Audit 344536

FY End
2023-06-30
Total Expended
$2.03M
Findings
10
Programs
8
Year: 2023 Accepted: 2025-03-03
Auditor: Uhy LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
525309 2023-003 Material Weakness Yes B
525310 2023-004 Material Weakness Yes B
525311 2023-006 Significant Deficiency - A
525312 2023-007 Significant Deficiency - L
525313 2023-005 Significant Deficiency - I
1101751 2023-003 Material Weakness Yes B
1101752 2023-004 Material Weakness Yes B
1101753 2023-006 Significant Deficiency - A
1101754 2023-007 Significant Deficiency - L
1101755 2023-005 Significant Deficiency - I

Contacts

Name Title Type
ZL49ZKC9Z4T3 Chad Higdon Auditee
8163643663 Susan Maher 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 0MB Circular A-122, Cost Principles for Non-profit Organizations, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Second Harvest Community Food Bank, Inc. has elected not to use the 10- percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Donated food was valued above utilizing rates specifically provided by Feeding America. For the year ended June 30, 2023, contributed food was valued at $1.93 per pound on the schedule of expenditures of federal awards. See ·Note 2 of the accompanying financial statements for the determined value of contributed food per pound for reporting within those statements. The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal grant activity of Second Harvest Community Food Bank, Inc. under programs of the federal government for the year ended June 30, 2023. 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 Second Harvest Community Food Bank, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Second Harvest Community Food Bank, Inc.
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 the cost principles contained in the 0MB Circular A-122, Cost Principles for Non-profit Organizations, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Second Harvest Community Food Bank, Inc. has elected not to use the 10- percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Donated food was valued above utilizing rates specifically provided by Feeding America. For the year ended June 30, 2023, contributed food was valued at $1.93 per pound on the schedule of expenditures of federal awards. See ·Note 2 of the accompanying financial statements for the determined value of contributed food per pound for reporting within those statements. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the 0MB Circular A-122, Cost Principles for Non-profit Organizations, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Second Harvest Community Food Bank, Inc. has elected not to use the 10- percent de minimis indirect cost rate allowed under the Uniform Guidance. Donated food was valued above utilizing rates specifically provided by Feeding America. For the year ended June 30, 2023, contributed food was valued at $1.93 per pound on the schedule of expenditures of federal awards. See ·Note 2 of the accompanying financial statements for the determined value of contributed food per pound for reporting within those statements.

Finding Details

Second Harvest values inventory based on historical Feeding America rates applied to the weight of the food received from TEFAP. This estimation of value is not reconciled to the actual values of donated product as reported to Second Harvest by the states of Missouri and Kansas. An audit adjustment of $178,812 (12.82% of commodities received) was recorded to adjust the SEFA to state reporting.
Overhead costs and payroll are not appropriately allocated amongst the activities of Second Harvest. Instead, costs such as utilities, phone, lawn service, repairs and maintenance and payroll are 100% allocated to TEFAP.
Expenditures reported on the SEFA for meal reimbursement programs, including Summer Food service program (SFSP) and Child and Adult Food Care program (CACFP), are less than the federal funding received as the Organization does not track and allocate expenditures in sufficient detail to identify program specific costs. The Organization asserts that expenditures are sufficient to exceed the funding received, but documentation to support this assertion is not available.
Five federally funded programs were excluded from the SEFA as they were not identified by Second Harvest.
Second Harvest considers procurement procedures for vendors based on individual invoices, rather than based on total contract expenditures. As such, not all vendors were evaluated in accordance with Second Harvest’s procurement policy.
Second Harvest values inventory based on historical Feeding America rates applied to the weight of the food received from TEFAP. This estimation of value is not reconciled to the actual values of donated product as reported to Second Harvest by the states of Missouri and Kansas. An audit adjustment of $178,812 (12.82% of commodities received) was recorded to adjust the SEFA to state reporting.
Overhead costs and payroll are not appropriately allocated amongst the activities of Second Harvest. Instead, costs such as utilities, phone, lawn service, repairs and maintenance and payroll are 100% allocated to TEFAP.
Expenditures reported on the SEFA for meal reimbursement programs, including Summer Food service program (SFSP) and Child and Adult Food Care program (CACFP), are less than the federal funding received as the Organization does not track and allocate expenditures in sufficient detail to identify program specific costs. The Organization asserts that expenditures are sufficient to exceed the funding received, but documentation to support this assertion is not available.
Five federally funded programs were excluded from the SEFA as they were not identified by Second Harvest.
Second Harvest considers procurement procedures for vendors based on individual invoices, rather than based on total contract expenditures. As such, not all vendors were evaluated in accordance with Second Harvest’s procurement policy.