FAC Explorer

Finding 60631 (2022-004)

Significant Deficiency Repeat Finding
Requirement
AB
Questioned Costs
-
Year
2022
Accepted
2023-03-26
Audit: 56189
Organization: Great Plains Food Bank (ND)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: Internal controls are inadequate, leading to unallowable expenses being charged to federal programs.
  • Impacted Requirements: Expenses must comply with Uniform Guidance and grant requirements, including proper documentation and approval.
  • Recommended Follow-Up: Management should strengthen internal controls to ensure all expenses are documented and approved before allocation.

Finding Text

2022-004 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 documented process to ensure that expenses with the potential to be charged to a federal program are allowable within the Uniform Guidance and grant requirements. Condition ? During review of invoices, it was identified that there were three expense transactions that were charged to accounts that were later allocated to federal programs that did not meet the requirements to be allowable within the grant requirements or under Uniform Guidance or were missing proper documentation of approval. Cause ? Due to oversight by management and lack of documented control processes, costs that are considered unallowable within the grant requirements were included in accounts determined to be allocated to the program for expenditure. Effect ? The Organization?s internal controls failed to ensure proper documentation of review and approval and identify costs that are not allowed within under the program. Questioned Costs ? None Reported. Context/Sampling ? A nonstatistical sample of 60 expenses out of a population of over 250 were selected for testing of allocated expenses. 3 out of the 60 transactions tested had an error. An additional nonstatistical sample of 8 expenses directly charged to CSFP out of a population of 26 were selected for testing. 1 out of the 8 transactions tested had an error. Repeat Finding from Prior Year(s) ? Yes. Recommendation ? Management should implement internal controls to ensure all expenses are properly documented and approved to accounts that will be allocated at year-end are considered allowable. Views of Responsible Officials ? Management agrees with the finding.

Corrective Action Plan

Finding 2022-004 U.S. Department of Agriculture CFDA # 10.565, 10.568 Food Distribution Cluster Finding Summary: A lack of internal controls allowed four expense transactions to be allocated to federal programs that did not meet the requirements to be allowable within the grant. Responsible Individuals: Melissa Sobolik, CEO David Stachon, CFO Corrective Action Plan: Accounting staff continue to refine procedures to ensure accurate compliance for both allowable expenses and proper allocation of expenses. All allocated expense accounts will be reviewed before any allocation is made to prevent any unallowable expenses from being allocated. Anticipated Completion Date: On going

Categories

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Other Findings in this Audit

  • 60632 2022-005
    Significant Deficiency
  • 60633 2022-006
    Significant Deficiency
  • 60634 2022-007
    Material Weakness
  • 60635 2022-004
    Significant Deficiency Repeat
  • 60636 2022-005
    Significant Deficiency
  • 60637 2022-006
    Significant Deficiency
  • 60638 2022-007
    Material Weakness
  • 60639 2022-004
    Significant Deficiency Repeat
  • 60640 2022-005
    Significant Deficiency
  • 60641 2022-007
    Material Weakness
  • 60642 2022-004
    Significant Deficiency Repeat
  • 60643 2022-005
    Significant Deficiency
  • 60644 2022-007
    Material Weakness
  • 60645 2022-005
    Significant Deficiency
  • 60646 2022-005
    Significant Deficiency
  • 637073 2022-004
    Significant Deficiency Repeat
  • 637074 2022-005
    Significant Deficiency
  • 637075 2022-006
    Significant Deficiency
  • 637076 2022-007
    Material Weakness
  • 637077 2022-004
    Significant Deficiency Repeat
  • 637078 2022-005
    Significant Deficiency
  • 637079 2022-006
    Significant Deficiency
  • 637080 2022-007
    Material Weakness
  • 637081 2022-004
    Significant Deficiency Repeat
  • 637082 2022-005
    Significant Deficiency
  • 637083 2022-007
    Material Weakness
  • 637084 2022-004
    Significant Deficiency Repeat
  • 637085 2022-005
    Significant Deficiency
  • 637086 2022-007
    Material Weakness
  • 637087 2022-005
    Significant Deficiency
  • 637088 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.569 Emergency Food Assistance Program (food Commodities) $3.16M
10.565 Commodity Supplemental Food Program $299,941
10.559 Summer Food Service Program for Children $154,767
10.568 Emergency Food Assistance Program (administrative Costs) $21,736
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $17,313