Finding Text
Criteria: Special tests and provisions for the Food Distribution Cluster program require the non-federal
entity maintains accurate and complete records with respect to the receipt, distribution/use, and inventory
of USDA food commodities donations.Condition: Coastal Harvest did not have sufficient records of its USDA food inventory balances and activity
as of and for the year ended June 30, 2023. As amounts and activity for the year could not be substantiated,
we have qualified our opinion on this program.
Cause: As a result of the coronavirus outbreak in early 2020 and the continued economic impacts to the
community, Coastal Harvest experienced rapid and significant operational growth including an influx of
USDA food commodities donations. Further, the Organization previously followed the modified cash basis
of accounting under which inventory was not recognized in the financial statements.
Effect: Coastal Harvest was not in compliance with recordkeeping requirements for the major federal
program.
Questioned Costs: Indeterminable.
Repeat Finding: Yes, finding number 2022-005.
Recommendation: We recommend that management implements a tracking system that sufficiently
identifies receipts, distribution/use, and inventory on hand of USDA foods.
Views of Responsible Officials: There is no disagreement with the finding.