Audit 358231

Finding 2023-001 (Material Weakness) Program: Emergency Food Assistance Program (Food Commodities) Federal Agency: US Department of Agriculture AL #: 10.569 Federal Award Identification Number and Year: Various Pass-through Entity: Second Harvest Community Food Bank Type of Compliance Finding: E - Eligibility Criteria Per 7 CFR section 251.5(b), an ERA certifies households eligible to receive USDA Foods for household consumption by applying income eligibility criteria established by the state agency. These criteria are approved in advance by FNS as part of the state agency’s distribution plan. Condition/Context Management failed to maintain sufficient documentation to support the eligibility determination of program recipients. Cause The Organization lacks adequate internal controls over record retention and compliance with documentation requirements. Effect Management may have allowed applicants to participate in this program who were not eligible. Questioned Costs Unknown Is the finding a repeat finding No Recommendations We recommend management establish a process to ensure all required eligibility documentation is maintained in accordance with federal program requirements. Additionally, management should provide regular training to employees responsible for eligibility determination, and implement a monitoring and review process to verify required documentation is properly maintained. Views of Responsible Officials/ Planned Corrective Actions Management agrees with the finding. See Corrective Action Plan on Organization’s letterhead.

Finding 2023-001 (Material Weakness) Program: Emergency Food Assistance Program (Food Commodities) Federal Agency: US Department of Agriculture AL #: 10.569 Federal Award Identification Number and Year: Various Pass-through Entity: Second Harvest Community Food Bank Type of Compliance Finding: E - Eligibility Criteria Per 7 CFR section 251.5(b), an ERA certifies households eligible to receive USDA Foods for household consumption by applying income eligibility criteria established by the state agency. These criteria are approved in advance by FNS as part of the state agency’s distribution plan. Condition/Context Management failed to maintain sufficient documentation to support the eligibility determination of program recipients. Cause The Organization lacks adequate internal controls over record retention and compliance with documentation requirements. Effect Management may have allowed applicants to participate in this program who were not eligible. Questioned Costs Unknown Is the finding a repeat finding No Recommendations We recommend management establish a process to ensure all required eligibility documentation is maintained in accordance with federal program requirements. Additionally, management should provide regular training to employees responsible for eligibility determination, and implement a monitoring and review process to verify required documentation is properly maintained. Views of Responsible Officials/ Planned Corrective Actions Management agrees with the finding. See Corrective Action Plan on Organization’s letterhead.