EIN: 621340755
UEI: K7K6KBJXYDQ6
Data as of August 22, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on February 18, 2026. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by August 18, 2026 (5 days ago).
What is a management decision? →Criteria: Management is responsible for designing and maintaining internal controls that provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with U.S. GAAP and that assets, including inventory, are safeguarded from loss or misuse. Additionally, organizations receiving USDA foods must maintain accurate records of receipts, distributions, and adjustments to account for the disposition of all commodities. Condition and Context: We identified that manual positive and negative inventory adjustments were recorded in the general ledger and CERES inventory system for donated inventory as well as Tennessee and Mississippi USDA programs during the fiscal year. The Food Bank has no formal approval process for these manual adjustments. Cause: The weakness results from the absence of designed and implemented controls to ensure that manual adjustments are reviewed, supported, and approved. Effect: The lack of preventive and detective controls increases the risk that inventory balances may be misstated during the year and that errors or irregularities could go undetected until year-end. While the Food Bank performs an annual physical inventory that trues up balances, this end-of-year process does not mitigate the risk of material misstatement throughout the reporting period. The unrestricted ability to post manual entries without documentation presents an ongoing risk of inaccurate financial reporting. Questioned Costs: None noted. Repeat Finding: No Recommendation: We recommend that management implement formal controls over manual inventory adjustments and reconciliations, including: • Requiring supervisory review and approval for all manual inventory adjustments; • Performing monthly reconciliations of inventory activity to supporting documentation and shipment records; • Ensuring all distributions are processed through the normal invoicing workflow rather than through post-period adjustments; and • Retaining documentation that clearly explains the nature and reason for each adjustment. View of Responsible Official: See Management’s Corrective Action Plan.
Show full finding ▾Hide full finding ▴Criteria: Management is responsible for designing and maintaining internal controls that provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with U.S. GAAP and that assets, including inventory, are safeguarded from loss or misuse. Additionally, organizations receiving USDA foods must maintain accurate records of receipts, distributions, and adjustments to account for the disposition of all commodities. Condition and Context: We identified that manual positive and negative inventory adjustments were recorded in the general ledger and CERES inventory system for donated inventory as well as Tennessee and Mississippi USDA programs during the fiscal year. The Food Bank has no formal approval process for these manual adjustments. Cause: The weakness results from the absence of designed and implemented controls to ensure that manual adjustments are reviewed, supported, and approved. Effect: The lack of preventive and detective controls increases the risk that inventory balances may be misstated during the year and that errors or irregularities could go undetected until year-end. While the Food Bank performs an annual physical inventory that trues up balances, this end-of-year process does not mitigate the risk of material misstatement throughout the reporting period. The unrestricted ability to post manual entries without documentation presents an ongoing risk of inaccurate financial reporting. Questioned Costs: None noted. Repeat Finding: No Recommendation: We recommend that management implement formal controls over manual inventory adjustments and reconciliations, including: • Requiring supervisory review and approval for all manual inventory adjustments; • Performing monthly reconciliations of inventory activity to supporting documentation and shipment records; • Ensuring all distributions are processed through the normal invoicing workflow rather than through post-period adjustments; and • Retaining documentation that clearly explains the nature and reason for each adjustment. View of Responsible Official: See Management’s Corrective Action Plan.
Management concurs with Audit Finding 2025-001 and will implement enhanced internal controls over inventory adjustments to ensure accurate accounting for the receipt, distribution, and disposition of all USDA commodities in compliance with Special Tests and Provisions requirements. Management will implement the following corrective actions: 1. Formal Approval and Authorization of Inventory Adjustments Management will establish a formal policy requiring documented supervisory review and approval for all manual positive and negative inventory adjustments recorded in the general ledger and the CERES inventory system. Approval will be obtained prior to posting adjustments, and access to record adjustments will be restricted to authorized personnel. 2. Standardized Documentation for Adjustments Each inventory adjustment will be supported by standardized documentation clearly explaining the nature, reason, and calculation of the adjustment, along with applicable supporting records (e.g., receiving documents, distribution records, shortage documentation). All documentation will be retained in accordance with USDA record retention requirements. 3. Reconciliation of Inventory Activity Management will implement a periodic (at least monthly) reconciliation of inventory receipts, distributions, and adjustments to CERES and the general ledger. Reconciling items will be investigated, resolved, and documented timely. 4. Monitoring of USDA Program Inventory Management will perform periodic reviews of inventory activity related to donated inventory and Tennessee and Mississippi USDA programs to ensure that adjustments are appropriate, approved, and accurately recorded. 5. Training and Ongoing Oversight Management will provide targeted training to staff involved in inventory and accounting processes regarding USDA Special Tests and Provisions requirements and the new approval and documentation procedures. Management will monitor compliance with these controls to ensure they are operating effectively. Expected Completion Date: Within 60–90 days Responsible Parties: Donavann Brooks, Inventory Control Manager (901-527-0422)
2025-002: Significant Deficiency – Special Tests and Provisions – Relating to the Food Distribution Cluster – (10.568/10.569). Criteria: Records of receipt, distribution, and use of USDA-donated foods must be maintained to substantiate proper distribution. Adequate documentation must include signed receipts or equivalent evidence acknowledging delivery and acceptance of USDA commodities by recipient agencies. These records form part of the Organization’s internal controls to ensure the accuracy and completeness of program reporting and accountability for USDA foods. Condition and Context: During testing of 40 Mississippi USDA food distribution transactions, we noted that two invoices lacked agency signatures acknowledging receipt of food. The unsigned invoices did include quantity and delivery information, but the absence of signatures prevents confirmation that the recipient agency received the commodities. Cause: The missing signatures appear to have resulted from oversight during the delivery process, where staff did not obtain signed acknowledgment at the time of transfer. Effect: Without signed agency receipts, this could result in unsubstantiated distributions, inventory discrepancies, or potential noncompliance with recordkeeping requirements. Questioned Costs: None noted. Repeat Finding: No Recommendation: We recommend that management reinforce procedures requiring agency signatures on all USDA food distribution receipts at the time of delivery. Since distributions are recorded when the truck is loaded, we suggest implementing a follow-up control—such as a delivery checklist or log—to confirm that all receipts are signed and returned after delivery. Consider periodic supervisory review to verify that all signed receipts are obtained and retained. View of Responsible Official: See Management’s Corrective Action Plan.
