2022-002 Department of Agriculture Passed through State of South Dakota Department of Education Federal Financial Assistance Listing / CFDA #10.568, #10.569; 2021G-670, 7/1/2021 ? 6/30/2022 Food Distribution Cluster Activities Allowed and Allowable Costs Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: Emergency Food Assistance Program (TEFAP) pounds distributed to pass-through agencies, which drives the calculation of monthly indirect costs, didn?t agree to underlying inventory reports for nine of twelve months. Additionally, TEFAP monthly draw requests improperly excluded Pierre personnel costs. Cause: There was a lapse in oversight of the internal control process ensuring monthly draw requests reconciled to supporting inventory and personnel reports. Effect: The Organization?s controls did not detect nor correct the errors identified, increasing the likelihood the Organization could charge disallowed costs to the federal award. Questioned Costs: No questioned costs over $25,000. Context: A non-statistical sample of 2 out of 12 months were selected for testing, in which, all food distribution costs incurred were reviewed, accounting for $96,085 of $541,492 total eligible payroll and non-payroll costs of which reimbursement was limited to $438,942. Additionally, distribution pounds for all 12 months claimed on monthly draw requests, used to drive the indirect cost calculation, were traced back to distribution pounds per supporting inventory reports. Repeat Finding from Prior Year: No Recommendation: We recommend that management review procedures and control processes to ensure monthly draw requests reconcile to supporting inventory and personnel reports. View of Responsible Officials: Management is in agreement.
2022-002 Department of Agriculture Passed through State of South Dakota Department of Education Federal Financial Assistance Listing / CFDA #10.568, #10.569; 2021G-670, 7/1/2021 ? 6/30/2022 Food Distribution Cluster Activities Allowed and Allowable Costs Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: Emergency Food Assistance Program (TEFAP) pounds distributed to pass-through agencies, which drives the calculation of monthly indirect costs, didn?t agree to underlying inventory reports for nine of twelve months. Additionally, TEFAP monthly draw requests improperly excluded Pierre personnel costs. Cause: There was a lapse in oversight of the internal control process ensuring monthly draw requests reconciled to supporting inventory and personnel reports. Effect: The Organization?s controls did not detect nor correct the errors identified, increasing the likelihood the Organization could charge disallowed costs to the federal award. Questioned Costs: No questioned costs over $25,000. Context: A non-statistical sample of 2 out of 12 months were selected for testing, in which, all food distribution costs incurred were reviewed, accounting for $96,085 of $541,492 total eligible payroll and non-payroll costs of which reimbursement was limited to $438,942. Additionally, distribution pounds for all 12 months claimed on monthly draw requests, used to drive the indirect cost calculation, were traced back to distribution pounds per supporting inventory reports. Repeat Finding from Prior Year: No Recommendation: We recommend that management review procedures and control processes to ensure monthly draw requests reconcile to supporting inventory and personnel reports. View of Responsible Officials: Management is in agreement.
2022-002 Department of Agriculture Passed through State of South Dakota Department of Education Federal Financial Assistance Listing / CFDA #10.568, #10.569; 2021G-670, 7/1/2021 ? 6/30/2022 Food Distribution Cluster Activities Allowed and Allowable Costs Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: Emergency Food Assistance Program (TEFAP) pounds distributed to pass-through agencies, which drives the calculation of monthly indirect costs, didn?t agree to underlying inventory reports for nine of twelve months. Additionally, TEFAP monthly draw requests improperly excluded Pierre personnel costs. Cause: There was a lapse in oversight of the internal control process ensuring monthly draw requests reconciled to supporting inventory and personnel reports. Effect: The Organization?s controls did not detect nor correct the errors identified, increasing the likelihood the Organization could charge disallowed costs to the federal award. Questioned Costs: No questioned costs over $25,000. Context: A non-statistical sample of 2 out of 12 months were selected for testing, in which, all food distribution costs incurred were reviewed, accounting for $96,085 of $541,492 total eligible payroll and non-payroll costs of which reimbursement was limited to $438,942. Additionally, distribution pounds for all 12 months claimed on monthly draw requests, used to drive the indirect cost calculation, were traced back to distribution pounds per supporting inventory reports. Repeat Finding from Prior Year: No Recommendation: We recommend that management review procedures and control processes to ensure monthly draw requests reconcile to supporting inventory and personnel reports. View of Responsible Officials: Management is in agreement.
