Significant Deficiency
Federal Program: Summer Food Service Program for Children
Federal Agency: U.S. Department of Agriculture
Federal Award Year: 2022
Individual responsible for corrective action:
Date corrective action will be implemented:
Nadia Martinez / Executive Director
December 29, 2023
Response:
In FY 2022, our organization experienced a major weakness in internal controls over expenditures for the Food
Service Program for Children, as highlighted in Finding 2022-001 of the recent financial audit. The audit found
that our systems of internal control contained neither detection nor prevention elements. This raised doubts
about whether we have adequate controls to prevent or detect instances of noncompliance with grant
requirements.
Our internal review has shown that the deficiency derives from weaknesses in our processes and systems, which
failed to appropriately authorize or approve expenditures based on compliance with the Uniform Guidance. We
realize the urgency in resolving this situation for proper management of federal awards under federal statutes,
regulations and award terms.
Corrective Action:
To rectify the identified deficiency and align with the auditor's recommendation, our organization is implementing
a comprehensive Corrective Action Plan.
We have engaged a reputable CPA consulting firm specializing in internal controls and federal compliance. This
firm will enter into a rigorous inspection of existing procedures to identify weaknesses and suggest improvements
in prevention and help us greatly strengthen detection procedures.
We recognize that skill upgrading and greater understanding of the task at hand among our staff, especially those
with financial management or grant administration responsibilities are extremely important. Therefore, we will
have special training sessions. These meetings will focus on the special demands of the Uniform Guidance and
underline the importance of adhering to internal control measures.
This applies to a full-scale review and improvement of the internal control over expenditures. This entails
redefining the granting of authorization and approval procedures, as well as separating duties which must be met
within the federal guidelines. It also involves installing checks and balances to ensure strict compliance with these
guidelines.
In view of the importance of adhering to standards for internal control, we promise to follow best practices as
defined in the "Standards for Internal Control in the Federal Government" by the Comptroller General of the United
States and the "Internal Control Integrated Framework" by the Committee of Sponsoring Organizations of the
Treadway Commission (COSO).
Determined as we are to constantly improve, our organization will use a systematic approach in order to monitor
compliance with internal controls. Under this scheme, regular reporting and analysis is used to quickly find
potential problems. It will be a transparent and all-inclusive monitoring process.
Our organization knows just how important documentation is, and we will build a robust system in line with
federally required documents. This system provides transparency and accountability in our financial management
activities, taking another step toward compliance with requirements for responsible stewardship of federal funds.
We will continue to co-operate closely with our CPA consulting firm and the auditing body until we can prove that
there is significant progress in eliminating the large-scale deficiency. Thank you for your guidance. We will
continue to improve our internal controls at the highest level possible so as to meet and exceed federal standards.
This comprehensive Corrective Action Plan will be effective immediately.