FAC Explorer

Audit 351743

FY End
2024-06-30
Total Expended
$120.14M
Findings
8
Programs
9
Organization: The Houston Food Bank and Subsidiaries (TX)
Year: 2024 Accepted: 2025-03-31
Auditor: Forvis Mazars LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
547557 2024-003 Significant Deficiency Yes I
547558 2024-003 Significant Deficiency Yes I
547559 2024-003 Significant Deficiency Yes I
547560 2024-003 Significant Deficiency Yes I
1123999 2024-003 Significant Deficiency Yes I
1124000 2024-003 Significant Deficiency Yes I
1124001 2024-003 Significant Deficiency Yes I
1124002 2024-003 Significant Deficiency Yes I

Programs

ALN Program Spent Major Findings
10.187 The Emergency Food Assistance Program (tefap) Commodity Credit Corporation Eligible Recipient Funds $32.52M - 0
10.565 Commodity Supplemental Food Program $8.49M Yes 1
10.182 Pandemic Relief Activities: Local Food Purchase Agreements with States, Tribes, and Local Governments $7.37M Yes 0
10.558 Child and Adult Care Food Program $2.48M - 0
10.559 Summer Food Service Program for Children $959,199 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $935,401 Yes 1
10.568 Emergency Food Assistance Program (administrative Costs) $483,924 Yes 1
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $460,364 - 0
10.569 Emergency Food Assistance Program (food Commodities) $35,986 Yes 0

Contacts

Name Title Type
HQXJECBZCLN3 Chinelo Arula Auditee
7135478613 Shekita Rawls Auditor
No contacts on file

Notes to SEFA

Title: Note 1. 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: N Rate Explanation: The Food Bank has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of The Houston Food Bank and Subsidiaries (The Food Bank) 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 Food Bank, it is not intended to and does not present the financial position, changes in net assets, or cash flows of The Food Bank
Title: Note 4. Food Commodities 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: N Rate Explanation: The Food Bank has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Food Commodities are expended when distributed to agencies. Distributed food is reported in the Schedule under the Commodity Credit Corporation Program, Commodity Supplemental Food Program, and Emergency Food Assistance Program and is separately valued by category at the weighted-average wholesale value of one pound of donated product based on the national per pound price as provided by the most recent Feeding America Product Valuation Survey. As of June 30, 2024, $1,851,972, $3,029,357, and $3,698,217 was included in food inventory for the Emergency Food Assistance Program, Commodity Supplemental Food Program, and Commodity Credit Corporation Program, respectively, and had not been expended
Title: Note 5. Federal Programs 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: N Rate Explanation: The Food Bank has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Food Bank did not have any federal loan programs during the year ended June 30, 2024.