Show full finding ▾Hide full finding ▴2025-002: Significant Deficiency – Special Tests and Provisions – Relating to the Food Distribution Cluster – (10.568/10.569). Criteria: Records of receipt, distribution, and use of USDA-donated foods must be maintained to substantiate proper distribution. Adequate documentation must include signed receipts or equivalent evidence acknowledging delivery and acceptance of USDA commodities by recipient agencies. These records form part of the Organization’s internal controls to ensure the accuracy and completeness of program reporting and accountability for USDA foods. Condition and Context: During testing of 40 Mississippi USDA food distribution transactions, we noted that two invoices lacked agency signatures acknowledging receipt of food. The unsigned invoices did include quantity and delivery information, but the absence of signatures prevents confirmation that the recipient agency received the commodities. Cause: The missing signatures appear to have resulted from oversight during the delivery process, where staff did not obtain signed acknowledgment at the time of transfer. Effect: Without signed agency receipts, this could result in unsubstantiated distributions, inventory discrepancies, or potential noncompliance with recordkeeping requirements. Questioned Costs: None noted. Repeat Finding: No Recommendation: We recommend that management reinforce procedures requiring agency signatures on all USDA food distribution receipts at the time of delivery. Since distributions are recorded when the truck is loaded, we suggest implementing a follow-up control—such as a delivery checklist or log—to confirm that all receipts are signed and returned after delivery. Consider periodic supervisory review to verify that all signed receipts are obtained and retained. View of Responsible Official: See Management’s Corrective Action Plan.
Management concurs with Audit Finding 2025-002 and will reinforce controls over USDA food distribution documentation to ensure all distributions are properly acknowledged and supported in accordance with Food Distribution Cluster recordkeeping requirements. Management will implement the following corrective actions: 1. Required Agency Acknowledgment at Delivery Management will reinforce procedures requiring recipient agency signatures or equivalent acknowledgment on all USDA food distribution invoices at the time of delivery. Distribution staff and drivers will be reminded that unsigned delivery documentation is considered incomplete. 2. Post-Delivery Follow-Up Control Management will implement a follow-up control, such as a delivery log or checklist, to track all USDA distributions recorded at the time of delivery. The log will include verification that a signed receipt has been obtained and returned for each transaction. 3. Reconciliation of Distributions to Signed Documentation On a periodic basis, management will reconcile USDA distribution activity to signed agency invoices to identify any missing acknowledgments. Missing signatures will be promptly investigated and resolved, with documentation of follow-up retained. 4. Supervisory Review and Oversight Supervisory personnel will perform periodic documented reviews of distribution documentation to verify that signed agency receipts are obtained, complete, and retained. Evidence of review will be maintained. 5. Training and Awareness Management will provide refresher training to distribution staff and drivers on USDA documentation requirements and the importance of obtaining signed acknowledgment to support program accountability and reporting accuracy. Expected Completion Date: Within 60-90 days Responsible Parties: Andrelle Bowen, Transportation Manager, (901-373-0402)
2025-003: Significant Deficiency – Reporting – Relating to the Food Distribution Cluster – (10.568/10.569). Criteria: Per the Organization’s grant agreements with the Tennessee Department of Agriculture (TDA) and the Mississippi Department of Human Services (MDHS), recipients of USDA-donated foods must maintain complete and accurate records of all commodity receipts, distributions, shortages, and balances, and must submit required financial and performance reports. Monthly inventory, the Emergency Food Assistance Program (TEFAP) distribution, and cost reports submitted to the States must accurately reflect activity recorded in the Organization’s internal inventory management system, reconcile to State-confirmed receipts, and include timely receipt confirmations as required by State program rules. Condition and Context: During compliance testing of reporting requirements under the Food Distribution Cluster for both Tennessee and Mississippi, we identified multiple instances where USDA reporting was not fully accurate, reconciled, or timely: • Inventory and receipt reconciliation: Comparison of monthly USDA inventory reports submitted to TDA to State confirmations of USDA foods allocated and received identified insignificant variances in three months (August 2024, January 2025 and April 2025) between reported quantities or items and State-confirmed data. • Distribution reporting to States: Testing of USDA food distributions reported under TEFAP noted discrepancies between amounts reported to the States and the underlying CERES records: o In Tennessee, 15 of 40 distribution transactions tested showed insignificant differences in quantities or item descriptions between submitted reports and CERES. o In Mississippi, 3 of 40 distribution transactions tested showed insignificant differences in quantities or item descriptions between submitted reports and CERES. • Unrecorded shortages: For Mississippi TEFAP distributions, we noted two instances where signed agency invoices documented shortages of USDA foods received; however, no corresponding credit memo or inventory adjustment was recorded in CERES. • Timeliness of receipt confirmations: testing of USDA commodity receipts identified two instances out of 40, where required 48-hour receipt confirmation emails were either submitted late or not submitted to Tennessee and Mississippi. Cause: The deficiencies appear to result from the absence of a comprehensive, formalized reconciliation and supervisory review process to ensure that USDA receipts, distributions, shortages, and confirmations are accurately recorded in CERES, reconciled to State documentation, and submitted timely in accordance with program requirements. Effect: Without consistent reconciliation and review procedures, there is an increased risk that USDA reports submitted to TDA and MDHS may be inaccurate, incomplete, or untimely. This reduces the States’ ability to effectively monitor USDA commodity activity. Questioned Costs: None noted. Repeat Finding: Partial repeat finding. The instances of untimely 48-hour confirmations were part of the original finding 2018-005 and the prior year finding was 2024-001. Recommendation: We recommend that management implement a comprehensive monthly reconciliation and review process over USDA reporting, including: • Review of confirmed USDA receipts to internal inventory records. • Reconciling all TEFAP distribution reports submitted to the States to CERES data prior to submission. • Ensuring shortages noted on signed agency invoices are promptly documented through credit memos or inventory adjustments in CERES. • Establishing a tracking mechanism to ensure all required 48-hour receipt confirmations are submitted timely and retained. • Assignment of clear responsibility for report submission, with documented supervisory review. Supervisory review should be documented to confirm reconciliations are completed, differences are investigated and resolved, and reporting complies with Federal and State requirements. View of Responsible Official: See Management’s Corrective Action Plan.
