FAC Explorer

Audit 341522

FY End
2024-06-30
Total Expended
$2.45M
Findings
6
Programs
7
Organization: The Open Door/cape Ann Food Pantry, Inc. (MA)
Year: 2024 Accepted: 2025-02-06
Auditor: Johnson O'Connor Feron & Carucci LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
522253 2024-001 Significant Deficiency - ABCFHLM
522254 2024-002 Significant Deficiency - ABCFHLM
522255 2024-003 - - ABCFHLM
1098695 2024-001 Significant Deficiency - ABCFHLM
1098696 2024-002 Significant Deficiency - ABCFHLM
1098697 2024-003 - - ABCFHLM

Programs

ALN Program Spent Major Findings
14.251 Economic Development Initiative, Community Project Funding, and Miscellaneous Grants $786,892 Yes 3
10.569 Emergency Food Assistance Program (food Commodities) $558,345 - 0
14.218 Community Development Block Grants/entitlement Grants $275,000 - 0
10.558 Child and Adult Care Food Program $138,823 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $100,000 - 0
10.551 Supplemental Nutrition Assistance Program $56,415 - 0
10.559 Summer Food Service Program for Children $15,790 - 0

Contacts

Name Title Type
JCUVATEKMHU7 Marcia Hubbard Auditee
9782836776 Douglas Thorpe Auditor
No contacts on file

Notes to SEFA

Title: 1.      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. De Minimis Rate Used: N Rate Explanation: This was not applicable to expenses charged to federal awards. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of The Open Door Cape Ann Food Pantry, Inc. (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: 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, 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. De Minimis Rate Used: N Rate Explanation: This was not applicable to expenses charged to federal awards. 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.
Title: 3. INDIRECT COST RATE 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. De Minimis Rate Used: N Rate Explanation: This was not applicable to expenses charged to federal awards. The Company did not elect to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: 4. SUBSEQUENT EVENTS 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. De Minimis Rate Used: N Rate Explanation: This was not applicable to expenses charged to federal awards. The Company has evaluated subsequent events through January 31, 2025, the date on which the Schedule was available to be issued.

