Finding 1074562 (2023-002)

2023‐002 – COVID‐19 Coronavirus State and Local Recovery Funds – Food Bank Capacity Grant (ARPA) (ALN 21.027) United States Department of Agriculture, Passed through the Texas Department of Agriculture. Internal Control – Monitoring Criteria: Monitoring should be such that there is an assurance that control activities are being performed in a timely manner. Condition and Context: The policies and procedures in place during 2023 did not include proper monitoring of the program policies and procedures. Cause: Southeast Texas Food Bank experienced turnover in key management positions. Sufficient training and transition of responsibilities related to the monitoring of compliance with 2 CRF 200 was not conducted. Effect: As a result of this lack of monitoring, deficiencies in Program Compliance including procurement and other instances of noncompliance that do not rise to the level of a finding were not recognized and corrected on a timely basis Repeat Finding: See prior year finding 2022-002. Recommendation: Management should consider implementation of a contemporaneous monitoring process over procurement with federal and state funding. View of Responsible Party: Management concurs with recommendation. See corrective action plan.