Show full finding ▾Hide full finding ▴2025-003: Significant Deficiency – Reporting – Relating to the Food Distribution Cluster – (10.568/10.569). Criteria: Per the Organization’s grant agreements with the Tennessee Department of Agriculture (TDA) and the Mississippi Department of Human Services (MDHS), recipients of USDA-donated foods must maintain complete and accurate records of all commodity receipts, distributions, shortages, and balances, and must submit required financial and performance reports. Monthly inventory, the Emergency Food Assistance Program (TEFAP) distribution, and cost reports submitted to the States must accurately reflect activity recorded in the Organization’s internal inventory management system, reconcile to State-confirmed receipts, and include timely receipt confirmations as required by State program rules. Condition and Context: During compliance testing of reporting requirements under the Food Distribution Cluster for both Tennessee and Mississippi, we identified multiple instances where USDA reporting was not fully accurate, reconciled, or timely: • Inventory and receipt reconciliation: Comparison of monthly USDA inventory reports submitted to TDA to State confirmations of USDA foods allocated and received identified insignificant variances in three months (August 2024, January 2025 and April 2025) between reported quantities or items and State-confirmed data. • Distribution reporting to States: Testing of USDA food distributions reported under TEFAP noted discrepancies between amounts reported to the States and the underlying CERES records: o In Tennessee, 15 of 40 distribution transactions tested showed insignificant differences in quantities or item descriptions between submitted reports and CERES. o In Mississippi, 3 of 40 distribution transactions tested showed insignificant differences in quantities or item descriptions between submitted reports and CERES. • Unrecorded shortages: For Mississippi TEFAP distributions, we noted two instances where signed agency invoices documented shortages of USDA foods received; however, no corresponding credit memo or inventory adjustment was recorded in CERES. • Timeliness of receipt confirmations: testing of USDA commodity receipts identified two instances out of 40, where required 48-hour receipt confirmation emails were either submitted late or not submitted to Tennessee and Mississippi. Cause: The deficiencies appear to result from the absence of a comprehensive, formalized reconciliation and supervisory review process to ensure that USDA receipts, distributions, shortages, and confirmations are accurately recorded in CERES, reconciled to State documentation, and submitted timely in accordance with program requirements. Effect: Without consistent reconciliation and review procedures, there is an increased risk that USDA reports submitted to TDA and MDHS may be inaccurate, incomplete, or untimely. This reduces the States’ ability to effectively monitor USDA commodity activity. Questioned Costs: None noted. Repeat Finding: Partial repeat finding. The instances of untimely 48-hour confirmations were part of the original finding 2018-005 and the prior year finding was 2024-001. Recommendation: We recommend that management implement a comprehensive monthly reconciliation and review process over USDA reporting, including: • Review of confirmed USDA receipts to internal inventory records. • Reconciling all TEFAP distribution reports submitted to the States to CERES data prior to submission. • Ensuring shortages noted on signed agency invoices are promptly documented through credit memos or inventory adjustments in CERES. • Establishing a tracking mechanism to ensure all required 48-hour receipt confirmations are submitted timely and retained. • Assignment of clear responsibility for report submission, with documented supervisory review. Supervisory review should be documented to confirm reconciliations are completed, differences are investigated and resolved, and reporting complies with Federal and State requirements. View of Responsible Official: See Management’s Corrective Action Plan.
Management concurs with Audit Finding 2025-003 and will strengthen controls over USDA Food Distribution Cluster reporting to ensure accuracy, completeness, and compliance with federal and State requirements. Management will implement the following corrective actions: 1. Monthly USDA Reporting Reconciliation Process Management will implement a formal monthly reconciliation process that includes: o Reviewing confirmed USDA receipts and reconciling them to internal inventory records in CERES; and o Reconciling all TEFAP distribution reports submitted to the States to CERES data prior to submission. All reconciliations will be documented, reviewed, and retained. 2. Documentation of Shortages and Inventory Adjustments Shortages noted on signed agency invoices will be promptly documented and resolved through credit memos or inventory adjustments in CERES. Supporting documentation will be retained to substantiate all adjustments. 3. 48-Hour Receipt Confirmation Tracking Management will establish a tracking mechanism (e.g., log or checklist) to monitor submission of all required 48-hour receipt confirmations. The tracking tool will document submission dates and ensure confirmations are submitted timely and retained in accordance with record retention requirements. 4. Assignment of Reporting Responsibility Management will formally assign primary responsibility for preparation and submission of Food Distribution Cluster reports to a designated individual. Roles and responsibilities will be clearly documented. 5. Supervisory Review and Oversight A supervisory reviewer will perform documented reviews of reconciliations, supporting documentation, and reports prior to submission. Supervisory review will confirm that: o Reconciliations are completed. o Differences are investigated and resolved; and o Reports comply with applicable federal and State requirements. 6. Monitoring and Training Management will periodically monitor compliance with these procedures and provide refresher training to staff involved in inventory, distribution, and reporting to ensure consistent application of controls. Expected Completion Date: Within 60–90 days Responsible Parties: Donavann Brooks, Inventory Control Manager (901-527-0422)
2024-001
2025-004: Significant Deficiency – Special Tests and Provisions and Reporting – Relating to the Food Distribution Cluster – (10.568/10.569). Criteria: Per the Organization’s agreement with the TDA, the Food Bank must maintain accurate and complete records of all USDA-donated food receipts, including bills of lading, receiving reports, and acknowledgment by staff verifying quantities received. Supporting documentation should reconcile to CERES and the monthly TEFAP report submitted to TDA. Condition and Context: We tested 40 USDA food receipts under the Tennessee TEFAP program to verify that amounts and dates recorded on the Food Bank’s receiving worksheets agreed to both the bills of lading and the monthly TEFAP reports. • In one instance, no receiving worksheet or equivalent documentation could be located to support the recorded receipt. • In another instance, the receiving worksheet was available but the quantity listed did not agree to the amount recorded in CERES, which feeds into the monthly TEFAP report. Cause: These discrepancies appear to result from a lack of follow-up and reconciliation procedures when variances occur between receiving documentation and system entries. In the noted cases, differences or missing documentation were not identified or resolved through supervisory review prior to submission of the monthly TEFAP report. Effect: Incomplete or inaccurate receiving records reduce assurance that all USDA commodities received are properly supported and accurately reported to TDA. This weakens controls over recordkeeping. Questioned Costs: None noted. Repeat Finding: No. Recommendation: We recommend that management reinforce the requirement for maintaining a completed receiving worksheet for all TDA USDA commodity receipts, signed or initialed by the receiving employee. Additionally, all receiving documentation should be reconciled to CERES entries prior to submission of monthly TEFAP reports. A periodic supervisory review should verify that all receipts are supported and accurately recorded. View of Responsible Official: See Management’s Corrective Action Plan.
