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: Significant Deficiency in Internal Control over Compliance of Major Programs Criteria: St. Louis Area Food Bank, Inc. is responsible for implementing and maintaining an effective internal control system over compliance with Special Tests and Provisions. A proper internal control system requires that documentation supporting compliance with program requirements, including inventory distributions, be accurate, complete, and timely to ensure accountability and prevent errors or misstatements. Condition: During the audit, we noted that documentation procedures were not consistently followed. Specifically, two invoice forms of the twenty tested were missing staff signatures. These instances indicate a breakdown in internal controls related to documentation and verification processes. Cause: The deficiencies appear to result from inadequate oversight during intake procedures and high staff turnover, which led to inconsistent adherence to documentation requirements. Possible effect: Failure to complete and retain required documentation compromises the integrity of internal controls, increases the risk of noncompliance with federal requirements, and limits the ability to verify proper food distribution, eligibility, and inventory accountability. Questioned cost: None Recommendation: We recommend that management strengthen internal controls over documentation by reinforcing established procedures through targeted staff training and regular reminders to ensure compliance. Additionally, management should implement a review or checklist process to verify that all required forms are completed and signed prior to finalization. To further enhance oversight, periodic internal audits should be conducted to monitor adherence to documentation requirements and promptly address any recurring issues.