Finding Text
2022-006 U.S. Department of Agriculture Federal Financial Assistance Listing # 10.565 All Awards Food Distribution Cluster Special Tests and Provisions Significant Deficiency in Internal Control over Compliance Criteria ? A good system of internal controls includes a process to ensure that all inventory reports filed with various agencies are completed accurately and reviewed. Condition ? As part of our audit, it was identified that there was no formal documentation of the review process for inventory reports filed with various agencies. Cause ? Due to oversight of management involved with the process, no formal review has been documented or retained for the processes of the inventory reports being submitted to various agencies. Effect ? The failure to adequately review and document the review of the inventory reports could result in inaccurate reporting to various agencies. Questioned Costs ? None Reported. Context/Sampling ? A nonstatistical sample of 4 reports within CSFP out of a population of 12 were selected for testing. 1 out of the 4 tested had an error. Repeat Finding from Prior Year(s) ? No. Recommendation ? It is recommended that the Organization implement processes and controls to ensure that all inventory reports are reviewed prior to submission and that review be properly documented. Views of Responsible Officials ? Management agrees with the finding.