Finding Text
Internal Controls Systems and Compliance Over Eligibility- U.S. Department of Agriculture Food Distribution Cluster, Passed Through the State of Nevada Department of Agriculture Criteria: In accordance with 2 CFR200.62(a)(3), the auditee must maintain a system of internal control to provide reasonable assurance that federal commodities are distributed to eligible recipients in accordance with the terms and conditions outlined in the federal award. Condition: The Emergency Food Assistance Program (TEFAP) Agency Partner Services Agreement includes specific terms and conditions that an Agency Partner must agree to in order to be eligible to receive federal commodities. In accordance with 7 CFR 251.2, Three Square must obtain written agreements with Agency Partners before federal commodities are distributed. Of the 12 TEFAP Agency Partners selected for testing, management was unable to provide signed TEFAP Agency Partner Services Agreements for 4 entities. Context: Four Agency Partners received TEFAP commodities for which no evidence of eligibility was able to be produced by management. Effect: Improper determination and/or evidence of eligibility could result in Agency Partners who have not agreed to TEFAP-specific terms and conditions receiving distributions of federal commodities. Cause: The design and implementation of internal controls over eligibility was not effective. Recommendation: We recommend management design and implement a system whereby a fully executed TEFAP Agency Partner Services Agreement is obtained prior to any TEFAP distribution being made to an Agency Partner.