2022-002 Department of Agriculture Passed through State of South Dakota Department of Education Federal Financial Assistance Listing / CFDA #10.568, #10.569; 2021G-670, 7/1/2021 ? 6/30/2022 Food Distribution Cluster Activities Allowed and Allowable Costs Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: Emergency Food Assistance Program (TEFAP) pounds distributed to pass-through agencies, which drives the calculation of monthly indirect costs, didn?t agree to underlying inventory reports for nine of twelve months. Additionally, TEFAP monthly draw requests improperly excluded Pierre personnel costs. Cause: There was a lapse in oversight of the internal control process ensuring monthly draw requests reconciled to supporting inventory and personnel reports. Effect: The Organization?s controls did not detect nor correct the errors identified, increasing the likelihood the Organization could charge disallowed costs to the federal award. Questioned Costs: No questioned costs over $25,000. Context: A non-statistical sample of 2 out of 12 months were selected for testing, in which, all food distribution costs incurred were reviewed, accounting for $96,085 of $541,492 total eligible payroll and non-payroll costs of which reimbursement was limited to $438,942. Additionally, distribution pounds for all 12 months claimed on monthly draw requests, used to drive the indirect cost calculation, were traced back to distribution pounds per supporting inventory reports. Repeat Finding from Prior Year: No Recommendation: We recommend that management review procedures and control processes to ensure monthly draw requests reconcile to supporting inventory and personnel reports. View of Responsible Officials: Management is in agreement.
2022-002 Department of Agriculture Passed through State of South Dakota Department of Education Federal Financial Assistance Listing / CFDA #10.568, #10.569; 2021G-670, 7/1/2021 ? 6/30/2022 Food Distribution Cluster Activities Allowed and Allowable Costs Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: Emergency Food Assistance Program (TEFAP) pounds distributed to pass-through agencies, which drives the calculation of monthly indirect costs, didn?t agree to underlying inventory reports for nine of twelve months. Additionally, TEFAP monthly draw requests improperly excluded Pierre personnel costs. Cause: There was a lapse in oversight of the internal control process ensuring monthly draw requests reconciled to supporting inventory and personnel reports. Effect: The Organization?s controls did not detect nor correct the errors identified, increasing the likelihood the Organization could charge disallowed costs to the federal award. Questioned Costs: No questioned costs over $25,000. Context: A non-statistical sample of 2 out of 12 months were selected for testing, in which, all food distribution costs incurred were reviewed, accounting for $96,085 of $541,492 total eligible payroll and non-payroll costs of which reimbursement was limited to $438,942. Additionally, distribution pounds for all 12 months claimed on monthly draw requests, used to drive the indirect cost calculation, were traced back to distribution pounds per supporting inventory reports. Repeat Finding from Prior Year: No Recommendation: We recommend that management review procedures and control processes to ensure monthly draw requests reconcile to supporting inventory and personnel reports. View of Responsible Officials: Management is in agreement.
2022-003 Department of Agriculture Passed through State of South Dakota Department of Education Federal Financial Assistance Listing / CFDA #10.569; 2021G-670, 7/1/2021 ? 6/30/2022 Food Distribution Cluster Eligibility Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: One instance identified in which TEFAP food commodities were distributed to a non-approved TEFAP agency; as such, no agency agreement was signed and retained on file. Cause: There was a lapse in oversight of the internal control process ensuring TEFAP product is to be distributed to only approved TEFAP agencies. Effect: The Organization?s controls did not detect nor correct the errors identified, resulting in TEFAP product distributed to a non-approved TEFAP agency. Questioned Costs: No questioned costs over $25,000. Context: A non-statistical sample of 8 out of 50 pass-through agencies were reviewed. In addition, all passthrough agencies who received pass-through commodities were traced to grant agreement to ensure recipient was an approved agency. Total food commodities passed through to non-approved agency comprised of 1,092 pounds of 364,293 total pounds of food commodities passed through to agencies. Repeat Finding from Prior Year: No Recommendation: We recommend that management review procedures and control processes to ensure food commodities are only passed through to approved agencies. View of Responsible Officials: Management is in agreement.
