Finding 1160614 (2023-003)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2023

Accepted

2025-10-16

Audit: 370907

Organization: Toledo Northwest Ohio Food Bank (OH)

Auditor: Maner Costerisan

AI Summary

Core Issue: The organization lacks formal, documented federal policies and procedures required by the Uniform Guidance.
Impacted Requirements: Key areas affected include payments, procurement, and cost allowability for federal programs.
Recommended Follow-Up: The organization should create and implement the necessary written policies and procedures promptly.

Finding Text

2023-003 Written Financial Policies Temporary Assistance for Needy Families; ALN 93.558; U.S. Department of Health and Human Services Coronavirus State and Local Fiscal Recovery Funds; ALN 21.027; U.S. Department of Treasury Finding Type: Material Weakness and Material Noncompliance Condition: There were no formal, documented federal policies and procedures in place for December 31, 2023, as required by the Uniform Guidance. Criteria: The Uniform Guidance requires a non-federal entity that has expended federal awards for a grant awarded on or after December 26, 2014 to have written policies pertaining to various areas, including: 1) Payments (draws of federal funds and how to minimize the time elapsing between the receipt of federal funds and the disbursement to contractors/employees/subrecipients) (§200.302 (6)); 2) Procurement (including bidding and conflict of interest policy) (§200.318); and 3) Allowability of costs charged to federal programs (§200.302 (7)). Cause: Documented federal policies and procedures were not created and implemented by the Organization. Effect: As the result of this condition, Toledo Northwestern Ohio Food Bank, Inc. did not fully comply with the Uniform Guidance applicable to the major federal program. Recommendation: We recommend that the Organization prepare the required written policies and procedures as soon as practical. Organization’s Response: The Organization concurs with the facts of this finding and is in the process of implementing documented federal policies and procedures.

Corrective Action Plan

Toledo Northwestern Ohio Food Bank, Inc. respectfully submits the following corrective action plan for the year ended December 31, 2023. Auditor: Maner Costerisan 2425 E. Grand River Avenue, Suite 1 Lansing, MI 48912 Audit Period: Year ended December 31, 2023 Organization Contact Person: James Caldwell, President/CEO The findings from the December 31, 2023 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the number assigned in the schedule. Financial Statement Findings 2023-001 - Material Journal Entries Responsible Party: Director of Operations and third-party accountant Action to be Taken: Management agrees with the finding, and we have implemented such a policy. Anticipated Completion Date: June 30, 2024 2023-002 - Timeliness of Bank Reconciliations Responsible Party: Director of Operations and third-party accountant Action to be Taken: Management agrees with the finding, and we have implemented such a policy. Anticipated Completion Date: June 30, 2024 Federal Award Findings 2023-003 - Written Policies and Procedures Responsible Party: Director of Operations and third-party accountant Action to be Taken: Management agrees with the finding, and we have implemented such a policy. Completion Date: May 14, 2025 2023-004 - Timeliness of Reporting Audited Financial Statements and Federal Awards Responsible Party: Director of Operations and third-party accountant Action to be Taken: Management agrees with the finding, and we have implemented such a policy. Anticipated Completion Date: June 30, 2026

Other Findings in this Audit

1160612 2023-003

Material Weakness Repeat
1160613 2023-004

Material Weakness Repeat
1160615 2023-004

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
93.558	Temporary Assistance for Needy Families	$1.70M
21.027	Coronavirus State and Local Fiscal Recovery Funds	$964,067
10.182	Pandemic Relief Activities: Local Food Purchase Agreements with States, Tribes, and Local Governments	$671,874
10.561	State Administrative Matching Grants for the Supplemental Nutrition Assistance Program	$61,428
93.667	Social Services Block Grant	$58,961