Finding Text
Food Distribution Cluster ? Assistance Listing No. 10.568, 10.569 Criteria: The Food Distribution Cluster requires individuals to self-certify that their income is below 400% of the Federal Poverty Guidelines, the household is in need of the food, and that the food is for home consumption. Condition: The Organization did not perform eligibility determinations for individual beneficiaries of the Food Distribution Cluster. These requirements were temporarily suspended during the COVID-19 pandemic; however, the eligibility requirements were reinstated during the year ended June 30, 2022. The Organization did not resume eligibility certifications when the requirements were reinstated. Context: This finding was determined through inquiry with management during the audit. During the COVID-19 pandemic, individual eligibility requirements for the Food Distribution Cluster were temporarily suspended. The Organization has a policy to require individuals to self-certify their eligibility in accordance with program requirements, however, the policy was suspended during the pandemic and was not reinstated, as required. Cause: There has been turnover in management personnel for the Food Distribution Cluster program and management did not know the requirements for individual eligibility certifications had been reinstated. Effect: There is a reasonable possibility that services were provided to individuals who were not eligible. The Organization does not have the documentation required by the contract regarding individual eligibility certifications. Questioned Costs: Unknown Recommendation: Formal policies and procedures should be implemented to ensure that certifications are performed, and documentation is maintained. Appropriate personnel should also have adequate training related to eligibility compliance requirements and changes in program requirements. Views of Responsible Officials: Management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.