Audit 28032

FY End
2022-06-30
Total Expended
$22.28M
Findings
16
Programs
10
Organization: Three Square (NV)
Year: 2022 Accepted: 2022-11-28

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
37449 2022-001 Material Weakness - E
37450 2022-002 Material Weakness - N
37451 2022-001 Material Weakness - E
37452 2022-002 Material Weakness - N
37453 2022-001 Material Weakness - E
37454 2022-002 Material Weakness - N
37455 2022-001 Material Weakness - E
37456 2022-002 Material Weakness - N
613891 2022-001 Material Weakness - E
613892 2022-002 Material Weakness - N
613893 2022-001 Material Weakness - E
613894 2022-002 Material Weakness - N
613895 2022-001 Material Weakness - E
613896 2022-002 Material Weakness - N
613897 2022-001 Material Weakness - E
613898 2022-002 Material Weakness - N

Contacts

Name Title Type
RHLUKEGHXGL5 Tifani Walker Auditee
7026443663 Jacqueline Matthew Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: Three Square has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes federal award activity of Three Square under programs of the federal government for the year ended June 30, 2022. The information in the schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because this schedule only presents a selected portion of the operations of Three Square, it is not intended to and does not present the financial position, changes in net assets, functional expenses, or cash flows of Three Square.
Title: Pass-Through Awards Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: Three Square has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Three Square received certain federal financial assistance from pass-through awards of the pass-through entities listed on the schedule of expenditures of federal awards.

Finding Details

Internal Controls Systems and Compliance Over Eligibility- U.S. Department of Agriculture Food Distribution Cluster, Passed Through the State of Nevada Department of Agriculture Criteria: In accordance with 2 CFR200.62(a)(3), the auditee must maintain a system of internal control to provide reasonable assurance that federal commodities are distributed to eligible recipients in accordance with the terms and conditions outlined in the federal award. Condition: The Emergency Food Assistance Program (TEFAP) Agency Partner Services Agreement includes specific terms and conditions that an Agency Partner must agree to in order to be eligible to receive federal commodities. In accordance with 7 CFR 251.2, Three Square must obtain written agreements with Agency Partners before federal commodities are distributed. Of the 12 TEFAP Agency Partners selected for testing, management was unable to provide signed TEFAP Agency Partner Services Agreements for 4 entities. Context: Four Agency Partners received TEFAP commodities for which no evidence of eligibility was able to be produced by management. Effect: Improper determination and/or evidence of eligibility could result in Agency Partners who have not agreed to TEFAP-specific terms and conditions receiving distributions of federal commodities. Cause: The design and implementation of internal controls over eligibility was not effective. Recommendation: We recommend management design and implement a system whereby a fully executed TEFAP Agency Partner Services Agreement is obtained prior to any TEFAP distribution being made to an Agency Partner.
Internal Controls Systems and Compliance Over Special Tests and Provisions (Accountability for USDA Foods) - U.S. Department of Agriculture Food Distribution Cluster, Passed Through the State of Nevada Department of Agriculture Criteria: In accordance with 2 CFR 200.62(c), the auditee must maintain a system of internal control to provide reasonable assurance that federal commodities are safeguarded against unauthorized disposition. Condition: During the year, Three Square distributed TEFAP commodities to 4 Agency Partners for which TEFAP Agency Partner Services Agreements were unable to be produced. Further, management was unable to produce evidence of compliance with warehousing accountability requirements for those Agency Partners improperly distributed to. Context: The TEFAP Agency Partner Services Agreement communicates to the Agency Partner specific requirements related to accountability for TEFAP commodities. Without a signed Agreement, the Agency Partner may be unaware of the federal compliance requirements related to these commodities which could result in noncompliant handling of USDA food product. Effect: Improper distribution of federal commodities could result in material noncompliance with the terms and conditions of the federal award. Cause: The design and implementation of internal controls over special tests and provisions (accountability for USDA foods) was not effective. Recommendation: We recommend management design and implement a system whereby a fully executed TEFAP Agency Partner Services Agreement is obtained prior to any TEFAP distribution being made to an Agency Partner.
