FAC Explorer

Finding 525311 (2023-006)

Significant Deficiency
Requirement
A
Questioned Costs
-
Year
2023
Accepted
2025-03-03
Audit: 344536
Organization: Second Harvest Community Foodbank (MO)
Auditor: Uhy LLP

AI Summary

  • Core Issue: Expenditures for meal reimbursement programs are reported as lower than federal funding received.
  • Impacted Requirements: Lack of detailed tracking and allocation of expenditures prevents identification of program-specific costs.
  • Recommended Follow-Up: Improve documentation practices to support expenditure claims and ensure compliance with funding requirements.

Finding Text

Expenditures reported on the SEFA for meal reimbursement programs, including Summer Food service program (SFSP) and Child and Adult Food Care program (CACFP), are less than the federal funding received as the Organization does not track and allocate expenditures in sufficient detail to identify program specific costs. The Organization asserts that expenditures are sufficient to exceed the funding received, but documentation to support this assertion is not available.

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

Cash Management Reporting

Other Findings in this Audit

  • 525309 2023-003
    Material Weakness Repeat
  • 525310 2023-004
    Material Weakness Repeat
  • 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