Finding 976756 (2023-001)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2024-06-07
Audit: 308402
Organization: Los Angeles Regional Food Bank (CA)
Auditor: Singerlewak LLP

AI Summary

  • Core Issue: There is a significant deficiency in internal controls over compliance related to the accuracy of household participation reports for the Emergency Food Assistance Program.
  • Impacted Requirements: The Food Bank failed to ensure that the number of unduplicated households serviced matched the monthly household distribution reports, as required by federal regulations.
  • Recommended Follow-Up: The Food Bank should implement stronger controls to verify the accuracy of household participation reports to prevent discrepancies in reporting to the State.

Finding Text

2023-001 Eligibility Finding Type: Significant Deficiency in Internal Controls over Compliance Federal Program Title and AL Number: The Emergency Food Assistance Program (TEFAP) Commodity Credit Corporation Eligible Recipient Funds (10.187) and the Food Distribution Cluster (10.565, 10.568, 10.569). Criteria: Per 7 CFR 251.5(c), a state agency may delegate to one or more eligible recipient agencies with which the state agency enters into an agreement the responsibility for the distribution of commodities and administrative funds. Per the State’s agreement with the Food Bank, the Food Bank shall submit household reports monthly. Condition and context: As part of our eligibility testing, and in order to determine whether the onsite check-in forms were complete, we agreed the onsite check-in forms for our eligibility selections to the household distribution reports. For six out of the 38 statistically valid samples, the number of unduplicated households serviced on the check-in forms did not agree to the household distribution reports. This condition was noted for five out of 11 months selected for completeness. Cause: The Food Bank did not have controls in place to ensure the accuracy of the Household Participation reports. Effect: The number of eligible households that received food distributions was not accurately reported to the State. Questioned Costs: None. Repeat finding: No. Recommendation: We recommend that the Food Bank implement controls to ensure the accuracy of the Household Participation report. Views of responsible officials and planned corrective actions: Management concurs with the finding and recommendation. Please see the attached corrective action plan.

Categories

Eligibility Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 400312 2023-001
    Significant Deficiency
  • 400313 2023-001
    Significant Deficiency
  • 400314 2023-001
    Significant Deficiency
  • 400315 2023-001
    Significant Deficiency
  • 400316 2023-001
    Significant Deficiency
  • 400317 2023-001
    Significant Deficiency
  • 976754 2023-001
    Significant Deficiency
  • 976755 2023-001
    Significant Deficiency
  • 976757 2023-001
    Significant Deficiency
  • 976758 2023-001
    Significant Deficiency
  • 976759 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.569 Emergency Food Assistance Program (food Commodities) $31.19M
10.187 The Emergency Food Assistance Program (tefap) Commodity Credit Corporation Eligible Recipient Funds $13.82M
10.565 Commodity Supplemental Food Program $10.81M
10.568 Emergency Food Assistance Program (administrative Costs) $2.66M
21.027 Coronavirus State and Local Fiscal Recovery Funds $2.22M
97.039 Hazard Mitigation Grant $1.58M
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $610,468
10.558 Child and Adult Care Food Program $203,694
10.551 Supplemental Nutrition Assistance Program $123,548
10.559 Summer Food Service Program for Children $83,508
97.024 Emergency Food and Shelter National Board Program $16,500
21.019 Coronavirus Relief Fund $2,219