FAC Explorer

Finding 369321 (2023-006)

Significant Deficiency Repeat Finding
Requirement
AB
Questioned Costs
-
Year
2023
Accepted
2024-02-15
Audit: 290553
Organization: Great Plains Food Bank (ND)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: There are significant errors in payroll allocations due to a lack of formal review processes.
  • Impacted Requirements: Internal controls over compliance are insufficient, leading to incorrect program charges.
  • Recommended Follow-Up: Implement a review and approval process for payroll allocations to prevent future errors.

Finding Text

U.S. Department of Agriculture 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 – A good system of internal controls includes a process to ensure that all costs are appropriately allocated to the programs. Condition – As part of our audit, it was identified that there were multiple payroll allocation errors that were not identified by management. It was determined that some errors resulted in overallocation of costs while others in underallocation of costs. Cause – No formal review was completed of the allocations 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. 6 pay periods had an error. Repeat Finding from Prior Year(s) – Yes. 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 CFDA # 10.565, 10.568 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: Melissa Sobolik, CEO and David Stachon, CFO Corrective Action Plan: The GPFB has discussed this issue with our outsourced payroll provider, PRO Resources. We implemented an early fix to push our teams to approve their payroll in a more timely manner and allow more time for internal, accounting team review. In addition, we are transitioning to an upgraded HRIS platform through PRO as of January 16th. This upgraded platform has automated payroll allocations (they were previously individually calculated), a more streamlined category system for time off and a better, more immediate system for us to conduct our internal review. Anticipated Completion Date: January, 2023

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 369320 2023-005
    Significant Deficiency Repeat
  • 369322 2023-005
    Significant Deficiency Repeat
  • 369323 2023-006
    Significant Deficiency Repeat
  • 369324 2023-005
    Significant Deficiency Repeat
  • 369325 2023-006
    Significant Deficiency Repeat
  • 369326 2023-005
    Significant Deficiency Repeat
  • 369327 2023-006
    Significant Deficiency Repeat
  • 369328 2023-005
    Significant Deficiency Repeat
  • 369329 2023-006
    Significant Deficiency Repeat
  • 369330 2023-004
    Material Weakness
  • 369331 2023-005
    Significant Deficiency Repeat
  • 369332 2023-004
    Material Weakness
  • 369333 2023-005
    Significant Deficiency Repeat
  • 945762 2023-005
    Significant Deficiency Repeat
  • 945763 2023-006
    Significant Deficiency Repeat
  • 945764 2023-005
    Significant Deficiency Repeat
  • 945765 2023-006
    Significant Deficiency Repeat
  • 945766 2023-005
    Significant Deficiency Repeat
  • 945767 2023-006
    Significant Deficiency Repeat
  • 945768 2023-005
    Significant Deficiency Repeat
  • 945769 2023-006
    Significant Deficiency Repeat
  • 945770 2023-005
    Significant Deficiency Repeat
  • 945771 2023-006
    Significant Deficiency Repeat
  • 945772 2023-004
    Material Weakness
  • 945773 2023-005
    Significant Deficiency Repeat
  • 945774 2023-004
    Material Weakness
  • 945775 2023-005
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
10.569 Emergency Food Assistance Program (food Commodities) $2.21M
10.565 Commodity Supplemental Food Program $352,649
10.182 Local Food Purchase Assistance $122,248
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $54,622
10.559 Summer Food Service Program for Children $45,935
10.568 Emergency Food Assistance Program (administrative Costs) $19,277