2022-002 Department of Agriculture Passed through State of South Dakota Department of Education Federal Financial Assistance Listing / CFDA #10.568, #10.569; 2021G-670, 7/1/2021 ? 6/30/2022 Food Distribution Cluster Activities Allowed and Allowable Costs Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: Emergency Food Assistance Program (TEFAP) pounds distributed to pass-through agencies, which drives the calculation of monthly indirect costs, didn?t agree to underlying inventory reports for nine of twelve months. Additionally, TEFAP monthly draw requests improperly excluded Pierre personnel costs. Cause: There was a lapse in oversight of the internal control process ensuring monthly draw requests reconciled to supporting inventory and personnel reports. Effect: The Organization?s controls did not detect nor correct the errors identified, increasing the likelihood the Organization could charge disallowed costs to the federal award. Questioned Costs: No questioned costs over $25,000. Context: A non-statistical sample of 2 out of 12 months were selected for testing, in which, all food distribution costs incurred were reviewed, accounting for $96,085 of $541,492 total eligible payroll and non-payroll costs of which reimbursement was limited to $438,942. Additionally, distribution pounds for all 12 months claimed on monthly draw requests, used to drive the indirect cost calculation, were traced back to distribution pounds per supporting inventory reports. Repeat Finding from Prior Year: No Recommendation: We recommend that management review procedures and control processes to ensure monthly draw requests reconcile to supporting inventory and personnel reports. View of Responsible Officials: Management is in agreement.
2022-003 Department of Agriculture Passed through State of South Dakota Department of Education Federal Financial Assistance Listing / CFDA #10.569; 2021G-670, 7/1/2021 ? 6/30/2022 Food Distribution Cluster Eligibility Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: One instance identified in which TEFAP food commodities were distributed to a non-approved TEFAP agency; as such, no agency agreement was signed and retained on file. Cause: There was a lapse in oversight of the internal control process ensuring TEFAP product is to be distributed to only approved TEFAP agencies. Effect: The Organization?s controls did not detect nor correct the errors identified, resulting in TEFAP product distributed to a non-approved TEFAP agency. Questioned Costs: No questioned costs over $25,000. Context: A non-statistical sample of 8 out of 50 pass-through agencies were reviewed. In addition, all passthrough agencies who received pass-through commodities were traced to grant agreement to ensure recipient was an approved agency. Total food commodities passed through to non-approved agency comprised of 1,092 pounds of 364,293 total pounds of food commodities passed through to agencies. Repeat Finding from Prior Year: No Recommendation: We recommend that management review procedures and control processes to ensure food commodities are only passed through to approved agencies. View of Responsible Officials: Management is in agreement.
2022-002 Department of Agriculture Passed through State of South Dakota Department of Education Federal Financial Assistance Listing / CFDA #10.568, #10.569; 2021G-670, 7/1/2021 ? 6/30/2022 Food Distribution Cluster Activities Allowed and Allowable Costs Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: Emergency Food Assistance Program (TEFAP) pounds distributed to pass-through agencies, which drives the calculation of monthly indirect costs, didn?t agree to underlying inventory reports for nine of twelve months. Additionally, TEFAP monthly draw requests improperly excluded Pierre personnel costs. Cause: There was a lapse in oversight of the internal control process ensuring monthly draw requests reconciled to supporting inventory and personnel reports. Effect: The Organization?s controls did not detect nor correct the errors identified, increasing the likelihood the Organization could charge disallowed costs to the federal award. Questioned Costs: No questioned costs over $25,000. Context: A non-statistical sample of 2 out of 12 months were selected for testing, in which, all food distribution costs incurred were reviewed, accounting for $96,085 of $541,492 total eligible payroll and non-payroll costs of which reimbursement was limited to $438,942. Additionally, distribution pounds for all 12 months claimed on monthly draw requests, used to drive the indirect cost calculation, were traced back to distribution pounds per supporting inventory reports. Repeat Finding from Prior Year: No Recommendation: We recommend that management review procedures and control processes to ensure monthly draw requests reconcile to supporting inventory and personnel reports. View of Responsible Officials: Management is in agreement.