Finding Details

Finding 2024-003
Procurement, Suspension and Debarment U.S. Department of Agriculture/Passed-through Texas Department of Agriculture Food Distribution Cluster Federal Assistance Listing Number 10.565 – Commodity Supplemental Food Program (Administrative Costs) Award Number: TX-101-4001 Award Years: 10/1/22 – 9/30/23 and 10/1/23 – 9/30/24 Federal Assistance Listing Number 10.568 – Emergency Food Assistance Program (Administrative Costs) Award Numbers: TX-101-7058 and 01534 Award Years: 10/1/22 – 9/30/23 and 10/1/23 – 9/30/24 U.S. Department of Treasury/Passed-through Harris County Public Health Federal Assistance Listing Number 21.027 – Coronavirus State and Local Fiscal Recovery Funds (CSLFR) (ARPA – COVID-19) Award Numbers: N/A Award Years: 10/1/22 – 9/30/23 and 10/1/23 – 9/30/24 Type of Finding: Other instance of noncompliance Criteria: Management is responsible for internal controls over compliance with Procurement, Suspension and Debarment in accordance with the Uniform Guidance. Condition: Management has a procurement policy in place to ensure compliance with federal law and standards. However, management was unable to provide supporting documentation for a formal bidding process and verification of suspension and debarment, as required according to the procurement policy, for two vendors. Questioned Costs: Food Distribution Cluster – $30,850; CSLFR ARPA – COVID-19 grant – $13,895 Context/Sampling: A nonstatistical sample of 3 out of 21 vendors was selected for testing the Food Distribution Cluster. A nonstatistical sample of 1 out of 3 vendors was selected for testing the CSLFR ARPA – COVID-19 grant. Cause: The Food Bank experienced turnover in its chief financial officer, controller, and accounting manager positions during the year. Effect or Potential Effect: Lack of compliance with Procurement, Suspension and Debarment compliance requirement may result in reduced future funding for the program. Identification as a Repeat Finding, if applicable: 2023-003 Recommendation: We recommend The Food Bank incorporate controls and procedures to ensure the Procurement Policy is being adhered to at all times. Views of Responsible Officials: The Food Bank agrees with the finding, which is due to turnover and transitions in key positions. Corrective Action Plan: A vendor analysis by the Procurement department has been completed and communicated to each director to create a RFP schedule for all contract renewals. Annual education of directors and managers on the procurement policy, informal bid, and formal bid processes was completed previously and will be completed again. The team will be working with the new COO to ensure that these processes are followed and implemented frequently as new personnel is onboarded.
Finding 2024-003
Procurement, Suspension and Debarment U.S. Department of Agriculture/Passed-through Texas Department of Agriculture Food Distribution Cluster Federal Assistance Listing Number 10.565 – Commodity Supplemental Food Program (Administrative Costs) Award Number: TX-101-4001 Award Years: 10/1/22 – 9/30/23 and 10/1/23 – 9/30/24 Federal Assistance Listing Number 10.568 – Emergency Food Assistance Program (Administrative Costs) Award Numbers: TX-101-7058 and 01534 Award Years: 10/1/22 – 9/30/23 and 10/1/23 – 9/30/24 U.S. Department of Treasury/Passed-through Harris County Public Health Federal Assistance Listing Number 21.027 – Coronavirus State and Local Fiscal Recovery Funds (CSLFR) (ARPA – COVID-19) Award Numbers: N/A Award Years: 10/1/22 – 9/30/23 and 10/1/23 – 9/30/24 Type of Finding: Other instance of noncompliance Criteria: Management is responsible for internal controls over compliance with Procurement, Suspension and Debarment in accordance with the Uniform Guidance. Condition: Management has a procurement policy in place to ensure compliance with federal law and standards. However, management was unable to provide supporting documentation for a formal bidding process and verification of suspension and debarment, as required according to the procurement policy, for two vendors. Questioned Costs: Food Distribution Cluster – $30,850; CSLFR ARPA – COVID-19 grant – $13,895 Context/Sampling: A nonstatistical sample of 3 out of 21 vendors was selected for testing the Food Distribution Cluster. A nonstatistical sample of 1 out of 3 vendors was selected for testing the CSLFR ARPA – COVID-19 grant. Cause: The Food Bank experienced turnover in its chief financial officer, controller, and accounting manager positions during the year. Effect or Potential Effect: Lack of compliance with Procurement, Suspension and Debarment compliance requirement may result in reduced future funding for the program. Identification as a Repeat Finding, if applicable: 2023-003 Recommendation: We recommend The Food Bank incorporate controls and procedures to ensure the Procurement Policy is being adhered to at all times. Views of Responsible Officials: The Food Bank agrees with the finding, which is due to turnover and transitions in key positions. Corrective Action Plan: A vendor analysis by the Procurement department has been completed and communicated to each director to create a RFP schedule for all contract renewals. Annual education of directors and managers on the procurement policy, informal bid, and formal bid processes was completed previously and will be completed again. The team will be working with the new COO to ensure that these processes are followed and implemented frequently as new personnel is onboarded.
