September 26, 2023 Postlethwaite and Netterville Findings and Questioned Costs -2022-001 - Accounting and Financial Reporting View of Responsible Official: CFO Corrective action plan: The accounting team will take the necessary actions and implement policies to address the deficiencies presented. Account reconciliations will be the responsibility of the Sr. Accountant and review/approval by the CFO. There will also be an inventory roll forward review each month in collaboration with the Operations team. The objectives of the Finance Department are two-fold: 1. To prepare accurate financial statements in accordance with generally accepted accounting principles and distribute them in a timely and cost-effective manner. 2. To provide adequate financial information to aid management in decision-making. A monthly set of financial statements shall be prepared, usually by the 15th business day of the subsequent month. Findings and Questioned Costs -2022-002 Non-Compliance with State Audit Law View of Responsible Official: CFO Corrective action plan: The accounting team will establish hard deadlines for completion of items for audits going forward. The CFO shall document, in detail, any obstacles that may occur to account for any delays. This tracking will allow for an ample amount of time to address any issues. ? Planning ? The CFO is responsible for delegating the assignments and responsibilities to accounting staff in preparation for the audit. Assignments shall be based on the historical list of requested schedules and information maintained by the finance department. ? Involvement ? Finance department staff will do as much work as possible to assist the auditors. ? Interim Procedures ? By performing significant portions of audit work as of an interim date, the work required after year-end is reduced. The finance department staff will provide requested schedules and documents and otherwise assist the auditors during any interim audit fieldwork that is performed. ? Streamlined Processes ? The organization implemented a new warehouse management system in Q4 2022 in order to streamline reporting that required manual calculations that routinely pushed the organization?s timelines behind schedule. Example: No longer will the CFO have to manually value each item in inventory by hand via spreadsheets. Throughout the audit process, it shall be the policy of the Organization to make every effort to provide schedules, documents and information requested by the auditors in a timely manner. FEDERAL PROGRAM: Findings and Questioned Costs -2023-003 ? Accountability for USDA-Donated Foods View of Responsible Official: COO/CFO Corrective action plan: The organization implemented a new warehouse management system fully integrated with financials in Q4 2022 to resolve these known weaknesses. These new procedures will account for all documentation issues as the new system allows for ease of storage via electronic logs and filing. Retraining will be held annually to ensure all are fully trained in the expectations of best practices regarding documentation. It will be the responsibility of the logistics team to collect and file all pertinent documentation regarding distributions and receipts, this will be monitored and reported on monthly by the Sr. Logistics Manager and any discrepancies reported, documented, and corrected by the COO.