Audit 5441

FY End
2023-06-30
Total Expended
$13.45M
Findings
6
Programs
7
Year: 2023 Accepted: 2023-12-05

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
3468 2023-101 Significant Deficiency - P
3469 2023-101 Significant Deficiency - P
3470 2023-102 - - L
579910 2023-101 Significant Deficiency - P
579911 2023-101 Significant Deficiency - P
579912 2023-102 - - L

Programs

Contacts

Name Title Type
YPXRQSJ9D7B7 Bryan O'Connor Auditee
2077823554 Julie Paquette Auditor
No contacts on file

Notes to SEFA

Title: Food Commodities Accounting Policies: Expenditures for direct and indirect costs are recognized as incurred using the accrual method of accounting and the cost accounting principles contained in the Uniform Guidance, as applicable. Under these cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. The categorization of expenditures by program included in the Schedule is based upon the Assistance Listing Number (ALN). No grant monies expended and reported within the Schedule were passed-through to subrecipients. De Minimis Rate Used: Y Rate Explanation: If necessary, the Company will elect to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Of the federal expenditures presented in the Schedule, the Company valued the noncash food commodities at fair market value at the time of their receipt using Feeding America guidelines.

Finding Details

USDA Foods Receipts: Criteria: Evidence of distribution in the form of signed invoices for USDA Foods is required to be maintained for CSFP and TEFAP. Evidence of receipt of USDA foods should be maintained to ensure compliance with the award. Condition: Signed invoices evidencing USDA food distributed were not retained. Context: Our sample of 25 distributions of USDA Foods included two instances where invoices were not properly signed and one instance where the invoice was not retained. Known and likely questioned costs are unknown. Effect: GSFB runs the risk that improper distribution will not be prevented without appropriate document retention. Cause: In all three instances, administrative issues resulted in the untimely lack of retention of signed invoices. Recommendation: We recommend that GSFB reinforce the importance of retaining signed invoices in accordance with award requirements. GSFB should further assign an individual within their organization to assume a higher level of direct responsibility for the administration of federal awards by GSFB. Views of Responsible Officials: GSFB staff audit sales order paperwork in connection with product received from Maine Department of Agriculture, Conversation, and Forestry. The audit consists of running a list of any outbound order that had DACF allocated inventory on it, comparing that list to returned paperwork, and confirming that said paperwork was signed. For any agency paperwork that cannot be located and/or is not signed, a follow-up email is sent to the specific partner requesting a signature. In June 2023, GSFB staff increased the frequency of auditing from monthly to weekly, allowing a more timely follow-up on any paperwork concerns. The Customer Service and Inventory Management teams share responsibility for auditing and follow-up.
USDA Foods Receipts: Criteria: Evidence of distribution in the form of signed invoices for USDA Foods is required to be maintained for CSFP and TEFAP. Evidence of receipt of USDA foods should be maintained to ensure compliance with the award. Condition: Signed invoices evidencing USDA food distributed were not retained. Context: Our sample of 25 distributions of USDA Foods included two instances where invoices were not properly signed and one instance where the invoice was not retained. Known and likely questioned costs are unknown. Effect: GSFB runs the risk that improper distribution will not be prevented without appropriate document retention. Cause: In all three instances, administrative issues resulted in the untimely lack of retention of signed invoices. Recommendation: We recommend that GSFB reinforce the importance of retaining signed invoices in accordance with award requirements. GSFB should further assign an individual within their organization to assume a higher level of direct responsibility for the administration of federal awards by GSFB. Views of Responsible Officials: GSFB staff audit sales order paperwork in connection with product received from Maine Department of Agriculture, Conversation, and Forestry. The audit consists of running a list of any outbound order that had DACF allocated inventory on it, comparing that list to returned paperwork, and confirming that said paperwork was signed. For any agency paperwork that cannot be located and/or is not signed, a follow-up email is sent to the specific partner requesting a signature. In June 2023, GSFB staff increased the frequency of auditing from monthly to weekly, allowing a more timely follow-up on any paperwork concerns. The Customer Service and Inventory Management teams share responsibility for auditing and follow-up.