Internal Controls Systems and Compliance Over Eligibility- U.S. Department of Agriculture Food Distribution Cluster, Passed Through the State of Nevada Department of Agriculture Criteria: In accordance with 2 CFR200.62(a)(3), the auditee must maintain a system of internal control to provide reasonable assurance that federal commodities are distributed to eligible recipients in accordance with the terms and conditions outlined in the federal award. Condition: The Emergency Food Assistance Program (TEFAP) Agency Partner Services Agreement includes specific terms and conditions that an Agency Partner must agree to in order to be eligible to receive federal commodities. In accordance with 7 CFR 251.2, Three Square must obtain written agreements with Agency Partners before federal commodities are distributed. Of the 12 TEFAP Agency Partners selected for testing, management was unable to provide signed TEFAP Agency Partner Services Agreements for 4 entities. Context: Four Agency Partners received TEFAP commodities for which no evidence of eligibility was able to be produced by management. Effect: Improper determination and/or evidence of eligibility could result in Agency Partners who have not agreed to TEFAP-specific terms and conditions receiving distributions of federal commodities. Cause: The design and implementation of internal controls over eligibility was not effective. Recommendation: We recommend management design and implement a system whereby a fully executed TEFAP Agency Partner Services Agreement is obtained prior to any TEFAP distribution being made to an Agency Partner.
Internal Controls Systems and Compliance Over Special Tests and Provisions (Accountability for USDA Foods) - U.S. Department of Agriculture Food Distribution Cluster, Passed Through the State of Nevada Department of Agriculture Criteria: In accordance with 2 CFR 200.62(c), the auditee must maintain a system of internal control to provide reasonable assurance that federal commodities are safeguarded against unauthorized disposition. Condition: During the year, Three Square distributed TEFAP commodities to 4 Agency Partners for which TEFAP Agency Partner Services Agreements were unable to be produced. Further, management was unable to produce evidence of compliance with warehousing accountability requirements for those Agency Partners improperly distributed to. Context: The TEFAP Agency Partner Services Agreement communicates to the Agency Partner specific requirements related to accountability for TEFAP commodities. Without a signed Agreement, the Agency Partner may be unaware of the federal compliance requirements related to these commodities which could result in noncompliant handling of USDA food product. Effect: Improper distribution of federal commodities could result in material noncompliance with the terms and conditions of the federal award. Cause: The design and implementation of internal controls over special tests and provisions (accountability for USDA foods) was not effective. Recommendation: We recommend management design and implement a system whereby a fully executed TEFAP Agency Partner Services Agreement is obtained prior to any TEFAP distribution being made to an Agency Partner.
Internal Controls Systems and Compliance Over Eligibility- U.S. Department of Agriculture Food Distribution Cluster, Passed Through the State of Nevada Department of Agriculture Criteria: In accordance with 2 CFR200.62(a)(3), the auditee must maintain a system of internal control to provide reasonable assurance that federal commodities are distributed to eligible recipients in accordance with the terms and conditions outlined in the federal award. Condition: The Emergency Food Assistance Program (TEFAP) Agency Partner Services Agreement includes specific terms and conditions that an Agency Partner must agree to in order to be eligible to receive federal commodities. In accordance with 7 CFR 251.2, Three Square must obtain written agreements with Agency Partners before federal commodities are distributed. Of the 12 TEFAP Agency Partners selected for testing, management was unable to provide signed TEFAP Agency Partner Services Agreements for 4 entities. Context: Four Agency Partners received TEFAP commodities for which no evidence of eligibility was able to be produced by management. Effect: Improper determination and/or evidence of eligibility could result in Agency Partners who have not agreed to TEFAP-specific terms and conditions receiving distributions of federal commodities. Cause: The design and implementation of internal controls over eligibility was not effective. Recommendation: We recommend management design and implement a system whereby a fully executed TEFAP Agency Partner Services Agreement is obtained prior to any TEFAP distribution being made to an Agency Partner.
Internal Controls Systems and Compliance Over Special Tests and Provisions (Accountability for USDA Foods) - U.S. Department of Agriculture Food Distribution Cluster, Passed Through the State of Nevada Department of Agriculture Criteria: In accordance with 2 CFR 200.62(c), the auditee must maintain a system of internal control to provide reasonable assurance that federal commodities are safeguarded against unauthorized disposition. Condition: During the year, Three Square distributed TEFAP commodities to 4 Agency Partners for which TEFAP Agency Partner Services Agreements were unable to be produced. Further, management was unable to produce evidence of compliance with warehousing accountability requirements for those Agency Partners improperly distributed to. Context: The TEFAP Agency Partner Services Agreement communicates to the Agency Partner specific requirements related to accountability for TEFAP commodities. Without a signed Agreement, the Agency Partner may be unaware of the federal compliance requirements related to these commodities which could result in noncompliant handling of USDA food product. Effect: Improper distribution of federal commodities could result in material noncompliance with the terms and conditions of the federal award. Cause: The design and implementation of internal controls over special tests and provisions (accountability for USDA foods) was not effective. Recommendation: We recommend management design and implement a system whereby a fully executed TEFAP Agency Partner Services Agreement is obtained prior to any TEFAP distribution being made to an Agency Partner.
