Finding 70 (2023-002)

Significant Deficiency
Requirement
A
Questioned Costs
-
Year
2023
Accepted
2023-10-06

AI Summary

  • Core Issue: Two local distributors received TANF commodities without signed agreements, violating federal non-discrimination rules.
  • Impacted Requirements: Compliance with 45 CFR 260.34, which prohibits discrimination based on religion in TANF services.
  • Recommended Follow-Up: Establish a reconciliation process to verify that all distributors have signed agreements before receiving commodities.

Finding Text

ALN # 93.558 – Temporary Assistance for Needy Families (TANF) U.S. Department of Health and Human Services Criteria: According to 45 CFR 260.34, a religious organization that received Federal TANF funds shall not, in providing program services or benefits, discriminate against a TANF applicant or recipient on the basis of religion, a religious belief, a refusal to hold a religious belief, or a refusal to actively participate in a religious practice. To ensure compliance with this requirement, Freestore Foodbank Inc. and Affiliates require all local distributors receiving commodities to sign a local distributor agreement. Condition: CSH noted two instances (in a sample of 40 local distributor agreements) where food was distributed to religious organizations that do not abide by 45 CFR 260.34. Context: Local Distributors did not sign agreements prior to obtaining TANF commodities. Cause: Requests for commodities were entered outside of the online purchasing platform. Effect: Freestore Foodbank, Inc. and Affiliates’ internal controls were bypassed and commodities were distributed to unallowable local distributors. Recommendation: Freestore Foodbank Inc. and Affiliates should implement a reconciliation process to ensure all local distributors that receive USDA food have a signed local distributor agreement. Management’s Response: See corrective action plan on page 33.

Corrective Action Plan

Criteria: According to 45 CFR 260.34, a religious organization that received Federal TANF funds shall not, in providing program services or benefits, discriminate against a TANF applicant or recipient on the basis of religion, a religious belief, a refusal to hold a religious belief, or a refusal to actively participate in a religious practice. To ensure compliance with this requirement, Freestore Foodbank Inc. and Affiliates require all local distributors receiving commodities to sign a local distributor agreement. Condition: CSH noted two instances (in a sample of 40 local distributor agreements) where food was distributed to religious organizations that do not abide by 45 CFR 260.34. Planned Corrective Action: In one instance, management issued food to an agency which had an expired local distributor agreement. Going forward, controls will be put in place by 9/30/23 to better track agency agreements to ensure all agencies receiving food have up-to-date agreements. The second instance involved the request for TANF food to be distributed to an organization who was not participating in the program. While the organization was correctly set up in our database, food was requested to be distributed. Management will improve training for staff and run periodic reports to ensure food is going to the proper organizations. Management will also set up periodic compliance meetings with program managers to develop best practices for each of the grants by 10/31/23.

Categories

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Other Findings in this Audit

  • 69 2023-001
    Significant Deficiency
  • 576511 2023-001
    Significant Deficiency
  • 576512 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.558 Temporary Assistance for Needy Families $10.03M
93.667 Social Services Block Grant $947,822
10.182 Local Food Purchase Assistance $368,109
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $346,782
93.332 Cooperative Agreement to Support Navigators in Federally-Facilitated and State Partnership Marketplaces $303,029
14.218 Community Development Block Grants/entitlement Grants $249,570
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $238,985
97.024 Emergency Food and Shelter National Board Program $177,000
10.558 Child and Adult Care Food Program $155,218
21.027 Coronavirus State and Local Fiscal Recovery Funds $107,685
10.565 Commodity Supplemental Food Program $72,558
10.569 Emergency Food Assistance Program (food Commodities) $55,852
14.231 Emergency Solutions Grant Program $31,768
10.187 The Emergency Food Assistance Program (tefap) Commodity Credit Corporation Eligible Recipient Funds $27,739
10.568 Emergency Food Assistance Program (administrative Costs) $17,293
10.559 Summer Food Service Program for Children $2,438