FAC Explorer

Finding 32416 (2022-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-01-17
Audit: 27798
Organization: Food Gatherers, Inc. (MI)
Auditor: Altruic Advisors CPAS

AI Summary

  • Core Issue: The organization did not obtain a required signature from the recipient agency upon delivery of USDA foods.
  • Impacted Requirements: This violates 7 CFR section 250.19, which mandates accurate record-keeping for donated food distribution.
  • Recommended Follow-Up: Implement a process to ensure signatures are collected upon delivery to maintain compliance and improve record accuracy.

Finding Text

Title 7 CFR section 250.19 requires that distributing agencies maintain records to demonstrate compliance with incidents of donated food distribution. Agencies that administer the Emergency Food Assistance Program must keep accurate and complete records with respect to the receipt, distribution/use and inventory of USDA foods. The Organization failed to obtain an agency signature upon delivery of USDA foods to that agency. The auditors' tests of controls and compliance related to this major program revealed a significant deficiency as the organization did not obtain a signature from the recipient agency upon delivery of the USDA foods to that agency.

Corrective Action Plan

Management has identified the incident where an agency signature was not obtained upon delivery of USDA foods to that agency. Management has verified that the delivery of USDA foods to that agency was a legitimate delivery in accordance the Compliance Requirements for the Emergency Food Assistance Program. Management believes that enhanced training and supervision will improve the application of management's documented controls that require agency signatures be obtained upon delivery of USDA foods to partnering agencies.

Categories

School Nutrition Programs Significant Deficiency Equipment & Real Property Management

Other Findings in this Audit

  • 608858 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.569 Emergency Food Assistance Program (food Commodities) $2.59M
10.568 Emergency Food Assistance Program (administrative Costs) $203,865
10.559 Summer Food Service Program for Children $174,677
97.024 Emergency Food and Shelter National Board Program $168,471
10.178 Trade Mitigation Program Eligible Recipient Agency Operational Funds (a) $19,548