FAC Explorer

Audit 354427

FY End
2024-06-30
Total Expended
$6.49M
Findings
2
Programs
3
Organization: Feeding Illinois (IL)
Year: 2024 Accepted: 2025-04-23
Auditor: Kemper CPA Group LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
555763 2024-002 Material Weakness Yes A
1132205 2024-002 Material Weakness Yes A

Programs

ALN Program Spent Major Findings
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $3.54M Yes 1
93.667 Social Services Block Grant $2.50M Yes 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $451,100 - 0

Contacts

Name Title Type
LQ7KSNMTPBJ6 Stephen D. Ericson Auditee
6307688068 Michelle D. Smith 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, which is described in Note 1 to the Organization’s financial statements. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement. De Minimis Rate Used: N Rate Explanation: Organization used the cost rate allowed by their grant. The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Organization for the year ended June 30, 2024. Expenditures reported in the Schedule are reported on the same basis of accounting as the financial statements, although the basis for determining when federal awards are expended is presented in accordance with the requirements of the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented on this schedule may differ from amounts presented in or used in the preparation of the financial statements.
Title: Note 3 - Description of Major Federal Program Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting, which is described in Note 1 to the Organization’s financial statements. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement. De Minimis Rate Used: N Rate Explanation: Organization used the cost rate allowed by their grant. Social Services Block Grant – Farm to Food Bank Program The Farm to Food Bank Program is federally funded through Social Services Block Grant that helps supplement the diets of low-income individuals and households by providing them with emergency food assistance. FEMA Feeding Mission – Allows for reimbursement of expenditures prior to or during a state of emergency such as the COVID-19 pandemic. The Mission is a special services program in addition to the normal TEFAP operations utilizing the existing staff and relationships to coordinate a more efficient response to the emergency requirements.
Title: Note 4 - Non-Cash Assistance Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting, which is described in Note 1 to the Organization’s financial statements. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement. De Minimis Rate Used: N Rate Explanation: Organization used the cost rate allowed by their grant. None

Finding Details

Finding 2024-002
Finding No.: 2024-002 Internal Control Over Grant Expenditures Federal Program Name: FEMA Feeding Mission CFDA Numbers: 97.036 Federal Agency: U.S. Department of Human Services Information on Federal Program: The objective of the FEMA Feeding Mission is to allow for reimbursement of expenditures prior to or during a state of emergency such as the COVID-19 pandemic. The Mission is a special services program in addition to the normal TEFAP operations utilizing the existing staff and relationships to coordinate a more efficient response to the emergency requirements. Criteria or Specific Requirement: The Organization is responsible for establishing and maintaining internal controls over grant expenditures to prevent error and fraud. Condition: The Organization lacked sufficient internal control over grant expenditures. During testing of grant expenditures, it was noted that 2 out of 2 reimbursements tested were modified by the State Agency overseeing the grant. Feeding Illinois did not properly calculate the number of expenditures for reimbursement. Questioned Costs: N/A Context: The control in place over grant expenditures did not operate effectively Effect: The Organization submitted grant expenditures in excess of amounts reimbursed. Cause: The Organization supplied a spreadsheet to the recipient food banks to gather data used for reimbursement for the grant. The spreadsheet was modified by the recipient food banks which caused errors in the spreadsheet upon return to the Organization. The errors were not found prior to submission to the State. SECTION III – MAJOR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS (CONCLUDED) Finding No.: 2024-002 Internal Control Over Grant Expenditures (Concluded) Identification as a repeat finding, if applicable: N/A Recommendation: We recommend that the Organization perform a more detailed review of the information submitted to verify the accuracy prior to submission for reimbursement. Views of Responsible Officials: This specific emergency Program – FEMA Feeding Mission – was a one-time, pandemic-related, disaster-relief project that necessitated thousands of lines of information being entered and reviewed before submission. We acknowledge that during this process, due to the volume and urgency, some embedded formulas miscalculated totals that were inadvertently undetected by Feeding Illinois.
Finding 2024-002
Finding No.: 2024-002 Internal Control Over Grant Expenditures Federal Program Name: FEMA Feeding Mission CFDA Numbers: 97.036 Federal Agency: U.S. Department of Human Services Information on Federal Program: The objective of the FEMA Feeding Mission is to allow for reimbursement of expenditures prior to or during a state of emergency such as the COVID-19 pandemic. The Mission is a special services program in addition to the normal TEFAP operations utilizing the existing staff and relationships to coordinate a more efficient response to the emergency requirements. Criteria or Specific Requirement: The Organization is responsible for establishing and maintaining internal controls over grant expenditures to prevent error and fraud. Condition: The Organization lacked sufficient internal control over grant expenditures. During testing of grant expenditures, it was noted that 2 out of 2 reimbursements tested were modified by the State Agency overseeing the grant. Feeding Illinois did not properly calculate the number of expenditures for reimbursement. Questioned Costs: N/A Context: The control in place over grant expenditures did not operate effectively Effect: The Organization submitted grant expenditures in excess of amounts reimbursed. Cause: The Organization supplied a spreadsheet to the recipient food banks to gather data used for reimbursement for the grant. The spreadsheet was modified by the recipient food banks which caused errors in the spreadsheet upon return to the Organization. The errors were not found prior to submission to the State. SECTION III – MAJOR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS (CONCLUDED) Finding No.: 2024-002 Internal Control Over Grant Expenditures (Concluded) Identification as a repeat finding, if applicable: N/A Recommendation: We recommend that the Organization perform a more detailed review of the information submitted to verify the accuracy prior to submission for reimbursement. Views of Responsible Officials: This specific emergency Program – FEMA Feeding Mission – was a one-time, pandemic-related, disaster-relief project that necessitated thousands of lines of information being entered and reviewed before submission. We acknowledge that during this process, due to the volume and urgency, some embedded formulas miscalculated totals that were inadvertently undetected by Feeding Illinois.