Finding 2024-003
Procurement, Suspension and Debarment U.S. Department of Agriculture/Passed-through Texas Department of Agriculture Food Distribution Cluster Federal Assistance Listing Number 10.565 – Commodity Supplemental Food Program (Administrative Costs) Award Number: TX-101-4001 Award Years: 10/1/22 – 9/30/23 and 10/1/23 – 9/30/24 Federal Assistance Listing Number 10.568 – Emergency Food Assistance Program (Administrative Costs) Award Numbers: TX-101-7058 and 01534 Award Years: 10/1/22 – 9/30/23 and 10/1/23 – 9/30/24 U.S. Department of Treasury/Passed-through Harris County Public Health Federal Assistance Listing Number 21.027 – Coronavirus State and Local Fiscal Recovery Funds (CSLFR) (ARPA – COVID-19) Award Numbers: N/A Award Years: 10/1/22 – 9/30/23 and 10/1/23 – 9/30/24 Type of Finding: Other instance of noncompliance Criteria: Management is responsible for internal controls over compliance with Procurement, Suspension and Debarment in accordance with the Uniform Guidance. Condition: Management has a procurement policy in place to ensure compliance with federal law and standards. However, management was unable to provide supporting documentation for a formal bidding process and verification of suspension and debarment, as required according to the procurement policy, for two vendors. Questioned Costs: Food Distribution Cluster – $30,850; CSLFR ARPA – COVID-19 grant – $13,895 Context/Sampling: A nonstatistical sample of 3 out of 21 vendors was selected for testing the Food Distribution Cluster. A nonstatistical sample of 1 out of 3 vendors was selected for testing the CSLFR ARPA – COVID-19 grant. Cause: The Food Bank experienced turnover in its chief financial officer, controller, and accounting manager positions during the year. Effect or Potential Effect: Lack of compliance with Procurement, Suspension and Debarment compliance requirement may result in reduced future funding for the program. Identification as a Repeat Finding, if applicable: 2023-003 Recommendation: We recommend The Food Bank incorporate controls and procedures to ensure the Procurement Policy is being adhered to at all times. Views of Responsible Officials: The Food Bank agrees with the finding, which is due to turnover and transitions in key positions. Corrective Action Plan: A vendor analysis by the Procurement department has been completed and communicated to each director to create a RFP schedule for all contract renewals. Annual education of directors and managers on the procurement policy, informal bid, and formal bid processes was completed previously and will be completed again. The team will be working with the new COO to ensure that these processes are followed and implemented frequently as new personnel is onboarded.
Finding 2024-003
Procurement, Suspension and Debarment U.S. Department of Agriculture/Passed-through Texas Department of Agriculture Food Distribution Cluster Federal Assistance Listing Number 10.565 – Commodity Supplemental Food Program (Administrative Costs) Award Number: TX-101-4001 Award Years: 10/1/22 – 9/30/23 and 10/1/23 – 9/30/24 Federal Assistance Listing Number 10.568 – Emergency Food Assistance Program (Administrative Costs) Award Numbers: TX-101-7058 and 01534 Award Years: 10/1/22 – 9/30/23 and 10/1/23 – 9/30/24 U.S. Department of Treasury/Passed-through Harris County Public Health Federal Assistance Listing Number 21.027 – Coronavirus State and Local Fiscal Recovery Funds (CSLFR) (ARPA – COVID-19) Award Numbers: N/A Award Years: 10/1/22 – 9/30/23 and 10/1/23 – 9/30/24 Type of Finding: Other instance of noncompliance Criteria: Management is responsible for internal controls over compliance with Procurement, Suspension and Debarment in accordance with the Uniform Guidance. Condition: Management has a procurement policy in place to ensure compliance with federal law and standards. However, management was unable to provide supporting documentation for a formal bidding process and verification of suspension and debarment, as required according to the procurement policy, for two vendors. Questioned Costs: Food Distribution Cluster – $30,850; CSLFR ARPA – COVID-19 grant – $13,895 Context/Sampling: A nonstatistical sample of 3 out of 21 vendors was selected for testing the Food Distribution Cluster. A nonstatistical sample of 1 out of 3 vendors was selected for testing the CSLFR ARPA – COVID-19 grant. Cause: The Food Bank experienced turnover in its chief financial officer, controller, and accounting manager positions during the year. Effect or Potential Effect: Lack of compliance with Procurement, Suspension and Debarment compliance requirement may result in reduced future funding for the program. Identification as a Repeat Finding, if applicable: 2023-003 Recommendation: We recommend The Food Bank incorporate controls and procedures to ensure the Procurement Policy is being adhered to at all times. Views of Responsible Officials: The Food Bank agrees with the finding, which is due to turnover and transitions in key positions. Corrective Action Plan: A vendor analysis by the Procurement department has been completed and communicated to each director to create a RFP schedule for all contract renewals. Annual education of directors and managers on the procurement policy, informal bid, and formal bid processes was completed previously and will be completed again. The team will be working with the new COO to ensure that these processes are followed and implemented frequently as new personnel is onboarded.