Show full finding ▾Hide full finding ▴2025-004: Significant Deficiency – Special Tests and Provisions and Reporting – Relating to the Food Distribution Cluster – (10.568/10.569). Criteria: Per the Organization’s agreement with the TDA, the Food Bank must maintain accurate and complete records of all USDA-donated food receipts, including bills of lading, receiving reports, and acknowledgment by staff verifying quantities received. Supporting documentation should reconcile to CERES and the monthly TEFAP report submitted to TDA. Condition and Context: We tested 40 USDA food receipts under the Tennessee TEFAP program to verify that amounts and dates recorded on the Food Bank’s receiving worksheets agreed to both the bills of lading and the monthly TEFAP reports. • In one instance, no receiving worksheet or equivalent documentation could be located to support the recorded receipt. • In another instance, the receiving worksheet was available but the quantity listed did not agree to the amount recorded in CERES, which feeds into the monthly TEFAP report. Cause: These discrepancies appear to result from a lack of follow-up and reconciliation procedures when variances occur between receiving documentation and system entries. In the noted cases, differences or missing documentation were not identified or resolved through supervisory review prior to submission of the monthly TEFAP report. Effect: Incomplete or inaccurate receiving records reduce assurance that all USDA commodities received are properly supported and accurately reported to TDA. This weakens controls over recordkeeping. Questioned Costs: None noted. Repeat Finding: No. Recommendation: We recommend that management reinforce the requirement for maintaining a completed receiving worksheet for all TDA USDA commodity receipts, signed or initialed by the receiving employee. Additionally, all receiving documentation should be reconciled to CERES entries prior to submission of monthly TEFAP reports. A periodic supervisory review should verify that all receipts are supported and accurately recorded. View of Responsible Official: See Management’s Corrective Action Plan.
Management concurs with Audit Finding 2025-004 and will strengthen controls over USDA commodity receiving documentation and related reporting to ensure compliance with Food Distribution Cluster special tests and provisions and reporting requirements. Management will implement the following corrective actions: 1. Required Receiving Worksheets for USDA Commodity Receipts Management will reinforce the requirement that a completed receiving worksheet be prepared for all TDA USDA commodity receipts. Each receiving worksheet will be signed or initialed by the receiving employee at the time of receipt to evidence verification of quantities received. 2. Reconciliation of Receiving Documentation to CERES Management will implement a formal reconciliation process to ensure all USDA receiving documentation is reconciled to CERES inventory entries prior to submission of monthly TEFAP reports. Any discrepancies will be promptly investigated, resolved, and documented. 3. Supervisory Review and Approval Supervisory personnel will perform periodic documented reviews to verify that: o All USDA commodity receipts are supported by completed and signed receiving worksheets; and o Receiving activity is accurately and completely recorded in CERES. Evidence of supervisory review will be retained. 4. Documentation Retention and Standardization All receiving worksheets and supporting documentation will be retained in accordance with Food Distribution Cluster record retention requirements. Management will standardize receiving forms and procedures to promote consistency and completeness. 5. Training and Ongoing Monitoring Management will provide refresher training to warehouse and inventory staff on USDA receiving requirements and the importance of timely, accurate documentation. Management will periodically monitor compliance with these procedures to ensure controls are operating effectively. Expected Completion Date: Within 60–90 days Responsible Parties: Donavann Brooks, Inventory Control Manager (901-527-0422)
FAC accepted this audit on December 18, 2024 — management decision was due June 18, 2025.
Management did not submit the monthly USDA reports timely. Additionally, management did not meet the 48-hour notification requirement. Context: Management did not submit the USDA reports to the Tennessee Department of Agriculture for 2 of the 12 months tested and did not submit the reports to the Mississippi Department of Human Services for 7 of the 12 months tested for the year ended June 30, 2024, within the proper time period. Additionally, there were six instances where the Organization did not notify USDA representatives within the 48-hour requirement for receipt of goods out of 80. Cause: This condition appears to be due to the lack of oversight for supplying proper support to regulatory authorities. Effect: The Organization is not in compliance with this requirement. Questioned Costs: Unknown Recommendation: We recommend the Organization submit these reports timely to the respective agency. View of Responsible Official: See Management’s Corrective Action Plan.
Show full finding ▾Hide full finding ▴2024-001: Material Weakness – Reporting – Relating to the Food Distribution Cluster – (10.568/10.569). This is a repeat finding, the original finding was 2018-005 and the prior year finding was 2023-001. Criteria: The Organization is required to submit monthly reports to the Tennessee Department of Agriculture and the Mississippi Department of Human Services within 10 business days following the month being reported, showing receipts and disbursements of USDA food (TN) or expenditures incurred for the month (MS). Additionally, the Organization is required to notify USDA representatives within 48 hours upon receipt of goods. Condition: Management did not submit the monthly USDA reports timely. Additionally, management did not meet the 48-hour notification requirement. Context: Management did not submit the USDA reports to the Tennessee Department of Agriculture for 2 of the 12 months tested and did not submit the reports to the Mississippi Department of Human Services for 7 of the 12 months tested for the year ended June 30, 2024, within the proper time period. Additionally, there were six instances where the Organization did not notify USDA representatives within the 48-hour requirement for receipt of goods out of 80. Cause: This condition appears to be due to the lack of oversight for supplying proper support to regulatory authorities. Effect: The Organization is not in compliance with this requirement. Questioned Costs: Unknown Recommendation: We recommend the Organization submit these reports timely to the respective agency. View of Responsible Official: See Management’s Corrective Action Plan.
Compliance officer will be handling this now.
2023-001
FAC accepted this audit on January 18, 2024 — management decision was due July 18, 2024.
: Management did not submit the USDA reports to the Tennessee Department of Agriculture for 1 of the 12 months tested and did not submit the reports to the Mississippi Department of Human Services for 12 of the 12 months tested for the year ended June 30, 2023, within the proper time period.
Show full finding ▾Hide full finding ▴: Management did not submit the USDA reports to the Tennessee Department of Agriculture for 1 of the 12 months tested and did not submit the reports to the Mississippi Department of Human Services for 12 of the 12 months tested for the year ended June 30, 2023, within the proper time period.
The deficiency of one Tennessee TEFAP report being late is due to staff changes and our missing the first report of the new fiscal year by 1 business day. We have since hired a Compliance Officer who will confirm each report is filed by the 10th business day, which will add an additional check and balance. The deficiency of 12 Mississippi DHS reports being late is due to lack of staff filing in a timely manner and learning the complex filing process with this new contract. We have since hired a Director of Development, who will ensure our grant coordinators file these reports by the 10th business day of each month. Additionally, our Compliance Officer will confirm timely filings. We continually strive to submit all of our monthly reporting to the Tennessee Department of Agriculture and Mississippi Department of Human Services prior to the 10-business day deadline and consider any missed deadlines as undesirable.
2022-002
For the Tennessee USDA commodities, management did not maintain supporting documentation for eligible recipients of mobile pantry distributions (2 instances). According to a the Mississippi Department of Human Services (MDHS) letter dated December 4, 2023, MDHS alleges that management failed to provide adequate supporting documentation for amounts charged to the grant (26 instances) for administrative reimbursements and has requested that the Food Bank refund MDHS for $429,208.
