Consolidated Report of FNS and Selected State Agencies’ Controls Over SFSP

Submitting OIG:

Report Description:

OIG consolidated the relevant results and common control issues of six SFSP audits at FNS and four States and determined whether any additional controls were needed to enhance SFSP efficiency and effectiveness.

Date Issued:

Friday, September 18, 2020

Agency Reviewed / Investigated:

Department of Agriculture

Submitting OIG-Specific Report Number:

27601-0005-41

Component, if applicable:

Food and Nutrition Service

Location(s):

United States

Type of Report:

Audit

Funds for Better Use:

$6,089,279

Number of Recommendations:

View Document:

Attachment	Size
27601-0005-41_FR_508_FOIA_.pdf	6.64 MB

Recommendation Number	Recommendation Status	Significant Recommendation	Additional Details
3	Open	Yes	CONSOLIDATED REPORT OF FNS AND SELECTED STATE AGENCIES’ CONTROLS OVER SFSP
Revise guidance to describe how and when State agencies should ensure applicants’ sites do not serve the same meal to the same children as other SFSP sites in the same area.
4	Open	Yes	CONSOLIDATED REPORT OF FNS AND SELECTED STATE AGENCIES’ CONTROLS OVER SFSP
Provide State agencies with training and establish monitoring procedures for FNS to ensure its newly issued guidance (in Recommendations 1-3) is implemented and functioning effectively.
5	Open	Yes	CONSOLIDATED REPORT OF FNS AND SELECTED STATE AGENCIES’ CONTROLS OVER SFSP
Require State agencies to verify that sponsor claims for reimbursement are properly payable by reviewing sponsor cost records needed to support the meal claim accuracy (i.e., milk and food receipts).
6	Open	Yes	CONSOLIDATED REPORT OF FNS AND SELECTED STATE AGENCIES’ CONTROLS OVER SFSP
Require State agencies to: expand the sponsor review when reviewers identify meal claim deficiencies, ensure sponsor corrective actions address the underlying causes of the noncompliance issues, and maintain documentation related to the sponsors’ meal claims so State agencies can periodically verify the reviewers’ determinations.
7	Open	Yes	CONSOLIDATED REPORT OF FNS AND SELECTED STATE AGENCIES’ CONTROLS OVER SFSP
Require that sponsors with self-prep sites maintain documentation to facilitate State agency meal claim verification, including production records and delivery receipts.
9	Open	Yes	CONSOLIDATED REPORT OF FNS AND SELECTED STATE AGENCIES’ CONTROLS OVER SFSP
Provide State agencies with training and establish monitoring procedures for FNS to ensure the new requirements (in Recommendations 5-7) are implemented and functioning effectively.
10	Open	Yes	CONSOLIDATED REPORT OF FNS AND SELECTED STATE AGENCIES’ CONTROLS OVER SFSP
Revise guidance to provide clarification to sponsors and State agencies on how to identify and calculate unused reimbursement amounts, such as outlining timeframes and accounting methods that should be used and the income and costs that should be included.
11	Open	Yes	CONSOLIDATED REPORT OF FNS AND SELECTED STATE AGENCIES’ CONTROLS OVER SFSP
Revise guidance to provide instructions to State agencies on how to monitor and verify the sponsors’ use of unused reimbursements, including directions for cross-program reviews and sufficient followup, and to define what constitutes an “excessive gap” for unused reimbursement corrective action requirements.
13	Open	Yes	CONSOLIDATED REPORT OF FNS AND SELECTED STATE AGENCIES’ CONTROLS OVER SFSP
Provide State agencies with training and establish monitoring procedures for FNS to ensure its newly issued guidance (in Recommendations 10-12) is implemented and functioning effectively.
15	Open	Yes	CONSOLIDATED REPORT OF FNS AND SELECTED STATE AGENCIES’ CONTROLS OVER SFSP
Provide ME reviewers with training to ensure its newly issued procedures (in Recommendation 14) are correctly implemented.

Recommendation Number

Recommendation Status

Significant Recommendation

Additional Details

Open

Yes

CONSOLIDATED REPORT OF FNS AND SELECTED STATE AGENCIES’ CONTROLS OVER SFSP

Revise guidance to describe how and when State agencies should ensure applicants’ sites do not serve the same meal to the same children as other SFSP sites in the same area.

Open

Yes

CONSOLIDATED REPORT OF FNS AND SELECTED STATE AGENCIES’ CONTROLS OVER SFSP

Provide State agencies with training and establish monitoring procedures for FNS to ensure its newly issued guidance (in Recommendations 1-3) is implemented and functioning effectively.