Audit 49631

FY End
2022-06-30
Total Expended
$5.61M
Findings
12
Programs
11
Year: 2022 Accepted: 2022-11-17
Auditor: Forvis

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
52180 2022-001 Material Weakness - N
52181 2022-001 Material Weakness - N
52182 2022-001 Material Weakness - N
52183 2022-001 Material Weakness - N
52184 2022-003 Significant Deficiency - I
52185 2022-001 Material Weakness - N
628622 2022-001 Material Weakness - N
628623 2022-001 Material Weakness - N
628624 2022-001 Material Weakness - N
628625 2022-001 Material Weakness - N
628626 2022-003 Significant Deficiency - I
628627 2022-001 Material Weakness - N

Contacts

Name Title Type
DYMSKQ6LFKH1 Dean Wooten Auditee
7576276599 Tom Hazelwood Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain kinds of expenditures are not allowable or are limited as to reimbursement. The Foodbank has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate noted above.

Finding Details

Type of Finding: Material Weakness in internal controls over compliance Criteria: An Organization?s internal control over compliance is a process designed to provide reasonable assurance that the Federal Award Compliance requirements are met. Condition: The Organization failed to properly monitor for obsolete inventory, resulting in a loss of USDA goods during 2022. Effect: Write off obsolete inventory and reporting to Virginia Department of Agriculture and Consumer Services for remedial action. Cause: Due to impacts of COVID-19, several agency distributions sites and on-site USDA distributions at the Organization had to be cancelled to comply with to social distancing measures. As a result, the Organization was not able to distribute USDA commodities prior to expiration date. The Organization did not distribute USDA commodities timely resulting in a write off for expired inventory. Questioned Costs: None Recommendation: We recommend that management regularly monitor and review for aged inventory to ensure goods are properly distributed prior to expiration. Views of Responsible Officials and Planned Corrective Actions: Management agrees with comments regarding the material weakness in internal controls over compliance. See corrective action plan.
Type of Finding: Material Weakness in internal controls over compliance Criteria: An Organization?s internal control over compliance is a process designed to provide reasonable assurance that the Federal Award Compliance requirements are met. Condition: The Organization failed to properly monitor for obsolete inventory, resulting in a loss of USDA goods during 2022. Effect: Write off obsolete inventory and reporting to Virginia Department of Agriculture and Consumer Services for remedial action. Cause: Due to impacts of COVID-19, several agency distributions sites and on-site USDA distributions at the Organization had to be cancelled to comply with to social distancing measures. As a result, the Organization was not able to distribute USDA commodities prior to expiration date. The Organization did not distribute USDA commodities timely resulting in a write off for expired inventory. Questioned Costs: None Recommendation: We recommend that management regularly monitor and review for aged inventory to ensure goods are properly distributed prior to expiration. Views of Responsible Officials and Planned Corrective Actions: Management agrees with comments regarding the material weakness in internal controls over compliance. See corrective action plan.
Type of Finding: Material Weakness in internal controls over compliance Criteria: An Organization?s internal control over compliance is a process designed to provide reasonable assurance that the Federal Award Compliance requirements are met. Condition: The Organization failed to properly monitor for obsolete inventory, resulting in a loss of USDA goods during 2022. Effect: Write off obsolete inventory and reporting to Virginia Department of Agriculture and Consumer Services for remedial action. Cause: Due to impacts of COVID-19, several agency distributions sites and on-site USDA distributions at the Organization had to be cancelled to comply with to social distancing measures. As a result, the Organization was not able to distribute USDA commodities prior to expiration date. The Organization did not distribute USDA commodities timely resulting in a write off for expired inventory. Questioned Costs: None Recommendation: We recommend that management regularly monitor and review for aged inventory to ensure goods are properly distributed prior to expiration. Views of Responsible Officials and Planned Corrective Actions: Management agrees with comments regarding the material weakness in internal controls over compliance. See corrective action plan.