Finding 2024-003
Procurement, Suspension and Debarment U.S. Department of Agriculture/Passed-through Texas Department of Agriculture Food Distribution Cluster Federal Assistance Listing Number 10.565 – Commodity Supplemental Food Program (Administrative Costs) Award Number: TX-101-4001 Award Years: 10/1/22 – 9/30/23 and 10/1/23 – 9/30/24 Federal Assistance Listing Number 10.568 – Emergency Food Assistance Program (Administrative Costs) Award Numbers: TX-101-7058 and 01534 Award Years: 10/1/22 – 9/30/23 and 10/1/23 – 9/30/24 U.S. Department of Treasury/Passed-through Harris County Public Health Federal Assistance Listing Number 21.027 – Coronavirus State and Local Fiscal Recovery Funds (CSLFR) (ARPA – COVID-19) Award Numbers: N/A Award Years: 10/1/22 – 9/30/23 and 10/1/23 – 9/30/24 Type of Finding: Other instance of noncompliance Criteria: Management is responsible for internal controls over compliance with Procurement, Suspension and Debarment in accordance with the Uniform Guidance. Condition: Management has a procurement policy in place to ensure compliance with federal law and standards. However, management was unable to provide supporting documentation for a formal bidding process and verification of suspension and debarment, as required according to the procurement policy, for two vendors. Questioned Costs: Food Distribution Cluster – $30,850; CSLFR ARPA – COVID-19 grant – $13,895 Context/Sampling: A nonstatistical sample of 3 out of 21 vendors was selected for testing the Food Distribution Cluster. A nonstatistical sample of 1 out of 3 vendors was selected for testing the CSLFR ARPA – COVID-19 grant. Cause: The Food Bank experienced turnover in its chief financial officer, controller, and accounting manager positions during the year. Effect or Potential Effect: Lack of compliance with Procurement, Suspension and Debarment compliance requirement may result in reduced future funding for the program. Identification as a Repeat Finding, if applicable: 2023-003 Recommendation: We recommend The Food Bank incorporate controls and procedures to ensure the Procurement Policy is being adhered to at all times. Views of Responsible Officials: The Food Bank agrees with the finding, which is due to turnover and transitions in key positions. Corrective Action Plan: A vendor analysis by the Procurement department has been completed and communicated to each director to create a RFP schedule for all contract renewals. Annual education of directors and managers on the procurement policy, informal bid, and formal bid processes was completed previously and will be completed again. The team will be working with the new COO to ensure that these processes are followed and implemented frequently as new personnel is onboarded.
Finding 2024-003
Procurement, Suspension and Debarment U.S. Department of Agriculture/Passed-through Texas Department of Agriculture Food Distribution Cluster Federal Assistance Listing Number 10.565 – Commodity Supplemental Food Program (Administrative Costs) Award Number: TX-101-4001 Award Years: 10/1/22 – 9/30/23 and 10/1/23 – 9/30/24 Federal Assistance Listing Number 10.568 – Emergency Food Assistance Program (Administrative Costs) Award Numbers: TX-101-7058 and 01534 Award Years: 10/1/22 – 9/30/23 and 10/1/23 – 9/30/24 U.S. Department of Treasury/Passed-through Harris County Public Health Federal Assistance Listing Number 21.027 – Coronavirus State and Local Fiscal Recovery Funds (CSLFR) (ARPA – COVID-19) Award Numbers: N/A Award Years: 10/1/22 – 9/30/23 and 10/1/23 – 9/30/24 Type of Finding: Other instance of noncompliance Criteria: Management is responsible for internal controls over compliance with Procurement, Suspension and Debarment in accordance with the Uniform Guidance. Condition: Management has a procurement policy in place to ensure compliance with federal law and standards. However, management was unable to provide supporting documentation for a formal bidding process and verification of suspension and debarment, as required according to the procurement policy, for two vendors. Questioned Costs: Food Distribution Cluster – $30,850; CSLFR ARPA – COVID-19 grant – $13,895 Context/Sampling: A nonstatistical sample of 3 out of 21 vendors was selected for testing the Food Distribution Cluster. A nonstatistical sample of 1 out of 3 vendors was selected for testing the CSLFR ARPA – COVID-19 grant. Cause: The Food Bank experienced turnover in its chief financial officer, controller, and accounting manager positions during the year. Effect or Potential Effect: Lack of compliance with Procurement, Suspension and Debarment compliance requirement may result in reduced future funding for the program. Identification as a Repeat Finding, if applicable: 2023-003 Recommendation: We recommend The Food Bank incorporate controls and procedures to ensure the Procurement Policy is being adhered to at all times. Views of Responsible Officials: The Food Bank agrees with the finding, which is due to turnover and transitions in key positions. Corrective Action Plan: A vendor analysis by the Procurement department has been completed and communicated to each director to create a RFP schedule for all contract renewals. Annual education of directors and managers on the procurement policy, informal bid, and formal bid processes was completed previously and will be completed again. The team will be working with the new COO to ensure that these processes are followed and implemented frequently as new personnel is onboarded.
