization should review their policies and procedures for allocating expenses to grants and only charge allowable expenses. View of Responsible Officials: Management agrees with the recommendation and will review their procedures for allocating expenses to grants to ensure only allowable expenses are charged to the grant.
Finding 2024-003
Federal Program: AL 10.565, 10.568, and 10.569 Food Distribution Cluster Criteria: Per CSFP Eligibility requirements – section 247.9a, to be eligible for CSFP, individuals must be at least 60 years of age and meet the income eligibility requirements. The Organization makes the determination based on information obtained through applications submitted by participants. The Organization has an internal control policy of completing a file checklist for TEFAP Agency files to ensure all documents are in the file. Condition: The Organization was not able to locate one application selected for testing and the file checklist was not completed for one TEFAP Agency file. Cause: Management oversight Effect: The Organization could have made the wrong eligibility determination for one CSFP participant and could have missed required documentation for a TEFAP agency. Context: 40 CSFP applications were selected for testing. The Organization was unable to find one application selected for testing. 7 TEFAP Agency files were selected for testing. The file checklist was not completed for one file. However, all the required documents were in the file. Questioned Costs: None Repeat Finding: No Recommendation: The Organization should review their policies and procedures to ensure all applications are maintained and the file checklist is completed for all TEFAP Agency files. View of Responsible Officials: Management agrees with the recommendation and will review their procedures to ensure all applications are maintained and the file checklist is completed for all TEFAP Agency files.
Finding 2024-003
Federal Program: AL 10.565, 10.568, and 10.569 Food Distribution Cluster Criteria: Per CSFP Eligibility requirements – section 247.9a, to be eligible for CSFP, individuals must be at least 60 years of age and meet the income eligibility requirements. The Organization makes the determination based on information obtained through applications submitted by participants. The Organization has an internal control policy of completing a file checklist for TEFAP Agency files to ensure all documents are in the file. Condition: The Organization was not able to locate one application selected for testing and the file checklist was not completed for one TEFAP Agency file. Cause: Management oversight Effect: The Organization could have made the wrong eligibility determination for one CSFP participant and could have missed required documentation for a TEFAP agency. Context: 40 CSFP applications were selected for testing. The Organization was unable to find one application selected for testing. 7 TEFAP Agency files were selected for testing. The file checklist was not completed for one file. However, all the required documents were in the file. Questioned Costs: None Repeat Finding: No Recommendation: The Organization should review their policies and procedures to ensure all applications are maintained and the file checklist is completed for all TEFAP Agency files. View of Responsible Officials: Management agrees with the recommendation and will review their procedures to ensure all applications are maintained and the file checklist is completed for all TEFAP Agency files.
Finding 2024-003
Federal Program: AL 10.565, 10.568, and 10.569 Food Distribution Cluster Criteria: Per CSFP Eligibility requirements – section 247.9a, to be eligible for CSFP, individuals must be at least 60 years of age and meet the income eligibility requirements. The Organization makes the determination based on information obtained through applications submitted by participants. The Organization has an internal control policy of completing a file checklist for TEFAP Agency files to ensure all documents are in the file. Condition: The Organization was not able to locate one application selected for testing and the file checklist was not completed for one TEFAP Agency file. Cause: Management oversight Effect: The Organization could have made the wrong eligibility determination for one CSFP participant and could have missed required documentation for a TEFAP agency. Context: 40 CSFP applications were selected for testing. The Organization was unable to find one application selected for testing. 7 TEFAP Agency files were selected for testing. The file checklist was not completed for one file. However, all the required documents were in the file. Questioned Costs: None Repeat Finding: No Recommendation: The Organization should review their policies and procedures to ensure all applications are maintained and the file checklist is completed for all TEFAP Agency files. View of Responsible Officials: Management agrees with the recommendation and will review their procedures to ensure all applications are maintained and the file checklist is completed for all TEFAP Agency files.
Finding 2024-002
2024-002 (Significant Deficiency) – Activities Allowed or Unallowed and Allowable Costs/Cost Principles Federal Program: AL 10.565, 10.568, and 10.569 Food Distribution Cluster Criteria: Per Uniform Guidance 2 CFR section 200.421, costs for public relations that are not specifically related to the federal award are unallowable. Condition: Food for the Organization’s community event was included in the population of expenses allocated to the grant. Cause: Management oversight Effect: The Organization charged unallowable expenses to the grant. Context: As part of the single audit testing, 40 transactions were selected for testing. One invoice tested was for food costs for the Organization’s 40th Anniversary community event. This is considered unallowable costs as it is costs for a public relations event that is not specifically related to the federal award. Questioned Costs: Immaterial Repeat Finding: No Recommendation: The Organization should review their policies and procedures for allocating expenses to grants and only charge allowable expenses. View of Responsible Officials: Management agrees with the recommendation and will review their procedures for allocating expenses to grants to ensure only allowable expenses are charged to the grant.
Finding 2024-003
Federal Program: AL 10.565, 10.568, and 10.569 Food Distribution Cluster Criteria: Per CSFP Eligibility requirements – section 247.9a, to be eligible for CSFP, individuals must be at least 60 years of age and meet the income eligibility requirements. The Organization makes the determination based on information obtained through applications submitted by participants. The Organization has an internal control policy of completing a file checklist for TEFAP Agency files to ensure all documents are in the file. Condition: The Organization was not able to locate one application selected for testing and the file checklist was not completed for one TEFAP Agency file. Cause: Management oversight Effect: The Organization could have made the wrong eligibility determination for one CSFP participant and could have missed required documentation for a TEFAP agency. Context: 40 CSFP applications were selected for testing. The Organization was unable to find one application selected for testing. 7 TEFAP Agency files were selected for testing. The file checklist was not completed for one file. However, all the required documents were in the file. Questioned Costs: None Repeat Finding: No Recommendation: The Organization should review their policies and procedures to ensure all applications are maintained and the file checklist is completed for all TEFAP Agency files. View of Responsible Officials: Management agrees with the recommendation and will review their procedures to ensure all applications are maintained and the file checklist is completed for all TEFAP Agency files.