Finding Text
Finding 2024-003 Federal Agency: Department of Agriculture Federal Program: Food Distribution Cluster CFDA: #10.568, 10.569 Compliance Requirement: Special Tests and Provisions – Accountability for USDA Foods Type of Finding: Significant Deficiency in Internal Controls over Compliance Repeat Finding: No CRITERIA: 7 CFR §250.19 Recordkeeping Requirements Accurate and complete records must be maintained with respect to the receipt, distribution/use, and inventory of USDA Foods. Failure of the distributing agency to comply with recordkeeping requirements must be considered prima facie evidence of improper distribution or loss of donated foods and may result in a claim against such party for the loss or misuse of donated foods. In addition, records relating to the requirements for donated foods must be retained for a period of three years from the close of the fiscal year to which they pertain. CONDITION: The Organization requires subrecipients to sign an invoice indicating their pick-up of USDA items taken out of the Organization’s inventory. CONTEXT: From a sample of twenty-five (25) USDA distributions taken out of or returned to the Organization’s inventory, (1) sample had ship date different from the date distributed. QUESTIONED COSTS: N/A CAUSE: Controls were not in place to ensure all inventory transactions are properly documented with signature for inspections upon disbursement of inventory. EFFECTS: Inventories may not be accounted for properly. RECOMMENDATIONS: We recommend original records relating to the requirements for distributed foods be retained for the required period. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION: The Organization agrees with the finding.