Internal Controls Systems and Compliance Over Eligibility- U.S. Department of Agriculture Food Distribution Cluster, Passed Through the State of Nevada Department of Agriculture Criteria: In accordance with 2 CFR200.62(a)(3), the auditee must maintain a system of internal control to provide reasonable assurance that federal commodities are distributed to eligible recipients in accordance with the terms and conditions outlined in the federal award. Condition: The Emergency Food Assistance Program (TEFAP) Agency Partner Services Agreement includes specific terms and conditions that an Agency Partner must agree to in order to be eligible to receive federal commodities. In accordance with 7 CFR 251.2, Three Square must obtain written agreements with Agency Partners before federal commodities are distributed. Of the 12 TEFAP Agency Partners selected for testing, management was unable to provide signed TEFAP Agency Partner Services Agreements for 4 entities. Context: Four Agency Partners received TEFAP commodities for which no evidence of eligibility was able to be produced by management. Effect: Improper determination and/or evidence of eligibility could result in Agency Partners who have not agreed to TEFAP-specific terms and conditions receiving distributions of federal commodities. Cause: The design and implementation of internal controls over eligibility was not effective. Recommendation: We recommend management design and implement a system whereby a fully executed TEFAP Agency Partner Services Agreement is obtained prior to any TEFAP distribution being made to an Agency Partner.
Internal Controls Systems and Compliance Over Special Tests and Provisions (Accountability for USDA Foods) - U.S. Department of Agriculture Food Distribution Cluster, Passed Through the State of Nevada Department of Agriculture Criteria: In accordance with 2 CFR 200.62(c), the auditee must maintain a system of internal control to provide reasonable assurance that federal commodities are safeguarded against unauthorized disposition. Condition: During the year, Three Square distributed TEFAP commodities to 4 Agency Partners for which TEFAP Agency Partner Services Agreements were unable to be produced. Further, management was unable to produce evidence of compliance with warehousing accountability requirements for those Agency Partners improperly distributed to. Context: The TEFAP Agency Partner Services Agreement communicates to the Agency Partner specific requirements related to accountability for TEFAP commodities. Without a signed Agreement, the Agency Partner may be unaware of the federal compliance requirements related to these commodities which could result in noncompliant handling of USDA food product. Effect: Improper distribution of federal commodities could result in material noncompliance with the terms and conditions of the federal award. Cause: The design and implementation of internal controls over special tests and provisions (accountability for USDA foods) was not effective. Recommendation: We recommend management design and implement a system whereby a fully executed TEFAP Agency Partner Services Agreement is obtained prior to any TEFAP distribution being made to an Agency Partner.
Internal Controls Systems and Compliance Over Eligibility- U.S. Department of Agriculture Food Distribution Cluster, Passed Through the State of Nevada Department of Agriculture Criteria: In accordance with 2 CFR200.62(a)(3), the auditee must maintain a system of internal control to provide reasonable assurance that federal commodities are distributed to eligible recipients in accordance with the terms and conditions outlined in the federal award. Condition: The Emergency Food Assistance Program (TEFAP) Agency Partner Services Agreement includes specific terms and conditions that an Agency Partner must agree to in order to be eligible to receive federal commodities. In accordance with 7 CFR 251.2, Three Square must obtain written agreements with Agency Partners before federal commodities are distributed. Of the 12 TEFAP Agency Partners selected for testing, management was unable to provide signed TEFAP Agency Partner Services Agreements for 4 entities. Context: Four Agency Partners received TEFAP commodities for which no evidence of eligibility was able to be produced by management. Effect: Improper determination and/or evidence of eligibility could result in Agency Partners who have not agreed to TEFAP-specific terms and conditions receiving distributions of federal commodities. Cause: The design and implementation of internal controls over eligibility was not effective. Recommendation: We recommend management design and implement a system whereby a fully executed TEFAP Agency Partner Services Agreement is obtained prior to any TEFAP distribution being made to an Agency Partner.
