Finding Text
2022-001 Finding ? Federal Award Type of Finding: Federal Award ? Other non-compliance over Special Tests and Provisions AL Numbers: U.S. Department of Agriculture passed through ODHS 10.565, 10.568, 10.569, Food Distribution Cluster Repeat of Prior Year Finding: 2021-003 Criteria/Requirement: The commodity receipts and distributions recorded in the general ledger as revenue and expense should reconcile to the recording of inventory transactions. Verifiable records should be maintained pursuant to 27 CFR 250.19. According to section 2 CFR 200.303, the Organization should have internal controls in place to comply with requirements of the award and federal requirements regarding the accuracy of inventory activity. Condition/Context: Receipts recognized as commodity revenue and distributions recognized as expenses did not agree to the inventory transactions as recorded in the Primarius inventory system. Large inventory adjustments were recorded within Primarius to reconcile inventory amounts. Cause: The Organization relies on the inventory system to generate entries for the accounting system. The inventory system has known shortcomings that may create variances. Effect: Total USDA commodity inventory receipts and distributions recorded may not be accurate. Questioned Costs: None Recommendation: The Organization should incorporate another level of review or reconciliation process over the monthly USDA inventory receipts and distributions to agree inventory movement with recorded revenue and expense each period.