Finding 1171397 (2025-101)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2025
Accepted
2026-01-30

AI Summary

  • Core Issue: The Company failed to notify the USDA of product receipt within the required two working days.
  • Impacted Requirements: This affects compliance with USDA guidelines for the Commodity Supplemental Food Program and Emergency Food Assistance Program.
  • Recommended Follow-Up: Reinforce the importance of timely notifications to USDA and monitor compliance with new measures implemented by management.

Finding Text

Federal Agency: U.S. Department of Agriculture. Award Names: Commodity Supplemental Food Program and. Emergency Food Assistance Program. Program Year: July 1, 2024 – June 30, 2025. Assistance Listing Numbers: 10.565 and 10.568. Repeat Finding: This is not a repeat finding. Criteria: The USDA has specific guidelines which need to be followed when reporting receipt of product for TEFAP and CSFP. The Company is required to notify the USDA of receipt of product within two working days. Condition: For four selections tested, notification from the Company to USDA was not within the two working days requirement. Context: For four selections tested, notification from the Company to USDA did not occur timely. Effect: As a result of the condition, receipt of product for TEFAP and CSFP was not in accordance with USDA requirements. Cause: Cause is due to a lack of administrative timeliness to notify USDA of the Company's receipt of product. Recommendation: We recommend the Company reinforce the importance of timely notification of product receipt to the USDA. Views of Responsible Officials: Management acknowledges the finding. Management has introduced measures to ensure that all product receipts are filed timely going forward.

Corrective Action Plan

Federal Agency: U.S. Department of Agriculture. Award Names: Commodity Supplemental Food Program and. Emergency Food Assistance Program. Program Year: July 1, 2024 – June 30, 2025. Assistance Listing Numbers: 10.565 and 10.568. Repeat Finding: This is not a repeat finding. Criteria: The USDA has specific guidelines which need to be followed when reporting receipt of product for TEFAP and CSFP. The Company is required to notify the USDA of receipt of product within two working days. Condition: For four selections tested, notification from the Company to USDA was not within the two working days requirement. Context: For four selections tested, notification from the Company to USDA did not occur timely. Effect: As a result of the condition, receipt of product for TEFAP and CSFP was not in accordance with USDA requirements. Cause: Cause is due to a lack of administrative timeliness to notify USDA of the Company's receipt of product. Recommendation: We recommend the Company reinforce the importance of timely notification of product receipt to the USDA. Contact: Heather Paquette, President. Status: Management has introduced a new process in which a member of the team will create dedicated scan folders for USDA receipts, daily verification of documents by the Inventory Management team, and daily uploads of finalized paperwork to NetSuite before forwarding to DACF. Additionally, management will implement Daily Exception Reporting to ensure compliance by generating alerts for missing paperwork and delayed submissions.

Categories

Reporting

Other Findings in this Audit

  • 1171388 2025-101
    Material Weakness Repeat
  • 1171389 2025-101
    Material Weakness Repeat
  • 1171390 2025-101
    Material Weakness Repeat
  • 1171391 2025-101
    Material Weakness Repeat
  • 1171392 2025-101
    Material Weakness Repeat
  • 1171393 2025-101
    Material Weakness Repeat
  • 1171394 2025-101
    Material Weakness Repeat
  • 1171395 2025-101
    Material Weakness Repeat
  • 1171396 2025-101
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.565 COMMODITY SUPPLEMENTAL FOOD PROGRAM $3.70M
10.331 GUS SCHUMACHER NUTRITION INCENTIVE PROGRAM $261,943
10.568 EMERGENCY FOOD ASSISTANCE PROGRAM (ADMINISTRATIVE COSTS) $75,282
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $24,959