Finding 1159853 (2024-003)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2025-10-03
Audit: 370389
Auditor: Rsm US LLP

AI Summary

  • Core Issue: The schedule of expenditures of federal awards was incorrectly prepared for the year ended June 30, 2024, failing to meet Uniform Guidance requirements.
  • Impacted Requirements: Issues included improper grouping of programs, incorrect pass-through entity numbers, and misidentification of the Coronavirus State and Local Fiscal Recovery Funds.
  • Recommended Follow-Up: SHN should enhance its procedures for preparing and reviewing the schedule to ensure compliance with Uniform Guidance.

Finding Text

Item 2024-003: 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 January 1, 2024 to June 30, 2024. Federal award grant number: 204645, 244603, 244590, 242754 Federal agency: U.S. Department of Agriculture, U.S. Department of Treasury Pass-through entity: Minnesota Department of Health and Minnesota Department of Human Services 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 January 1, 2024 to June 30, 2024, 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 two programs were incorrect.  Coronavirus State and Local Fiscal Recovery Funds had improper identification of the program 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 SHN’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: SHN 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: SHN concurs with this finding and a response is included in the corrective action plan.

Corrective Action Plan

SHN will ensure that all Federal Awards are carefully reviewed to confirm that the Federal Assistance Listing Number is accurately stated, the pass-through entity identifying numbers are correct, and are included in the correct Cluster.

Categories

Reporting Subrecipient Monitoring

Other Findings in this Audit

  • 1159827 2024-003
    Material Weakness Repeat
  • 1159828 2024-004
    Material Weakness Repeat
  • 1159829 2024-005
    Material Weakness Repeat
  • 1159830 2024-006
    Material Weakness Repeat
  • 1159831 2024-007
    Material Weakness Repeat
  • 1159832 2024-003
    Material Weakness Repeat
  • 1159833 2024-004
    Material Weakness Repeat
  • 1159834 2024-005
    Material Weakness Repeat
  • 1159835 2024-006
    Material Weakness Repeat
  • 1159836 2024-007
    Material Weakness Repeat
  • 1159837 2024-003
    Material Weakness Repeat
  • 1159838 2024-004
    Material Weakness Repeat
  • 1159839 2024-005
    Material Weakness Repeat
  • 1159840 2024-006
    Material Weakness Repeat
  • 1159841 2024-003
    Material Weakness Repeat
  • 1159842 2024-004
    Material Weakness Repeat
  • 1159843 2024-005
    Material Weakness Repeat
  • 1159844 2024-006
    Material Weakness Repeat
  • 1159845 2024-003
    Material Weakness Repeat
  • 1159846 2024-004
    Material Weakness Repeat
  • 1159847 2024-005
    Material Weakness Repeat
  • 1159848 2024-006
    Material Weakness Repeat
  • 1159849 2024-003
    Material Weakness Repeat
  • 1159850 2024-004
    Material Weakness Repeat
  • 1159851 2024-005
    Material Weakness Repeat
  • 1159852 2024-006
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.569 Emergency Food Assistance Program (food Commodities) $584,582
10.565 Commodity Supplemental Food Program $510,167
21.027 Coronavirus State and Local Fiscal Recovery Funds $77,462
10.568 Emergency Food Assistance Program (administrative Costs) $20,343