Finding Text
2024-003: Special Tests and Provisions – Accountability for USDA Foods
Program: Commodity Supplemental Food Program (ALN 10.565) (Food Distribution Cluster)
Federal agency: U.S. Department of Agriculture
Pass-through entity name and identifying number:
District of Columbia Department of Health (CHA2022-000027)
Montgomery County Department of Health and Human Services (1087608)
Maryland Department of Aging (N/A)
Federal Award Year: Year ended June 30, 2024
Program: Emergency Food Assistance Program (Administrative Costs) (ALN 10.568) (Food Distribution Cluster)
Federal agency: U.S. Department of Agriculture
Pass-through entity name and identifying number:
Virginia Department of Agriculture and Consumer Services (VDACS) (67-150)
District of Columbia OSSE Wellness and Nutrition Services Division (CW102461)
District of Columbia Department of Health (N/A)
Maryland Department of Human Resources Family Investment Administration (FIA/FNS 23-012-FY23 and FIA/FNS 23-012-FY 24)
Federal Award Year: Year ended June 30, 2024
Program: Emergency Food Assistance Program (Commodities) (ALN 10.569) (Food Distribution Cluster)
Federal agency: U.S. Department of Agriculture
Pass-through entity name and identifying number:
District of Columbia OSSE Wellness and Nutrition Services Division (CW102461)
District of Columbia Department of Health (N/A)
Virginia Department of Agriculture and Consumer Services (VDACS) (67-150)
Maryland Department of Human Resources Family Investment Administration (FIA/FNS 23-012)
Federal Award Year: Year ended June 30, 2024
Type of finding: Material Weakness in Internal Control over Compliance, Other Matter Compliance Finding
Criteria: FNS instruction 410-1 requires all inventory losses of inventory to be reported to the state agencies within a 30-day time frame.
Condition: On August 8, 2024, the Compliance and Human Resource teams at CAFB received a complaint alleging falsification of reports concerning TEFAP items by several employees in DC Operations. An investigation was immediately launched by the HR team. As a result of the investigation, CAFB discovered approximately $60,000 of TEFAP inventory shrinkage was recorded but not timely reported to the state agencies.
Cause: It was mistakenly believed that losses under a certain amount did not need to be reported.
Effect: The late reporting of inventory shrinkage resulted in non-compliance with provisions of the related grant agreement.
Context: A total of $60,000 of TEFAP inventory shrinkage during CAFB's fiscal year ended June 30, 2024, was not timely reported to the state agencies. The total consists of approximately $30,000 of food inventory CAFB received from DC and approximately $30,000 of food inventory CAFB received from Maryland. This issue was self-reported by CAFB to RSM. It did not originate from audit testing.
Questioned costs: $60,000 was questioned during the year, however the amount is not included on the SEFA
Repeat finding: No
Recommendation: We recommend that the organization strengthen control processes around timely reporting of losses related to its grant agreements.
Views of responsible officials: CAFB has reviewed and agrees with the finding and the recommendation.