Catholic Charities of Southern NevadaNon-Profit

Federal program Emergency Food Assistance Program (Food Commodities) CFDA# 10.569 Criteria or specific requirement The determination of when a Federal award is expended should be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force (2CFR 200.502(a)). Condition and context Per examination of the Schedule of Expenditures of Federal Awards (SEFA), it was noted that The Emergency Food Assistance Program grant was not properly included. In prior years, the State of Nevada Department of Agriculture (State) provided food that was purchased with federal funds to Catholic Charities of Southern Nevada (the Organization). In fiscal year 2019, the State gave the food to a third-party, which subsequently donated the food to the Organization. During the fiscal year, the Organization contacted the State to discuss the impact of the change of the relationship. The Organization concluded that it was providing this food in a vendor capacity. Therefore, the food received from the third-party was initially recorded as a contribution. However, we later determined through additional research that the food donated by the third-party was in fact food commodities purchased with federal funds and should have been included on the SEFA. We also discovered as part of the aforementioned research that the grant agreement signed by a member of the Organization?s Management Team (Management) had not been circulated to the Finance Department (Finance). A statistically valid sample was used No Questioned costs None reported. Effect SEFA was initially understated by approximately $1,000,000. Cause Ineffective communication between accounting and operations. Repeat finding No Recommendation We recommend that accounting receive a copy of every contract entered into for evaluation of compliance requirements and appropriate accounting recognition. Management's response Management informed us that they will obtain and evaluate all contracts.

Federal program Emergency Food Assistance Program (Food Commodities) CFDA# 10.569 Criteria or specific requirement All SDAs and LDAs must complete this report by the 15th of the following month and return it to their RDA. This report provides detailed information regarding disposition of inventory and participation statistics. Information from this report is accumulated by the RDA and entered onto the RDAs Monthly Distribution Report. (15.2 of TEFAP Policies and Procedures Manual) Condition and context Per examination of two inventory reports that were submitted to the State of Nevada Department of Agriculture (State) for The Emergency Food Assistance Program grant, a variance in ending inventory was noted, between what was reported to the State and what was actually included in inventory. In addition, we noted the total amount of cases of several types of food received, available, and distributed, was understated by 2,320 cases in the report submitted to the State. A statistically valid sample was used Yes Questioned costs None reported. Effect The monthly inventory reports submitted were incorrect. Cause The person submitting the report was not comparing his count to the inventory count performed by accounting. Repeat finding No Recommendation We recommend that the preparation of these reports be done by someone in accounting who can reconcile these report to the inventory records. Management's response Management informed us that the Finance department will prepare these reports going forward.

Federal program Emergency Food Assistance Program (Food Commodities) CFDA# 10.569 Criteria or specific requirement Each household distribution site must collect the signature of the household member receiving USDA donated food, address of the household (to the extent practicable), and basis for determining eligibility (7 CFR 251.10). Condition and context For ten of the 40 recipient files examined, the Organization was unable to provide evidence that they obtained and retained the signature of the recipient. In addition, for one of 40 recipient files examined, the Organization was unable to prove that income eligibility determination was obtained and retained. We also noted that the signatures are not stored in the HMIS system, which made it difficult to perform testing of this area. A statistically valid sample was used Yes Questioned costs None reported. Effect The Organization was unable to locate the forms, and therefore, could not prove compliance with this requirement. Cause The recipient signature is not retained within the system (HMIS). It is instead obtained when the recipient originally signs up for benefits and a hard copy is kept in a box and is organized by date. Repeat finding No Recommendation We recommend that the signed forms be scanned into HMIS together with the rest of the required information. Management's response Management informed us that they will obtain either written or electronic signatures to be kept on file.

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