Finding 1170400 (2025-004)

Material Weakness Repeat Finding

Requirement

AB

Questioned Costs

-

Year

2025

Accepted

2026-01-23

Audit: 383563

Organization: Great Plains Food Bank (ND)

Auditor: EIDE BAILLY

AI Summary

Core Issue: There were errors in payroll allocations due to a lack of formal review, leading to incorrect charges to federal programs.
Impacted Requirements: This violates the requirement for effective internal controls over federal awards as outlined in 2 CFR 200.303(a).
Recommended Follow-Up: Implement processes to ensure payroll allocations are reviewed and approved for each payroll cycle.

Finding Text

U.S. Department of Agriculture Passed Through the North Dakota Department of Public Instruction and the Minnesota Department of Human Services Federal Financial Assistance Listing # 10.565 All Awards Federal Financial Assistance Listing # 10.568 All Awards Food Distribution Cluster Activities Allowed/Unallowed and Allowable Costs/Cost Principles Significant Deficiency in Internal Control over Compliance Criteria – 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition – As part of our audit, two payroll allocation errors were identified. It was determined that some errors resulted in overallocation of costs while others in underallocation of costs. Cause – No formal review of the allocations were completed before or after each payroll. This resulted in incorrect amounts being allocated to the programs. Effect – The failure to adequately review payroll allocations resulted in incorrect charges to the program. Questioned Costs – None Reported. Context/Sampling – A nonstatistical sample of 8 pay periods out of a population of 26 pay periods were selected for testing. 2 pay periods had an error. Repeat Finding from Prior Year(s) – Yes, Finding 2024-004. Recommendation – It is recommended that the Organization implement processes and controls to ensure that payroll allocations are reviewed and approved with each payroll processed. Views of Responsible Officials – Management agrees with the finding.

Corrective Action Plan

U.S. Department of Agriculture Passed Through the North Dakota Department of Public Instruction and the Minnesota Department of Human Services Federal Financial Assistance Listing # 10.565 All Awards Federal Financial Assistance Listing # 10.568 All Awards Food Distribution Cluster Finding Summary: As part of the audit done by Eide Bailly LLP, multiple payroll allocation errors to programs were identified. Responsible Individuals: Kate Molbert, COO David Stachon, CFO Corrective Action Plan: This issue was fixed in FY25. The finding still exists due to July and August payrolls that occurred prior to the fix. After this was brought to our attention in the prior audit, it has been fixed going forward. We discussed this issue with our outsourced payroll provider, PRO Resources. We’ve opted into their upgraded online portal and now have access to better view, change and review allocations ourselves. Anticipated Completion Date: Completed

Programs in Audit

ALN	Program Name	Expenditures
10.569	EMERGENCY FOOD ASSISTANCE PROGRAM (FOOD COMMODITIES)	$5.54M
14.228	COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE'S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII	$1.99M
10.565	COMMODITY SUPPLEMENTAL FOOD PROGRAM	$541,252
10.559	SUMMER FOOD SERVICE PROGRAM FOR CHILDREN	$230,014
10.561	STATE ADMINISTRATIVE MATCHING GRANTS FOR THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM	$162,622
10.182	PANDEMIC RELIEF ACTIVITIES: LOCAL FOOD PURCHASE AGREEMENTS WITH STATES, TRIBES, AND LOCAL GOVERNMENTS	$29,586
10.568	EMERGENCY FOOD ASSISTANCE PROGRAM (ADMINISTRATIVE COSTS)	$29,287

Finding 1170400 (2025-004)

AI Summary

Finding Text

Corrective Action Plan

Categories

Other Findings in this Audit

Programs in Audit