Finding Text
2025-002: Significant Deficiency – Special Tests and Provisions – Relating to the Food Distribution Cluster – (10.568/10.569). Criteria: Records of receipt, distribution, and use of USDA-donated foods must be maintained to substantiate proper distribution. Adequate documentation must include signed receipts or equivalent evidence acknowledging delivery and acceptance of USDA commodities by recipient agencies. These records form part of the Organization’s internal controls to ensure the accuracy and completeness of program reporting and accountability for USDA foods. Condition and Context: During testing of 40 Mississippi USDA food distribution transactions, we noted that two invoices lacked agency signatures acknowledging receipt of food. The unsigned invoices did include quantity and delivery information, but the absence of signatures prevents confirmation that the recipient agency received the commodities. Cause: The missing signatures appear to have resulted from oversight during the delivery process, where staff did not obtain signed acknowledgment at the time of transfer. Effect: Without signed agency receipts, this could result in unsubstantiated distributions, inventory discrepancies, or potential noncompliance with recordkeeping requirements. Questioned Costs: None noted. Repeat Finding: No Recommendation: We recommend that management reinforce procedures requiring agency signatures on all USDA food distribution receipts at the time of delivery. Since distributions are recorded when the truck is loaded, we suggest implementing a follow-up control—such as a delivery checklist or log—to confirm that all receipts are signed and returned after delivery. Consider periodic supervisory review to verify that all signed receipts are obtained and retained. View of Responsible Official: See Management’s Corrective Action Plan.