Finding Text
Reference Number: 2022–009 Prior Year Finding: No Federal Agency: US Department of Agriculture (USDA) Pass-through Agency: Various Federal Program: The Food Distribution Cluster ALN Number: Various Compliance Requirement: Special Test—Accountability for USDA Foods Type of Finding: Material Weakness, Material Non-compliance Criteria or specific requirement: Accurate and complete records must be maintained with respect to the receipt, distribution/use, and inventory of USDA Foods, including end products processed from USDA Foods in TEFAP. Failure to maintain records required by 7 CFR section 250.19 is considered prima facie evidence of improper distribution or loss of USDA Foods and the agency processor or entity is liable for the value of the food or replacement of the food in kind (7 CFR sections 250.16 and 250.19(a)). Condition: There was no documentation of inventory reports or evidence that inventory counts were performed for the period under audit. Cause: Management was not aware that the retention of the documentation evidencing the performance of inventory counts was required. Effect: Failure to maintain records required by 7 CFR section 250.19 could result in the Division being held liable for the costs of the related food commodities. Questioned Cost: Cannot be determined due to the lack of inventory reports. Recommendation: We recommend management take steps to ensure the documentation related to inventory counts are maintained. View of Responsible Officials: See Corrective Action Plan.