FAC Explorer

Finding 279096 (2022-001)

Material Weakness
Requirement
A
Questioned Costs
-
Year
2022
Accepted
2023-06-27
Audit: 264352
Organization: Greater Cleveland Food Bank (OH)
Auditor: Barnes Wendling CPAS INC

AI Summary

  • Core Issue: All tested invoices from sub-recipient agencies lacked signed receipts for program commodities, violating federal and state requirements.
  • Impacted Requirements: Compliance with 7 CFR part 251.10 and the Ohio Department of Job and Family Services Food Program Manual, which mandate signed receipts for distributed commodities.
  • Recommended Follow-Up: Greater Cleveland Food Bank should train staff on the importance of obtaining and maintaining signed receipts for compliance with distribution guidelines.

Finding Text

Reference Number: 2022-001 Internal Control over Compliance with Activities Allowed or Unallowable Federal Agency(ies): CFDA Number(s): Cluster (if applicable) and Program Name(s): Food Distribution Cluster: United States Department of Agriculture 10.569 Emergency Food Assistance Program (Food Commodities) United States Department of Agriculture 10.565 Commodity Supplemental Food Program 477 Cluster: United States Department of Health and Human Services 93.558 Temporary Assistance for Needy Families (TANF) Department of Treasury 21.019 COVID-19 - Coronavirus Relief Fund "Criteria or Specific Requirement:" The Code of Federal Regulations related to the Emergency Food Assistance Program 7 CFR part 251.10: Eligible recipient agencies must sign a receipt for program commodities which they receive under this part for distribution to households or for use in preparing meals, and records of all such receipts must be maintained. In addition, the Ohio Department of Job and Family Services Food Program Manual states: A Local Distributor must sign a receipt for program commodities, which they receive for distribution to households or for use in preparing meals. Context and Condition: We tested 40 sub-recipient agency invoices and noted all invoices tested were lacking a signed receipt for program commodities received. We also noted Greater Cleveland Food Bank's processes and procedures do not require recipient agencies to sign a receipt for program commodities. Questioned Costs: None noted Cause and Effect: Due to the impact of the COVID-19 pandemic, safety protocol was in place relating to in person contact relating to recipient agency signatures for receipt of program commodities. When the safety protocol was lifted, Greater Cleveland Food Bank did not resume the process of requiring recipient agencies sign a receipt for program commodities. Recommendation: We recommended the Greater Cleveland Food Bank review with all supervisors and employees handling food distributions to sub-recipient agencies the importance of compliance guidelines surrounding signature requirements acknowledging the sub-recipient agencies' receipt of program commodities.

Corrective Action Plan

Finding: 2022-001 Internal Control over Compliance with Activities Allowed or Unallowable Agency: Greater Cleveland Food Bank Name of responsible contact person and title: Jessica Morgan, Chief Programs Officer and Dwayne Brake, VP of Operations Anticipated completion date: 7/31/2023 Agency's response: Concur Planned Corrective Action(s): ? Reimplementation of pre-COVID delivery and rece iving practices, signed receipts, regarding all food and commodities to sub-recipient agencies. ? Include a review of all supporting documents and signed receipts in our Internal Auditing Program of the TEFAP contract. ? Staff who are responsible for collecting invoice signatures, including the responsible parties, will be retrained on the procedure and will annually review the requirements for signed receipts for government commodities to ensure proper record keeping.

Categories

Subrecipient Monitoring Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Other Findings in this Audit

  • 279097 2022-001
    Material Weakness
  • 279098 2022-001
    Material Weakness
  • 279099 2022-001
    Material Weakness
  • 279100 2022-001
    Material Weakness
  • 279101 2022-001
    Material Weakness
  • 279102 2022-002
    -
  • 279103 2022-001
    Material Weakness
  • 855538 2022-001
    Material Weakness
  • 855539 2022-001
    Material Weakness
  • 855540 2022-001
    Material Weakness
  • 855541 2022-001
    Material Weakness
  • 855542 2022-001
    Material Weakness
  • 855543 2022-001
    Material Weakness
  • 855544 2022-002
    -
  • 855545 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.569 Emergency Food Assistance Program (food Commodities) $16.06M
93.558 Temporary Assistance for Needy Families $13.88M
21.027 Coronavirus State and Local Fiscal Recovery Funds $5.00M
10.565 Commodity Supplemental Food Program $1.75M
21.019 Coronavirus Relief Fund $1.73M
10.558 Child and Adult Care Food Program $961,720
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $743,400
10.559 Summer Food Service Program for Children $430,715
93.667 Social Services Block Grant $294,846
10.568 Emergency Food Assistance Program (administrative Costs) $152,136