Finding 1086092 (2023-001)

ALN and Title: 10.565 – Commodity Supplemental Food Program Cluster Name: Total Food Distribution Cluster Federal Agency: U.S. Department of Agriculture Passthrough Entity: State of Nevada Department of Agriculture Type of Finding: Significant Deficiency Criteria: Per 7 CFR section 251.5 (referenced in the Compliance Supplement of the Uniform Guidance), commodities received by the Organization requires certification of households eligible to receive these commodities for consumption by applying income eligibility criteria established by the state agency (Nevada Department of Agriculture, in this case). Condition: During testing procedures over eligibility, it was noted that the Organization had not retained supporting documentation to verify certification was complete and accurate. Cause: The Organization was unable to establish consistent controls over certification of income eligibility due to high staff turnover. Effect: Documentation to determine eligibility was not retained for every participant during the fiscal year. Questioned Costs: Unknown. Identification of a repeat finding: This is a repeat finding from the immediate previous audit, 2022-001. Context: The Organization was missing verifiable documentation for eligible income requirements for 3 out of the 25 participants tested for the single audit. Recommendation: The Organization should develop and implement written policies and procedures that meet the eligibility requirements of the Uniform Administration Requirements, Cost Principles, and Audit Requirements for Federal Awards. This would include a review of applications to ensure participants have confirmed in a verifiable way that they meet the income eligibility criteria to receive benefits. Documentation should be retained so testing procedures by outside auditors can be performed. Views of responsible officals: Management agrees with this recommendation. See auditee prepared corrective action plan for details.