Finding #2024-005 – Reporting – Significant Deficiency and Other Noncompliance. Applicable federal program: U. S. Department of Agriculture, Passed through The Houston Food Bank, Emergency Food Assistance Program – Food Commodities (Food Distribution Cluster), Assistance Listing #: 10.569, Contract Number: 30517, Contract Year: 01/01/24 – 12/31/24. Condition and context: The adjustment reported in Finding #2024-001 to update the value of food commodities increased the Emergency Food Assistance Program (TEFAP) distributions by approximately $14,000. Additionally, the exceptions reported as finding #2024-001 included one understated receipt of 4,360 pounds TEFAP commodities. Recommendation: Same as finding #2024-001. Planned corrective action: An internal audit performed in January 2025 identified deficiencies in internal controls for the calendar year 2024, primarily due to elevated personnel turnover. In response, corrective measures were implemented in April 2025, including the establishment and documentation of formal internal controls and procedures. New management has assumed oversight responsibilities and is actively monitoring compliance to ensure sustained effectiveness of these controls. Policies and procedures over recognition of food commodities have been strengthened to ensure that the correct values for the year are used and that reconciliations are performed between the general ledger and independent worksheets used for tracking food commodities and inventory. Responsible officer: Virginia Gonzalez, Chief Executive Officer. Estimated completion date: Completed as of April 30, 2025.