FAC Explorer

Finding 1506 (2022-003)

Significant Deficiency
Requirement
ABGLM
Questioned Costs
-
Year
2022
Accepted
2023-11-09
Audit: 2767
Organization: Nutrition Services, Inc. (MN)
Auditor: Abdo LLP

AI Summary

  • Core Issue: Supplemental financial report information does not match the underlying records.
  • Impacted Requirements: Uniform Guidance mandates alignment between reported and actual financial data.
  • Recommended Follow-Up: Establish a review process to ensure financial reports are accurate before submission.

Finding Text

Condition: Supplemental information on the financial reports, including program income and program expenditures, did not agree with the underlying financial information. Criteria: Uniform Guidance requires that information reported on the financial reports agrees to the underlying financial information. Cause: There was no internal process to ensure the accuracy of the supplemental information on the financial reports. Effect: As a result, grantor records may contain inaccurate information based on the submitted financial reports. Context: This is a repeat finding from the prior year. During our audit procedures, we compared financial reports to the underlying financial information and found that the amounts did not agree. Recomendation: We recommend that the Organization implements a review process to tie the monthly, quarterly, and annual financial reports to the underlying financial records as the reports are prepared. Views of REsponsbile Officals: Management agrees with the finding.

Corrective Action Plan

The Organization and the grantor will work to ensure that final financial reports will be accurate and tie to the underlying financial records in all respects at the end of the year. The grantor noted that they are not concerned about the accuracy of interim reports since the incorrectly reported information does not affect the funds reimbursement amount.Recommendation: We recommend that the Organization implements a review process to tie the monthly, quarterly, and annual financial reports to the underlying financial records as the reports are prepared. Planned Action: The Organization and the grantor will work to ensure that final financial reports will be accurate and tie to the underlying financial records in all respects at the end of the year. The Recommendation: We recommend that the Organization implements a review process to tie the monthly, quarterly, and annual financial reports to the underlying financial records as the reports are prepared. Planned Action: The Organization and the grantor will work to ensure that final financial reports will be accurate and tie to the underlying financial records in all respects at the end of the year. The grantor noted that they are not concerned about the accuracy of interim reports since the incorrectly reported information does not affect the funds reimbursement amount.

Categories

Program Income

Other Findings in this Audit

  • 1504 2022-001
    Significant Deficiency Repeat
  • 1505 2022-002
    Significant Deficiency Repeat
  • 577946 2022-001
    Significant Deficiency Repeat
  • 577947 2022-002
    Significant Deficiency Repeat
  • 577948 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $924,148
93.053 Nutrition Services Incentive Program $145,169