Finding 1074911 (2023-001)

Section II - Financial Statement Findings None. Section III - Federal Award Findings and Questioned Costs Questioned Costs Finding 2023 001 (Food Distribution Cluster CFDA# 10.568/ 10.569 Eligibility for Individuals and Inventory Records N/A The audit requirements of the OMB Compliance Supplement require that the County demonstrates that it serves predominately needy persons, maintains receipts, usage/distribution, losses, and ending inventory, and performs an annual physical inventory observation. Condition The County does not maintain a population of clients it serves to select a sample to test if it serves predominately needy persons, does not maintain perpetual inventory records, or perform an annual physical inventory observation as of December 31, 2023. Criteria The County is required to demonstrate that it serves predominately needy persons, maintains receipts, usage/distribution, losses, and ending inventory, and performs an annual physical inventory observation. Cause These documents and records were not maintained during the year ended December 31, 2023. Effect Documents and records were not able to be produced for the year ended December 31, 2023. Recommendation The County should maintain documents and records to ensure compliance with the audit requirements of the OMB Compliance Supplement to demonstrate that it serves predominately needy persons, maintains receipts, usage/distribution, losses, and ending inventory, and performs an annual physical inventory observation. Management's Response See the attached response from management.