Finding 479460 (2023-001)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-07-25
Audit: 315994
Organization: Feeding Illinois (IL)
Auditor: Kemper CPA Group

AI Summary

  • Core Issue: The Organization lacks effective internal controls over grant expenditures, leading to inaccuracies in reimbursement submissions.
  • Impacted Requirements: The Organization must establish and maintain controls to prevent errors and fraud in grant expenditures.
  • Recommended Follow-Up: Conduct a thorough review of submitted information to ensure accuracy before submitting for reimbursement.

Finding Text

Finding No.: 2023-001 Internal Control Over Grant Expenditures Federal Program Name: FEMA Feeding Mission CFDA Numbers: 97.036 Federal Agency: U.S. Department of Human Services Information on Federal Program: The objective of the FEMA Feeding Mission is to allow for reimbursement of expenditures prior to or during a state of emergency such as the COVID-19 pandemic. The Mission is a special services program in addition to the normal TEFAP operations utilizing the existing staff and relationships to coordinate a more efficient response to the emergency requirements. Criteria or Specific Requirement: The Organization is responsible for establishing and maintaining internal controls over grant expenditures to prevent error and fraud. Condition: The Organization lacked sufficient internal control over grant expenditures. During testing of grant expenditures, it was noted that 9 out of 9 reimbursements tested were modified by the State Agency overseeing the grant. Feeding Illinois did not properly calculate the number of expenditures for reimbursement. Questioned Costs: N/A Context: The control in place over grant expenditures did not operate effectively Effect: The Organization submitted grant expenditures both in excess of and less than amounts reimbursed. Cause: The Organization supplied a spreadsheet to the recipient food banks to gather data used for reimbursement for the grant. The spreadsheet was modified by the recipient food banks which caused errors in the spreadsheet upon return to the Organization. The errors were not found prior to submission to the State. Identification as a repeat finding, if applicable: N/A Recommendation: We recommend that the Organization perform a more detailed review of the information submitted to verify the accuracy prior to submission for reimbursement. Views of Responsible Officials: This specific emergency Program – FEMA Feeding Mission – was a one-time, pandemic-related, disaster-relief project that necessitated thousands of lines of information being entered and reviewed before submission. We acknowledge that during this process, due to the volume and urgency, some embedded formulas miscalculated totals that were inadvertently undetected by Feeding Illinois.

Corrective Action Plan

All future federal grant programs that require substantial lines of information and calculations to be submitted for reimbursement of allowable costs will be reviewed by at least two qualified persons before submission to the administering agency (e.g. IDHS)..

Categories

Cash Management Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1055902 2023-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $16.60M
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $370,950
10.568 Emergency Food Assistance Program (administrative Costs) $193,180