Bread for the City, Inc

CRITERIA: Each entity must file various financial and special reports. Additionally, the requirements stated that the submitted reports should be supported by the underlying financial data and presented in accordance with program requirements. CONDITION: During our review of the SF-425 reports, we selected two out of the four submissions and noted that the annual report for May 31, 2022, although filed timely included transactions for the month of June 30, 2022, which was outside of the stipulated reporting period. CAUSE: It appears that management mistakenly included June 2022 financial transactions in the May 31, 2022 annual report. EFFECT: The Organization is not in compliance with stated provisions for preparation of the annual report and information outside of the reporting period was included in the annual Federal Financial Report. CONTEXT: This is a condition identified based on review of the Compliance Supplement requirements. QUESTIONED COST: $161,928, which represents June 2022 expenses, identified as mistakenly included in the May 31, 2022 annual report. RECOMMENDATION: We recommend that the Organization in the preparation of its annual report assure the information submitted is proper, accurate, and consistent with the stipulated guidelines. VIEWS OF RESPONSIBLE MANAGEMENT OFFICIAL AND CORRECTIVE ACTION PLAN: Management agrees to the above finding. Corrective action is being taken to correct and resubmit the final report.

CRITERIA: 2 CFR 200.303 requires that a non-federal entity establish and maintain effective internal control over Federal awards that provides reasonable assurance that the non-federal entity is managing Federal awards in compliance with Federal statutes, regulations, and other terms and conditions. Uniform Guidance Section 200.329 (c)(1) states that ?Reports submitted quarterly or semiannually must be due no later than 30 calendar days after the reporting period?. In accordance with the Compliance Supplement, the Organization is required to submit its Federal Financial Report, thirty days after the end of each quarter. CONDITION: All quarterly Federal Financial Reports were reviewed, and it was noted that the September 30, 2019 and June 30, 2020 reports were filed late, while the December 31, 2019 report was not filed at all. In addition, it was noted that the quarterly reports did not reconcile to the Organization?s data, as of June 30, 2020. CONTEXT: This is a condition identified based on review of Uniform Guidance requirements. QUESTIONED COST: Not determinable. CAUSE: The Organization did not adequately exercise due diligence in monitoring the timely submission of the reports in accordance their reporting requirements. In addition, the Organization did not ensure that the underlying documentation used in preparing the quarterly reports properly reconciled to the submitted data. EFFECT: The Organization is not always reconciling the submitted data properly and is not in compliance with stated provisions of submitting timely quarterly financial reports. RECOMMENDATION: We recommend that the Organization reevaluate its current procedures to ensure proper monitoring and review of the required reports by an appropriate official who would then assure the information submitted is complete, accurate, consistent and submitted with the required timeframe. VIEWS OF RESPONSIBLE MANAGEMENT OFFICIAL AND CORRECTIVE ACTION PLAN: The federal reports were filed on time in FY21. The CFO implemented a quarterly reconciliation process on the Federal grants to support the financials submitted in the Payment Management system. A personnel sheet is created to track all the employees time charged o the Federal program grants and allocations.