2022-003 Department of Agriculture Passed through State of South Dakota Department of Education Federal Financial Assistance Listing / CFDA #10.569; 2021G-670, 7/1/2021 ? 6/30/2022 Food Distribution Cluster Eligibility Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: One instance identified in which TEFAP food commodities were distributed to a non-approved TEFAP agency; as such, no agency agreement was signed and retained on file. Cause: There was a lapse in oversight of the internal control process ensuring TEFAP product is to be distributed to only approved TEFAP agencies. Effect: The Organization?s controls did not detect nor correct the errors identified, resulting in TEFAP product distributed to a non-approved TEFAP agency. Questioned Costs: No questioned costs over $25,000. Context: A non-statistical sample of 8 out of 50 pass-through agencies were reviewed. In addition, all passthrough agencies who received pass-through commodities were traced to grant agreement to ensure recipient was an approved agency. Total food commodities passed through to non-approved agency comprised of 1,092 pounds of 364,293 total pounds of food commodities passed through to agencies. Repeat Finding from Prior Year: No Recommendation: We recommend that management review procedures and control processes to ensure food commodities are only passed through to approved agencies. View of Responsible Officials: Management is in agreement.
2022-002 Department of Agriculture Passed through State of South Dakota Department of Education Federal Financial Assistance Listing / CFDA #10.568, #10.569; 2021G-670, 7/1/2021 ? 6/30/2022 Food Distribution Cluster Activities Allowed and Allowable Costs Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: Emergency Food Assistance Program (TEFAP) pounds distributed to pass-through agencies, which drives the calculation of monthly indirect costs, didn?t agree to underlying inventory reports for nine of twelve months. Additionally, TEFAP monthly draw requests improperly excluded Pierre personnel costs. Cause: There was a lapse in oversight of the internal control process ensuring monthly draw requests reconciled to supporting inventory and personnel reports. Effect: The Organization?s controls did not detect nor correct the errors identified, increasing the likelihood the Organization could charge disallowed costs to the federal award. Questioned Costs: No questioned costs over $25,000. Context: A non-statistical sample of 2 out of 12 months were selected for testing, in which, all food distribution costs incurred were reviewed, accounting for $96,085 of $541,492 total eligible payroll and non-payroll costs of which reimbursement was limited to $438,942. Additionally, distribution pounds for all 12 months claimed on monthly draw requests, used to drive the indirect cost calculation, were traced back to distribution pounds per supporting inventory reports. Repeat Finding from Prior Year: No Recommendation: We recommend that management review procedures and control processes to ensure monthly draw requests reconcile to supporting inventory and personnel reports. View of Responsible Officials: Management is in agreement.
2022-003 Department of Agriculture Passed through State of South Dakota Department of Education Federal Financial Assistance Listing / CFDA #10.569; 2021G-670, 7/1/2021 ? 6/30/2022 Food Distribution Cluster Eligibility Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: One instance identified in which TEFAP food commodities were distributed to a non-approved TEFAP agency; as such, no agency agreement was signed and retained on file. Cause: There was a lapse in oversight of the internal control process ensuring TEFAP product is to be distributed to only approved TEFAP agencies. Effect: The Organization?s controls did not detect nor correct the errors identified, resulting in TEFAP product distributed to a non-approved TEFAP agency. Questioned Costs: No questioned costs over $25,000. Context: A non-statistical sample of 8 out of 50 pass-through agencies were reviewed. In addition, all passthrough agencies who received pass-through commodities were traced to grant agreement to ensure recipient was an approved agency. Total food commodities passed through to non-approved agency comprised of 1,092 pounds of 364,293 total pounds of food commodities passed through to agencies. Repeat Finding from Prior Year: No Recommendation: We recommend that management review procedures and control processes to ensure food commodities are only passed through to approved agencies. View of Responsible Officials: Management is in agreement.