Type of Finding: Material Weakness in internal controls over compliance Criteria: An Organization?s internal control over compliance is a process designed to provide reasonable assurance that the Federal Award Compliance requirements are met. Condition: The Organization failed to properly monitor for obsolete inventory, resulting in a loss of USDA goods during 2022. Effect: Write off obsolete inventory and reporting to Virginia Department of Agriculture and Consumer Services for remedial action. Cause: Due to impacts of COVID-19, several agency distributions sites and on-site USDA distributions at the Organization had to be cancelled to comply with to social distancing measures. As a result, the Organization was not able to distribute USDA commodities prior to expiration date. The Organization did not distribute USDA commodities timely resulting in a write off for expired inventory. Questioned Costs: None Recommendation: We recommend that management regularly monitor and review for aged inventory to ensure goods are properly distributed prior to expiration. Views of Responsible Officials and Planned Corrective Actions: Management agrees with comments regarding the material weakness in internal controls over compliance. See corrective action plan.
Type of Finding: Significant deficiency in internal controls over compliance Criteria: Recipient are required to have procurement policies and procedures in place that comply with the procurement standards outlined in the Uniform Guidance. Condition: Goods were purchased from vendors without going through the proper bid process. Effect: The Organization procured food commodities without obtaining required quotes from vendors. Cause: Due to supply chain constraints with COVID-19, certain products were unavailable and therefore the Organization could not obtain three procurement quotes. Questioned Costs: None Recommendation: We recommend that management follow the Organization?s procurement policy or documents reasons for any exceptions prior to procurement. Views of Responsible Officials and Planned Corrective Actions: Management agrees with comments regarding significant deficiency in internal controls over compliance. See corrective action plan.
Type of Finding: Material Weakness in internal controls over compliance Criteria: An Organization?s internal control over compliance is a process designed to provide reasonable assurance that the Federal Award Compliance requirements are met. Condition: The Organization failed to properly monitor for obsolete inventory, resulting in a loss of USDA goods during 2022. Effect: Write off obsolete inventory and reporting to Virginia Department of Agriculture and Consumer Services for remedial action. Cause: Due to impacts of COVID-19, several agency distributions sites and on-site USDA distributions at the Organization had to be cancelled to comply with to social distancing measures. As a result, the Organization was not able to distribute USDA commodities prior to expiration date. The Organization did not distribute USDA commodities timely resulting in a write off for expired inventory. Questioned Costs: None Recommendation: We recommend that management regularly monitor and review for aged inventory to ensure goods are properly distributed prior to expiration. Views of Responsible Officials and Planned Corrective Actions: Management agrees with comments regarding the material weakness in internal controls over compliance. See corrective action plan.
Type of Finding: Material Weakness in internal controls over compliance Criteria: An Organization?s internal control over compliance is a process designed to provide reasonable assurance that the Federal Award Compliance requirements are met. Condition: The Organization failed to properly monitor for obsolete inventory, resulting in a loss of USDA goods during 2022. Effect: Write off obsolete inventory and reporting to Virginia Department of Agriculture and Consumer Services for remedial action. Cause: Due to impacts of COVID-19, several agency distributions sites and on-site USDA distributions at the Organization had to be cancelled to comply with to social distancing measures. As a result, the Organization was not able to distribute USDA commodities prior to expiration date. The Organization did not distribute USDA commodities timely resulting in a write off for expired inventory. Questioned Costs: None Recommendation: We recommend that management regularly monitor and review for aged inventory to ensure goods are properly distributed prior to expiration. Views of Responsible Officials and Planned Corrective Actions: Management agrees with comments regarding the material weakness in internal controls over compliance. See corrective action plan.
Type of Finding: Material Weakness in internal controls over compliance Criteria: An Organization?s internal control over compliance is a process designed to provide reasonable assurance that the Federal Award Compliance requirements are met. Condition: The Organization failed to properly monitor for obsolete inventory, resulting in a loss of USDA goods during 2022. Effect: Write off obsolete inventory and reporting to Virginia Department of Agriculture and Consumer Services for remedial action. Cause: Due to impacts of COVID-19, several agency distributions sites and on-site USDA distributions at the Organization had to be cancelled to comply with to social distancing measures. As a result, the Organization was not able to distribute USDA commodities prior to expiration date. The Organization did not distribute USDA commodities timely resulting in a write off for expired inventory. Questioned Costs: None Recommendation: We recommend that management regularly monitor and review for aged inventory to ensure goods are properly distributed prior to expiration. Views of Responsible Officials and Planned Corrective Actions: Management agrees with comments regarding the material weakness in internal controls over compliance. See corrective action plan.