Timeliness of Reporting: Criteria: Management was responsible for submitting a timely report based on terms of grant agreement. Condition: During our compliance testing, it was identified that required a Project and Expenditure Report was not submitted timely. Context: The required Project and Expenditure Report was not submitted timely based on terms of grant agreement. Effect: As a result of the condition, GSFB required reporting was not submitted timely based on terms of the grant agreement. Cause: Management has processes and controls over the reporting process, however, these were not updated to reflect the correct due date of the required report per the grant agreement. Recommendation: In the future, GSFB should ensure it implements appropriate processes and controls to ensure a required report is filed timely in accordance with terms of the grant agreement. Views of Responsible Officials: Management acknowledges the finding. During the year under review, Harvesting Good entered into a contract with a grant administrator who now manages all grant reporting. Management is confident that all reports will be submitted in a timely manner for the foreseeable future.
USDA Foods Receipts: Criteria: Evidence of distribution in the form of signed invoices for USDA Foods is required to be maintained for CSFP and TEFAP. Evidence of receipt of USDA foods should be maintained to ensure compliance with the award. Condition: Signed invoices evidencing USDA food distributed were not retained. Context: Our sample of 25 distributions of USDA Foods included two instances where invoices were not properly signed and one instance where the invoice was not retained. Known and likely questioned costs are unknown. Effect: GSFB runs the risk that improper distribution will not be prevented without appropriate document retention. Cause: In all three instances, administrative issues resulted in the untimely lack of retention of signed invoices. Recommendation: We recommend that GSFB reinforce the importance of retaining signed invoices in accordance with award requirements. GSFB should further assign an individual within their organization to assume a higher level of direct responsibility for the administration of federal awards by GSFB. Views of Responsible Officials: GSFB staff audit sales order paperwork in connection with product received from Maine Department of Agriculture, Conversation, and Forestry. The audit consists of running a list of any outbound order that had DACF allocated inventory on it, comparing that list to returned paperwork, and confirming that said paperwork was signed. For any agency paperwork that cannot be located and/or is not signed, a follow-up email is sent to the specific partner requesting a signature. In June 2023, GSFB staff increased the frequency of auditing from monthly to weekly, allowing a more timely follow-up on any paperwork concerns. The Customer Service and Inventory Management teams share responsibility for auditing and follow-up.
USDA Foods Receipts: Criteria: Evidence of distribution in the form of signed invoices for USDA Foods is required to be maintained for CSFP and TEFAP. Evidence of receipt of USDA foods should be maintained to ensure compliance with the award. Condition: Signed invoices evidencing USDA food distributed were not retained. Context: Our sample of 25 distributions of USDA Foods included two instances where invoices were not properly signed and one instance where the invoice was not retained. Known and likely questioned costs are unknown. Effect: GSFB runs the risk that improper distribution will not be prevented without appropriate document retention. Cause: In all three instances, administrative issues resulted in the untimely lack of retention of signed invoices. Recommendation: We recommend that GSFB reinforce the importance of retaining signed invoices in accordance with award requirements. GSFB should further assign an individual within their organization to assume a higher level of direct responsibility for the administration of federal awards by GSFB. Views of Responsible Officials: GSFB staff audit sales order paperwork in connection with product received from Maine Department of Agriculture, Conversation, and Forestry. The audit consists of running a list of any outbound order that had DACF allocated inventory on it, comparing that list to returned paperwork, and confirming that said paperwork was signed. For any agency paperwork that cannot be located and/or is not signed, a follow-up email is sent to the specific partner requesting a signature. In June 2023, GSFB staff increased the frequency of auditing from monthly to weekly, allowing a more timely follow-up on any paperwork concerns. The Customer Service and Inventory Management teams share responsibility for auditing and follow-up.
Timeliness of Reporting: Criteria: Management was responsible for submitting a timely report based on terms of grant agreement. Condition: During our compliance testing, it was identified that required a Project and Expenditure Report was not submitted timely. Context: The required Project and Expenditure Report was not submitted timely based on terms of grant agreement. Effect: As a result of the condition, GSFB required reporting was not submitted timely based on terms of the grant agreement. Cause: Management has processes and controls over the reporting process, however, these were not updated to reflect the correct due date of the required report per the grant agreement. Recommendation: In the future, GSFB should ensure it implements appropriate processes and controls to ensure a required report is filed timely in accordance with terms of the grant agreement. Views of Responsible Officials: Management acknowledges the finding. During the year under review, Harvesting Good entered into a contract with a grant administrator who now manages all grant reporting. Management is confident that all reports will be submitted in a timely manner for the foreseeable future.