FOOD BANK OF ALASKA, INC.Non-Profit

Finding 2021-001 Lack of Internal Control over Accurate and Complete Records of USDA Foods Federal Agency: U.S. Department of Agriculture, passed through the State of Alaska, Department of Health and Social Services and Department of Education and Early Development Federal Program: Food Distribution Cluster CFDA Number: 10.565, 10.568, 10.569 Award Number: 604-262-21001 Award Year: 2021 Type of Finding: Significant deficiency in internal control over compliance and noncompliance. Criteria: Accurate and complete records must be maintained with respect to the receipt distribution/use, and inventory of USDA Foods consistent with 7 CFR section 250.19. Condition/Context: Sufficient internal controls requiring supporting documentation were lacking surrounding the distribution of USDA commodities and acceptance of USDA commodities between the Food Bank of Alaska and the recipient agency. There was a lack of documentation in verifying receipt of goods by a recipient agency. There was one distribution lacking internal controls in a sample of 25 inventory transactions tested and appears to be a systemic issue as a result of the repeat finding status from the prior year. Cause: Lack of internal controls over accurate and complete records of USDA Foods. Effect: Noncompliance with program requirements. Variances in distribution amounts from the Food Bank of Alaska and recipient agency could go undetected if not properly monitored. Without a second review of trash or damaged goods, items may incorrectly be listed as trashed or damaged. Questioned Costs: None noted. Repeat Finding: Repeat of finding 2020-001. Recommendation: We recommend that the entity strengthen internal controls regarding documenting all shipments out of the Food Bank of Alaska, and acceptance of said goods by the underlying agencies at the time of arrival. Management?s Response: Management agrees with this finding. See Corrective Action Plan.

Finding 2020-001 Lack of Internal Control over Accurate and Complete Records of USDA Foods Federal Agency: U.S. Department of Agriculture, passed through the State of Alaska, Department of Health and Social Services and Department of Education and Early Development Federal Program: Food Distribution Cluster CFDA Number: 10.565, 10.568, 10.569 Award Number: TE 20.289.01, TE 20.289.02, Phase 2-2020, and 604-262-20001 Award Year: 2020 Type of Finding: Material weakness in internal control over compliance, and material noncompliance Criteria: Accurate and complete records must be maintained with respect to the receipt distribution/use, and inventory of USDA Foods consistent with 7 CFR section 250.19. Condition/Context: Supporting documentation surrounding distribution of USDA commodities were lacking controls surrounding documenting disbursement and acceptance of USDA commodities between the Food Bank of Alaska and the recipient agency. Damaged and trashed goods were documented by one individual and controls over verifying damaged/trashed goods did not appear to be operating effectively. These appear to be systemic issues as 9 distributions or trashed goods were lacking controls in a sample of 25 inventory transactions. Cause: Lack of internal controls over accurate and complete records of USDA Foods. Effect: Noncompliance with program, variances in distribution amounts from the Food Bank of Alaska and recipient agency could go undetected. Without a second review of trash or damaged goods, items may incorrectly be listed as trashed or damaged. Questioned Costs: None noted. Repeat Finding: Repeat of finding 2019-002. Recommendation: We recommend that the entity increase internal controls regarding documenting all shipments out of the Food Bank of Alaska, and acceptance of said goods by the underlying agencies at the time of arrival. We also recommend that the entity implement additional internal controls surrounding a review and approval of any damaged or trashed goods to ensure that they are actually impaired commodities. Management?s Response: Management agrees with this finding. See Corrective Action Plan.

Finding 2019-002 Lack of Internal Control over Accurate and Complete Records of USDA Foods Federal Agency: U.S. Department of Agriculture Federal Program: Food Distribution Cluster CFDA Number: 10.565, 10.568, 10.569 Award Number: TE 19.289, 604-262-19001 Award Year: 2019 Type of Finding: Significant deficiency in internal control over compliance and noncompliance Criteria: Accurate and complete records must be maintained with respect to the receipt distribution/use, and inventory of USDA Foods consistent with 7 CFR section 250.19. Condition/Context: Supporting documentation surrounding receipt of goods by agencies receiving distributions of USDA commodities were lacking sufficient shipping documentation noting the disbursement and acceptance of USDA commodities between the Food Bank of Alaska and the recipient agency. Damaged and trashed foods were documented entirely by one individual and controls over verifying damaged/trashed goods were appropriate did not appear to be in place. Cause: Lack of internal controls over accurate and complete records of USDA Foods. Effect: Noncompliance with program, variances in distribution amounts from the Food Bank of Alaska and recipient agency could go undetected. Without a second review of trash or damaged good, items may incorrectly be listed as trashed or damaged. Questioned Costs: None noted. Repeat Finding: No. Recommendation: We recommend that the entity increase internal controls regarding documenting all shipments out of the Food Bank of Alaska, and acceptance of said goods by the underlying agencies at the time of arrival. We also recommend that the entity implement additional internal controls surrounding a review and approval of any damaged or trashed goods to ensure that they are actually impaired commodities. Management?s Response: Management agrees with this finding. See Corrective Action Plan.