2022-002 Department of Agriculture Passed through State of South Dakota Department of Education Federal Financial Assistance Listing / CFDA #10.568, #10.569; 2021G-670, 7/1/2021 ? 6/30/2022 Food Distribution Cluster Activities Allowed and Allowable Costs Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: Emergency Food Assistance Program (TEFAP) pounds distributed to pass-through agencies, which drives the calculation of monthly indirect costs, didn?t agree to underlying inventory reports for nine of twelve months. Additionally, TEFAP monthly draw requests improperly excluded Pierre personnel costs. Cause: There was a lapse in oversight of the internal control process ensuring monthly draw requests reconciled to supporting inventory and personnel reports. Effect: The Organization?s controls did not detect nor correct the errors identified, increasing the likelihood the Organization could charge disallowed costs to the federal award. Questioned Costs: No questioned costs over $25,000. Context: A non-statistical sample of 2 out of 12 months were selected for testing, in which, all food distribution costs incurred were reviewed, accounting for $96,085 of $541,492 total eligible payroll and non-payroll costs of which reimbursement was limited to $438,942. Additionally, distribution pounds for all 12 months claimed on monthly draw requests, used to drive the indirect cost calculation, were traced back to distribution pounds per supporting inventory reports. Repeat Finding from Prior Year: No Recommendation: We recommend that management review procedures and control processes to ensure monthly draw requests reconcile to supporting inventory and personnel reports. View of Responsible Officials: Management is in agreement.
2022-002 Department of Agriculture Passed through State of South Dakota Department of Education Federal Financial Assistance Listing / CFDA #10.568, #10.569; 2021G-670, 7/1/2021 ? 6/30/2022 Food Distribution Cluster Activities Allowed and Allowable Costs Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: Emergency Food Assistance Program (TEFAP) pounds distributed to pass-through agencies, which drives the calculation of monthly indirect costs, didn?t agree to underlying inventory reports for nine of twelve months. Additionally, TEFAP monthly draw requests improperly excluded Pierre personnel costs. Cause: There was a lapse in oversight of the internal control process ensuring monthly draw requests reconciled to supporting inventory and personnel reports. Effect: The Organization?s controls did not detect nor correct the errors identified, increasing the likelihood the Organization could charge disallowed costs to the federal award. Questioned Costs: No questioned costs over $25,000. Context: A non-statistical sample of 2 out of 12 months were selected for testing, in which, all food distribution costs incurred were reviewed, accounting for $96,085 of $541,492 total eligible payroll and non-payroll costs of which reimbursement was limited to $438,942. Additionally, distribution pounds for all 12 months claimed on monthly draw requests, used to drive the indirect cost calculation, were traced back to distribution pounds per supporting inventory reports. Repeat Finding from Prior Year: No Recommendation: We recommend that management review procedures and control processes to ensure monthly draw requests reconcile to supporting inventory and personnel reports. View of Responsible Officials: Management is in agreement.
2022-002 Department of Agriculture Passed through State of South Dakota Department of Education Federal Financial Assistance Listing / CFDA #10.568, #10.569; 2021G-670, 7/1/2021 ? 6/30/2022 Food Distribution Cluster Activities Allowed and Allowable Costs Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: Emergency Food Assistance Program (TEFAP) pounds distributed to pass-through agencies, which drives the calculation of monthly indirect costs, didn?t agree to underlying inventory reports for nine of twelve months. Additionally, TEFAP monthly draw requests improperly excluded Pierre personnel costs. Cause: There was a lapse in oversight of the internal control process ensuring monthly draw requests reconciled to supporting inventory and personnel reports. Effect: The Organization?s controls did not detect nor correct the errors identified, increasing the likelihood the Organization could charge disallowed costs to the federal award. Questioned Costs: No questioned costs over $25,000. Context: A non-statistical sample of 2 out of 12 months were selected for testing, in which, all food distribution costs incurred were reviewed, accounting for $96,085 of $541,492 total eligible payroll and non-payroll costs of which reimbursement was limited to $438,942. Additionally, distribution pounds for all 12 months claimed on monthly draw requests, used to drive the indirect cost calculation, were traced back to distribution pounds per supporting inventory reports. Repeat Finding from Prior Year: No Recommendation: We recommend that management review procedures and control processes to ensure monthly draw requests reconcile to supporting inventory and personnel reports. View of Responsible Officials: Management is in agreement.