Show full finding ▾Hide full finding ▴For the Tennessee USDA commodities, management did not maintain supporting documentation for eligible recipients of mobile pantry distributions (2 instances). According to a the Mississippi Department of Human Services (MDHS) letter dated December 4, 2023, MDHS alleges that management failed to provide adequate supporting documentation for amounts charged to the grant (26 instances) for administrative reimbursements and has requested that the Food Bank refund MDHS for $429,208.
The deficiency of lack of proper documentation for two mobile distributions is due to oversite by our agency relations team to ensure proper recipient paperwork is maintained at each mobile distribution. Our added mobile distributions to meet the increased need for food in our community has tripled this workload. Staff has been retrained to ensure the proper paperwork is filed. Mississippi DHS alleges our food bank has not provided adequate supporting documentation for two TEFAP contracts ending September 30, 2022. The CEO of the food bank and many staff members worked with MS DHS for 14 months and feel we have provided everything requested and cooperated every way we can. This was our first contract with MS DHS and the learning curve for reporting has been great. The reimbursement request by MS DHS is currently being appealed.
Management did not submit the reports to the City of Memphis for 3 of the 4 quarters tested within the proper time period.
Show full finding ▾Hide full finding ▴Management did not submit the reports to the City of Memphis for 3 of the 4 quarters tested within the proper time period.
The deficiency of lack of proper documentation for two mobile distributions is due to oversite by our agency relations team to ensure proper recipient paperwork is maintained at each mobile distribution. Our added mobile distributions to meet the increased need for food in our community has tripled this workload. Staff has been retrained to ensure the proper paperwork is filed. Mississippi DHS alleges our food bank has not provided adequate supporting documentation for two TEFAP contracts ending September 30, 2022. The CEO of the food bank and many staff members worked with MS DHS for 14 months and feel we have provided everything requested and cooperated every way we can. This was our first contract with MS DHS and the learning curve for reporting has been great. The reimbursement request by MS DHS is currently being appealed.
FAC accepted this audit on March 26, 2023 — management decision was due September 26, 2023.
Management did not submit the monthly USDA reports timely. Context: Management did not submit the USDA reports to the Tennessee Department of Agriculture for 7 of the 12 months tested for the year ended June 30, 2022, within the proper time period. Cause: This condition appears to be due to the lack of oversight for supplying proper support to regulatory authorities. Effect: The Organization is not in compliance with this requirement. Questioned Costs: Unknown Recommendation: We recommend the Organization submit these reports timely to the Tennessee Department of Agriculture.
Show full finding ▾Hide full finding ▴2022-002: Significant Deficiency ? Reporting ? Relating to the Emergency Food Assistance Program ? Commodities (10.569) ? this is a repeat finding of prior year finding 2021-002. Criteria: The Organization is required to submit monthly reports to the Tennessee Department of Agriculture 10 business days following the month being reported, showing receipts and disbursements of USDA food. Condition: Management did not submit the monthly USDA reports timely. Context: Management did not submit the USDA reports to the Tennessee Department of Agriculture for 7 of the 12 months tested for the year ended June 30, 2022, within the proper time period. Cause: This condition appears to be due to the lack of oversight for supplying proper support to regulatory authorities. Effect: The Organization is not in compliance with this requirement. Questioned Costs: Unknown Recommendation: We recommend the Organization submit these reports timely to the Tennessee Department of Agriculture.
2022-002: Significant Deficiency ? Reporting ? Relating to the Emergency Food Assistance Program ? Commodities (10.569) ? this is a repeat finding of prior year finding 2021-002 This deficiency is primarily due to vacancies of certain key positions within Operations, compounded by a general lack of necessary cross-training hampered by those vacancies. Because of this in-part, full workloads of our existing Operations staff are common, and in order for our Operations staff to have and be assured the necessary time to successfully perform and complete their day-to-day operational responsibilities, these particular monthly reporting deadlines have unfortunately been missed on occasion. Additionally, because of our desire to submit accurate reports, several times the reconciliation of inventory took greater than 10 days. We continually attempt to submit all of our monthly reporting to the Tennessee Department of Agriculture prior to the 10-business day deadline and consider any missed deadlines as undesirable. It is the responsibility of the COO to fill key open positions, train and cross-train Operations staff to ensure that this particular reporting, and Operations reporting in general, is performed timely and accurately.Anticipated completion date: The corrective controls and procedures were collectively completed, which includes having one staff member responsible for filing the report monthly, checked for accuracy by the COO, and have two additional staff members trained as backups, and put in place February 1, 2023 and are ready for the next fiscal year close. Responsible Official: Scott Fortin, COO (901-373-0437)
2021-002
FAC accepted this audit on March 30, 2022 — management decision was due September 30, 2022.
Management did not submit the monthly USDA reports timely. Context: Management did not submit the USDA reports to the Tennessee Department of Agriculture for 10 of the 12 months tested for the year ended June 30, 2021 within the proper time period.. Cause: This condition appears to be due to the lack of oversight for supplying proper support to regulatory authorities.Effect: The Organization is not in compliance with this requirement. Questioned Costs: Unknown Recommendation: We recommend the Organization submit these reports timely to the Tennessee Department of Agriculture.
Show full finding ▾Hide full finding ▴2021-002: Significant Deficiency ? Reporting ? Relating to the Emergency Food Assistance Program ? Commodities (10.569). Criteria: The Organization is required to submit monthly reports to the Tennessee Department of Agriculture 10 business days following the month being reported, showing receipts and disbursements of USDA food. Condition: Management did not submit the monthly USDA reports timely. Context: Management did not submit the USDA reports to the Tennessee Department of Agriculture for 10 of the 12 months tested for the year ended June 30, 2021 within the proper time period.. Cause: This condition appears to be due to the lack of oversight for supplying proper support to regulatory authorities.Effect: The Organization is not in compliance with this requirement. Questioned Costs: Unknown Recommendation: We recommend the Organization submit these reports timely to the Tennessee Department of Agriculture.
2021-002: Significant Deficiency ? Reporting ? Relating to the Emergency Food Assistance Program ? Commodities (10.569) This deficiency is due to turnover in key positions within Operations that are still vacant, compounded by a general lack of necessary cross-training hampered by those vacancies and the significant increase in need from our service area during the course of the COVID-19 pandemic. The result has been a significant increase in the remaining Operations Staffs? workloads needed for completion of their day-to-day responsibilities and for participation in the planning and implementation phases of various operational efficiency-improvement projects, all of which impacts the timeliness of monthly reporting to the Tennessee Department of Agriculture. It is the responsibility of the COO to fill key open positions, train, and cross-train Operations Staff to ensure that this particular reporting, and Operations reporting in general, is performed timely and accurately. Anticipated completion date(s): August 31, 2022 Responsible Official: Scott Fortin, COO (901-527-0841)
FAC accepted this audit on March 30, 2021 — management decision was due September 30, 2021.