Finding Details

Finding 2024-001
Item # 2024-001 Valuation of Pledge Receivables (Significant Deficiency in Internal Control) Criteria: Under U.S. GAAP, long term pledge receivables are required to be discounted to net present value to ensure that they are properly stated under the accrual basis of accounting. Condition: During the year under audit, the Organization did not record the appropriate discount for long term pledge receivables. Cause: Management did not follow the requirements under U.S. GAAP for long term pledge receivables and did not take the necessary measures to ensure that the ending balance of long term pledge receivables was properly stated. Effect: Failure to update internal controls to comply with the requirements of U.S. GAAP could result in material misstatements of receivable balances. Recommendation: The Organization should strengthen its internal control practices by updating its policies and procedures to comply with U.S. GAAP. Views of Responsible Officials and Planned Corrective Actions: Management has been making updates to its policies and procedures throughout fiscal year 2025 to be in full compliance with U.S. GAAP and the Uniform Guidance. This exercise is anticipated to be complete by the end of fiscal year 2025.
Finding 2024-002
Item # 2024-002 Prepaid Expenses (Significant Deficiency in Internal Control) Criteria: Under U.S. GAAP, expenses prepaid during the fiscal year should be recorded as an asset on the statement of financial position and amortized through the remainder of the fiscal year to ensure that they are properly stated under the accrual basis of accounting. Condition: During the year under audit, the Organization did not properly reconcile the ending balance of prepaid expenses in the general ledger. Cause: Management did not take the necessary measures to reconcile prepaid expense amounts through the fiscal year to the general ledger to ensure that the ending balance of prepaid expenses was properly stated. Effect: Failure to update internal controls to comply with the requirements of U.S. GAAP could result in material misstatements of prepaid expense balances. Recommendation: The Organization should strengthen its internal control practices by updating its policies and procedures to comply with U.S. GAAP. Views of Responsible Officials and Planned Corrective Actions: Management has been making updates to its policies and procedures throughout fiscal year 2025 to be in full compliance with U.S. GAAP and the Uniform Guidance. This exercise is anticipated to be complete by the end of fiscal year 2025.
Finding 2024-003
Item # 2024-003 Reporting (Compliance Finding) Criteria: Per the grant agreement with the Department of Housing and Urban Development (HUD) the Organization must submit semi-annual performance and financial reports within 30 days of the reporting period end. Condition: Management did not submit the reports within the time period specified. Cause: Management was unaware of the thirty day deadline submit the required reports. Effect: The Organization is not in compliance with the federal award reporting requirements. Recommendation: The Organization should update its procedures to submit federal reports within the time period specified in the grant agreement. Views of Responsible Officials and Planned Corrective Actions: Management has been making updates to its policies and procedures throughout fiscal year 2025 to be in full compliance with federal award agreements and the Uniform Guidance. This exercise is anticipated to be complete by the end of fiscal year 2025.
Finding 2024-001
Item # 2024-001 Valuation of Pledge Receivables (Significant Deficiency in Internal Control) Criteria: Under U.S. GAAP, long term pledge receivables are required to be discounted to net present value to ensure that they are properly stated under the accrual basis of accounting. Condition: During the year under audit, the Organization did not record the appropriate discount for long term pledge receivables. Cause: Management did not follow the requirements under U.S. GAAP for long term pledge receivables and did not take the necessary measures to ensure that the ending balance of long term pledge receivables was properly stated. Effect: Failure to update internal controls to comply with the requirements of U.S. GAAP could result in material misstatements of receivable balances. Recommendation: The Organization should strengthen its internal control practices by updating its policies and procedures to comply with U.S. GAAP. Views of Responsible Officials and Planned Corrective Actions: Management has been making updates to its policies and procedures throughout fiscal year 2025 to be in full compliance with U.S. GAAP and the Uniform Guidance. This exercise is anticipated to be complete by the end of fiscal year 2025.
Finding 2024-002
Item # 2024-002 Prepaid Expenses (Significant Deficiency in Internal Control) Criteria: Under U.S. GAAP, expenses prepaid during the fiscal year should be recorded as an asset on the statement of financial position and amortized through the remainder of the fiscal year to ensure that they are properly stated under the accrual basis of accounting. Condition: During the year under audit, the Organization did not properly reconcile the ending balance of prepaid expenses in the general ledger. Cause: Management did not take the necessary measures to reconcile prepaid expense amounts through the fiscal year to the general ledger to ensure that the ending balance of prepaid expenses was properly stated. Effect: Failure to update internal controls to comply with the requirements of U.S. GAAP could result in material misstatements of prepaid expense balances. Recommendation: The Organization should strengthen its internal control practices by updating its policies and procedures to comply with U.S. GAAP. Views of Responsible Officials and Planned Corrective Actions: Management has been making updates to its policies and procedures throughout fiscal year 2025 to be in full compliance with U.S. GAAP and the Uniform Guidance. This exercise is anticipated to be complete by the end of fiscal year 2025.
Finding 2024-003
Item # 2024-003 Reporting (Compliance Finding) Criteria: Per the grant agreement with the Department of Housing and Urban Development (HUD) the Organization must submit semi-annual performance and financial reports within 30 days of the reporting period end. Condition: Management did not submit the reports within the time period specified. Cause: Management was unaware of the thirty day deadline submit the required reports. Effect: The Organization is not in compliance with the federal award reporting requirements. Recommendation: The Organization should update its procedures to submit federal reports within the time period specified in the grant agreement. Views of Responsible Officials and Planned Corrective Actions: Management has been making updates to its policies and procedures throughout fiscal year 2025 to be in full compliance with federal award agreements and the Uniform Guidance. This exercise is anticipated to be complete by the end of fiscal year 2025.