2022-002 Department of Agriculture Passed through State of South Dakota Department of Education Federal Financial Assistance Listing / CFDA #10.568, #10.569; 2021G-670, 7/1/2021 ? 6/30/2022 Food Distribution Cluster Activities Allowed and Allowable Costs Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: Emergency Food Assistance Program (TEFAP) pounds distributed to pass-through agencies, which drives the calculation of monthly indirect costs, didn?t agree to underlying inventory reports for nine of twelve months. Additionally, TEFAP monthly draw requests improperly excluded Pierre personnel costs. Cause: There was a lapse in oversight of the internal control process ensuring monthly draw requests reconciled to supporting inventory and personnel reports. Effect: The Organization?s controls did not detect nor correct the errors identified, increasing the likelihood the Organization could charge disallowed costs to the federal award. Questioned Costs: No questioned costs over $25,000. Context: A non-statistical sample of 2 out of 12 months were selected for testing, in which, all food distribution costs incurred were reviewed, accounting for $96,085 of $541,492 total eligible payroll and non-payroll costs of which reimbursement was limited to $438,942. Additionally, distribution pounds for all 12 months claimed on monthly draw requests, used to drive the indirect cost calculation, were traced back to distribution pounds per supporting inventory reports. Repeat Finding from Prior Year: No Recommendation: We recommend that management review procedures and control processes to ensure monthly draw requests reconcile to supporting inventory and personnel reports. View of Responsible Officials: Management is in agreement.
2022-002 Department of Agriculture Passed through State of South Dakota Department of Education Federal Financial Assistance Listing / CFDA #10.568, #10.569; 2021G-670, 7/1/2021 ? 6/30/2022 Food Distribution Cluster Activities Allowed and Allowable Costs Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: Emergency Food Assistance Program (TEFAP) pounds distributed to pass-through agencies, which drives the calculation of monthly indirect costs, didn?t agree to underlying inventory reports for nine of twelve months. Additionally, TEFAP monthly draw requests improperly excluded Pierre personnel costs. Cause: There was a lapse in oversight of the internal control process ensuring monthly draw requests reconciled to supporting inventory and personnel reports. Effect: The Organization?s controls did not detect nor correct the errors identified, increasing the likelihood the Organization could charge disallowed costs to the federal award. Questioned Costs: No questioned costs over $25,000. Context: A non-statistical sample of 2 out of 12 months were selected for testing, in which, all food distribution costs incurred were reviewed, accounting for $96,085 of $541,492 total eligible payroll and non-payroll costs of which reimbursement was limited to $438,942. Additionally, distribution pounds for all 12 months claimed on monthly draw requests, used to drive the indirect cost calculation, were traced back to distribution pounds per supporting inventory reports. Repeat Finding from Prior Year: No Recommendation: We recommend that management review procedures and control processes to ensure monthly draw requests reconcile to supporting inventory and personnel reports. View of Responsible Officials: Management is in agreement.
2022-003 Department of Agriculture Passed through State of South Dakota Department of Education Federal Financial Assistance Listing / CFDA #10.569; 2021G-670, 7/1/2021 ? 6/30/2022 Food Distribution Cluster Eligibility Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: One instance identified in which TEFAP food commodities were distributed to a non-approved TEFAP agency; as such, no agency agreement was signed and retained on file. Cause: There was a lapse in oversight of the internal control process ensuring TEFAP product is to be distributed to only approved TEFAP agencies. Effect: The Organization?s controls did not detect nor correct the errors identified, resulting in TEFAP product distributed to a non-approved TEFAP agency. Questioned Costs: No questioned costs over $25,000. Context: A non-statistical sample of 8 out of 50 pass-through agencies were reviewed. In addition, all passthrough agencies who received pass-through commodities were traced to grant agreement to ensure recipient was an approved agency. Total food commodities passed through to non-approved agency comprised of 1,092 pounds of 364,293 total pounds of food commodities passed through to agencies. Repeat Finding from Prior Year: No Recommendation: We recommend that management review procedures and control processes to ensure food commodities are only passed through to approved agencies. View of Responsible Officials: Management is in agreement.