Adjustments were made to correct inventory, investments, accrued payable, salary payable, deferred financing costs and depreciation expense. Furthermore, there were no accruals related to interest income/expense on the notes receivables and debt and interest that should have been capitalized was improperly expensed. Cause: The Organization?s year-end closing process did not detect all necessary adjustments. Effect: Adjustments were required to properly state the above mentioned statement of financial position accounts. Recommendation: The Organization should strengthen its month end closing process to ensure the proper reporting of all account balances. View of Responsible Official: See Management's Corrective Action Plan
Show full finding ▾Hide full finding ▴2020-001: Material Weakness ? General Ledger Maintenance - This is a repeat finding of prior year finding 2019-001. Criteria: The Organization should have a financial statement monthly closing processes in place to ensure accounts are properly recorded. Condition: Adjustments were made to correct inventory, investments, accrued payable, salary payable, deferred financing costs and depreciation expense. Furthermore, there were no accruals related to interest income/expense on the notes receivables and debt and interest that should have been capitalized was improperly expensed. Cause: The Organization?s year-end closing process did not detect all necessary adjustments. Effect: Adjustments were required to properly state the above mentioned statement of financial position accounts. Recommendation: The Organization should strengthen its month end closing process to ensure the proper reporting of all account balances. View of Responsible Official: See Management's Corrective Action Plan
2020-001: Material Weakness ? General Ledger Maintenance This issue relates to turnover of staff and COVID-19 expanding our work in our community in March 2020. With the loss of our CFO, by retirement, in May of 2020, and the loss of our Controller in June, 2020, we had a disconnect of completion of all necessary entries required. We put a new Controller in place and she was able to continue accounting entries, and has subsequently documented processes moving forward to ensure all entries are correctly calculated and posted, prior to release of the trial balance to the auditors. We have hired an outside CPA firm to ensure the accuracy and quality of our financial data going forward, are actively seeking a full-time CFO and have increased the size of our Finance Department to include Accounts Payable and data entry clerk.
2019-001
Management was unable to produce documentation confirming the timely receipt of the USDA product food to the Tennessee Department of Agriculture. Context: Management was unable to produce documentation confirming the receipt within 48 hours of USDA product receipts for 2 out of the 40 items selected for testing to the Tennessee Department of Agriculture. Cause: This condition appears to be due to the lack of oversight for maintaining proper support for items reported to regulatory authorities. Effect: The Organization is not in compliance with this requirement. Questioned Costs: Unknown
Show full finding ▾Hide full finding ▴2020-002: Significant Deficiency ? Reporting - Relating to the Emergency Food Assistance Program ? Commodities (10.569) - This is a repeat finding of prior year finding 2019-003. Criteria: The Organization is required to confirm receipt of food to the Tennessee Department of Agriculture within 48 hours of receiving the USDA food product via email. Condition: Management was unable to produce documentation confirming the timely receipt of the USDA product food to the Tennessee Department of Agriculture. Context: Management was unable to produce documentation confirming the receipt within 48 hours of USDA product receipts for 2 out of the 40 items selected for testing to the Tennessee Department of Agriculture. Cause: This condition appears to be due to the lack of oversight for maintaining proper support for items reported to regulatory authorities. Effect: The Organization is not in compliance with this requirement. Questioned Costs: Unknown
2020-002: Significant Deficiency ? Reporting ? Relating to the Emergency Food Assistance Program ? Commodities (10.569) This issue relates to management?s inability to furnish timely documentation confirming communication to USDA of receipt of USDA Food Product to the Tennessee Department of Agriculture. This item relates to operation managements? inability to produce emails confirming product receipt of 2 items out of 40 random samples pulled and selected for audit testing. Although that accounts for a .05% noncompliance rate, and with our transition from CFO, who worked remotely from March to June 2020, to COO?s responsibility of this task, we have put processes in place to timely confirm receipt of USDA product with compliance confirmed by COO. Note that, due to COVID-19 and the increase in USDA product delivered to the warehouse, the food bank managed an increase in USDA product and the recordkeeping that accompanies those transactions. Anticipated completion date: The COO has ultimate responsibility for inventory, and has instituted additional controls as of August 1, 2020. Responsible Official ? Scott Fortin, COO 901-527-0841
2019-003
GSA_MIGRATION
Show full finding ▾Hide full finding ▴FAC accepted this audit on March 29, 2020 — management decision was due September 29, 2020.
Adjustments were made to correct inventory, investments, accrued payable, salary payable, deferred financing costs and depreciation expense. Furthermore, there were no accruals related to interest income/expense on the notes receivables and debt and interest that should have been capitalized was improperly expensed. Cause: The Organization?s year-end closing process did not detect all necessary adjustments. Effect: Adjustments were required to properly state the above mentioned statement of financial position accounts. Recommendation: The Organization should strengthen its month end closing process to ensure the proper reporting of all account balances. View of Responsible Official: See Management's Corrective Action Plan.
Show full finding ▾Hide full finding ▴2019-001: Material Weakness ? General Ledger Maintenance - This is a repeat finding of prior year finding 2018-002. Criteria: The Organization should have a financial statement monthly closing processes in place to ensure accounts are properly recorded. Condition: Adjustments were made to correct inventory, investments, accrued payable, salary payable, deferred financing costs and depreciation expense. Furthermore, there were no accruals related to interest income/expense on the notes receivables and debt and interest that should have been capitalized was improperly expensed. Cause: The Organization?s year-end closing process did not detect all necessary adjustments. Effect: Adjustments were required to properly state the above mentioned statement of financial position accounts. Recommendation: The Organization should strengthen its month end closing process to ensure the proper reporting of all account balances. View of Responsible Official: See Management's Corrective Action Plan.
