Finding 37451 (2022-001)

Material Weakness
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2022-11-28
Audit: 28032
Organization: Three Square (NV)

AI Summary

  • Core Issue: Four out of twelve TEFAP Agency Partners received federal commodities without signed eligibility agreements.
  • Impacted Requirements: Compliance with 2 CFR200.62(a)(3) and 7 CFR 251.2 regarding eligibility documentation.
  • Recommended Follow-Up: Establish a system to ensure all TEFAP Agency Partner Services Agreements are signed before distributing commodities.

Finding Text

Internal Controls Systems and Compliance Over Eligibility- U.S. Department of Agriculture Food Distribution Cluster, Passed Through the State of Nevada Department of Agriculture Criteria: In accordance with 2 CFR200.62(a)(3), the auditee must maintain a system of internal control to provide reasonable assurance that federal commodities are distributed to eligible recipients in accordance with the terms and conditions outlined in the federal award. Condition: The Emergency Food Assistance Program (TEFAP) Agency Partner Services Agreement includes specific terms and conditions that an Agency Partner must agree to in order to be eligible to receive federal commodities. In accordance with 7 CFR 251.2, Three Square must obtain written agreements with Agency Partners before federal commodities are distributed. Of the 12 TEFAP Agency Partners selected for testing, management was unable to provide signed TEFAP Agency Partner Services Agreements for 4 entities. Context: Four Agency Partners received TEFAP commodities for which no evidence of eligibility was able to be produced by management. Effect: Improper determination and/or evidence of eligibility could result in Agency Partners who have not agreed to TEFAP-specific terms and conditions receiving distributions of federal commodities. Cause: The design and implementation of internal controls over eligibility was not effective. Recommendation: We recommend management design and implement a system whereby a fully executed TEFAP Agency Partner Services Agreement is obtained prior to any TEFAP distribution being made to an Agency Partner.

Categories

Eligibility Internal Control / Segregation of Duties

Other Findings in this Audit

  • 37449 2022-001
    Material Weakness
  • 37450 2022-002
    Material Weakness
  • 37452 2022-002
    Material Weakness
  • 37453 2022-001
    Material Weakness
  • 37454 2022-002
    Material Weakness
  • 37455 2022-001
    Material Weakness
  • 37456 2022-002
    Material Weakness
  • 613891 2022-001
    Material Weakness
  • 613892 2022-002
    Material Weakness
  • 613893 2022-001
    Material Weakness
  • 613894 2022-002
    Material Weakness
  • 613895 2022-001
    Material Weakness
  • 613896 2022-002
    Material Weakness
  • 613897 2022-001
    Material Weakness
  • 613898 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.569 Emergency Food Assistance Program (food Commodities) $17.93M
10.558 Child and Adult Care Food Program $2.13M
10.559 Summer Food Service Program for Children $601,567
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $285,575
93.071 Medicare Enrollment Assistance Program $60,000
10.568 Emergency Food Assistance Program (administrative Costs) $31,142
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $10,862
14.218 Community Development Block Grants/entitlement Grants $6,217
93.053 Nutrition Services Incentive Program $2,142
93.568 Low-Income Home Energy Assistance $880