FAC Explorer

Finding 1223684 (2025-004)

Material Weakness Repeat Finding
Requirement
A
Questioned Costs
-
Year
2025
Accepted
2026-07-15
Audit: 407179
Organization: Second Harvest Community Foodbank (MO)
Auditor: UHY LLP

AI Summary

  • Core Issue: Expenditures for meal reimbursement programs are reported as less than the federal funding received.
  • Impacted Requirements: The Organization lacks detailed tracking and allocation of expenditures to identify specific program costs.
  • Recommended Follow-Up: Improve documentation practices to support expenditure claims and ensure compliance with funding requirements.

Finding Text

Expenditures reported on the SEFA for meal reimbursement programs, including Summer Food Service Program (SFSP) and Child & Adult Food Care Program (CACFP), are less than the federal funding received as the Organization does not track and allocate expenditures in sufficient detail to identify program specific costs. The Organization asserts that expenditures are sufficient to excess the funding received, but documentation to support this assertion is not available.

Corrective Action Plan

We agree with the auditor’s comments and the following action has been taken to improve this situation. Beginning October 1, 2025, a cost allocation policy was implemented which addresses direct costs and indirect costs including salary, fringe benefits, and non-salary costs. Through this process a spreadsheet was developed to better distribute costs appropriately across all federal programs operated by Second Harvest and efforts supported through additional funding sources.

Categories

Cash Management Reporting

Other Findings in this Audit

  • 1223678 2025-002
    Material Weakness Repeat
  • 1223679 2025-004
    Material Weakness Repeat
  • 1223680 2025-004
    Material Weakness Repeat
  • 1223681 2025-004
    Material Weakness Repeat
  • 1223682 2025-002
    Material Weakness Repeat
  • 1223683 2025-002
    Material Weakness Repeat
  • 1223685 2025-003
    Material Weakness Repeat
  • 1223686 2025-003
    Material Weakness Repeat
  • 1223687 2025-003
    Material Weakness Repeat
  • 1223688 2025-003
    Material Weakness Repeat
  • 1223689 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $1.07M
10.569 EMERGENCY FOOD ASSISTANCE PROGRAM (FOOD COMMODITIES) $282,659
10.182 PANDEMIC RELIEF ACTIVITIES: LOCAL FOOD PURCHASE AGREEMENTS WITH STATES, TRIBES, AND LOCAL GOVERNMENTS $111,130
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $69,973
10.558 CHILD AND ADULT CARE FOOD PROGRAM $53,914
10.561 STATE ADMINISTRATIVE MATCHING GRANTS FOR THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM $42,651
10.187 THE EMERGENCY FOOD ASSISTANCE PROGRAM (TEFAP) COMMODITY CREDIT CORPORATION ELIGIBLE RECIPIENT FUNDS $40,977
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $23,750
10.568 EMERGENCY FOOD ASSISTANCE PROGRAM (ADMINISTRATIVE COSTS) $17,605
10.565 COMMODITY SUPPLEMENTAL FOOD PROGRAM $3,208