Internal Controls Systems and Compliance Over Special Tests and Provisions (Accountability for USDA Foods) - U.S. Department of Agriculture Food Distribution Cluster, Passed Through the State of Nevada Department of Agriculture Criteria: In accordance with 2 CFR 200.62(c), the auditee must maintain a system of internal control to provide reasonable assurance that federal commodities are safeguarded against unauthorized disposition. Condition: During the year, Three Square distributed TEFAP commodities to 4 Agency Partners for which TEFAP Agency Partner Services Agreements were unable to be produced. Further, management was unable to produce evidence of compliance with warehousing accountability requirements for those Agency Partners improperly distributed to. Context: The TEFAP Agency Partner Services Agreement communicates to the Agency Partner specific requirements related to accountability for TEFAP commodities. Without a signed Agreement, the Agency Partner may be unaware of the federal compliance requirements related to these commodities which could result in noncompliant handling of USDA food product. Effect: Improper distribution of federal commodities could result in material noncompliance with the terms and conditions of the federal award. Cause: The design and implementation of internal controls over special tests and provisions (accountability for USDA foods) was not effective. Recommendation: We recommend management design and implement a system whereby a fully executed TEFAP Agency Partner Services Agreement is obtained prior to any TEFAP distribution being made to an Agency Partner.
Internal Controls Systems and Compliance Over Eligibility- U.S. Department of Agriculture Food Distribution Cluster, Passed Through the State of Nevada Department of Agriculture Criteria: In accordance with 2 CFR200.62(a)(3), the auditee must maintain a system of internal control to provide reasonable assurance that federal commodities are distributed to eligible recipients in accordance with the terms and conditions outlined in the federal award. Condition: The Emergency Food Assistance Program (TEFAP) Agency Partner Services Agreement includes specific terms and conditions that an Agency Partner must agree to in order to be eligible to receive federal commodities. In accordance with 7 CFR 251.2, Three Square must obtain written agreements with Agency Partners before federal commodities are distributed. Of the 12 TEFAP Agency Partners selected for testing, management was unable to provide signed TEFAP Agency Partner Services Agreements for 4 entities. Context: Four Agency Partners received TEFAP commodities for which no evidence of eligibility was able to be produced by management. Effect: Improper determination and/or evidence of eligibility could result in Agency Partners who have not agreed to TEFAP-specific terms and conditions receiving distributions of federal commodities. Cause: The design and implementation of internal controls over eligibility was not effective. Recommendation: We recommend management design and implement a system whereby a fully executed TEFAP Agency Partner Services Agreement is obtained prior to any TEFAP distribution being made to an Agency Partner.
Internal Controls Systems and Compliance Over Special Tests and Provisions (Accountability for USDA Foods) - U.S. Department of Agriculture Food Distribution Cluster, Passed Through the State of Nevada Department of Agriculture Criteria: In accordance with 2 CFR 200.62(c), the auditee must maintain a system of internal control to provide reasonable assurance that federal commodities are safeguarded against unauthorized disposition. Condition: During the year, Three Square distributed TEFAP commodities to 4 Agency Partners for which TEFAP Agency Partner Services Agreements were unable to be produced. Further, management was unable to produce evidence of compliance with warehousing accountability requirements for those Agency Partners improperly distributed to. Context: The TEFAP Agency Partner Services Agreement communicates to the Agency Partner specific requirements related to accountability for TEFAP commodities. Without a signed Agreement, the Agency Partner may be unaware of the federal compliance requirements related to these commodities which could result in noncompliant handling of USDA food product. Effect: Improper distribution of federal commodities could result in material noncompliance with the terms and conditions of the federal award. Cause: The design and implementation of internal controls over special tests and provisions (accountability for USDA foods) was not effective. Recommendation: We recommend management design and implement a system whereby a fully executed TEFAP Agency Partner Services Agreement is obtained prior to any TEFAP distribution being made to an Agency Partner.
Internal Controls Systems and Compliance Over Eligibility- U.S. Department of Agriculture Food Distribution Cluster, Passed Through the State of Nevada Department of Agriculture Criteria: In accordance with 2 CFR200.62(a)(3), the auditee must maintain a system of internal control to provide reasonable assurance that federal commodities are distributed to eligible recipients in accordance with the terms and conditions outlined in the federal award. Condition: The Emergency Food Assistance Program (TEFAP) Agency Partner Services Agreement includes specific terms and conditions that an Agency Partner must agree to in order to be eligible to receive federal commodities. In accordance with 7 CFR 251.2, Three Square must obtain written agreements with Agency Partners before federal commodities are distributed. Of the 12 TEFAP Agency Partners selected for testing, management was unable to provide signed TEFAP Agency Partner Services Agreements for 4 entities. Context: Four Agency Partners received TEFAP commodities for which no evidence of eligibility was able to be produced by management. Effect: Improper determination and/or evidence of eligibility could result in Agency Partners who have not agreed to TEFAP-specific terms and conditions receiving distributions of federal commodities. Cause: The design and implementation of internal controls over eligibility was not effective. Recommendation: We recommend management design and implement a system whereby a fully executed TEFAP Agency Partner Services Agreement is obtained prior to any TEFAP distribution being made to an Agency Partner.