2022-002 Department of Agriculture Passed through State of South Dakota Department of Education Federal Financial Assistance Listing / CFDA #10.568, #10.569; 2021G-670, 7/1/2021 ? 6/30/2022 Food Distribution Cluster Activities Allowed and Allowable Costs Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: Emergency Food Assistance Program (TEFAP) pounds distributed to pass-through agencies, which drives the calculation of monthly indirect costs, didn?t agree to underlying inventory reports for nine of twelve months. Additionally, TEFAP monthly draw requests improperly excluded Pierre personnel costs. Cause: There was a lapse in oversight of the internal control process ensuring monthly draw requests reconciled to supporting inventory and personnel reports. Effect: The Organization?s controls did not detect nor correct the errors identified, increasing the likelihood the Organization could charge disallowed costs to the federal award. Questioned Costs: No questioned costs over $25,000. Context: A non-statistical sample of 2 out of 12 months were selected for testing, in which, all food distribution costs incurred were reviewed, accounting for $96,085 of $541,492 total eligible payroll and non-payroll costs of which reimbursement was limited to $438,942. Additionally, distribution pounds for all 12 months claimed on monthly draw requests, used to drive the indirect cost calculation, were traced back to distribution pounds per supporting inventory reports. Repeat Finding from Prior Year: No Recommendation: We recommend that management review procedures and control processes to ensure monthly draw requests reconcile to supporting inventory and personnel reports. View of Responsible Officials: Management is in agreement.
2022-003 Department of Agriculture Passed through State of South Dakota Department of Education Federal Financial Assistance Listing / CFDA #10.569; 2021G-670, 7/1/2021 ? 6/30/2022 Food Distribution Cluster Eligibility Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: One instance identified in which TEFAP food commodities were distributed to a non-approved TEFAP agency; as such, no agency agreement was signed and retained on file. Cause: There was a lapse in oversight of the internal control process ensuring TEFAP product is to be distributed to only approved TEFAP agencies. Effect: The Organization?s controls did not detect nor correct the errors identified, resulting in TEFAP product distributed to a non-approved TEFAP agency. Questioned Costs: No questioned costs over $25,000. Context: A non-statistical sample of 8 out of 50 pass-through agencies were reviewed. In addition, all passthrough agencies who received pass-through commodities were traced to grant agreement to ensure recipient was an approved agency. Total food commodities passed through to non-approved agency comprised of 1,092 pounds of 364,293 total pounds of food commodities passed through to agencies. Repeat Finding from Prior Year: No Recommendation: We recommend that management review procedures and control processes to ensure food commodities are only passed through to approved agencies. View of Responsible Officials: Management is in agreement.
2022-002 Department of Agriculture Passed through State of South Dakota Department of Education Federal Financial Assistance Listing / CFDA #10.568, #10.569; 2021G-670, 7/1/2021 ? 6/30/2022 Food Distribution Cluster Activities Allowed and Allowable Costs Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: Emergency Food Assistance Program (TEFAP) pounds distributed to pass-through agencies, which drives the calculation of monthly indirect costs, didn?t agree to underlying inventory reports for nine of twelve months. Additionally, TEFAP monthly draw requests improperly excluded Pierre personnel costs. Cause: There was a lapse in oversight of the internal control process ensuring monthly draw requests reconciled to supporting inventory and personnel reports. Effect: The Organization?s controls did not detect nor correct the errors identified, increasing the likelihood the Organization could charge disallowed costs to the federal award. Questioned Costs: No questioned costs over $25,000. Context: A non-statistical sample of 2 out of 12 months were selected for testing, in which, all food distribution costs incurred were reviewed, accounting for $96,085 of $541,492 total eligible payroll and non-payroll costs of which reimbursement was limited to $438,942. Additionally, distribution pounds for all 12 months claimed on monthly draw requests, used to drive the indirect cost calculation, were traced back to distribution pounds per supporting inventory reports. Repeat Finding from Prior Year: No Recommendation: We recommend that management review procedures and control processes to ensure monthly draw requests reconcile to supporting inventory and personnel reports. View of Responsible Officials: Management is in agreement.
