Item 2023-003: Late Issuance of 2023 Single Audit Reporting Package Identification of federal programs: All Assistance Listing Numbers included on the schedule of expenditures of federal awards for the period from July 1, 2023 to December 31, 2023. Criteria: The Uniform Guidance (2 CFR 200.512) requires the single audit to be completed and the data collection form and reporting package to be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Condition: The submission of the December 31, 2023 single audit reporting package should have been submitted by September 30, 2024. Cause: The audit was not completed by September 30, 2024, due to timeliness of information being available to complete the audit and incorrect identification of reporting period. Effect: SHNLFB was not in compliance with the Uniform Guidance (2 CFR 200.512). Questioned costs: None Context: The December 31, 2023 single audit reporting package. Repeat finding: Yes Recommendation: We recommend SHNLFB continue its efforts to ensure the reporting package is filed timely with the Federal Audit Clearinghouse. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Item 2023-004: Preparation of Schedule of Expenditures of Federal Awards Identification of federal programs: All Assistance Listing Numbers included on the schedule of expenditures of federal awards for the period from July 1, 2023 to December 31, 2023. Federal award grant number: 204645, 203684, 236829, 229353, and 031875505 Federal agency: U.S. Department of Agriculture, U.S. Department of Treasury Pass-through entity: Minnesota Department of Health, Minnesota Department of Human Services, and Wisconsin Department of Agriculture, Trade and Consumer Protection Criteria: The Uniform Guidance (2 CFR 200.510) requires the auditee to prepare the schedule of expenditures of federal awards to cover the correct reporting period and contain certain information to be considered complete. Condition: We noted the initial schedule of expenditures of federal awards presented for audit was incorrectly for the year ended June 30, 2024. Once the correct period was determined and the revised schedule of expenditures of federal awards was received for the period from July 1, 2023 to December 31, 2023, additional findings were noted as follows: • Food Distribution Cluster program was not properly grouped by federal Assistance Listing Number. • Pass-through entity identifying numbers listed for three programs were incorrect. Once the pass-through entity numbers were corrected, it was determined that two of the programs were the same and should be combined as one listing. • Coronavirus State and Local Fiscal Recovery Funds had improper identification of federal department, pass-through entity and pass-through entity identifying number. This program was improperly included in the Food Distribution Cluster. Cause: The exceptions noted above were due to a breakdown in SHNLFB’s procedures to ensure that the schedule of expenditures of federal awards is in accordance with the Uniform Guidance. Further, we noted there is no documented review and approval of the schedule of expenditures of federal awards. Effect: Improper schedule of expenditures of federal awards was presented for audit. Questioned costs: None Context: The schedule of expenditures of federal awards was not prepared consistent with the requirements of the Uniform Guidance (2 CFR 200.510). Repeat finding: No Recommendation: SHNLFB should continue to improve its procedures around the preparation and review of the schedule of expenditures of federal awards. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Item 2023-005: Procurement Identification of federal programs: Food Distribution Cluster, Assistance Listing Number 10.565, 10.568, and 10.569 Federal award grant number: 204645, 203684, and 229353 Federal agency: U.S. Department of Agriculture Pass-through entity: Minnesota Department of Health and Minnesota Department of Human Services Criteria: The Uniform Guidance (2 CFR 200.320) and SHNLFB’s procurement policy require that micro-purchases may be awarded without soliciting competitive quotations if SHNLFB considers the price to be reasonable and small purchases require price or rate quotations to be obtained from an adequate number of qualified sources. Condition: During our testing of procurement requirements, we noted that for two of the small purchase disbursements selected for testing, there was no vendor selection form. The vendor selection form identifies the price and the method selected as well as requires review and approval. Without the form, the procurement documentation does not exist for small purchase disbursements. Cause: The exceptions noted above were due to a breakdown in SHNLFB’s procedures to ensure that all procurements of goods and services are in accordance with the Uniform Guidance and its procurement policy. Effect: Improper procurement procedures can result in actions taken by oversight agencies which could impact future funding. Questioned costs: $49,118 Context: The population subject to procurement requirements included 60 micro-purchase vendors and nine small purchase vendors. The sample size of six micro-purchase procurements and two small purchase procurements was determined using the guidance in the AICPA Audit and Accounting Guide—Government Auditing Standards and Single Audits. Repeat finding: Yes Recommendation: SHNLFB should continue to improve its procedures to ensure that all procurements of goods and services are in accordance with the Uniform Guidance and its procurement policy. It is also recommended that support documenting the procurements be maintained. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Item 2023-006: Suspension and Debarment Identification of federal programs: Food Distribution Cluster, Assistance Listing Number 10.565, 10.568, and 10.569 Federal award grant number: 204645, 203684, and 229353 Federal agency: U.S. Department of Agriculture Pass-through entity: Minnesota Department of Health and Minnesota Department of Human Services Criteria: SHNLFB is required to verify that contractors are not suspended or debarred for all contracts for goods and services that equal or exceed $25,000 and are funded by federal awards (2 CFR 180.995). This verification may be accomplished by 1) searching the System for Award Management (SAM), 2) collecting a certification from the entity and 3) adding a clause or condition to the covered transaction with that entity (2 CFR 180.300). Condition: During our testing of suspension and debarment, we noted that for two of the disbursements selected for testing, there was no check for suspension and debarment prior to the transaction occurring. Cause: The exception noted above was due to a breakdown in SHNLFB’s procedures to ensure that all procurements of goods and services are in accordance with the Uniform Guidance and its procurement policy. Effect: Improper procurement procedures can result in actions taken by oversight agencies which could impact future funding. During the audit, we were able to verify that the vendor was not suspended or debarred. Questioned costs: None Context: The population subject to suspension and debarment requirements included five vendors. The sample size of two procurements was determined using the guidance in the AICPA Audit and Accounting Guide—Government Auditing Standards and Single Audits. Repeat finding: No Recommendation: SHNLFB should continue to improve its procedures to ensure that all procurements of goods and services are in accordance with the Uniform Guidance and its procurement policy. It is also recommended that documentation supporting the procurements be maintained. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Item 2023-007: Cash Management Identification of federal programs: Food Distribution Cluster, Assistance Listing Number 10.565, 10.568, and 10.569 Federal award grant number: 204645, 203684, 236829, and 229353 Federal agency: U.S. Department of Agriculture Pass-through entity: Minnesota Department of Health and Minnesota Department of Human Services Criteria: The Uniform Guidance (2 CFR 200.303) requires that nonfederal entities receiving federal awards establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to review and approve reimbursement requests. Condition: During our testing of cash management requirements, we noted that a review and an approval of the reimbursement requests were not performed prior to submission. Cause: Management did not perform a review and an approval of the reimbursement requests under this federal award program. Effect: Likelihood of inaccurate reimbursement requests is increased when there is no review and approval. Questioned costs: None Context: The population subject to cash management requirements included 14 reimbursement requests. The sample size of three was determined using the guidance in the AICPA Audit and Accounting Guide—Government Auditing Standards and Single Audits. We noted three instances in our sample size of three where there was no documentation showing that the reimbursement requests were reviewed and approved. There was no segregation of duties as one individual prepared, reviewed and submitted the requests for payment. Repeat finding: Yes Recommendation: We recommend that SHNLFB implement a procedure to review and approve reimbursement requests to ensure they are accurately submitted. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Item 2023-003: Late Issuance of 2023 Single Audit Reporting Package Identification of federal programs: All Assistance Listing Numbers included on the schedule of expenditures of federal awards for the period from July 1, 2023 to December 31, 2023. Criteria: The Uniform Guidance (2 CFR 200.512) requires the single audit to be completed and the data collection form and reporting package to be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Condition: The submission of the December 31, 2023 single audit reporting package should have been submitted by September 30, 2024. Cause: The audit was not completed by September 30, 2024, due to timeliness of information being available to complete the audit and incorrect identification of reporting period. Effect: SHNLFB was not in compliance with the Uniform Guidance (2 CFR 200.512). Questioned costs: None Context: The December 31, 2023 single audit reporting package. Repeat finding: Yes Recommendation: We recommend SHNLFB continue its efforts to ensure the reporting package is filed timely with the Federal Audit Clearinghouse. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Item 2023-004: Preparation of Schedule of Expenditures of Federal Awards Identification of federal programs: All Assistance Listing Numbers included on the schedule of expenditures of federal awards for the period from July 1, 2023 to December 31, 2023. Federal award grant number: 204645, 203684, 236829, 229353, and 031875505 Federal agency: U.S. Department of Agriculture, U.S. Department of Treasury Pass-through entity: Minnesota Department of Health, Minnesota Department of Human Services, and Wisconsin Department of Agriculture, Trade and Consumer Protection Criteria: The Uniform Guidance (2 CFR 200.510) requires the auditee to prepare the schedule of expenditures of federal awards to cover the correct reporting period and contain certain information to be considered complete. Condition: We noted the initial schedule of expenditures of federal awards presented for audit was incorrectly for the year ended June 30, 2024. Once the correct period was determined and the revised schedule of expenditures of federal awards was received for the period from July 1, 2023 to December 31, 2023, additional findings were noted as follows: • Food Distribution Cluster program was not properly grouped by federal Assistance Listing Number. • Pass-through entity identifying numbers listed for three programs were incorrect. Once the pass-through entity numbers were corrected, it was determined that two of the programs were the same and should be combined as one listing. • Coronavirus State and Local Fiscal Recovery Funds had improper identification of federal department, pass-through entity and pass-through entity identifying number. This program was improperly included in the Food Distribution Cluster. Cause: The exceptions noted above were due to a breakdown in SHNLFB’s procedures to ensure that the schedule of expenditures of federal awards is in accordance with the Uniform Guidance. Further, we noted there is no documented review and approval of the schedule of expenditures of federal awards. Effect: Improper schedule of expenditures of federal awards was presented for audit. Questioned costs: None Context: The schedule of expenditures of federal awards was not prepared consistent with the requirements of the Uniform Guidance (2 CFR 200.510). Repeat finding: No Recommendation: SHNLFB should continue to improve its procedures around the preparation and review of the schedule of expenditures of federal awards. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Item 2023-005: Procurement Identification of federal programs: Food Distribution Cluster, Assistance Listing Number 10.565, 10.568, and 10.569 Federal award grant number: 204645, 203684, and 229353 Federal agency: U.S. Department of Agriculture Pass-through entity: Minnesota Department of Health and Minnesota Department of Human Services Criteria: The Uniform Guidance (2 CFR 200.320) and SHNLFB’s procurement policy require that micro-purchases may be awarded without soliciting competitive quotations if SHNLFB considers the price to be reasonable and small purchases require price or rate quotations to be obtained from an adequate number of qualified sources. Condition: During our testing of procurement requirements, we noted that for two of the small purchase disbursements selected for testing, there was no vendor selection form. The vendor selection form identifies the price and the method selected as well as requires review and approval. Without the form, the procurement documentation does not exist for small purchase disbursements. Cause: The exceptions noted above were due to a breakdown in SHNLFB’s procedures to ensure that all procurements of goods and services are in accordance with the Uniform Guidance and its procurement policy. Effect: Improper procurement procedures can result in actions taken by oversight agencies which could impact future funding. Questioned costs: $49,118 Context: The population subject to procurement requirements included 60 micro-purchase vendors and nine small purchase vendors. The sample size of six micro-purchase procurements and two small purchase procurements was determined using the guidance in the AICPA Audit and Accounting Guide—Government Auditing Standards and Single Audits. Repeat finding: Yes Recommendation: SHNLFB should continue to improve its procedures to ensure that all procurements of goods and services are in accordance with the Uniform Guidance and its procurement policy. It is also recommended that support documenting the procurements be maintained. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Item 2023-006: Suspension and Debarment Identification of federal programs: Food Distribution Cluster, Assistance Listing Number 10.565, 10.568, and 10.569 Federal award grant number: 204645, 203684, and 229353 Federal agency: U.S. Department of Agriculture Pass-through entity: Minnesota Department of Health and Minnesota Department of Human Services Criteria: SHNLFB is required to verify that contractors are not suspended or debarred for all contracts for goods and services that equal or exceed $25,000 and are funded by federal awards (2 CFR 180.995). This verification may be accomplished by 1) searching the System for Award Management (SAM), 2) collecting a certification from the entity and 3) adding a clause or condition to the covered transaction with that entity (2 CFR 180.300). Condition: During our testing of suspension and debarment, we noted that for two of the disbursements selected for testing, there was no check for suspension and debarment prior to the transaction occurring. Cause: The exception noted above was due to a breakdown in SHNLFB’s procedures to ensure that all procurements of goods and services are in accordance with the Uniform Guidance and its procurement policy. Effect: Improper procurement procedures can result in actions taken by oversight agencies which could impact future funding. During the audit, we were able to verify that the vendor was not suspended or debarred. Questioned costs: None Context: The population subject to suspension and debarment requirements included five vendors. The sample size of two procurements was determined using the guidance in the AICPA Audit and Accounting Guide—Government Auditing Standards and Single Audits. Repeat finding: No Recommendation: SHNLFB should continue to improve its procedures to ensure that all procurements of goods and services are in accordance with the Uniform Guidance and its procurement policy. It is also recommended that documentation supporting the procurements be maintained. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Item 2023-007: Cash Management Identification of federal programs: Food Distribution Cluster, Assistance Listing Number 10.565, 10.568, and 10.569 Federal award grant number: 204645, 203684, 236829, and 229353 Federal agency: U.S. Department of Agriculture Pass-through entity: Minnesota Department of Health and Minnesota Department of Human Services Criteria: The Uniform Guidance (2 CFR 200.303) requires that nonfederal entities receiving federal awards establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to review and approve reimbursement requests. Condition: During our testing of cash management requirements, we noted that a review and an approval of the reimbursement requests were not performed prior to submission. Cause: Management did not perform a review and an approval of the reimbursement requests under this federal award program. Effect: Likelihood of inaccurate reimbursement requests is increased when there is no review and approval. Questioned costs: None Context: The population subject to cash management requirements included 14 reimbursement requests. The sample size of three was determined using the guidance in the AICPA Audit and Accounting Guide—Government Auditing Standards and Single Audits. We noted three instances in our sample size of three where there was no documentation showing that the reimbursement requests were reviewed and approved. There was no segregation of duties as one individual prepared, reviewed and submitted the requests for payment. Repeat finding: Yes Recommendation: We recommend that SHNLFB implement a procedure to review and approve reimbursement requests to ensure they are accurately submitted. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Item 2023-003: Late Issuance of 2023 Single Audit Reporting Package Identification of federal programs: All Assistance Listing Numbers included on the schedule of expenditures of federal awards for the period from July 1, 2023 to December 31, 2023. Criteria: The Uniform Guidance (2 CFR 200.512) requires the single audit to be completed and the data collection form and reporting package to be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Condition: The submission of the December 31, 2023 single audit reporting package should have been submitted by September 30, 2024. Cause: The audit was not completed by September 30, 2024, due to timeliness of information being available to complete the audit and incorrect identification of reporting period. Effect: SHNLFB was not in compliance with the Uniform Guidance (2 CFR 200.512). Questioned costs: None Context: The December 31, 2023 single audit reporting package. Repeat finding: Yes Recommendation: We recommend SHNLFB continue its efforts to ensure the reporting package is filed timely with the Federal Audit Clearinghouse. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Item 2023-004: Preparation of Schedule of Expenditures of Federal Awards Identification of federal programs: All Assistance Listing Numbers included on the schedule of expenditures of federal awards for the period from July 1, 2023 to December 31, 2023. Federal award grant number: 204645, 203684, 236829, 229353, and 031875505 Federal agency: U.S. Department of Agriculture, U.S. Department of Treasury Pass-through entity: Minnesota Department of Health, Minnesota Department of Human Services, and Wisconsin Department of Agriculture, Trade and Consumer Protection Criteria: The Uniform Guidance (2 CFR 200.510) requires the auditee to prepare the schedule of expenditures of federal awards to cover the correct reporting period and contain certain information to be considered complete. Condition: We noted the initial schedule of expenditures of federal awards presented for audit was incorrectly for the year ended June 30, 2024. Once the correct period was determined and the revised schedule of expenditures of federal awards was received for the period from July 1, 2023 to December 31, 2023, additional findings were noted as follows: • Food Distribution Cluster program was not properly grouped by federal Assistance Listing Number. • Pass-through entity identifying numbers listed for three programs were incorrect. Once the pass-through entity numbers were corrected, it was determined that two of the programs were the same and should be combined as one listing. • Coronavirus State and Local Fiscal Recovery Funds had improper identification of federal department, pass-through entity and pass-through entity identifying number. This program was improperly included in the Food Distribution Cluster. Cause: The exceptions noted above were due to a breakdown in SHNLFB’s procedures to ensure that the schedule of expenditures of federal awards is in accordance with the Uniform Guidance. Further, we noted there is no documented review and approval of the schedule of expenditures of federal awards. Effect: Improper schedule of expenditures of federal awards was presented for audit. Questioned costs: None Context: The schedule of expenditures of federal awards was not prepared consistent with the requirements of the Uniform Guidance (2 CFR 200.510). Repeat finding: No Recommendation: SHNLFB should continue to improve its procedures around the preparation and review of the schedule of expenditures of federal awards. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Item 2023-005: Procurement Identification of federal programs: Food Distribution Cluster, Assistance Listing Number 10.565, 10.568, and 10.569 Federal award grant number: 204645, 203684, and 229353 Federal agency: U.S. Department of Agriculture Pass-through entity: Minnesota Department of Health and Minnesota Department of Human Services Criteria: The Uniform Guidance (2 CFR 200.320) and SHNLFB’s procurement policy require that micro-purchases may be awarded without soliciting competitive quotations if SHNLFB considers the price to be reasonable and small purchases require price or rate quotations to be obtained from an adequate number of qualified sources. Condition: During our testing of procurement requirements, we noted that for two of the small purchase disbursements selected for testing, there was no vendor selection form. The vendor selection form identifies the price and the method selected as well as requires review and approval. Without the form, the procurement documentation does not exist for small purchase disbursements. Cause: The exceptions noted above were due to a breakdown in SHNLFB’s procedures to ensure that all procurements of goods and services are in accordance with the Uniform Guidance and its procurement policy. Effect: Improper procurement procedures can result in actions taken by oversight agencies which could impact future funding. Questioned costs: $49,118 Context: The population subject to procurement requirements included 60 micro-purchase vendors and nine small purchase vendors. The sample size of six micro-purchase procurements and two small purchase procurements was determined using the guidance in the AICPA Audit and Accounting Guide—Government Auditing Standards and Single Audits. Repeat finding: Yes Recommendation: SHNLFB should continue to improve its procedures to ensure that all procurements of goods and services are in accordance with the Uniform Guidance and its procurement policy. It is also recommended that support documenting the procurements be maintained. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Item 2023-006: Suspension and Debarment Identification of federal programs: Food Distribution Cluster, Assistance Listing Number 10.565, 10.568, and 10.569 Federal award grant number: 204645, 203684, and 229353 Federal agency: U.S. Department of Agriculture Pass-through entity: Minnesota Department of Health and Minnesota Department of Human Services Criteria: SHNLFB is required to verify that contractors are not suspended or debarred for all contracts for goods and services that equal or exceed $25,000 and are funded by federal awards (2 CFR 180.995). This verification may be accomplished by 1) searching the System for Award Management (SAM), 2) collecting a certification from the entity and 3) adding a clause or condition to the covered transaction with that entity (2 CFR 180.300). Condition: During our testing of suspension and debarment, we noted that for two of the disbursements selected for testing, there was no check for suspension and debarment prior to the transaction occurring. Cause: The exception noted above was due to a breakdown in SHNLFB’s procedures to ensure that all procurements of goods and services are in accordance with the Uniform Guidance and its procurement policy. Effect: Improper procurement procedures can result in actions taken by oversight agencies which could impact future funding. During the audit, we were able to verify that the vendor was not suspended or debarred. Questioned costs: None Context: The population subject to suspension and debarment requirements included five vendors. The sample size of two procurements was determined using the guidance in the AICPA Audit and Accounting Guide—Government Auditing Standards and Single Audits. Repeat finding: No Recommendation: SHNLFB should continue to improve its procedures to ensure that all procurements of goods and services are in accordance with the Uniform Guidance and its procurement policy. It is also recommended that documentation supporting the procurements be maintained. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Item 2023-007: Cash Management Identification of federal programs: Food Distribution Cluster, Assistance Listing Number 10.565, 10.568, and 10.569 Federal award grant number: 204645, 203684, 236829, and 229353 Federal agency: U.S. Department of Agriculture Pass-through entity: Minnesota Department of Health and Minnesota Department of Human Services Criteria: The Uniform Guidance (2 CFR 200.303) requires that nonfederal entities receiving federal awards establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to review and approve reimbursement requests. Condition: During our testing of cash management requirements, we noted that a review and an approval of the reimbursement requests were not performed prior to submission. Cause: Management did not perform a review and an approval of the reimbursement requests under this federal award program. Effect: Likelihood of inaccurate reimbursement requests is increased when there is no review and approval. Questioned costs: None Context: The population subject to cash management requirements included 14 reimbursement requests. The sample size of three was determined using the guidance in the AICPA Audit and Accounting Guide—Government Auditing Standards and Single Audits. We noted three instances in our sample size of three where there was no documentation showing that the reimbursement requests were reviewed and approved. There was no segregation of duties as one individual prepared, reviewed and submitted the requests for payment. Repeat finding: Yes Recommendation: We recommend that SHNLFB implement a procedure to review and approve reimbursement requests to ensure they are accurately submitted. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Item 2023-003: Late Issuance of 2023 Single Audit Reporting Package Identification of federal programs: All Assistance Listing Numbers included on the schedule of expenditures of federal awards for the period from July 1, 2023 to December 31, 2023. Criteria: The Uniform Guidance (2 CFR 200.512) requires the single audit to be completed and the data collection form and reporting package to be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Condition: The submission of the December 31, 2023 single audit reporting package should have been submitted by September 30, 2024. Cause: The audit was not completed by September 30, 2024, due to timeliness of information being available to complete the audit and incorrect identification of reporting period. Effect: SHNLFB was not in compliance with the Uniform Guidance (2 CFR 200.512). Questioned costs: None Context: The December 31, 2023 single audit reporting package. Repeat finding: Yes Recommendation: We recommend SHNLFB continue its efforts to ensure the reporting package is filed timely with the Federal Audit Clearinghouse. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Item 2023-004: Preparation of Schedule of Expenditures of Federal Awards Identification of federal programs: All Assistance Listing Numbers included on the schedule of expenditures of federal awards for the period from July 1, 2023 to December 31, 2023. Federal award grant number: 204645, 203684, 236829, 229353, and 031875505 Federal agency: U.S. Department of Agriculture, U.S. Department of Treasury Pass-through entity: Minnesota Department of Health, Minnesota Department of Human Services, and Wisconsin Department of Agriculture, Trade and Consumer Protection Criteria: The Uniform Guidance (2 CFR 200.510) requires the auditee to prepare the schedule of expenditures of federal awards to cover the correct reporting period and contain certain information to be considered complete. Condition: We noted the initial schedule of expenditures of federal awards presented for audit was incorrectly for the year ended June 30, 2024. Once the correct period was determined and the revised schedule of expenditures of federal awards was received for the period from July 1, 2023 to December 31, 2023, additional findings were noted as follows: • Food Distribution Cluster program was not properly grouped by federal Assistance Listing Number. • Pass-through entity identifying numbers listed for three programs were incorrect. Once the pass-through entity numbers were corrected, it was determined that two of the programs were the same and should be combined as one listing. • Coronavirus State and Local Fiscal Recovery Funds had improper identification of federal department, pass-through entity and pass-through entity identifying number. This program was improperly included in the Food Distribution Cluster. Cause: The exceptions noted above were due to a breakdown in SHNLFB’s procedures to ensure that the schedule of expenditures of federal awards is in accordance with the Uniform Guidance. Further, we noted there is no documented review and approval of the schedule of expenditures of federal awards. Effect: Improper schedule of expenditures of federal awards was presented for audit. Questioned costs: None Context: The schedule of expenditures of federal awards was not prepared consistent with the requirements of the Uniform Guidance (2 CFR 200.510). Repeat finding: No Recommendation: SHNLFB should continue to improve its procedures around the preparation and review of the schedule of expenditures of federal awards. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Item 2023-005: Procurement Identification of federal programs: Food Distribution Cluster, Assistance Listing Number 10.565, 10.568, and 10.569 Federal award grant number: 204645, 203684, and 229353 Federal agency: U.S. Department of Agriculture Pass-through entity: Minnesota Department of Health and Minnesota Department of Human Services Criteria: The Uniform Guidance (2 CFR 200.320) and SHNLFB’s procurement policy require that micro-purchases may be awarded without soliciting competitive quotations if SHNLFB considers the price to be reasonable and small purchases require price or rate quotations to be obtained from an adequate number of qualified sources. Condition: During our testing of procurement requirements, we noted that for two of the small purchase disbursements selected for testing, there was no vendor selection form. The vendor selection form identifies the price and the method selected as well as requires review and approval. Without the form, the procurement documentation does not exist for small purchase disbursements. Cause: The exceptions noted above were due to a breakdown in SHNLFB’s procedures to ensure that all procurements of goods and services are in accordance with the Uniform Guidance and its procurement policy. Effect: Improper procurement procedures can result in actions taken by oversight agencies which could impact future funding. Questioned costs: $49,118 Context: The population subject to procurement requirements included 60 micro-purchase vendors and nine small purchase vendors. The sample size of six micro-purchase procurements and two small purchase procurements was determined using the guidance in the AICPA Audit and Accounting Guide—Government Auditing Standards and Single Audits. Repeat finding: Yes Recommendation: SHNLFB should continue to improve its procedures to ensure that all procurements of goods and services are in accordance with the Uniform Guidance and its procurement policy. It is also recommended that support documenting the procurements be maintained. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Item 2023-006: Suspension and Debarment Identification of federal programs: Food Distribution Cluster, Assistance Listing Number 10.565, 10.568, and 10.569 Federal award grant number: 204645, 203684, and 229353 Federal agency: U.S. Department of Agriculture Pass-through entity: Minnesota Department of Health and Minnesota Department of Human Services Criteria: SHNLFB is required to verify that contractors are not suspended or debarred for all contracts for goods and services that equal or exceed $25,000 and are funded by federal awards (2 CFR 180.995). This verification may be accomplished by 1) searching the System for Award Management (SAM), 2) collecting a certification from the entity and 3) adding a clause or condition to the covered transaction with that entity (2 CFR 180.300). Condition: During our testing of suspension and debarment, we noted that for two of the disbursements selected for testing, there was no check for suspension and debarment prior to the transaction occurring. Cause: The exception noted above was due to a breakdown in SHNLFB’s procedures to ensure that all procurements of goods and services are in accordance with the Uniform Guidance and its procurement policy. Effect: Improper procurement procedures can result in actions taken by oversight agencies which could impact future funding. During the audit, we were able to verify that the vendor was not suspended or debarred. Questioned costs: None Context: The population subject to suspension and debarment requirements included five vendors. The sample size of two procurements was determined using the guidance in the AICPA Audit and Accounting Guide—Government Auditing Standards and Single Audits. Repeat finding: No Recommendation: SHNLFB should continue to improve its procedures to ensure that all procurements of goods and services are in accordance with the Uniform Guidance and its procurement policy. It is also recommended that documentation supporting the procurements be maintained. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Item 2023-007: Cash Management Identification of federal programs: Food Distribution Cluster, Assistance Listing Number 10.565, 10.568, and 10.569 Federal award grant number: 204645, 203684, 236829, and 229353 Federal agency: U.S. Department of Agriculture Pass-through entity: Minnesota Department of Health and Minnesota Department of Human Services Criteria: The Uniform Guidance (2 CFR 200.303) requires that nonfederal entities receiving federal awards establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to review and approve reimbursement requests. Condition: During our testing of cash management requirements, we noted that a review and an approval of the reimbursement requests were not performed prior to submission. Cause: Management did not perform a review and an approval of the reimbursement requests under this federal award program. Effect: Likelihood of inaccurate reimbursement requests is increased when there is no review and approval. Questioned costs: None Context: The population subject to cash management requirements included 14 reimbursement requests. The sample size of three was determined using the guidance in the AICPA Audit and Accounting Guide—Government Auditing Standards and Single Audits. We noted three instances in our sample size of three where there was no documentation showing that the reimbursement requests were reviewed and approved. There was no segregation of duties as one individual prepared, reviewed and submitted the requests for payment. Repeat finding: Yes Recommendation: We recommend that SHNLFB implement a procedure to review and approve reimbursement requests to ensure they are accurately submitted. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Item 2023-003: Late Issuance of 2023 Single Audit Reporting Package Identification of federal programs: All Assistance Listing Numbers included on the schedule of expenditures of federal awards for the period from July 1, 2023 to December 31, 2023. Criteria: The Uniform Guidance (2 CFR 200.512) requires the single audit to be completed and the data collection form and reporting package to be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Condition: The submission of the December 31, 2023 single audit reporting package should have been submitted by September 30, 2024. Cause: The audit was not completed by September 30, 2024, due to timeliness of information being available to complete the audit and incorrect identification of reporting period. Effect: SHNLFB was not in compliance with the Uniform Guidance (2 CFR 200.512). Questioned costs: None Context: The December 31, 2023 single audit reporting package. Repeat finding: Yes Recommendation: We recommend SHNLFB continue its efforts to ensure the reporting package is filed timely with the Federal Audit Clearinghouse. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Item 2023-004: Preparation of Schedule of Expenditures of Federal Awards Identification of federal programs: All Assistance Listing Numbers included on the schedule of expenditures of federal awards for the period from July 1, 2023 to December 31, 2023. Federal award grant number: 204645, 203684, 236829, 229353, and 031875505 Federal agency: U.S. Department of Agriculture, U.S. Department of Treasury Pass-through entity: Minnesota Department of Health, Minnesota Department of Human Services, and Wisconsin Department of Agriculture, Trade and Consumer Protection Criteria: The Uniform Guidance (2 CFR 200.510) requires the auditee to prepare the schedule of expenditures of federal awards to cover the correct reporting period and contain certain information to be considered complete. Condition: We noted the initial schedule of expenditures of federal awards presented for audit was incorrectly for the year ended June 30, 2024. Once the correct period was determined and the revised schedule of expenditures of federal awards was received for the period from July 1, 2023 to December 31, 2023, additional findings were noted as follows: • Food Distribution Cluster program was not properly grouped by federal Assistance Listing Number. • Pass-through entity identifying numbers listed for three programs were incorrect. Once the pass-through entity numbers were corrected, it was determined that two of the programs were the same and should be combined as one listing. • Coronavirus State and Local Fiscal Recovery Funds had improper identification of federal department, pass-through entity and pass-through entity identifying number. This program was improperly included in the Food Distribution Cluster. Cause: The exceptions noted above were due to a breakdown in SHNLFB’s procedures to ensure that the schedule of expenditures of federal awards is in accordance with the Uniform Guidance. Further, we noted there is no documented review and approval of the schedule of expenditures of federal awards. Effect: Improper schedule of expenditures of federal awards was presented for audit. Questioned costs: None Context: The schedule of expenditures of federal awards was not prepared consistent with the requirements of the Uniform Guidance (2 CFR 200.510). Repeat finding: No Recommendation: SHNLFB should continue to improve its procedures around the preparation and review of the schedule of expenditures of federal awards. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Item 2023-005: Procurement Identification of federal programs: Food Distribution Cluster, Assistance Listing Number 10.565, 10.568, and 10.569 Federal award grant number: 204645, 203684, and 229353 Federal agency: U.S. Department of Agriculture Pass-through entity: Minnesota Department of Health and Minnesota Department of Human Services Criteria: The Uniform Guidance (2 CFR 200.320) and SHNLFB’s procurement policy require that micro-purchases may be awarded without soliciting competitive quotations if SHNLFB considers the price to be reasonable and small purchases require price or rate quotations to be obtained from an adequate number of qualified sources. Condition: During our testing of procurement requirements, we noted that for two of the small purchase disbursements selected for testing, there was no vendor selection form. The vendor selection form identifies the price and the method selected as well as requires review and approval. Without the form, the procurement documentation does not exist for small purchase disbursements. Cause: The exceptions noted above were due to a breakdown in SHNLFB’s procedures to ensure that all procurements of goods and services are in accordance with the Uniform Guidance and its procurement policy. Effect: Improper procurement procedures can result in actions taken by oversight agencies which could impact future funding. Questioned costs: $49,118 Context: The population subject to procurement requirements included 60 micro-purchase vendors and nine small purchase vendors. The sample size of six micro-purchase procurements and two small purchase procurements was determined using the guidance in the AICPA Audit and Accounting Guide—Government Auditing Standards and Single Audits. Repeat finding: Yes Recommendation: SHNLFB should continue to improve its procedures to ensure that all procurements of goods and services are in accordance with the Uniform Guidance and its procurement policy. It is also recommended that support documenting the procurements be maintained. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Item 2023-006: Suspension and Debarment Identification of federal programs: Food Distribution Cluster, Assistance Listing Number 10.565, 10.568, and 10.569 Federal award grant number: 204645, 203684, and 229353 Federal agency: U.S. Department of Agriculture Pass-through entity: Minnesota Department of Health and Minnesota Department of Human Services Criteria: SHNLFB is required to verify that contractors are not suspended or debarred for all contracts for goods and services that equal or exceed $25,000 and are funded by federal awards (2 CFR 180.995). This verification may be accomplished by 1) searching the System for Award Management (SAM), 2) collecting a certification from the entity and 3) adding a clause or condition to the covered transaction with that entity (2 CFR 180.300). Condition: During our testing of suspension and debarment, we noted that for two of the disbursements selected for testing, there was no check for suspension and debarment prior to the transaction occurring. Cause: The exception noted above was due to a breakdown in SHNLFB’s procedures to ensure that all procurements of goods and services are in accordance with the Uniform Guidance and its procurement policy. Effect: Improper procurement procedures can result in actions taken by oversight agencies which could impact future funding. During the audit, we were able to verify that the vendor was not suspended or debarred. Questioned costs: None Context: The population subject to suspension and debarment requirements included five vendors. The sample size of two procurements was determined using the guidance in the AICPA Audit and Accounting Guide—Government Auditing Standards and Single Audits. Repeat finding: No Recommendation: SHNLFB should continue to improve its procedures to ensure that all procurements of goods and services are in accordance with the Uniform Guidance and its procurement policy. It is also recommended that documentation supporting the procurements be maintained. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Item 2023-007: Cash Management Identification of federal programs: Food Distribution Cluster, Assistance Listing Number 10.565, 10.568, and 10.569 Federal award grant number: 204645, 203684, 236829, and 229353 Federal agency: U.S. Department of Agriculture Pass-through entity: Minnesota Department of Health and Minnesota Department of Human Services Criteria: The Uniform Guidance (2 CFR 200.303) requires that nonfederal entities receiving federal awards establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to review and approve reimbursement requests. Condition: During our testing of cash management requirements, we noted that a review and an approval of the reimbursement requests were not performed prior to submission. Cause: Management did not perform a review and an approval of the reimbursement requests under this federal award program. Effect: Likelihood of inaccurate reimbursement requests is increased when there is no review and approval. Questioned costs: None Context: The population subject to cash management requirements included 14 reimbursement requests. The sample size of three was determined using the guidance in the AICPA Audit and Accounting Guide—Government Auditing Standards and Single Audits. We noted three instances in our sample size of three where there was no documentation showing that the reimbursement requests were reviewed and approved. There was no segregation of duties as one individual prepared, reviewed and submitted the requests for payment. Repeat finding: Yes Recommendation: We recommend that SHNLFB implement a procedure to review and approve reimbursement requests to ensure they are accurately submitted. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Item 2023-003: Late Issuance of 2023 Single Audit Reporting Package Identification of federal programs: All Assistance Listing Numbers included on the schedule of expenditures of federal awards for the period from July 1, 2023 to December 31, 2023. Criteria: The Uniform Guidance (2 CFR 200.512) requires the single audit to be completed and the data collection form and reporting package to be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Condition: The submission of the December 31, 2023 single audit reporting package should have been submitted by September 30, 2024. Cause: The audit was not completed by September 30, 2024, due to timeliness of information being available to complete the audit and incorrect identification of reporting period. Effect: SHNLFB was not in compliance with the Uniform Guidance (2 CFR 200.512). Questioned costs: None Context: The December 31, 2023 single audit reporting package. Repeat finding: Yes Recommendation: We recommend SHNLFB continue its efforts to ensure the reporting package is filed timely with the Federal Audit Clearinghouse. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Item 2023-004: Preparation of Schedule of Expenditures of Federal Awards Identification of federal programs: All Assistance Listing Numbers included on the schedule of expenditures of federal awards for the period from July 1, 2023 to December 31, 2023. Federal award grant number: 204645, 203684, 236829, 229353, and 031875505 Federal agency: U.S. Department of Agriculture, U.S. Department of Treasury Pass-through entity: Minnesota Department of Health, Minnesota Department of Human Services, and Wisconsin Department of Agriculture, Trade and Consumer Protection Criteria: The Uniform Guidance (2 CFR 200.510) requires the auditee to prepare the schedule of expenditures of federal awards to cover the correct reporting period and contain certain information to be considered complete. Condition: We noted the initial schedule of expenditures of federal awards presented for audit was incorrectly for the year ended June 30, 2024. Once the correct period was determined and the revised schedule of expenditures of federal awards was received for the period from July 1, 2023 to December 31, 2023, additional findings were noted as follows: • Food Distribution Cluster program was not properly grouped by federal Assistance Listing Number. • Pass-through entity identifying numbers listed for three programs were incorrect. Once the pass-through entity numbers were corrected, it was determined that two of the programs were the same and should be combined as one listing. • Coronavirus State and Local Fiscal Recovery Funds had improper identification of federal department, pass-through entity and pass-through entity identifying number. This program was improperly included in the Food Distribution Cluster. Cause: The exceptions noted above were due to a breakdown in SHNLFB’s procedures to ensure that the schedule of expenditures of federal awards is in accordance with the Uniform Guidance. Further, we noted there is no documented review and approval of the schedule of expenditures of federal awards. Effect: Improper schedule of expenditures of federal awards was presented for audit. Questioned costs: None Context: The schedule of expenditures of federal awards was not prepared consistent with the requirements of the Uniform Guidance (2 CFR 200.510). Repeat finding: No Recommendation: SHNLFB should continue to improve its procedures around the preparation and review of the schedule of expenditures of federal awards. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Item 2023-005: Procurement Identification of federal programs: Food Distribution Cluster, Assistance Listing Number 10.565, 10.568, and 10.569 Federal award grant number: 204645, 203684, and 229353 Federal agency: U.S. Department of Agriculture Pass-through entity: Minnesota Department of Health and Minnesota Department of Human Services Criteria: The Uniform Guidance (2 CFR 200.320) and SHNLFB’s procurement policy require that micro-purchases may be awarded without soliciting competitive quotations if SHNLFB considers the price to be reasonable and small purchases require price or rate quotations to be obtained from an adequate number of qualified sources. Condition: During our testing of procurement requirements, we noted that for two of the small purchase disbursements selected for testing, there was no vendor selection form. The vendor selection form identifies the price and the method selected as well as requires review and approval. Without the form, the procurement documentation does not exist for small purchase disbursements. Cause: The exceptions noted above were due to a breakdown in SHNLFB’s procedures to ensure that all procurements of goods and services are in accordance with the Uniform Guidance and its procurement policy. Effect: Improper procurement procedures can result in actions taken by oversight agencies which could impact future funding. Questioned costs: $49,118 Context: The population subject to procurement requirements included 60 micro-purchase vendors and nine small purchase vendors. The sample size of six micro-purchase procurements and two small purchase procurements was determined using the guidance in the AICPA Audit and Accounting Guide—Government Auditing Standards and Single Audits. Repeat finding: Yes Recommendation: SHNLFB should continue to improve its procedures to ensure that all procurements of goods and services are in accordance with the Uniform Guidance and its procurement policy. It is also recommended that support documenting the procurements be maintained. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Item 2023-006: Suspension and Debarment Identification of federal programs: Food Distribution Cluster, Assistance Listing Number 10.565, 10.568, and 10.569 Federal award grant number: 204645, 203684, and 229353 Federal agency: U.S. Department of Agriculture Pass-through entity: Minnesota Department of Health and Minnesota Department of Human Services Criteria: SHNLFB is required to verify that contractors are not suspended or debarred for all contracts for goods and services that equal or exceed $25,000 and are funded by federal awards (2 CFR 180.995). This verification may be accomplished by 1) searching the System for Award Management (SAM), 2) collecting a certification from the entity and 3) adding a clause or condition to the covered transaction with that entity (2 CFR 180.300). Condition: During our testing of suspension and debarment, we noted that for two of the disbursements selected for testing, there was no check for suspension and debarment prior to the transaction occurring. Cause: The exception noted above was due to a breakdown in SHNLFB’s procedures to ensure that all procurements of goods and services are in accordance with the Uniform Guidance and its procurement policy. Effect: Improper procurement procedures can result in actions taken by oversight agencies which could impact future funding. During the audit, we were able to verify that the vendor was not suspended or debarred. Questioned costs: None Context: The population subject to suspension and debarment requirements included five vendors. The sample size of two procurements was determined using the guidance in the AICPA Audit and Accounting Guide—Government Auditing Standards and Single Audits. Repeat finding: No Recommendation: SHNLFB should continue to improve its procedures to ensure that all procurements of goods and services are in accordance with the Uniform Guidance and its procurement policy. It is also recommended that documentation supporting the procurements be maintained. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Item 2023-007: Cash Management Identification of federal programs: Food Distribution Cluster, Assistance Listing Number 10.565, 10.568, and 10.569 Federal award grant number: 204645, 203684, 236829, and 229353 Federal agency: U.S. Department of Agriculture Pass-through entity: Minnesota Department of Health and Minnesota Department of Human Services Criteria: The Uniform Guidance (2 CFR 200.303) requires that nonfederal entities receiving federal awards establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to review and approve reimbursement requests. Condition: During our testing of cash management requirements, we noted that a review and an approval of the reimbursement requests were not performed prior to submission. Cause: Management did not perform a review and an approval of the reimbursement requests under this federal award program. Effect: Likelihood of inaccurate reimbursement requests is increased when there is no review and approval. Questioned costs: None Context: The population subject to cash management requirements included 14 reimbursement requests. The sample size of three was determined using the guidance in the AICPA Audit and Accounting Guide—Government Auditing Standards and Single Audits. We noted three instances in our sample size of three where there was no documentation showing that the reimbursement requests were reviewed and approved. There was no segregation of duties as one individual prepared, reviewed and submitted the requests for payment. Repeat finding: Yes Recommendation: We recommend that SHNLFB implement a procedure to review and approve reimbursement requests to ensure they are accurately submitted. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Item 2023-003: Late Issuance of 2023 Single Audit Reporting Package Identification of federal programs: All Assistance Listing Numbers included on the schedule of expenditures of federal awards for the period from July 1, 2023 to December 31, 2023. Criteria: The Uniform Guidance (2 CFR 200.512) requires the single audit to be completed and the data collection form and reporting package to be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Condition: The submission of the December 31, 2023 single audit reporting package should have been submitted by September 30, 2024. Cause: The audit was not completed by September 30, 2024, due to timeliness of information being available to complete the audit and incorrect identification of reporting period. Effect: SHNLFB was not in compliance with the Uniform Guidance (2 CFR 200.512). Questioned costs: None Context: The December 31, 2023 single audit reporting package. Repeat finding: Yes Recommendation: We recommend SHNLFB continue its efforts to ensure the reporting package is filed timely with the Federal Audit Clearinghouse. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Item 2023-004: Preparation of Schedule of Expenditures of Federal Awards Identification of federal programs: All Assistance Listing Numbers included on the schedule of expenditures of federal awards for the period from July 1, 2023 to December 31, 2023. Federal award grant number: 204645, 203684, 236829, 229353, and 031875505 Federal agency: U.S. Department of Agriculture, U.S. Department of Treasury Pass-through entity: Minnesota Department of Health, Minnesota Department of Human Services, and Wisconsin Department of Agriculture, Trade and Consumer Protection Criteria: The Uniform Guidance (2 CFR 200.510) requires the auditee to prepare the schedule of expenditures of federal awards to cover the correct reporting period and contain certain information to be considered complete. Condition: We noted the initial schedule of expenditures of federal awards presented for audit was incorrectly for the year ended June 30, 2024. Once the correct period was determined and the revised schedule of expenditures of federal awards was received for the period from July 1, 2023 to December 31, 2023, additional findings were noted as follows: • Food Distribution Cluster program was not properly grouped by federal Assistance Listing Number. • Pass-through entity identifying numbers listed for three programs were incorrect. Once the pass-through entity numbers were corrected, it was determined that two of the programs were the same and should be combined as one listing. • Coronavirus State and Local Fiscal Recovery Funds had improper identification of federal department, pass-through entity and pass-through entity identifying number. This program was improperly included in the Food Distribution Cluster. Cause: The exceptions noted above were due to a breakdown in SHNLFB’s procedures to ensure that the schedule of expenditures of federal awards is in accordance with the Uniform Guidance. Further, we noted there is no documented review and approval of the schedule of expenditures of federal awards. Effect: Improper schedule of expenditures of federal awards was presented for audit. Questioned costs: None Context: The schedule of expenditures of federal awards was not prepared consistent with the requirements of the Uniform Guidance (2 CFR 200.510). Repeat finding: No Recommendation: SHNLFB should continue to improve its procedures around the preparation and review of the schedule of expenditures of federal awards. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Item 2023-005: Procurement Identification of federal programs: Food Distribution Cluster, Assistance Listing Number 10.565, 10.568, and 10.569 Federal award grant number: 204645, 203684, and 229353 Federal agency: U.S. Department of Agriculture Pass-through entity: Minnesota Department of Health and Minnesota Department of Human Services Criteria: The Uniform Guidance (2 CFR 200.320) and SHNLFB’s procurement policy require that micro-purchases may be awarded without soliciting competitive quotations if SHNLFB considers the price to be reasonable and small purchases require price or rate quotations to be obtained from an adequate number of qualified sources. Condition: During our testing of procurement requirements, we noted that for two of the small purchase disbursements selected for testing, there was no vendor selection form. The vendor selection form identifies the price and the method selected as well as requires review and approval. Without the form, the procurement documentation does not exist for small purchase disbursements. Cause: The exceptions noted above were due to a breakdown in SHNLFB’s procedures to ensure that all procurements of goods and services are in accordance with the Uniform Guidance and its procurement policy. Effect: Improper procurement procedures can result in actions taken by oversight agencies which could impact future funding. Questioned costs: $49,118 Context: The population subject to procurement requirements included 60 micro-purchase vendors and nine small purchase vendors. The sample size of six micro-purchase procurements and two small purchase procurements was determined using the guidance in the AICPA Audit and Accounting Guide—Government Auditing Standards and Single Audits. Repeat finding: Yes Recommendation: SHNLFB should continue to improve its procedures to ensure that all procurements of goods and services are in accordance with the Uniform Guidance and its procurement policy. It is also recommended that support documenting the procurements be maintained. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Item 2023-006: Suspension and Debarment Identification of federal programs: Food Distribution Cluster, Assistance Listing Number 10.565, 10.568, and 10.569 Federal award grant number: 204645, 203684, and 229353 Federal agency: U.S. Department of Agriculture Pass-through entity: Minnesota Department of Health and Minnesota Department of Human Services Criteria: SHNLFB is required to verify that contractors are not suspended or debarred for all contracts for goods and services that equal or exceed $25,000 and are funded by federal awards (2 CFR 180.995). This verification may be accomplished by 1) searching the System for Award Management (SAM), 2) collecting a certification from the entity and 3) adding a clause or condition to the covered transaction with that entity (2 CFR 180.300). Condition: During our testing of suspension and debarment, we noted that for two of the disbursements selected for testing, there was no check for suspension and debarment prior to the transaction occurring. Cause: The exception noted above was due to a breakdown in SHNLFB’s procedures to ensure that all procurements of goods and services are in accordance with the Uniform Guidance and its procurement policy. Effect: Improper procurement procedures can result in actions taken by oversight agencies which could impact future funding. During the audit, we were able to verify that the vendor was not suspended or debarred. Questioned costs: None Context: The population subject to suspension and debarment requirements included five vendors. The sample size of two procurements was determined using the guidance in the AICPA Audit and Accounting Guide—Government Auditing Standards and Single Audits. Repeat finding: No Recommendation: SHNLFB should continue to improve its procedures to ensure that all procurements of goods and services are in accordance with the Uniform Guidance and its procurement policy. It is also recommended that documentation supporting the procurements be maintained. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Item 2023-007: Cash Management Identification of federal programs: Food Distribution Cluster, Assistance Listing Number 10.565, 10.568, and 10.569 Federal award grant number: 204645, 203684, 236829, and 229353 Federal agency: U.S. Department of Agriculture Pass-through entity: Minnesota Department of Health and Minnesota Department of Human Services Criteria: The Uniform Guidance (2 CFR 200.303) requires that nonfederal entities receiving federal awards establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to review and approve reimbursement requests. Condition: During our testing of cash management requirements, we noted that a review and an approval of the reimbursement requests were not performed prior to submission. Cause: Management did not perform a review and an approval of the reimbursement requests under this federal award program. Effect: Likelihood of inaccurate reimbursement requests is increased when there is no review and approval. Questioned costs: None Context: The population subject to cash management requirements included 14 reimbursement requests. The sample size of three was determined using the guidance in the AICPA Audit and Accounting Guide—Government Auditing Standards and Single Audits. We noted three instances in our sample size of three where there was no documentation showing that the reimbursement requests were reviewed and approved. There was no segregation of duties as one individual prepared, reviewed and submitted the requests for payment. Repeat finding: Yes Recommendation: We recommend that SHNLFB implement a procedure to review and approve reimbursement requests to ensure they are accurately submitted. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Item 2023-003: Late Issuance of 2023 Single Audit Reporting Package Identification of federal programs: All Assistance Listing Numbers included on the schedule of expenditures of federal awards for the period from July 1, 2023 to December 31, 2023. Criteria: The Uniform Guidance (2 CFR 200.512) requires the single audit to be completed and the data collection form and reporting package to be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Condition: The submission of the December 31, 2023 single audit reporting package should have been submitted by September 30, 2024. Cause: The audit was not completed by September 30, 2024, due to timeliness of information being available to complete the audit and incorrect identification of reporting period. Effect: SHNLFB was not in compliance with the Uniform Guidance (2 CFR 200.512). Questioned costs: None Context: The December 31, 2023 single audit reporting package. Repeat finding: Yes Recommendation: We recommend SHNLFB continue its efforts to ensure the reporting package is filed timely with the Federal Audit Clearinghouse. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Item 2023-004: Preparation of Schedule of Expenditures of Federal Awards Identification of federal programs: All Assistance Listing Numbers included on the schedule of expenditures of federal awards for the period from July 1, 2023 to December 31, 2023. Federal award grant number: 204645, 203684, 236829, 229353, and 031875505 Federal agency: U.S. Department of Agriculture, U.S. Department of Treasury Pass-through entity: Minnesota Department of Health, Minnesota Department of Human Services, and Wisconsin Department of Agriculture, Trade and Consumer Protection Criteria: The Uniform Guidance (2 CFR 200.510) requires the auditee to prepare the schedule of expenditures of federal awards to cover the correct reporting period and contain certain information to be considered complete. Condition: We noted the initial schedule of expenditures of federal awards presented for audit was incorrectly for the year ended June 30, 2024. Once the correct period was determined and the revised schedule of expenditures of federal awards was received for the period from July 1, 2023 to December 31, 2023, additional findings were noted as follows: • Food Distribution Cluster program was not properly grouped by federal Assistance Listing Number. • Pass-through entity identifying numbers listed for three programs were incorrect. Once the pass-through entity numbers were corrected, it was determined that two of the programs were the same and should be combined as one listing. • Coronavirus State and Local Fiscal Recovery Funds had improper identification of federal department, pass-through entity and pass-through entity identifying number. This program was improperly included in the Food Distribution Cluster. Cause: The exceptions noted above were due to a breakdown in SHNLFB’s procedures to ensure that the schedule of expenditures of federal awards is in accordance with the Uniform Guidance. Further, we noted there is no documented review and approval of the schedule of expenditures of federal awards. Effect: Improper schedule of expenditures of federal awards was presented for audit. Questioned costs: None Context: The schedule of expenditures of federal awards was not prepared consistent with the requirements of the Uniform Guidance (2 CFR 200.510). Repeat finding: No Recommendation: SHNLFB should continue to improve its procedures around the preparation and review of the schedule of expenditures of federal awards. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.