2019-001-Material Weakness: General Ledger Maintenance--- The issue related to lack of detection of all necessary entries was due to a combination of: 1. Initial start up of a new fiduciary entity, Feeding the Need, with large amounts of capital funding requests and a delayed decision on a move-in date exacerbated the determination of date for which assets were ?placed in service.? 2. The Organization moved into a new facility on the same weekend as year end inventory, which materially impacted the ability to perform year end physical inventories and to simultaneously quantify and record required adjusting entries. The move is complete and will not be an issue in the future. 3. Adjustments to salaries payable, vacation payable and investments were all delayed due to key information not being available in a timely manner. Repeated requests were made for this information, and reasonable estimates were accrued as a part of the initial closing. These accruals were updated when final information was presented. 4. Depreciation expense was complicated by the creation of the new affiliate entity, and the sheer volume of capital expenditure requests that were being processed that required multiple investor approvals. Further, the initial position was to consider those assets ?placed in service? on July 1, 2019, when the move into the new facility was complete. After extended discussion and review of accounting guidance, this position was changed due to the fact that approximately 26% of the total building square footage was used for food storage during the year ended June 30, 2019. Accordingly, depreciation for this square footage and related assets was calculated and reflected in the year under audit. This required considerable additional work on the part of staff that was not originally planned until July and August of 2019. 5. Deferred financing costs were incurred during the year associated with Feeding the Need. These costs were not properly deferred and amortized at year end, and were corrected by entries made late in the audit process. These costs are now properly accounted for and will not reoccur. Corrective Action Plan: The CFO has reviewed all adjusting journal entries in detail with the Controller. A plan to ensure that all entries are correctly calculated and posted, prior to release of the trial balance to the auditors, has been discussed and reviewed with the Controller and will be monitored by the CFO in fiscal 2020. Anticipated completion date: The plan will be complete and functioning February 28, 2020. Responsible Official?Michael Whitten, CFO 901-527-0841
2018-002
Testing of selected reports sent to the USDA did not agree to the monthly details. Context: During our testing of the 12 monthly USDA reports, which were submitted during the year ended June 30, 2019, we selected 40 individual line items for food distribution testing. We noted the following: a) Out of the 40 disbursements selected for testing we noted 2 instances totaling 167 cases of food, that were listed as being distributed per the monthly inventory rollforwards (from the general ledger system), were not listed on the USDA reports. We also noted 2 instances totaling 70 cases of food that were listed as being distributed on the USDA reports that were not listed on the inventory rollforwards (from the general ledger system). During our testing of the June 30, 2019 USDA report, we noted the following errors regarding the 42 listed items on the USDA report: a) 1 item from the USDA report did not agree to the year-end inventory count by 100 cases and b) to adjust USDA inventory to final test counts per the year-end observation, the Food Bank reported a net 1,347 cases as negative adjustments on the USDA report. (However it was noted that a significant portion of the negative adjustments were related to spoilage which is discussed in detail at 2019-005) Cause: This condition appears to be due to the lack of oversight and understanding of the inventory management system (CERES). We did note at times where these errors were caught and reports were modified. Effect: The Organization is not in compliance with this requirement. Questioned Costs: Unknown Recommendation: We recommend that a formal training program for all individuals entering information into CERES be instituted, as there are not enough employees that can produce accurate financial (including inventory details) reports. View of Responsible Official: See Management's Corrective Action Plan.
Show full finding ▾Hide full finding ▴2019-002: Material Weakness ? Reporting - Relating to the Emergency Food Assistance Program ? Commodities (10.569) - This is a repeat finding of prior year finding 2018-003. Criteria: The Food Bank must send accurate and complete reports to the Tennessee Department of Agriculture regarding the receipt and distribution of USDA food. Condition: Testing of selected reports sent to the USDA did not agree to the monthly details. Context: During our testing of the 12 monthly USDA reports, which were submitted during the year ended June 30, 2019, we selected 40 individual line items for food distribution testing. We noted the following: a) Out of the 40 disbursements selected for testing we noted 2 instances totaling 167 cases of food, that were listed as being distributed per the monthly inventory rollforwards (from the general ledger system), were not listed on the USDA reports. We also noted 2 instances totaling 70 cases of food that were listed as being distributed on the USDA reports that were not listed on the inventory rollforwards (from the general ledger system). During our testing of the June 30, 2019 USDA report, we noted the following errors regarding the 42 listed items on the USDA report: a) 1 item from the USDA report did not agree to the year-end inventory count by 100 cases and b) to adjust USDA inventory to final test counts per the year-end observation, the Food Bank reported a net 1,347 cases as negative adjustments on the USDA report. (However it was noted that a significant portion of the negative adjustments were related to spoilage which is discussed in detail at 2019-005) Cause: This condition appears to be due to the lack of oversight and understanding of the inventory management system (CERES). We did note at times where these errors were caught and reports were modified. Effect: The Organization is not in compliance with this requirement. Questioned Costs: Unknown Recommendation: We recommend that a formal training program for all individuals entering information into CERES be instituted, as there are not enough employees that can produce accurate financial (including inventory details) reports. View of Responsible Official: See Management's Corrective Action Plan.
2019-002-Material Weakness: Reporting -Relating to the Emergency Food Assistance Program-Commodities (10.569) Errors were noted during audit testing of monthly reports filed with the Tennessee Department of Agriculture. Errors during the year resulted from inconsistent compliance with order processing and reporting, due at least in part to the departure of both the Director of Operations and Inventory Manager. Additionally, the move to a new facility was done on the same weekend as year-end physical inventory. This transition required transfer of inventory from two locations in the new facility, and was complicated by several factors. The move into the new facility is complete; additional inventories have been taken, and the last two USDA reports did not reflect the type of adjustments noted during the audit. New employees have been hired to fill the positions of Director of Operations, Inventory Manager and COO. Additional training for employees on the CERES accounting system has been identified and scheduled for March 2020. Anticipated completion date: The COO and Director of Operations have responsibility for inventory, and have instituted additional controls as of 11/30/19. Responsible Official?Scott Fortin, COO 901-527-0841
2018-003
Management was unable to produce documentation confirming the timely receipt of the USDA product food to the Tennessee Department of Agriculture. Context: Management was unable to produce any documentation confirming the receipt of USDA product receipts for 2 out of the 17 items selected for testing to the Tennessee Department of Agriculture. Cause: This condition appears to be due to the lack of oversight for maintaining proper support for items reported to regulatory authorities. Effect: The Organization is not in compliance with this requirement. Questioned Costs: Unknown Recommendation: We recommend the Organization maintain supporting documentation for the proof of receipt of USDA food to the Tennessee Department of Agriculture in a secure location. View of Responsible Official: See Management's Corrective Action Plan.