2022-003 Department of Agriculture Passed through State of South Dakota Department of Education Federal Financial Assistance Listing / CFDA #10.569; 2021G-670, 7/1/2021 ? 6/30/2022 Food Distribution Cluster Eligibility Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: One instance identified in which TEFAP food commodities were distributed to a non-approved TEFAP agency; as such, no agency agreement was signed and retained on file. Cause: There was a lapse in oversight of the internal control process ensuring TEFAP product is to be distributed to only approved TEFAP agencies. Effect: The Organization?s controls did not detect nor correct the errors identified, resulting in TEFAP product distributed to a non-approved TEFAP agency. Questioned Costs: No questioned costs over $25,000. Context: A non-statistical sample of 8 out of 50 pass-through agencies were reviewed. In addition, all passthrough agencies who received pass-through commodities were traced to grant agreement to ensure recipient was an approved agency. Total food commodities passed through to non-approved agency comprised of 1,092 pounds of 364,293 total pounds of food commodities passed through to agencies. Repeat Finding from Prior Year: No Recommendation: We recommend that management review procedures and control processes to ensure food commodities are only passed through to approved agencies. View of Responsible Officials: Management is in agreement.
2022-002 Department of Agriculture Passed through State of South Dakota Department of Education Federal Financial Assistance Listing / CFDA #10.568, #10.569; 2021G-670, 7/1/2021 ? 6/30/2022 Food Distribution Cluster Activities Allowed and Allowable Costs Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: Emergency Food Assistance Program (TEFAP) pounds distributed to pass-through agencies, which drives the calculation of monthly indirect costs, didn?t agree to underlying inventory reports for nine of twelve months. Additionally, TEFAP monthly draw requests improperly excluded Pierre personnel costs. Cause: There was a lapse in oversight of the internal control process ensuring monthly draw requests reconciled to supporting inventory and personnel reports. Effect: The Organization?s controls did not detect nor correct the errors identified, increasing the likelihood the Organization could charge disallowed costs to the federal award. Questioned Costs: No questioned costs over $25,000. Context: A non-statistical sample of 2 out of 12 months were selected for testing, in which, all food distribution costs incurred were reviewed, accounting for $96,085 of $541,492 total eligible payroll and non-payroll costs of which reimbursement was limited to $438,942. Additionally, distribution pounds for all 12 months claimed on monthly draw requests, used to drive the indirect cost calculation, were traced back to distribution pounds per supporting inventory reports. Repeat Finding from Prior Year: No Recommendation: We recommend that management review procedures and control processes to ensure monthly draw requests reconcile to supporting inventory and personnel reports. View of Responsible Officials: Management is in agreement.
2022-003 Department of Agriculture Passed through State of South Dakota Department of Education Federal Financial Assistance Listing / CFDA #10.569; 2021G-670, 7/1/2021 ? 6/30/2022 Food Distribution Cluster Eligibility Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: One instance identified in which TEFAP food commodities were distributed to a non-approved TEFAP agency; as such, no agency agreement was signed and retained on file. Cause: There was a lapse in oversight of the internal control process ensuring TEFAP product is to be distributed to only approved TEFAP agencies. Effect: The Organization?s controls did not detect nor correct the errors identified, resulting in TEFAP product distributed to a non-approved TEFAP agency. Questioned Costs: No questioned costs over $25,000. Context: A non-statistical sample of 8 out of 50 pass-through agencies were reviewed. In addition, all passthrough agencies who received pass-through commodities were traced to grant agreement to ensure recipient was an approved agency. Total food commodities passed through to non-approved agency comprised of 1,092 pounds of 364,293 total pounds of food commodities passed through to agencies. Repeat Finding from Prior Year: No Recommendation: We recommend that management review procedures and control processes to ensure food commodities are only passed through to approved agencies. View of Responsible Officials: Management is in agreement.