FAC Explorer

Audit 44619

FY End
2022-06-30
Total Expended
$1.22M
Findings
2
Programs
4
Organization: Second Harvest Northern Lakes Food Bank (MN)
Year: 2022 Accepted: 2023-01-25
Auditor: Rsm US LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
43459 2022-001 Significant Deficiency - I
619901 2022-001 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
10.569 Emergency Food Assistance Program (food Commodities) $497,072 Yes 0
10.565 Commodity Supplemental Food Program $267,974 Yes 0
10.568 Emergency Food Assistance Program (administrative Costs) $198,903 Yes 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $102,664 Yes 0

Contacts

Name Title Type
PXN8GJJQG121 Shaye Moris Auditee
2187275653 Bart Rodberg Auditor
No contacts on file

Notes to SEFA

Title: Noncash Transactions Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Second Harvest Northern Lakes Food Bank has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Negative amounts shown on the Schedule represents adjustments to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Second Harvest Northern Lakes Food Bank consumed noncash assistance in the form of food commodities. Commodities with a fair value at the time received of $242,287 and $497,072 related to Assistance Listing Number 10.565 and 10.569, respectively, were consumed or distributed during the period from January 1, 2022 to June 30, 2022. These commodities consumed were included in the determination of federal awards expended for the period from January 1, 2022 to June 30, 2022.
Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Second Harvest Northern Lakes Food Bank has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Negative amounts shown on the Schedule represents adjustments to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Second Harvest Northern Lakes Food Bank under programs of the federal government for the period from January 1, 2022 to June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Second Harvest Northern Lakes Food Bank, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Second Harvest Northern Lakes Food Bank.

Finding Details

Finding 2022-001
Item 2022-001: Suspension and Debarment Assistance Listing Number title and number: Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing Number 21.027 Federal award grant number: 031875505 Federal agency: U.S. Department of Treasury Pass-through entity: Wisconsin Department of Agriculture, Trade and Consumer Protection Criteria: SHNLFB is required to verify 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 part 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 section 180.300). Procurement records should document the method used to comply with the requirements of suspension and debarment. Condition: For one of the contracts selected for suspension and debarment testing, there was no documentation provided by SHNLFB to verify the contractor was not suspended or debarred. Cause: The exception noted above was due to a breakdown in SHNLFB?s procedures to ensure that all contracts for goods and services entered into have suspension and debarment checked in accordance with SHNLFB?s procurement policy. Effect: SHNLFB did not consistently follow its procedures designed to verify vendors are not suspended or debarred prior to the awarding the contract. 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 totaled 2 purchases. The sample size of 2 was determined using the guidance in the AICPA Audit and Accounting Guide ? Government Auditing Standards and Single Audits. We noted 1 instance in our sample size of 2 where there was no documentation provided by SHNLFB to verify the contractor was not suspended or debarred. Repeat finding: No Recommendation: SHNLFB should continue to improve its procedures to ensure that all vendors are properly verified prior to the awarding of contracts or purchase orders. It is also recommended that evidence related to the procedures performed to verify vendors are not suspended or debarred is maintained with the individual contracts and purchase orders. Views of responsible officials of the auditee: We agree with the above finding and our response is included in the corrective action plan.
Finding 2022-001
Item 2022-001: Suspension and Debarment Assistance Listing Number title and number: Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing Number 21.027 Federal award grant number: 031875505 Federal agency: U.S. Department of Treasury Pass-through entity: Wisconsin Department of Agriculture, Trade and Consumer Protection Criteria: SHNLFB is required to verify 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 part 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 section 180.300). Procurement records should document the method used to comply with the requirements of suspension and debarment. Condition: For one of the contracts selected for suspension and debarment testing, there was no documentation provided by SHNLFB to verify the contractor was not suspended or debarred. Cause: The exception noted above was due to a breakdown in SHNLFB?s procedures to ensure that all contracts for goods and services entered into have suspension and debarment checked in accordance with SHNLFB?s procurement policy. Effect: SHNLFB did not consistently follow its procedures designed to verify vendors are not suspended or debarred prior to the awarding the contract. 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 totaled 2 purchases. The sample size of 2 was determined using the guidance in the AICPA Audit and Accounting Guide ? Government Auditing Standards and Single Audits. We noted 1 instance in our sample size of 2 where there was no documentation provided by SHNLFB to verify the contractor was not suspended or debarred. Repeat finding: No Recommendation: SHNLFB should continue to improve its procedures to ensure that all vendors are properly verified prior to the awarding of contracts or purchase orders. It is also recommended that evidence related to the procedures performed to verify vendors are not suspended or debarred is maintained with the individual contracts and purchase orders. Views of responsible officials of the auditee: We agree with the above finding and our response is included in the corrective action plan.