FAC Explorer

Audit 52214

FY End
2022-06-30
Total Expended
$1.46M
Findings
2
Programs
2
Organization: Second Harvest Foodbank of Southern Wisconsin, Inc. (WI)
Year: 2022 Accepted: 2022-11-22
Auditor: Baker Tilly US LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
62717 2022-001 Material Weakness - I
639159 2022-001 Material Weakness - I

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.26M Yes 1
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $204,938 - 0

Contacts

Name Title Type
NLPMYDRMF726 Mike Wilson Auditee
6082167215 Ryan J. Lay, CPA Auditor
No contacts on file

Notes to SEFA

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 Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amount reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal and state award activity of Second Harvest Foodbank of Southern Wisconsin, Inc. (the Organization) under programs of the federal and state government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the State Single Audit Guidelines. Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization.
Title: Local Matching Expenditures 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 Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amount reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. During the administration of the federal program, the Organization incurred costs which were not reimbursed by the granting agency. The local matching expenditures incurred by the Organization during the year ended June 30, 2022, are as follows: Program title - State Administrative Matching Grants for the Supplemental Nutrition Assistance Program. Federal Expenditures $204,938. Local Matching Expenditures $204,938. Total Expenditures $409,876.

Finding Details

Finding 2022-001
2022-001 Agency and pass through entities: U.S. Department of Treasury passed through Wisconsin Department of Agriculture, Trade and Consumer Protection and Feeding Wisconsin, Inc. Federal program and award numbers: 21.027, COVID-19 - Coronavirus State and Local Fiscal Recovery Funds (ARP). Award number 445404. Criteria: Uniform Guidance requires the Organization establish and maintain effective internal control over federal awards over procurement to ensure vendors are not suspended, debarred or otherwise excluded pursuant to 31 CFR section 19.300. Statement of condition: The Organization did not implement controls to verify vendors utilized were not suspended, debarred of otherwise excluded pursuant to 31 CFR section 19.300. Questioned costs: The amount of questioned costs could not be determined. Context: The Organization is required by the Uniform Guidance and State Single Audit Guidlines to comply with suspension and debarment. Management did not verify vendors were not suspended, debarred or otherwise ineligible to receive federal funds prior to disbursing funds. During the audit process, management performed procedures on each vendor used for the program and none were suspended, debarred or ineligible. Effect: Federal funds could be expended to suspended, debarred or otherwise excluded vendors. Cause: Management did not have controls in place to ensure new and existing vendors are not suspended or debarred. Recommendation: We recommend management implement procedures and controls in which the Organization verifies new and existing vendors are not suspended or debarred prior to entering in to transactions with vendors. Management Response: Management agrees with the finding. Management has since put in place an automated service to check compliance on a monthly basis. The service, VerifyComply, scans State and Federal databases for individuals or organizations who are excluded from receiving Federal funding. Existing entities that the Organization has relationships with as vendors or partner agencies were scanned on October 13, 2022 and no excluded parties were found.
Finding 2022-001
2022-001 Agency and pass through entities: U.S. Department of Treasury passed through Wisconsin Department of Agriculture, Trade and Consumer Protection and Feeding Wisconsin, Inc. Federal program and award numbers: 21.027, COVID-19 - Coronavirus State and Local Fiscal Recovery Funds (ARP). Award number 445404. Criteria: Uniform Guidance requires the Organization establish and maintain effective internal control over federal awards over procurement to ensure vendors are not suspended, debarred or otherwise excluded pursuant to 31 CFR section 19.300. Statement of condition: The Organization did not implement controls to verify vendors utilized were not suspended, debarred of otherwise excluded pursuant to 31 CFR section 19.300. Questioned costs: The amount of questioned costs could not be determined. Context: The Organization is required by the Uniform Guidance and State Single Audit Guidlines to comply with suspension and debarment. Management did not verify vendors were not suspended, debarred or otherwise ineligible to receive federal funds prior to disbursing funds. During the audit process, management performed procedures on each vendor used for the program and none were suspended, debarred or ineligible. Effect: Federal funds could be expended to suspended, debarred or otherwise excluded vendors. Cause: Management did not have controls in place to ensure new and existing vendors are not suspended or debarred. Recommendation: We recommend management implement procedures and controls in which the Organization verifies new and existing vendors are not suspended or debarred prior to entering in to transactions with vendors. Management Response: Management agrees with the finding. Management has since put in place an automated service to check compliance on a monthly basis. The service, VerifyComply, scans State and Federal databases for individuals or organizations who are excluded from receiving Federal funding. Existing entities that the Organization has relationships with as vendors or partner agencies were scanned on October 13, 2022 and no excluded parties were found.