Finding Text
Finding 2024-002: Special Tests and Provisions—Accountability for USDA Foods—Material Weakness in
Controls over Compliance and Noncompliance
Federal Program: Emergency Food Assistance Program (Food Commodities)—ALN 10.569
Year(s): 2024
Federal Agency: U.S. Department of Agriculture (USDA), Food, and Nutrition Services
Contract—D-125, The Salvation Army, Reno
Pass-Through Entity: Nevada Department of Agriculture
Criteria—Agencies must conduct an annual physical inventory of all storage facilities used by the distributing
agency or by a sub distributing agency. Such inventory must be reconciled annually with the storage facility’s
inventory records and maintained on file by the agency that contracted with or maintained the storage
facility.
The Del Oro Reno Division (the Division) is required to submit monthly inventory reports of all The
Emergency Food Assistance Program (TEFAP) USDA donated foods on hand at their own or contracted
facility to the Contracted Regional Agency monthly. The report shall indicate for each TEFAP UDSA donated
food item: the commodity description, inventory on hand, inventory received for the month, total available
for the month, total distributed, total delivered to another agency, inventory adjustments and ending
inventory for the month.
Condition—We selected 4 of the 12 monthly reports to test the Division’s inventory process. The inventory
was counted monthly and submitted to the grantor as required. However, there was no evidence of the
review over the count process and the finalized inventory sheets that were submitted to the grantor.
Further in the sampled reports, the following findings were noted.
Month Selected Finding
January 2024- Total cases received per delivery report was 1,192 whereas the total cases recorded in the report was
1,160. The discrepancy of 32 cases was a result of human error.
April 2024/ August 2024 -The total cases distributed is calculated as Beginning Cases plus Cases received minus the
cases in ending inventory at the end of the month. There was a mathematical error in the above process which led to a discrepancy of 10 cases in the April 2024 report and discrepancy of 26 cases inthe August 2024 report.
September 2024 -This report contained inventory items that were donated by other sources and not a part of the
Emergency Food Assistance Program.
Cause—The lack of review over the inventory process. The inventory count sheets should be reviewed for
accuracy and completed by personnel not performing the count.
Effect—As a result of a lack of proper review, the Division had discrepancies in the inventory management
and tracking process.
Recommendation—We recommend the Division implement a review process to ensure the accuracy of the
inventory management and reporting process.
Views of the Responsible Officials—See Corrective Action Plan