Finding Text
SECTION II ? FINANCIAL STATEMENT FINDINGS None for the year ended June 30, 2022. SECTION III ? MAJOR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS FINDING OF NONCOMPLIANCE: Finding No.: 2022-001 Subrecipient Eligibility Federal Program Name: Food Distribution Cluster CFDA Numbers: 10.565, 10.568, 10.569 Federal Agency: U.S. Department of Agriculture Information on Federal Program: The objective of the Food Distribution Cluster is to strengthen the nutrition safety net through the provision of U.S. Department of Agriculture (USDA)-donated foods (USDA Foods) to low-income persons. Included in the cluster are the Commodity Supplemental Food Program (CSFP) and the Emergency Food Assistance Program (TEFAP). Criteria or Specific Requirement: The Organization must enter into written agreements with their subrecipient agencies that includes certain information, including references to 7 CFR section 247.4 and must also include a statement that recipient agencies are responsible for certain losses. Condition: During the testing of thirty seven subrecipient agency agreements, we noted 6 that did not have all required information. Questioned Costs: N/A Context: Of 75 agencies receiving commodities, KCPAG tested 37. There were four Kentucky agreements that were missing a reference to 7 CFR section 247.4 and two Illinois agreements that were missing a statement that the subrecipient agency was responsible for certain losses. Effect: The Organization is not in compliance with applicable regulations. Cause: The Organization used a simplified contract for CSFP that did not have the required information. Identification as a repeat finding, if applicable: N/A Recommendation: We recommend that the Organization update all agreements to include all required information and references.