Foreign Agricultural Service’s Controls Over McGovern-Dole International Food for Education Program Funding

Submitting OIG:

Report Description:

OIG evaluated Foreign Agricultural Service’s controls over agreement funding for the McGovern-Dole International Food for Education and Child Nutrition Program.

Date Issued:

Wednesday, July 10, 2024

Agency Reviewed / Investigated:

Department of Agriculture

Submitting OIG-Specific Report Number:

07601-0002-41

Component, if applicable:

Foreign Agricultural Service

Location(s):

Agency-Wide

Type of Report:

Audit

Questioned Costs:

$167,032,922

Funds for Better Use:

$19,925,665

Number of Recommendations:

Report updated under NDAA 5274:

View Document:

Attachment	Size
07601-0002-41FinalDistribution.pdf	4.56 MB

Recommendation Number	Recommendation Status	Significant Recommendation
1	Open	Yes
Update compliance review guidance to: (a) establish and execute a minimum review cycle that defines the frequency for conducting compliance reviews of McGovern-Dole Program recipients and agreements; (b) incorporate clear instructions for sampling transactions that ensures consistency among reviewers; and (c) include LRP funds as part of the compliance review.
2	Open	Yes
Assess the administrative impact of the Appropriation Act earmarks and determine and implement all necessary response actions.
3	Open	Yes
Coordinate with the Office of the Chief Financial Officer to ensure that LRP funds are properly accounted for and tracked separately from other McGovern-Dole Program funds for agreements issued in FYs 2021 and 2022. As applicable, remediate or consult with OGC on any potential Antideficiency Act violations noted and, if applicable, include any nonconformance in the agency’s Federal Managers’ Financial Integrity Act Annual Certification Statement.
4	Open	Yes
Analyze whether recipients expended LRP funds exactly as budgeted since FY 2020. If they did not, determine whether the recipients exceeded their LRP budgets, and if so, take appropriate action as needed.
5	Open	Yes
Revise policies and procedures to: (a) review recipients’ advance payment requests and independently identify, calculate, and document whether the requests include rollover amounts; and (b) assess rollover funds by considering and documenting the requests’ merits in accordance with the regulatory requirements.
6	Open	Yes
Analyze the advance payment requests FAS received from FY 2023 to the date of implementation of advance payment review policies and procedures in Recommendation 5, to determine whether the recipients included rollover funds, and follow up as needed.
7	Open	Yes
Review and update FAS’ reimbursement and advance payment tracking system to accurately track recipients’ advance payment requests, including rollover funds.
8	Open	Yes
Revise current agreement closeout policies and procedures to reflect regulatory requirements.
9	Open	Yes
Establish and implement a formalized plan to resolve the historical backlog and close out these agreements.
10	Open	Yes
Analyze whether FAS’ existing closeout process (including the agency’s existing resources and distribution of responsibilities) is effective to meet its objectives, and implement closeout process revisions, if needed, based on the results.

Recommendation Number

Recommendation Status

Significant Recommendation

Additional Details

Open

Yes

Update compliance review guidance to: (a) establish and execute a minimum review cycle that defines the frequency for conducting compliance reviews of McGovern-Dole Program recipients and agreements; (b) incorporate clear instructions for sampling transactions that ensures consistency among reviewers; and (c) include LRP funds as part of the compliance review.

Open

Yes

Assess the administrative impact of the Appropriation Act earmarks and determine and implement all necessary response actions.

Open

Yes