Finding Text
2025-001 Reporting on USDA Foods Program Information Federal Agency U.S. Department of Agriculture Assistance listing Numbers 10.565, 10.569 Food Distribution Cluster Award Numbers K5726, K5726-2, K6022 Compliance Requirement N – Special Tests and Provisions Criteria [X] Compliance Finding [ ] Significant Deficiency [X] Material Weakness The Organization is required to maintain accurate records and submit complete and accurate monthly reports supported by underlying program documentation. Reports submitted to the pass-through agency should reconcile to the Organization's internal records and accurately reflect program activity. Federal regulations require recipients to maintain records sufficient to demonstrate compliance with program requirements and support amounts reported to administering agencies. Condition During our testing of monthly reports submitted during the audit period, we identified discrepancies on two monthly reports between amounts reported to the administering agency and the Organization's underlying records due to missing bills of lading that were not included on the appropriate monthly reports. Cause The Organization did not have adequate reconciliation and review procedures in place to ensure information reported to the USDA agreed with supporting records prior to submission. Context The finding appears to be an isolated problem. Effect Inaccurate reporting may also result in questioned costs, inaccurate program statistics, increased monitoring by oversight agencies, and potential noncompliance with Food Distribution Cluster reporting requirements. Recommendation We recommend that management implement formal procedures requiring monthly reports to be reconciled to underlying program records prior to submission. The reconciliation should be documented, reviewed by a secondary individual independent of report preparation, and retained as support for the reported amounts. Additionally, management should provide training to personnel responsible for report preparation to promote consistent and accurate reporting practices. View of responsible officials and planned corrective action Management is in agreement with the finding.