Internal Controls Systems and Compliance Over Special Tests and Provisions (Accountability for USDA Foods) - U.S. Department of Agriculture Food Distribution Cluster, Passed Through the State of Nevada Department of Agriculture Criteria: In accordance with 2 CFR 200.62(c), the auditee must maintain a system of internal control to provide reasonable assurance that federal commodities are safeguarded against unauthorized disposition. Condition: During the year, Three Square distributed TEFAP commodities to 4 Agency Partners for which TEFAP Agency Partner Services Agreements were unable to be produced. Further, management was unable to produce evidence of compliance with warehousing accountability requirements for those Agency Partners improperly distributed to. Context: The TEFAP Agency Partner Services Agreement communicates to the Agency Partner specific requirements related to accountability for TEFAP commodities. Without a signed Agreement, the Agency Partner may be unaware of the federal compliance requirements related to these commodities which could result in noncompliant handling of USDA food product. Effect: Improper distribution of federal commodities could result in material noncompliance with the terms and conditions of the federal award. Cause: The design and implementation of internal controls over special tests and provisions (accountability for USDA foods) was not effective. Recommendation: We recommend management design and implement a system whereby a fully executed TEFAP Agency Partner Services Agreement is obtained prior to any TEFAP distribution being made to an Agency Partner.
Internal Controls Systems and Compliance Over Eligibility- U.S. Department of Agriculture Food Distribution Cluster, Passed Through the State of Nevada Department of Agriculture Criteria: In accordance with 2 CFR200.62(a)(3), the auditee must maintain a system of internal control to provide reasonable assurance that federal commodities are distributed to eligible recipients in accordance with the terms and conditions outlined in the federal award. Condition: The Emergency Food Assistance Program (TEFAP) Agency Partner Services Agreement includes specific terms and conditions that an Agency Partner must agree to in order to be eligible to receive federal commodities. In accordance with 7 CFR 251.2, Three Square must obtain written agreements with Agency Partners before federal commodities are distributed. Of the 12 TEFAP Agency Partners selected for testing, management was unable to provide signed TEFAP Agency Partner Services Agreements for 4 entities. Context: Four Agency Partners received TEFAP commodities for which no evidence of eligibility was able to be produced by management. Effect: Improper determination and/or evidence of eligibility could result in Agency Partners who have not agreed to TEFAP-specific terms and conditions receiving distributions of federal commodities. Cause: The design and implementation of internal controls over eligibility was not effective. Recommendation: We recommend management design and implement a system whereby a fully executed TEFAP Agency Partner Services Agreement is obtained prior to any TEFAP distribution being made to an Agency Partner.
Internal Controls Systems and Compliance Over Special Tests and Provisions (Accountability for USDA Foods) - U.S. Department of Agriculture Food Distribution Cluster, Passed Through the State of Nevada Department of Agriculture Criteria: In accordance with 2 CFR 200.62(c), the auditee must maintain a system of internal control to provide reasonable assurance that federal commodities are safeguarded against unauthorized disposition. Condition: During the year, Three Square distributed TEFAP commodities to 4 Agency Partners for which TEFAP Agency Partner Services Agreements were unable to be produced. Further, management was unable to produce evidence of compliance with warehousing accountability requirements for those Agency Partners improperly distributed to. Context: The TEFAP Agency Partner Services Agreement communicates to the Agency Partner specific requirements related to accountability for TEFAP commodities. Without a signed Agreement, the Agency Partner may be unaware of the federal compliance requirements related to these commodities which could result in noncompliant handling of USDA food product. Effect: Improper distribution of federal commodities could result in material noncompliance with the terms and conditions of the federal award. Cause: The design and implementation of internal controls over special tests and provisions (accountability for USDA foods) was not effective. Recommendation: We recommend management design and implement a system whereby a fully executed TEFAP Agency Partner Services Agreement is obtained prior to any TEFAP distribution being made to an Agency Partner.