FAC Explorer

Audit 358248

FY End
2024-12-31
Total Expended
$3.19M
Findings
6
Programs
4
Organization: Target Hunger, INC . (TX)
Year: 2024 Accepted: 2025-06-06
Auditor: Blazek & Vetterling

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
564126 2024-001 Significant Deficiency - I
564127 2024-002 Significant Deficiency - B
564128 2024-001 Significant Deficiency - I
1140568 2024-001 Significant Deficiency - I
1140569 2024-002 Significant Deficiency - B
1140570 2024-001 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
14.251 Economic Development Initiative, Community Project Funding, and Miscellaneous Grants $1.95M Yes 1
10.569 Emergency Food Assistance Program (food Commodities) $917,055 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $194,465 Yes 2
97.024 Emergency Food and Shelter National Board Program $133,501 - 0

Contacts

Name Title Type
GV3QV77A7N34 Sandra Wicoff Auditee
8327671677 Laurie Hill Gutierrez Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Basis of presentation – The schedule of expenditures of federal awards is prepared on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Federal expenditures include allowable costs funded by federal grants. Allowable costs are subject to the cost principles of the Uniform Guidance and include costs that are recognized as expenses in Target Hunger’s financial statements in conformity with generally accepted accounting principles. Target Hunger has not elected to use the 10% de minimus cost rate for indirect costs and does not charge indirect costs to its federal grants. Additionally, it does not have any subrecipients. Because the schedule presents only a selected portion of the operations of Target Hunger, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Target Hunger. De Minimis Rate Used: N Rate Explanation: The Auditee has elected not to use an indirect cost rate. Basis of presentation – The schedule of expenditures of federal awards is prepared on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Federal expenditures include allowable costs funded by federal grants. Allowable costs are subject to the cost principles of the Uniform Guidance and include costs that are recognized as expenses in Target Hunger’s financial statements in conformity with generally accepted accounting principles. Target Hunger has not elected to use the 10% de minimus cost rate for indirect costs and does not charge indirect costs to its federal grants. Additionally, it does not have any subrecipients. Because the schedule presents only a selected portion of the operations of Target Hunger, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Target Hunger.
Title: NOTE 2 – FOOD COMMODITIES Accounting Policies: Basis of presentation – The schedule of expenditures of federal awards is prepared on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Federal expenditures include allowable costs funded by federal grants. Allowable costs are subject to the cost principles of the Uniform Guidance and include costs that are recognized as expenses in Target Hunger’s financial statements in conformity with generally accepted accounting principles. Target Hunger has not elected to use the 10% de minimus cost rate for indirect costs and does not charge indirect costs to its federal grants. Additionally, it does not have any subrecipients. Because the schedule presents only a selected portion of the operations of Target Hunger, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Target Hunger. De Minimis Rate Used: N Rate Explanation: The Auditee has elected not to use an indirect cost rate. Food commodities are reported in the schedule of expenditures of federal awards as federal expenditures when distributed and are valued 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 ($1.97 in 2024). At December 31, 2024, $140,000 was included in food supplies and had not been expended.

