Finding 1054797 (2023-001)

Finding No. 2023-001 Federal Program Information Food Distribution Cluster 10.565 – Commodity Supplemental Food Program 10.568 – Emergency Food Assistance Program (Administrative Costs) 10.569 – Emergency Food Assistance Program (Food Commodities) – Non-cash Assistance Criteria or specific requirement OMB Compliance Supplement Requirement E – Eligibility for Subrecipients 7 CFR sections 251.3(c)(2) – Agreements between State agencies and eligible recipient agencies, and between eligible recipient agencies. Prior to making donated foods or administrative funds available, State agencies must enter into a written agreement with eligible recipient agencies to which they plan to distribute donated foods and/or administrative funds. State agencies must ensure that eligible recipient agencies in turn enter into a written agreement with any eligible recipient agencies to which they plan to distribute donated foods and/or administrative funds before donated foods or administrative funds are transferred between any two eligible recipient agencies. All agreements entered into must contain the information specified in paragraph (d) of this section, and be considered permanent, with amendments to be made as necessary, except that agreements must specify that they may be terminated by either party upon 30 days' written notice. State agencies must ensure that eligible recipient agencies provide, on a timely basis, by amendment to the agreement, or other written documents incorporated into the agreement by reference if permitted under paragraph (d) of this section, any information on changes in program administration, including any changes resulting from amendments to Federal regulations or policy. Condition The Organization was unable to provide a written agreement with local distribution agencies prior to receiving a TEFAP distribution. For one of the 40 agencies selected for testing, the Organization was unable to provide a written TEFAP agreement with the local distribution agency (LDA) Recommendation It is recommended that the Organization improve their system of monitoring of LDA contracts to ensure all participating agencies have approved TEFAP contracts prior to receiving TEFAP foods for the entire contract period. Questioned Costs None noted View of the Responsible Officials and Planned Corrective Actions The Organization has established procedures to set consistent dates for annual in-person trainings and signing of contracts. The Organization will set up a schedule in excel with expiring dates to ensure no TEFAP food is distributed without a contract.