Finding 598601 (2022-001)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2023-03-23

AI Summary

  • Core Issue: The Society failed to maintain proper documentation for client eligibility in the Emergency Food Assistance Program, impacting compliance with federal requirements.
  • Impacted Requirements: Internal controls over client intake processes were inadequate, leading to potential distribution of food to ineligible households.
  • Recommended Follow-Up: Enhance training for staff and volunteers on documentation requirements and ensure strict adherence to eligibility criteria to prevent future issues.

Finding Text

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal program: U. S. Department of Agriculture Food Distribution Cluster: Emergency Food Assistance Program (Food Commodities) Assistance Listing #10.569 Passed through The Houston Food Bank, Montgomery County Food Bank, and Galveston County Food Bank Contract Year: 10/01/21 ? 09/30/22 Criteria: Eligibility ? The Society is responsible for having internal control procedures over its client intake process to ensure that appropriate information documenting a client?s eligibility for food assistance is obtained and maintained in accordance with contract requirements. Condition and context: The Society receives and distributes food commodities from both federal and non-federal sources from 18 distribution sites. During 2022, approximately 45% of the food distributed by the Society was received from federal sources. In a sample of 40 clients served during the six months after COVID-19 waivers had expired, the Society could not locate application forms documenting eligibility for 2 clients. Cause: The finding occurred as a result of the inadequate communication and training regarding the importance of obtaining and maintaining appropriate documentation evidencing eligibility. Effect: Failure to ensure eligibility could result in the distribution of federal food commodities to ineligible households. Questioned costs: Unknown Recommendation: Communicate and emphasize adherence to contractual requirements for determining and documenting eligibility and retaining documentation, and provide training to volunteers as needed to ensure compliance. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Categories

Eligibility HUD Housing Programs Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 22158 2022-001
    Significant Deficiency
  • 22159 2022-001
    Significant Deficiency
  • 22160 2022-001
    Significant Deficiency
  • 598600 2022-001
    Significant Deficiency
  • 598602 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
97.U01 Federal Emergency Management Agency (food Commodities) $502,575
97.U02 Federal Emergency Management Agency (food Commodities) $85,523
97.024 Emergency Food and Shelter National Board Program $73,923
14.218 Community Development Block Grants/entitlement Grants $64,102
10.569 Emergency Food Assistance Program (food Commodities) $37,021
97.U03 Federal Emergency Management Agency (food Commodities) $5,629