Audit 412296

Finding 2025-001 - USDA Food Distribution and Authorized Signers Condition: During our audit, it was identified that the Organization did not consistently obtain signatures from "approved shoppers" for USDA food products. Additionally, in at least one instance, the individual signing for a USDA distribution was not listed as an authorized signer. These issues indicate a lack of adherence to required procedures for verifying and documenting authorized individuals who pick up USDA food products. Criteria: The Organization is required to maintain an "approved shopper" list for each partner agency, specifying who is authorized to pick up USDA food products. Furthermore, the Organization must ensure that those signing for deliveries are included on the approved list and that their signatures are properly obtained and cross-referenced. Cause: Staff turnover within the Organization led to lapses in following established procedures, resulting in missed steps such as obtaining and verifying signatures against the approved shopper list. Effect: As a result of these lapses, signatures were not consistently collected or compared to the approved shopper list, increasing the risk that unauthorized individuals may have received USDA food products and that proper records of distribution were not maintained. Recommendation: We recommend that the Organization provide comprehensive training to all relevant staff on the correct procedures for obtaining and cross-referencing signatures for USDA food product distribution. This will help ensure compliance with requirements and improve the integrity of the distribution process. Views of Responsible Officials: See attached response.

Finding 2025-002 - Monitoring of Subrecipient Agencies Condition: During our testing of subrecipient agency monitoring files, we noted exceptions in which monitoring documentation was incomplete, missing, or not performed within the required monitoring cycle. Specifically, monitoring visit forms were not signed by SHFB employees, monitoring visit forms were not signed by agency representatives, monitoring visit forms could not be provided for certain agencies, membership applications or agreements could not be located for certain agencies, and certain agencies did not appear to have monitoring visits completed at least once every two years as required. Criteria: The Organization is required to maintain effective internal controls over compliance with federal award requirements, including procedures to monitor subrecipient agencies and retain documentation supporting that required monitoring was performed. Monitoring documentation should evidence timely completion, review, and approval by appropriate Organization personnel and agency representatives. Cause: The Organization’s review and record-retention procedures did not ensure that monitoring visit documentation was completed, signed by all required parties, retained in the agency file, and tracked to confirm that monitoring visits were completed within the required two-year cycle. Effect: Without complete and timely monitoring documentation, the Organization may be unable to demonstrate that it performed required subrecipient monitoring procedures or that subrecipient agencies complied with applicable program requirements. This increases the risk that instances of noncompliance by subrecipient agencies may not be identified and corrected timely. Recommendation: We recommend that the Organization strengthen its subrecipient monitoring controls by implementing a centralized tracking process for agency monitoring activities, including due dates for required monitoring visits and required documentation. The Organization should also establish a review procedure to verify that monitoring visit forms are completed, signed by both Organization personnel and agency representatives, and retained in the agency file along with current membership applications or agreements. Views of Responsible Officials: See attached response