Finding 7791 (2022-002)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2024-01-08
Audit: 10130
Organization: Golden Harvest Food Bank, Inc. (GA)

AI Summary

  • Core Issue: There is a significant deficiency in internal controls over compliance related to USDA Foods, specifically in recordkeeping and verification processes.
  • Impacted Requirements: The finding highlights non-compliance with 7 CFR §250.19, which mandates accurate recordkeeping for the receipt and inventory of USDA Foods.
  • Recommended Follow-Up: Strengthen controls by implementing a checklist for verifying count, weight, and inspections, ensuring all inventory transactions are properly documented with signatures.

Finding Text

Finding 2022-002 Federal Agency: Department of Agriculture Federal Program: Food Distribution Cluster CFDA: #10.568, 10.569 Compliance Requirement: Special Tests and Provisions – Accountability for USDA Foods Type of Finding: Significant Deficiency in Internal Controls over Compliance Repeat Finding: Yes – 2021-002 Criteria: 7 CFR §250.19 Recordkeeping Requirements Accurate and complete records must be maintained with respect to the receipt, distribution/use, and inventory of USDA Foods. Condition: When products are received, a bill of lading from the trucking company is received with the goods. Two people in the warehouse count and weigh the products and verify that their count, weight, and date of receipt agree to the bill of lading as indicated by their signature on the bill of lading. Received items are inspected for damage, physical condition, temperature (on refrigerated/frozen product), visual quality, and package dates, etc. From a sample of twenty-five (25) donated items, one (1) donation had no indication included in bill of lading denoting the item was a TEFAP product. Question Costs: N/A Context: The Organization has a policy whereby USDA products received are inspected, counted, and weighed. The completion of the inspection is noted indicated with a signature on the bill of lading. Cause: Controls were not in place to ensure all inventory transactions were properly documented with signature of inspections upon receipt of inventory. Effects: Inventories may not be accounted for properly. Recommendations: We recommend controls be strengthened to ensure all donations are supported with verification of count, weight, and other inspection of the product as evidenced through signature of the person(s) receiving inventory items. This could be made through a checklist attached to the bill of lading and used with entering the items into the inventory system that includes verification was properly made and items properly set up in inventory. Management’s Response: Management concurs with the finding.

Corrective Action Plan

Finding 2022-002 Golden Harvest Food Bank (GHFB) does not generate the Bill of Lading (BOL) for product being delivered. The USDA instructs vendors to include several numbers to be annotated on the BOL for reporting reasons. These numbers start with 1000, 2000, 3000, 4000, and 5000. There are occasions where some of these numbers are not included on the accompanying BOL when delivered. GHFB personnel look for any of the above numbers to insure items are TEFAP. As required, GHFB is required to report the receipt of the TEFAP items to the appropriate state entity that manages the TEFAP program. This report requests the 4000 and the 5000 numbers. If either one of those numbers is not on the BOL, the omission is annotated in this report. In addition to these numbers GHFB also maintains a listing of TEFAP products due in the first 15 days of the month and TEFAP products due in the second half of each month. GHFB believes all BOL have been signed by our personnel. Going forward all BOLs will be signed by both the individual who receives the product as well as the warehouse or inventory manager. Person responsible: Norman Stafford...10/1/23 completion date

Categories

Special Tests & Provisions School Nutrition Programs Significant Deficiency Equipment & Real Property Management Internal Control / Segregation of Duties

Other Findings in this Audit

  • 7790 2022-001
    Significant Deficiency Repeat
  • 7792 2022-003
    Significant Deficiency Repeat
  • 7793 2022-001
    Significant Deficiency Repeat
  • 7794 2022-002
    Significant Deficiency Repeat
  • 7795 2022-003
    Significant Deficiency Repeat
  • 7796 2022-001
    Significant Deficiency Repeat
  • 7797 2022-002
    Significant Deficiency Repeat
  • 7798 2022-003
    Significant Deficiency Repeat
  • 7799 2022-001
    Significant Deficiency Repeat
  • 7800 2022-002
    Significant Deficiency Repeat
  • 7801 2022-003
    Significant Deficiency Repeat
  • 584232 2022-001
    Significant Deficiency Repeat
  • 584233 2022-002
    Significant Deficiency Repeat
  • 584234 2022-003
    Significant Deficiency Repeat
  • 584235 2022-001
    Significant Deficiency Repeat
  • 584236 2022-002
    Significant Deficiency Repeat
  • 584237 2022-003
    Significant Deficiency Repeat
  • 584238 2022-001
    Significant Deficiency Repeat
  • 584239 2022-002
    Significant Deficiency Repeat
  • 584240 2022-003
    Significant Deficiency Repeat
  • 584241 2022-001
    Significant Deficiency Repeat
  • 584242 2022-002
    Significant Deficiency Repeat
  • 584243 2022-003
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
10.569 Emergency Food Assistance Program (food Commodities) $4.72M
93.558 Temporary Assistance for Needy Families $599,720
10.568 Emergency Food Assistance Program (administrative Costs) $236,656
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $14,743
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $7,896