Audit 27986

Criteria: Inventory records were not accurate during the year end inventory observations. Special Test and Provision is to insure physical inventory of USDA products are reconciled to the inventory records at year end. Condition: During the year end inventory observation, we noted five of five of the USDA products we counted had discrepancies. Cause: Accurate inventory counts were not reflective of the physical inventory, this is due to the reconciliation of the inventory counts to the count sheets during the inventory counting process that did not occur. Effect: Failure to comply with the applicable grant requirements could result in termination of the agreement with the Houston Food Bank. Questioned Costs: This finding did not result in any reportable questioned costs Context: USDA and other inventory products were not accurately reflected in the inventory records. Recommendation: We recommend that management reconcile the inventory records to the physical count and notate if there are differences and update the records after a recount and reconciliation to the inventory records. This process should be performed and documented on an at least annual basis if not more often. Views of the responsible officials and planned corrective actions Current Status: Currently, the Brazos Valley Food Bank (BVFB) completes two full Physical Inventory counts each year ? one at the beginning of the fiscal year in July, and the other at the end of the calendar year in December. Based on a pattern of discrepancies found during last fiscal year end inventory with the auditors, Management agrees that additional measures are need. See Corrective Action Plan that follows.

Criteria: Inventory records were not accurate during the year end inventory observations. Special Test and Provision is to insure physical inventory of USDA products are reconciled to the inventory records at year end. Condition: During the year end inventory observation, we noted five of five of the USDA products we counted had discrepancies. Cause: Accurate inventory counts were not reflective of the physical inventory, this is due to the reconciliation of the inventory counts to the count sheets during the inventory counting process that did not occur. Effect: Failure to comply with the applicable grant requirements could result in termination of the agreement with the Houston Food Bank. Questioned Costs: This finding did not result in any reportable questioned costs Context: USDA and other inventory products were not accurately reflected in the inventory records. Recommendation: We recommend that management reconcile the inventory records to the physical count and notate if there are differences and update the records after a recount and reconciliation to the inventory records. This process should be performed and documented on an at least annual basis if not more often. Views of the responsible officials and planned corrective actions Current Status: Currently, the Brazos Valley Food Bank (BVFB) completes two full Physical Inventory counts each year ? one at the beginning of the fiscal year in July, and the other at the end of the calendar year in December. Based on a pattern of discrepancies found during last fiscal year end inventory with the auditors, Management agrees that additional measures are need. See Corrective Action Plan that follows.