Audit 48583

Material Noncompliance and Significant Deficiency over Compliance: Special Tests and Provisions - Accountability for USDA Foods Criteria: Accurate and complete records must be maintained with respect to the receipt, distribution/use, and inventory of USDA Foods. Failure to maintain records required by 7 CFR section 250.19 is considered prima facie evidence of improper distribution or loss of USDA Foods, and the agency processor or entity is liable or the value of the food or replacement of the food in kind (7 CFR sections 250.16 and 250.19(a)). Condition: During our testing of USDA Food receipts, we noted the accounting records were not properly maintained for USDA Foods during various periods of the year. As a result, we were unable to reconcile incoming USDA Food receipts to Foodbank?s underlying records for five of the twelve months of the year. Effect or Potential Effect: USDA Food receipt amounts may be reported incorrectly. Cause: Foodbank underwent significant changes in its staffing, including the sudden death of its executive director, and significant turnover and absences of employees during the COVID-19 pandemic. As a result, many documents were misplaced and/or poorly maintained. Question Costs: None. Identification of a Repeat Finding: This is a repeat finding from the prior year audit, 2021-003. Recommendation: We recommend Foodbank implement an electronic inventory receipt and distribution system that incorporates the steps taken to properly and accurately account for incoming food from the USDA. Views of Responsible Officials and Planned Corrective Actions: Foodbank agrees with the finding and has implemented a process to properly and accurately account for incoming USDA Foods. In March 2021, Foodbank approved the purchase of software that was designed specifically for food banks to help them account for food receipts and distributions, as well as the physical inventory accounting required for food banks. Changes in personnel delayed the full implementation of the software, which is expected to be completed by February 28, 2023.

Material Noncompliance and Significant Deficiency over Compliance: Special Tests and Provisions - Accountability for USDA Foods Criteria: Accurate and complete records must be maintained with respect to the receipt, distribution/use, and inventory of USDA Foods. Failure to maintain records required by 7 CFR section 250.19 is considered prima facie evidence of improper distribution or loss of USDA Foods, and the agency processor or entity is liable or the value of the food or replacement of the food in kind (7 CFR sections 250.16 and 250.19(a)). Condition: During our testing of USDA Food receipts, we noted the accounting records were not properly maintained for USDA Foods during various periods of the year. As a result, we were unable to reconcile incoming USDA Food receipts to Foodbank?s underlying records for five of the twelve months of the year. Effect or Potential Effect: USDA Food receipt amounts may be reported incorrectly. Cause: Foodbank underwent significant changes in its staffing, including the sudden death of its executive director, and significant turnover and absences of employees during the COVID-19 pandemic. As a result, many documents were misplaced and/or poorly maintained. Question Costs: None. Identification of a Repeat Finding: This is a repeat finding from the prior year audit, 2021-003. Recommendation: We recommend Foodbank implement an electronic inventory receipt and distribution system that incorporates the steps taken to properly and accurately account for incoming food from the USDA. Views of Responsible Officials and Planned Corrective Actions: Foodbank agrees with the finding and has implemented a process to properly and accurately account for incoming USDA Foods. In March 2021, Foodbank approved the purchase of software that was designed specifically for food banks to help them account for food receipts and distributions, as well as the physical inventory accounting required for food banks. Changes in personnel delayed the full implementation of the software, which is expected to be completed by February 28, 2023.