Audit 350112

FY End
2024-06-30
Total Expended
$919,121
Findings
2
Programs
6
Organization: Food for Greater Elgin, Inc. (IL)
Year: 2024 Accepted: 2025-03-28
Auditor: Porte Brown LLC

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
539559 2024-002 Material Weakness - N
1116001 2024-002 Material Weakness - N

Programs

Contacts

Name Title Type
CMQ4C9B7KBJ4 Andres Diez Auditee
8479319330 Megan Angle 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 awards activity of Food for Greater Elgin, 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: SUBRECIPIENTS 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 Organization provided no amounts to subrecipients from the federal awards listed.
Title: NON-CASH ASSISTANCE 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. In accordance with Uniform Guidance (2 CFR 200.502), the Organization has recognized the donated food and goods as revenue in the period received. During the fiscal year ended June 30, 2024, the Organization received donated food and goods valued at $919,121.
Title: LOANS OUTSTANDING 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. There were no loans outstanding at June 30, 2024 related to the federal awards listed.
Title: DONATED PROPERTY AND EQUIPMENT 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 Organization has not received any property and equipment to be disclosed as required by Uniform Guidance.

Finding Details

Condition: The food pantry did not complete the required annual inventory observation for the donated foods for the fiscal year ending June 30, 2024. Criteria: Accurate and complete records must be maintained with respect to the receipt, distribution/use, and inventory of USDA Foods, including end products processed from USDA Foods in TEFAP. Failure to maintain records required by 7 CFR section 250.19 is considered prima facie evidence of improper distribution or loss of USDA Foods, and the agency processor or entity is liable for the value of the food or replacement of the food in kind (7 CFR sections 250.16 and 250.19(a)). Context: The food pantry does not currently have a inventory management system in place. Cause: The Organization was unaware of the requirement to maintain records with respect to the distribtion/use and invenotry of USDA Foods. Effect: Failure to conduct the annual inventory observation may result in inaccurate inventory records, potential loss or misappropriation of donated foods, and non-compliance with federal regulations. This could lead to questioned costs and potential disallowance of federal funds. Recommendations: The food pantry should establish and implement procedures to ensure that an annual physical inventory of donated foods is conducted and documented in accordance with the Uniform Guidance requirements. Training should be provided to relevant staff on the importance of inventory observations and the procedures to be followed. The food pantry should perform periodic reviews to ensure compliance with the established procedures and address any discrepancies promptly. In addition, the Organization should consider a reaosnable estimate for tracking of distribution/use throughout the year. View of Responsible Officials and Planned Corrective Actions: See corrective action plan.
Condition: The food pantry did not complete the required annual inventory observation for the donated foods for the fiscal year ending June 30, 2024. Criteria: Accurate and complete records must be maintained with respect to the receipt, distribution/use, and inventory of USDA Foods, including end products processed from USDA Foods in TEFAP. Failure to maintain records required by 7 CFR section 250.19 is considered prima facie evidence of improper distribution or loss of USDA Foods, and the agency processor or entity is liable for the value of the food or replacement of the food in kind (7 CFR sections 250.16 and 250.19(a)). Context: The food pantry does not currently have a inventory management system in place. Cause: The Organization was unaware of the requirement to maintain records with respect to the distribtion/use and invenotry of USDA Foods. Effect: Failure to conduct the annual inventory observation may result in inaccurate inventory records, potential loss or misappropriation of donated foods, and non-compliance with federal regulations. This could lead to questioned costs and potential disallowance of federal funds. Recommendations: The food pantry should establish and implement procedures to ensure that an annual physical inventory of donated foods is conducted and documented in accordance with the Uniform Guidance requirements. Training should be provided to relevant staff on the importance of inventory observations and the procedures to be followed. The food pantry should perform periodic reviews to ensure compliance with the established procedures and address any discrepancies promptly. In addition, the Organization should consider a reaosnable estimate for tracking of distribution/use throughout the year. View of Responsible Officials and Planned Corrective Actions: See corrective action plan.