Show full finding ▾Hide full finding ▴2019-003: Significant Deficiency ? Reporting - Relating to the Emergency Food Assistance Program ? Commodities (10.569) - This is a repeat finding of prior year finding 2018-004. Criteria: The Organization is required to confirm receipt of food to the Tennessee Department of Agriculture within 48 hours of receiving the USDA food product via email. Condition: Management was unable to produce documentation confirming the timely receipt of the USDA product food to the Tennessee Department of Agriculture. Context: Management was unable to produce any documentation confirming the receipt of USDA product receipts for 2 out of the 17 items selected for testing to the Tennessee Department of Agriculture. Cause: This condition appears to be due to the lack of oversight for maintaining proper support for items reported to regulatory authorities. Effect: The Organization is not in compliance with this requirement. Questioned Costs: Unknown Recommendation: We recommend the Organization maintain supporting documentation for the proof of receipt of USDA food to the Tennessee Department of Agriculture in a secure location. View of Responsible Official: See Management's Corrective Action Plan.
2019-003-Significant Deficiency- Emergency Food Assistance Program-Commodities (10.569) Management was unable to furnish timely documentation confirming communication to USDA of receipt of USDA Food Product to the Tennessee Department of Agriculture. This item relates to operations managements? inability to find emails confirming product receipt of 2 items out of 17 selected for audit testing. As of September 1, 2019, and retroactive to July 1, 2019, all product receipts are confirmed by email to USDA, with a copy to the CFO. The CFO now maintains an independent record of all USDA product receipts on a daily/monthly basis and agrees those records to the emails sent to USDA as well as agreeing all product receipts to the monthly TEFAP report. Anticipated completion date: The plan is in effect as of September 1, 2019. Responsible Officials?Scott Fortin, COO 901-527-0841; Mike Whitten, CFO 901-373-0429
The Organization is not following its policies and procedures relating to the monitoring of agencies and maintenance of agency files. Context: a) For 7 out of 16 agencies tested, the Organization could not produce an updated annual contract which was signed by the Organization. b) For 4 out of 16 agencies tested, the full monitoring inspection was not performed during the two-year window. Cause: The Organization has had turnover in its agency compliance department. Effect: The Organization is not in compliance with this requirement. Questioned Costs: Unknown Recommendation: We recommend the Organization enhance controls related to sub-recipient agency monitoring by having someone in management review compliance with monitoring and update of agency files. View of Responsible Official: See Management's Corrective Action Plan.
Show full finding ▾Hide full finding ▴2019-004: Significant Deficiency ? Special Tests and Provisions Subrecipient Monitoring - Relating to the Emergency Food Assistance Program ? Commodities (10.569) Criteria: The Organization must maintain accurate and complete records with respect to the distribution/use of USDA foods. Condition: The Organization is not following its policies and procedures relating to the monitoring of agencies and maintenance of agency files. Context: a) For 7 out of 16 agencies tested, the Organization could not produce an updated annual contract which was signed by the Organization. b) For 4 out of 16 agencies tested, the full monitoring inspection was not performed during the two-year window. Cause: The Organization has had turnover in its agency compliance department. Effect: The Organization is not in compliance with this requirement. Questioned Costs: Unknown Recommendation: We recommend the Organization enhance controls related to sub-recipient agency monitoring by having someone in management review compliance with monitoring and update of agency files. View of Responsible Official: See Management's Corrective Action Plan.
2019-004-Special Tests and Provisions Subrecipient Monitoring-Related to Emergency Food Assistance Program?Commodities (10.569) Policies and Procedures related to the monitoring of agencies and maintenance of agency files were not followed: 2019-004 a) Some agency contracts were not signed in a timely manner. New contracts for all agencies will be submitted by all partner agencies to continue partnership in 2020. Contracts will be signed and dated by the designee for each organization and a designee of Mid-South Food Bank. b) The agency partnership representatives are responsible for completing the inspections for each of their assigned agencies. Within the last six months, an additional position has been added to this team to ensure that the inspections are completed as required in 2020. Anticipated completion date: All contracts will be signed by the CEO by February 28, 2020. Agency compliance is currently being reviewed by staff. All needed inspections are scheduled for completion by February 28, 2020. Responsible Official?Lakeisha Edwards, Director of Agency Partnerships and Programs 901-527-0841
The Organization did not distribute product on a timely basis and as such, spoilage occurred. Context: 123,304 pounds of food spoilage, with 101,884 pounds being milk, occurred during the year ended June 30, 2019. Cause: The agencies would not take the milk or product as the agencies did not have the capacity or need at the time. Also, there was lack of judgement by the Organization in receiving the inventory. Effect: The Organization is not in compliance with this requirement. Questioned Costs: $187,422 using the Feeding America rate. Recommendation: We recommend proper training over the inventory receipt process and to only accept food which can be distributed. View of Responsible Official: See Management's Corrective Action Plan.
Show full finding ▾Hide full finding ▴2019-005: Significant Deficiency - Activities Allowed or Unallowed - Relating to the Emergency Food Assistance Program - Commodities (10.569) - This is a repeat finding of prior year finding 2018-006. Criteria: The Organization is required to provide adequate facilities for the handling, storage, and distribution of USDA foods and properly safeguard the USDA foods against theft, spoilage, or other loss. Condition: The Organization did not distribute product on a timely basis and as such, spoilage occurred. Context: 123,304 pounds of food spoilage, with 101,884 pounds being milk, occurred during the year ended June 30, 2019. Cause: The agencies would not take the milk or product as the agencies did not have the capacity or need at the time. Also, there was lack of judgement by the Organization in receiving the inventory. Effect: The Organization is not in compliance with this requirement. Questioned Costs: $187,422 using the Feeding America rate. Recommendation: We recommend proper training over the inventory receipt process and to only accept food which can be distributed. View of Responsible Official: See Management's Corrective Action Plan.
2019-005-Acitivities Allowed or Unallowed?Relating to Emergency Food Assistance Program?Commodities (10.569) The Food Bank did not distribute product in a timely manner and spoilage occurred, in part due to multiple failures of cooler or freezer units and extremely short shelf life of fresh milk products received. The above conditions have been addressed and corrected with the move to a new combined facility with modern cooling units and expanded cooler space. Timing of receipt of perishable products has also been addressed by the Director of Donated Foods, who has instituted a new program of spreading out delivery quantities over a more manageable period, rather than a single, large quantity delivery. The new Director of Operations is monitoring the status of all perishable inventories, and has improved the processes such that there has been a dramatic reduction in product spoilage. There have been no products disposed of due to spoilage since October 2019. Anticipated completion date: The plan is in place as of November 1, 2019 and is being monitored by the Director of Operations and the COO. Responsible Official?Scott Fortin, COO 901-527- 0841.
2018-006
FAC accepted this audit on January 24, 2019 — management decision was due July 24, 2019.
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2017-001
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2017-002
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FAC accepted this audit on March 28, 2018 — management decision was due September 28, 2018.
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