FAC Explorer

Finding 1158054 (2024-002)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2025-09-30
Audit: 370003
Organization: Second Harvest Food Bank of the Mahoning Valley (OH)
Auditor: Packer Thomas

AI Summary

  • Core Issue: Miscalculations in federal awards and expenditures for the Emergency Food Assistance Program due to incorrect commodity weights.
  • Impacted Requirements: Accurate record-keeping and reporting as mandated by program guidelines and Uniform Guidance.
  • Recommended Follow-up: Enhance internal controls by standardizing calculations, reconciling food records, and ensuring supervisory reviews before reporting on the SEFA.

Finding Text

Federal Expenditure Tracking (Emergency Food Assistance Program - Food Commodities) Criteria: Management is responsible for maintaining accurate records and implementing controls to properly calculate and report federal awards and expenditures in accordance with program requirements and the Uniform Guidance. Condition: The Company did not correctly calculate federal awards and expenditures for the Emergency Food Assistance Program (Food Commodities) based on the weights of food received and distributed for the program. Cause: The miscalculation resulted from errors in applying the appropriate commodity weights when determining the federal award amounts and related expenditures. Effect: Federal expenditures reported on the Schedule of Expenditures of Federal Awards (SEFA) were originally calculated incorrectly. Recommendation: Management should strengthen internal controls over the calculation and tracking of federal expenditures by ensuring commodity weights are accurately applied. This may include implementing a standardized calculation process, reconciling record of food received to supporting documentation, and performing supervisory review before amounts are reported on the SEFA.

Corrective Action Plan

Federal Expenditure Tracking (Emergency Food Assistance Program - Food Commodities) Recommendation: Management should strengthen internal controls over the calculation and tracking of federal expenditures by ensuring commodity weights are accurately applied. This may include implementing a standardized calculation process, reconciling records of food received to supporting documentation, and performing supervisory review before amounts are reported on the SEFA. Action Taken: Management has implemented a standardized process for calculating federal expenditures under the Emergency Food Assistance Program (Food Commodities). Amounts reported on the SEFA are reviewed by management and verified annually against the applicable inventory categories used for calculation to ensure accurancy and compliance.

Categories

Reporting

Programs in Audit

ALN Program Name Expenditures
10.569 Emergency Food Assistance Program (food Commodities) $7.15M
93.667 Social Services Block Grant $5.58M
10.565 Commodity Supplemental Food Program $563,784
21.027 Coronavirus State and Local Fiscal Recovery Funds $174,887
10.568 Emergency Food Assistance Program (administrative Costs) $168,425
10.187 The Emergency Food Assistance Program (tefap) Commodity Credit Corporation Eligible Recipient Funds $131,487
10.182 Pandemic Relief Activities: Local Food Purchase Agreements with States, Tribes, and Local Governments $120,513
97.024 Emergency Food and Shelter National Board Program $61,822