Finding 32975 (2022-002)

Significant Deficiency Repeat Finding

Requirement

Questioned Costs

Year

2022

Accepted

2023-01-24

Audit: 33699

Organization: Nourishing Hope-Fka Lakeview (IL)

Auditor: Cohnreznick LLP

AI Summary

Core Issue: Nourishing Hope failed to document guest eligibility for the Emergency Food Assistance Program, violating USDA guidelines.
Impacted Requirements: The organization did not retain necessary records, including addresses and income eligibility, for 8 out of 40 sampled recipients.
Recommended Follow-Up: Improve record-keeping procedures to ensure compliance with eligibility requirements and avoid repeat findings.

Finding Text

Finding No. 2022-002 Assistance Listing Number 10.569 ? Emergency Food Assistance Program, United States Department of Agriculture. Pass-Through Entity: Greater Chicago Food Depository Award Number: A00014 Compliance Requirements: Eligibility Criteria Under the Emergency Food Assistance Program the Organization must certify household eligibility to receive USDA Foods for household consumption by applying income eligibility criteria established by the state agency. Condition During the year ended March 31, 2022, Nourishing Hope did not follow USDA Signature Sheet Guidelines and retain addresses from guests or their income eligibility. Context We sampled 40 guest recipient and tested for eligibility. 8of 40 did not have the required eligibility documented in regards to guests addresses and did not keep records of the eligibility status. Cause The cause of the finding is due to the Organization not keeping record of recipient eligibility status. Effect Nourishing Hope is not in compliance with the major program eligibility compliance requirements. Repeat Finding Yes - 2021-003 Recommendation Nourishing Hope should enhance their eligibility record keeping procedures in accordance with the program guidelines. Questioned Costs Not Applicable

Corrective Action Plan

United States Department of Agriculture 2022-002 Emergency Food Assistance Program ? Assistance Listing Number #10.569 During the year ended March 31, 2022, Nourishing Hope did not follow USDA Signature Sheet Guidelines and retain addresses from guests or their income eligibility. Recommendation Nourishing Hope should enhance their eligibility record keeping procedures in accordance with the program guidelines. Action Taken Nourishing Hope conducted this requirement in accordance with Greater Chicago Food Depository (?GCFD?) program regulations and collected and submitted all required documentation to GCFD for review on a monthly basis. Nourishing Hope did not keep a copy of the documentation in the past since Nourishing Hope was not subject to a single audit requirement and was required to send all of the documents to GCFD. In fiscal year 2023, a new process was implemented to now scan a copy of these documents to be in compliance with USDA regulations. With this new process in place, Nourishing Hope considers the control and compliance matter remediated in fiscal year 2023.

Other Findings in this Audit

32974 2022-001

Material Weakness Repeat
32976 2022-003

Significant Deficiency Repeat
609416 2022-001

Material Weakness Repeat
609417 2022-002

Significant Deficiency Repeat
609418 2022-003

Significant Deficiency Repeat

Programs in Audit

ALN	Program Name	Expenditures
10.569	Emergency Food Assistance Program (food Commodities)	$2.08M
93.569	Community Services Block Grant	$91,550
97.024	Emergency Food and Shelter National Board Program	$26,359