Type of Finding: Material Weakness in internal controls over compliance Criteria: An Organization?s internal control over compliance is a process designed to provide reasonable assurance that the Federal Award Compliance requirements are met. Condition: The Organization failed to properly monitor for obsolete inventory, resulting in a loss of USDA goods during 2022. Effect: Write off obsolete inventory and reporting to Virginia Department of Agriculture and Consumer Services for remedial action. Cause: Due to impacts of COVID-19, several agency distributions sites and on-site USDA distributions at the Organization had to be cancelled to comply with to social distancing measures. As a result, the Organization was not able to distribute USDA commodities prior to expiration date. The Organization did not distribute USDA commodities timely resulting in a write off for expired inventory. Questioned Costs: None Recommendation: We recommend that management regularly monitor and review for aged inventory to ensure goods are properly distributed prior to expiration. Views of Responsible Officials and Planned Corrective Actions: Management agrees with comments regarding the material weakness in internal controls over compliance. See corrective action plan.
Type of Finding: Material Weakness in internal controls over compliance Criteria: An Organization?s internal control over compliance is a process designed to provide reasonable assurance that the Federal Award Compliance requirements are met. Condition: The Organization failed to properly monitor for obsolete inventory, resulting in a loss of USDA goods during 2022. Effect: Write off obsolete inventory and reporting to Virginia Department of Agriculture and Consumer Services for remedial action. Cause: Due to impacts of COVID-19, several agency distributions sites and on-site USDA distributions at the Organization had to be cancelled to comply with to social distancing measures. As a result, the Organization was not able to distribute USDA commodities prior to expiration date. The Organization did not distribute USDA commodities timely resulting in a write off for expired inventory. Questioned Costs: None Recommendation: We recommend that management regularly monitor and review for aged inventory to ensure goods are properly distributed prior to expiration. Views of Responsible Officials and Planned Corrective Actions: Management agrees with comments regarding the material weakness in internal controls over compliance. See corrective action plan.
Type of Finding: Significant deficiency in internal controls over compliance Criteria: Recipient are required to have procurement policies and procedures in place that comply with the procurement standards outlined in the Uniform Guidance. Condition: Goods were purchased from vendors without going through the proper bid process. Effect: The Organization procured food commodities without obtaining required quotes from vendors. Cause: Due to supply chain constraints with COVID-19, certain products were unavailable and therefore the Organization could not obtain three procurement quotes. Questioned Costs: None Recommendation: We recommend that management follow the Organization?s procurement policy or documents reasons for any exceptions prior to procurement. Views of Responsible Officials and Planned Corrective Actions: Management agrees with comments regarding significant deficiency in internal controls over compliance. See corrective action plan.
Type of Finding: Material Weakness in internal controls over compliance Criteria: An Organization?s internal control over compliance is a process designed to provide reasonable assurance that the Federal Award Compliance requirements are met. Condition: The Organization failed to properly monitor for obsolete inventory, resulting in a loss of USDA goods during 2022. Effect: Write off obsolete inventory and reporting to Virginia Department of Agriculture and Consumer Services for remedial action. Cause: Due to impacts of COVID-19, several agency distributions sites and on-site USDA distributions at the Organization had to be cancelled to comply with to social distancing measures. As a result, the Organization was not able to distribute USDA commodities prior to expiration date. The Organization did not distribute USDA commodities timely resulting in a write off for expired inventory. Questioned Costs: None Recommendation: We recommend that management regularly monitor and review for aged inventory to ensure goods are properly distributed prior to expiration. Views of Responsible Officials and Planned Corrective Actions: Management agrees with comments regarding the material weakness in internal controls over compliance. See corrective action plan.