Finding Text
Finding 2022-002
Federal Agency: Department of Agriculture
Federal Program: Food Distribution Cluster
CFDA: #10.568, 10.569
Compliance Requirement: Special Tests and Provisions – Accountability for USDA Foods
Type of Finding: Significant Deficiency in Internal Controls over Compliance
Repeat Finding: Yes – 2021-002
Criteria:
7 CFR §250.19 Recordkeeping Requirements
Accurate and complete records must be maintained with respect to the receipt, distribution/use, and inventory of USDA Foods.
Condition:
When products are received, a bill of lading from the trucking company is received with the goods. Two people in the warehouse count and weigh the products and verify that their count, weight, and date of
receipt agree to the bill of lading as indicated by their signature on the bill of lading. Received items are inspected for damage, physical condition, temperature (on refrigerated/frozen product), visual quality, and
package dates, etc. From a sample of twenty-five (25) donated items, one (1) donation had no indication included in bill of lading denoting the item was a TEFAP product.
Question Costs:
N/A
Context:
The Organization has a policy whereby USDA products received are inspected, counted, and weighed. The completion of the inspection is noted indicated with a signature on the bill of lading.
Cause:
Controls were not in place to ensure all inventory transactions were properly documented with signature of inspections upon receipt of inventory.
Effects:
Inventories may not be accounted for properly.
Recommendations:
We recommend controls be strengthened to ensure all donations are supported with verification of count, weight, and other inspection of the product as evidenced through signature of the person(s) receiving
inventory items. This could be made through a checklist attached to the bill of lading and used with entering the items into the inventory system that includes verification was properly made and items properly set up in inventory.
Management’s Response:
Management concurs with the finding.