Finding Details

Finding 2024-001
Finding #2024-001 – Significant Deficiency and Other Noncompliance. Applicable federal programs: U. S. Department of Housing and Urban Development, Economic Development Initiative, Community Project Funding, and Miscellaneous Grants, Assistance Listing #14.251, Contract Number: В-23-СР-TX-1411, Contract Year: 02/15/24 – 08/31/31, Harris County, Passed through The Houston Food Bank, COVID-19 Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing #21.027, Contract Number: N/A, Contract Year: 02/08/23 – 12/31/24. Criteria: Procurement – Nonprofit organizations are required to maintain and use documented procedures for procurement transactions under a federal award and conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Subtitle III Procurement Standards and conform to federal and state laws and regulations and other contractual requirements. Simplified acquisition procedures are to be performed for procurement decisions greater than $10,000 and less than $250,000. Condition and context: Target Hunger does not have a documented procurement policy. For 1 of 6 transactions tested for procurement documentation, there were no simplified acquisition procurement procedures performed for professional services totaling $30,000. Cause: Failure to have a procurement policy and to perform simplified acquisition procedures for professional services. Effect: Failure to follow formal procurement methods may result in the organization purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Questioned costs: Unknown. Recommendation: Develop a formal procurement policy and provide training to staff responsible for procurement. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.
Finding 2024-002
Finding #2024-002 – Significant Deficiency and Other Noncompliance. Applicable federal program: Harris County, Passed through The Houston Food Bank, COVID-19 Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing #21.027, Contract Number: N/A, Contract Year: 02/08/23 – 12/31/24. Criteria: Allowable Costs – Compensation for personal services in accordance with §200.430 of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards must be based on records that accurately reflect the work performed and support the distribution of the employee’s salary or wages among specific activities or costs objectives if the employee works on more than one federal award, non-federal award, indirect activities, or unallowable activities. Condition and context: 1 of 25 payroll transactions was not supported by a timesheet. Cause: A timesheet was not obtained for one transaction due to the employee changing positions during the month. Effect: Failure to have a time sheet to support compensation allocations could result in an over/under statement of compensation charged to the Federal grant. Questioned costs: $205.32. Recommendation: Provide additional training to employees to ensure timesheets are obtained for all payroll transactions to support the allocation of compensation. Views of responsible officials and corrective action plans: Management agrees with the finding. See Corrective Action Plan.
Finding 2024-001
Finding #2024-001 – Significant Deficiency and Other Noncompliance. Applicable federal programs: U. S. Department of Housing and Urban Development, Economic Development Initiative, Community Project Funding, and Miscellaneous Grants, Assistance Listing #14.251, Contract Number: В-23-СР-TX-1411, Contract Year: 02/15/24 – 08/31/31, Harris County, Passed through The Houston Food Bank, COVID-19 Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing #21.027, Contract Number: N/A, Contract Year: 02/08/23 – 12/31/24. Criteria: Procurement – Nonprofit organizations are required to maintain and use documented procedures for procurement transactions under a federal award and conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Subtitle III Procurement Standards and conform to federal and state laws and regulations and other contractual requirements. Simplified acquisition procedures are to be performed for procurement decisions greater than $10,000 and less than $250,000. Condition and context: Target Hunger does not have a documented procurement policy. For 1 of 6 transactions tested for procurement documentation, there were no simplified acquisition procurement procedures performed for professional services totaling $30,000. Cause: Failure to have a procurement policy and to perform simplified acquisition procedures for professional services. Effect: Failure to follow formal procurement methods may result in the organization purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Questioned costs: Unknown. Recommendation: Develop a formal procurement policy and provide training to staff responsible for procurement. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.
Finding 2024-001
Finding #2024-001 – Significant Deficiency and Other Noncompliance. Applicable federal programs: U. S. Department of Housing and Urban Development, Economic Development Initiative, Community Project Funding, and Miscellaneous Grants, Assistance Listing #14.251, Contract Number: В-23-СР-TX-1411, Contract Year: 02/15/24 – 08/31/31, Harris County, Passed through The Houston Food Bank, COVID-19 Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing #21.027, Contract Number: N/A, Contract Year: 02/08/23 – 12/31/24. Criteria: Procurement – Nonprofit organizations are required to maintain and use documented procedures for procurement transactions under a federal award and conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Subtitle III Procurement Standards and conform to federal and state laws and regulations and other contractual requirements. Simplified acquisition procedures are to be performed for procurement decisions greater than $10,000 and less than $250,000. Condition and context: Target Hunger does not have a documented procurement policy. For 1 of 6 transactions tested for procurement documentation, there were no simplified acquisition procurement procedures performed for professional services totaling $30,000. Cause: Failure to have a procurement policy and to perform simplified acquisition procedures for professional services. Effect: Failure to follow formal procurement methods may result in the organization purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Questioned costs: Unknown. Recommendation: Develop a formal procurement policy and provide training to staff responsible for procurement. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.
Finding 2024-002
Finding #2024-002 – Significant Deficiency and Other Noncompliance. Applicable federal program: Harris County, Passed through The Houston Food Bank, COVID-19 Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing #21.027, Contract Number: N/A, Contract Year: 02/08/23 – 12/31/24. Criteria: Allowable Costs – Compensation for personal services in accordance with §200.430 of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards must be based on records that accurately reflect the work performed and support the distribution of the employee’s salary or wages among specific activities or costs objectives if the employee works on more than one federal award, non-federal award, indirect activities, or unallowable activities. Condition and context: 1 of 25 payroll transactions was not supported by a timesheet. Cause: A timesheet was not obtained for one transaction due to the employee changing positions during the month. Effect: Failure to have a time sheet to support compensation allocations could result in an over/under statement of compensation charged to the Federal grant. Questioned costs: $205.32. Recommendation: Provide additional training to employees to ensure timesheets are obtained for all payroll transactions to support the allocation of compensation. Views of responsible officials and corrective action plans: Management agrees with the finding. See Corrective Action Plan.
Finding 2024-001
Finding #2024-001 – Significant Deficiency and Other Noncompliance. Applicable federal programs: U. S. Department of Housing and Urban Development, Economic Development Initiative, Community Project Funding, and Miscellaneous Grants, Assistance Listing #14.251, Contract Number: В-23-СР-TX-1411, Contract Year: 02/15/24 – 08/31/31, Harris County, Passed through The Houston Food Bank, COVID-19 Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing #21.027, Contract Number: N/A, Contract Year: 02/08/23 – 12/31/24. Criteria: Procurement – Nonprofit organizations are required to maintain and use documented procedures for procurement transactions under a federal award and conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Subtitle III Procurement Standards and conform to federal and state laws and regulations and other contractual requirements. Simplified acquisition procedures are to be performed for procurement decisions greater than $10,000 and less than $250,000. Condition and context: Target Hunger does not have a documented procurement policy. For 1 of 6 transactions tested for procurement documentation, there were no simplified acquisition procurement procedures performed for professional services totaling $30,000. Cause: Failure to have a procurement policy and to perform simplified acquisition procedures for professional services. Effect: Failure to follow formal procurement methods may result in the organization purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Questioned costs: Unknown. Recommendation: Develop a formal procurement policy and provide training to staff responsible for procurement. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.