Finding 390267 (2023-004)

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Requirement
E
Questioned Costs
-
Year
2023
Accepted
2024-03-29
Audit: 301154
Auditor: Forvis LLP

AI Summary

  • Core Issue: The Food Bank failed to conduct required annual site visits for three subrecipients, impacting compliance with eligibility procedures.
  • Impacted Requirements: Compliance with eligibility verification as outlined in the Uniform Guidance is essential for maintaining funding.
  • Recommended Follow-up: Implement stronger controls and procedures to ensure all subrecipient eligibility requirements are consistently met.

Finding Text

2023-004 Eligibility U.S. Department of Education/Pass-through Texas Department of Agriculture Federal Assistance Listing Number 10.187 – Commodity Credit Corporation Award Number: 01534 Award Year: 10/1/22 – 9/30/23 Type of Finding: Other instance of noncompliance Criteria: Management is responsible for compliance with Eligibility procedures in accordance with the Uniform Guidance. Condition: One of the subrecipients’ (i.e. , Agencies receiving food for distribution) eligibility requirements is for The Food Bank to conduct annual site visits to verify the site’s ability to operate in full compliance with the requirements of the agency agreement. Three subrecipients tested did not have evidence of an annual site visit. Questioned Costs: None Context/Sampling: A nonstatistical sample of 21 out of 209 subrecipients was selected for testing. Cause: The Food Bank experienced significant turnover in the Partner Services Department resulting in these annual visits being missed during 2023. Effect or Potential Effect: Lack of compliance with Eligibility compliance requirements may result in reduced future funding for the program. Recommendation: We recommend The Food Bank incorporate controls and procedures to ensure the subrecipient eligibility requirements are being followed. Views of Responsible Officials: The Food Bank agrees with the finding. Due to turnover and transitions in key positions, on-boarding of agencies did not include these three locations on the annual site visit schedule. Corrective Actions: In FY 2024 new procedures have already been implemented for on-boarding, new personnel have been assigned oversight of agencies, and two compliance departments, one in Accounting and one in Partner Services, have been fully established to monitor compliance.

Corrective Action Plan

Due to turnover and transitions in key positions, on-boarding of agencies did not include these three locations on the annual site visit schedule. In FY 2024 new procedures have already been implemented for on-boarding, new personnel have been assigned oversight of agencies, and two compliance departments, one in Accounting and one in Partner Services, have been fully established to monitor compliance.

Categories

Subrecipient Monitoring Eligibility Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
10.565 Commodity Supplemental Food Program $8.00M
10.569 Emergency Food Assistance Program (food Commodities) $7.82M
10.187 Commodity Credit Coproration $6.53M
10.558 Child and Adult Care Food Program $2.17M
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $1.60M
93.558 Temporary Assistance for Needy Families $1.23M
10.559 Summer Food Service Program for Children $1.22M
10.182 Local Food Purchase Assistance $1.00M
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $456,722
21.027 Coronavirus State and Local Fiscal Recovery Funds $250,606
10.568 Emergency Food Assistance Program (administrative Costs) $47,232