FAC Explorer

Finding 525310 (2023-004)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2023
Accepted
2025-03-03
Audit: 344536
Organization: Second Harvest Community Foodbank (MO)
Auditor: Uhy LLP

AI Summary

  • Answer: Overhead costs and payroll are incorrectly assigned only to TEFAP.
  • Trend: This misallocation could lead to inaccurate financial reporting and budgeting.
  • List: Review and adjust cost allocation methods to ensure fair distribution across all activities.

Finding Text

Overhead costs and payroll are not appropriately allocated amongst the activities of Second Harvest. Instead, costs such as utilities, phone, lawn service, repairs and maintenance and payroll are 100% allocated to TEFAP.

Corrective Action Plan

We agree with the auditor’s comments and the following action will be taken to improve this situation. Second Harvest staff are currently engaged with outside resources and support to develop an appropriate cost segregation plan which will address direct costs and indirect costs including salary, fringe benefits, and non-salary costs. Through this process a spreadsheet will be developed to better distribute costs appropriately across all federal programs operated by Second Harvest and efforts supported through additional funding sources. This corrective action will be implemented by February 1, 2025.

Categories

No categories assigned yet.

Other Findings in this Audit

  • 525309 2023-003
    Material Weakness Repeat
  • 525311 2023-006
    Significant Deficiency
  • 525312 2023-007
    Significant Deficiency
  • 525313 2023-005
    Significant Deficiency
  • 1101751 2023-003
    Material Weakness Repeat
  • 1101752 2023-004
    Material Weakness Repeat
  • 1101753 2023-006
    Significant Deficiency
  • 1101754 2023-007
    Significant Deficiency
  • 1101755 2023-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.569 Emergency Food Assistance Program (food Commodities) $270,791
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $112,408
10.766 Community Facilities Loans and Grants $68,430
10.558 Child and Adult Care Food Program $51,332
10.568 Emergency Food Assistance Program (administrative Costs) $47,771
10.559 Summer Food Service Program for Children $46,926
14.218 Community Development Block Grants/entitlement Grants $23,750
10.182 Pandemic Relief Activities: Local Food Purchase Agreements with States, Tribes, and Local Governments $14,776