Finding 2024-003
Procurement, Suspension and Debarment U.S. Department of Agriculture/Passed-through Texas Department of Agriculture Food Distribution Cluster Federal Assistance Listing Number 10.565 – Commodity Supplemental Food Program (Administrative Costs) Award Number: TX-101-4001 Award Years: 10/1/22 – 9/30/23 and 10/1/23 – 9/30/24 Federal Assistance Listing Number 10.568 – Emergency Food Assistance Program (Administrative Costs) Award Numbers: TX-101-7058 and 01534 Award Years: 10/1/22 – 9/30/23 and 10/1/23 – 9/30/24 U.S. Department of Treasury/Passed-through Harris County Public Health Federal Assistance Listing Number 21.027 – Coronavirus State and Local Fiscal Recovery Funds (CSLFR) (ARPA – COVID-19) Award Numbers: N/A Award Years: 10/1/22 – 9/30/23 and 10/1/23 – 9/30/24 Type of Finding: Other instance of noncompliance Criteria: Management is responsible for internal controls over compliance with Procurement, Suspension and Debarment in accordance with the Uniform Guidance. Condition: Management has a procurement policy in place to ensure compliance with federal law and standards. However, management was unable to provide supporting documentation for a formal bidding process and verification of suspension and debarment, as required according to the procurement policy, for two vendors. Questioned Costs: Food Distribution Cluster – $30,850; CSLFR ARPA – COVID-19 grant – $13,895 Context/Sampling: A nonstatistical sample of 3 out of 21 vendors was selected for testing the Food Distribution Cluster. A nonstatistical sample of 1 out of 3 vendors was selected for testing the CSLFR ARPA – COVID-19 grant. Cause: The Food Bank experienced turnover in its chief financial officer, controller, and accounting manager positions during the year. Effect or Potential Effect: Lack of compliance with Procurement, Suspension and Debarment compliance requirement may result in reduced future funding for the program. Identification as a Repeat Finding, if applicable: 2023-003 Recommendation: We recommend The Food Bank incorporate controls and procedures to ensure the Procurement Policy is being adhered to at all times. Views of Responsible Officials: The Food Bank agrees with the finding, which is due to turnover and transitions in key positions. Corrective Action Plan: A vendor analysis by the Procurement department has been completed and communicated to each director to create a RFP schedule for all contract renewals. Annual education of directors and managers on the procurement policy, informal bid, and formal bid processes was completed previously and will be completed again. The team will be working with the new COO to ensure that these processes are followed and implemented frequently as new personnel is onboarded.
Finding 2024-003
Procurement, Suspension and Debarment U.S. Department of Agriculture/Passed-through Texas Department of Agriculture Food Distribution Cluster Federal Assistance Listing Number 10.565 – Commodity Supplemental Food Program (Administrative Costs) Award Number: TX-101-4001 Award Years: 10/1/22 – 9/30/23 and 10/1/23 – 9/30/24 Federal Assistance Listing Number 10.568 – Emergency Food Assistance Program (Administrative Costs) Award Numbers: TX-101-7058 and 01534 Award Years: 10/1/22 – 9/30/23 and 10/1/23 – 9/30/24 U.S. Department of Treasury/Passed-through Harris County Public Health Federal Assistance Listing Number 21.027 – Coronavirus State and Local Fiscal Recovery Funds (CSLFR) (ARPA – COVID-19) Award Numbers: N/A Award Years: 10/1/22 – 9/30/23 and 10/1/23 – 9/30/24 Type of Finding: Other instance of noncompliance Criteria: Management is responsible for internal controls over compliance with Procurement, Suspension and Debarment in accordance with the Uniform Guidance. Condition: Management has a procurement policy in place to ensure compliance with federal law and standards. However, management was unable to provide supporting documentation for a formal bidding process and verification of suspension and debarment, as required according to the procurement policy, for two vendors. Questioned Costs: Food Distribution Cluster – $30,850; CSLFR ARPA – COVID-19 grant – $13,895 Context/Sampling: A nonstatistical sample of 3 out of 21 vendors was selected for testing the Food Distribution Cluster. A nonstatistical sample of 1 out of 3 vendors was selected for testing the CSLFR ARPA – COVID-19 grant. Cause: The Food Bank experienced turnover in its chief financial officer, controller, and accounting manager positions during the year. Effect or Potential Effect: Lack of compliance with Procurement, Suspension and Debarment compliance requirement may result in reduced future funding for the program. Identification as a Repeat Finding, if applicable: 2023-003 Recommendation: We recommend The Food Bank incorporate controls and procedures to ensure the Procurement Policy is being adhered to at all times. Views of Responsible Officials: The Food Bank agrees with the finding, which is due to turnover and transitions in key positions. Corrective Action Plan: A vendor analysis by the Procurement department has been completed and communicated to each director to create a RFP schedule for all contract renewals. Annual education of directors and managers on the procurement policy, informal bid, and formal bid processes was completed previously and will be completed again. The team will be working with the new COO to ensure that these processes are followed and implemented frequently as new personnel is onboarded.