Finding 371398 (2023-001)

Significant Deficiency

Requirement

Questioned Costs

Year

2023

Accepted

2024-03-01

Audit: 293028

Organization: The Foodbank of Monmouth and Ocean Counties, Inc. Dba: Fulfill (NJ)

Auditor: Cliftonlarsonallen LLP

AI Summary

Core Issue: There was a significant delay in submitting a bi-annual performance report, impacting compliance with state contract requirements.
Impacted Requirements: Timely and accurate reporting is essential for compliance with the Coronavirus State and Local Fiscal Recovery Funds.
Recommended Follow-Up: Management should establish processes to ensure timely preparation and review of performance reports to meet grant requirements.

Finding Text

Type of Finding: Significant Deficiency in Internal Control over Compliance (Reporting) Criteria: Timely and accurate performance reporting is vital in the Organization's internal control to ensure that the organization is in compliance with major state contract reporting requirements. Condition and Context: Performance reports are to be prepared and submitted timely and accurately by management. Effect: Through our review of the reporting requirements of the Coronavirus State and Local Fiscal Recovery Funds we noted that there was one bi-annual performance report that was not submitted to the funder timely. Management and the funder agreed that the reports had not been submitted due to turnover within the organization. Management submitted these performance reports to the funder seven months following the reporting requirement due date and the funder has accepted the reports and notes that the organization is now in compliance with the reporting requirements. Recommendation: We recommend management put processes in place to ensure timely preparation and review of required performance reports in accordance with the terms of the state grant award. Views of Responsible Officials and Planned Corrective Actions: See accompanying Corrective Action Plan

Corrective Action Plan

SIGNIFICANT DEFICIENCY 2023-001 Internal Control over Compliance (Reporting) Recommendation: Management put processes in place to ensure timely preparation and review of required performance reports in accordance with the terms of the state grant award. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Response by management to the finding: This was the only performance report that was not submitted timely (it was due October 2022) before a grant tracking system was deployed in December 2022. A grant management team comprised of key staff from each department (Development, Finance, Operations, and Programs) meet twice monthly to consider new grants and to review and track the progress of awarded grants. The team maintains a master list of restricted grants and each restricted grant is assigned a grant number that is recorded with associated revenue and expense transactions in the General Ledger. Department and Program codes have also been deployed, and depending on the restriction, these can be assigned to each grant to identify eligible expenses that can be subsequently assigned as grants are released. Name of the contact person responsible for corrective action: Andre Solomon, Vice President of Finance and Administration Planned completion date for corrective action plan: Completed

Other Findings in this Audit

371399 2023-001

Significant Deficiency
947840 2023-001

Significant Deficiency
947841 2023-001

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
10.569	Emergency Food Assistance Program (food Commodities)	$4.11M
21.027	Coronavirus State and Local Fiscal Recovery Funds	$500,000
10.568	Emergency Food Assistance Program (administrative Costs)	$399,292
10.559	Summer Food Service Program for Children	$218,454
10.558	Child and Adult Care Food Program	$168,975
21.019	Coronavirus Relief Fund	$136,270
10.561	State Administrative Matching Grants for the Supplemental Nutrition Assistance Program	$117,108
93.667	Social Services Block Grant	$109,112
93.332	Cooperative Agreement to Support Navigators in Federally-Facilitated and State Partnership Marketplaces	$96,513
97.024	Emergency Food and Shelter National Board Program	$84,622
10.565	Commodity Supplemental Food Program	$19,176
10.187	The Emergency Food Assistance Program (tefap)	$14,857