CARE AND SHARE, INCNon-Profit

Criteria or specific requirement ? Management is required to ensure that there are sufficient internal controls in place over the distribution of food to subrecipients. This includes internal controls that ensure that documentation of distributions is properly retained. Conditions ? Documentation of distributions to subrecipients were not properly retained. Context ? A sample of 40 food distributions totaling $35,226 was selected from a population totaling $14,801,125. Our testing found that documentation of distributions to subrecipients for one of our 40 selections were not properly retained, which totaled $186. Cause ? All procedures surrounding the distribution of food were not followed. Effect ? Distribution of food was not evidenced by documentation. Recommendation ? We recommend that management ensure all personnel are made aware of the importance of these procedures to ensure food distributions are appropriate and to ensure future compliance with applicable federal cost rules. Views of responsible officials and planned corrective actions ? The Organization has emphasized documentation and filing policies with the staff. The Organization will periodically check to assure all documentation is properly filed.

Criteria or specific requirement ? Management is required to ensure that there are sufficient internal controls in place over the distribution of food to subrecipients. This includes internal controls that ensure that all distributions are appropriate and properly documented. Conditions ? Invoices provided to subrecipients did not include either employee or agency signatures as evidence of proper amount of distribution and receipt of distribution. Context ? During our testing of food distribution, we noted that invoices provided to subrecipients for two of our 40 selections did not include employee or agency signatures. Cause ? Certain procedures surrounding the distribution of food were not consistently followed. Effect ? Distribution of food was not evidenced by employee and agency signatures. During the performance of audit procedures, agency confirmation was sought and received which verified the receipt of the food distribution and therefore no questioned costs are reported. Recommendation ? We recommend that management ensure all personnel are made aware of the importance of these procedures to ensure food distributions are appropriate and to ensure future compliance with applicable federal cost rules. Views of responsible officials and planned corrective actions ? The Organization has emphasized the requirements to obtain employee and agency signatures on all orders. The Organization will periodically check all orders to assure proper signatures are obtained.

Criteria or specific requirement ? Management is required to ensure that there are sufficient internal controls in place over the distribution of food to subrecipients. This includes internal controls that ensure that all distributions are appropriate and properly documented. Conditions ? Invoices provided to subrecipients did not include employee and agency signatures as evidence of proper amount of distribution and receipt of said distribution. Context ? During our testing of food distribution, we noted that invoices provided to subrecipients for one of our forty selections did not include employee or agency signatures. Cause ? All procedures surrounding the distribution of food were not followed. Effect ? Distribution of food was not evidenced by employee and agency signatures. During the performance of audit procedures, agency confirmation was sought and received which verified the receipt of the food distribution and therefore no questioned costs are reported. Recommendation ? We recommend that management ensure all personnel are made aware of the importance of these procedures to ensure food distributions are appropriate and to ensure future compliance with applicable federal cost rules. Views of responsible officials and planned corrective actions ? The distribution cited was an instance where a partner agency was running out of food and needed additional food with short notice. The nature of this need prompted action from the Organization that did not allow the proper signatures to be obtained. It was decided after this instance that distributions under short notice will no longer be allowed so that proper signatures can be obtained. Remedial training was conducted at the time of incident. The Organization will ensure

Criteria or specific requirement ? Checks written for amounts over $2,500 are required to be signed by two individuals. Conditions ? Three checks over $2,500 were not signed by a second individual. Context ? During the performance of audit procedures, we identified three checks out of twenty which were greater than $2,500 that were not signed by a second individual. Cause ? Due to accounting staff turnover, the internal controls over dual signatures were not properly implemented. Effect ? Not following documented procedures could lead to unauthorized expenditures that could impact the accuracy of financial statements and misappropriation of funds. Recommendation ? We recommend that management communicate to personnel the policy regarding the dual signature requirement for checks written for amounts over $2,500. We also recommend that personnel be made aware of the importance of these controls to ensure expenditures are authorized. Views of responsible officials and planned corrective actions ? The Organization has emphasized the policy and the importance of this policy with appropriate accounting personnel. The Organization is now requiring that the President of the Organization be the second signer of checks exceeding $2,500 to assure dual signatures have been acquired.

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