Finding 576512 (2023-002)

ALN # 93.558 – Temporary Assistance for Needy Families (TANF) U.S. Department of Health and Human Services Criteria: According to 45 CFR 260.34, a religious organization that received Federal TANF funds shall not, in providing program services or benefits, discriminate against a TANF applicant or recipient on the basis of religion, a religious belief, a refusal to hold a religious belief, or a refusal to actively participate in a religious practice. To ensure compliance with this requirement, Freestore Foodbank Inc. and Affiliates require all local distributors receiving commodities to sign a local distributor agreement. Condition: CSH noted two instances (in a sample of 40 local distributor agreements) where food was distributed to religious organizations that do not abide by 45 CFR 260.34. Context: Local Distributors did not sign agreements prior to obtaining TANF commodities. Cause: Requests for commodities were entered outside of the online purchasing platform. Effect: Freestore Foodbank, Inc. and Affiliates’ internal controls were bypassed and commodities were distributed to unallowable local distributors. Recommendation: Freestore Foodbank Inc. and Affiliates should implement a reconciliation process to ensure all local distributors that receive USDA food have a signed local distributor agreement. Management’s Response: See corrective action plan on page 33.