Finding Text
2024-001: Material Weakness – Reporting – Relating to the Food Distribution Cluster – (10.568/10.569). This is a repeat finding, the original finding was 2018-005 and the prior year finding was 2023-001. Criteria: The Organization is required to submit monthly reports to the Tennessee Department of Agriculture and the Mississippi Department of Human Services within 10 business days following the month being reported, showing receipts and disbursements of USDA food (TN) or expenditures incurred for the month (MS). Additionally, the Organization is required to notify USDA representatives within 48 hours upon receipt of goods. Condition: Management did not submit the monthly USDA reports timely. Additionally, management did not meet the 48-hour notification requirement. Context: Management did not submit the USDA reports to the Tennessee Department of Agriculture for 2 of the 12 months tested and did not submit the reports to the Mississippi Department of Human Services for 7 of the 12 months tested for the year ended June 30, 2024, within the proper time period. Additionally, there were six instances where the Organization did not notify USDA representatives within the 48-hour requirement for receipt of goods out of 80. Cause: This condition appears to be due to the lack of oversight for supplying proper support to regulatory authorities. Effect: The Organization is not in compliance with this requirement. Questioned Costs: Unknown Recommendation: We recommend the Organization submit these reports timely to the respective agency. View of Responsible Official: See Management’s Corrective Action Plan.