Finding Text
AL number: 10.568, 10.569, 10.565 AL title: Emergency Food Assistance Program – Food Distribution Cluster Compliance requirement: Special Tests and Provisions Name of federal agency: U.S. Department of Agriculture Name of pass-through entity: Illinois Department of Human Services and Missouri Department of Social Services Type of finding: Material Weakness in Internal Control over Compliance of Major Programs Criteria: St. Louis Area Food Bank, Inc. is responsible for maintaining effective internal controls over compliance with Special Tests and Provisions. Proper controls require that documentation supporting food commodity receipts, including inspection reports and bills of lading, be complete, signed, and retained to ensure accountability and compliance with federal requirements. Condition: During our audit, we noted that required documentation was not consistently maintained. Specifically, the inspection report (lading report) was not completed or signed during the intake process, and for one receipt, neither the inspection report nor the bill of lading could be obtained for testing on another receipt. These issues indicate a breakdown in internal controls over documentation and verification of food receipts. Cause: The deficiencies appear to result from insufficient oversight and high staff turnover in the warehouse, combined with onboarding of new employees who may not yet be fully familiar with the program’s documentation requirements and procedures. Possible effect: Incomplete or unsigned documentation indicates a failure in the program’s internal controls, increases the risk of noncompliance with federal requirements, and may hinder the ability to verify service delivery of receipts and inventory accountability. Questioned cost: None Recommendation: We recommend management reinforce documentation procedures through staff training and implement a mandatory review process to ensure inspection reports and bills of lading are completed, signed, and retained for all receipts of food commodities. Additionally, periodic internal reviews should be conducted to monitor compliance and address recurring issues promptly.