Potential Risks to the Food and Nutrition Service's Coronavirus Aid Relief (USDA, June 2020)

Summary

A USDA Office of Inspector General memorandum, Potential Risks to the Food and Nutrition Service's Coronavirus Aid Relief, dated June 26, 2020, from Gil H. Harden, Assistant Inspector General for Audit, to Pamilyn Miller, Administrator of the Food and Nutrition Service (FNS). The memo states that the FFCR Act and the CARES Act provide approximately $26 billion of funding to specific FNS programs, and that OIG initiated oversight related to COVID-19 funding. It states that, from 123 open FNS recommendations as of May 4, 2020, OIG identified 30 recommendations for findings related to internal controls for which corrective actions had not been implemented, and that for 11 of these 30 FNS had not implemented the agreed-upon corrective actions within the mandatory 1-year timeframe.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Issuer: Source documents
Document type: Potential Risks Fns Coronavirus Aid Relief
Case: Potential Risks Fns Coronavirus Aid Relief

Cite this document

“Potential Risks to the Food and Nutrition Service's Coronavirus Aid Relief (USDA, June 2020).” Original at usdaoig.oversight.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/potential-risks-fns-coronavirus-aid-relief/, SHA-256 440d65c869b0f6805a47b089414b43cad0bdc29c0c92ce9911d97df7316b797e.

Full text

United States Department of Agriculture

Potential Risks to the Food and
Nutrition Service's Coronavirus
Aid Relief

June 2020 OFFICE OF INSPECTOR GENERAL
United States Department of Agriculture
Office of Inspector General
Washington, D.C. 20250

DATE: June 26, 2020

TO: Pamilyn Miller
Administrator
Food and Nutrition Service

ATTN: David Burr
Chief Financial Officer
Food and Nutrition Service

FROM: Gil H. Harden
Assistant Inspector General for Audit

SUBJECT: Potential Risks to the Food and Nutrition Service’s Coronavirus Aid Relief

In response to the coronavirus 2019 (COVID-19) pandemic, Congress enacted two public laws
pertaining to USDA programs: the Families First Coronavirus Response Act (FFCR Act) on
March 18, 2020, 1 and the Coronavirus Aid, Relief, and Economic Security Act (CARES Act)
on March 27, 2020. 2 The funding from these two laws is collectively referred to as “COVID-
19 funding” in this document. 3 These two laws provide approximately $26 billion of
funding to specific Food and Nutrition Service (FNS) programs (for details, see
Attachments 1 and 2). 4 To assist FNS in its COVID-19 response and minimize inefficient
or improper actions that could put taxpayers’ money at risk, the Department of
Agriculture’s (USDA) Office of Inspector General (OIG) has initiated oversight related to
COVID-19 funding. 5

Our first task was to review audit recommendations that could impact internal controls over
COVID-19 activities for each USDA agency that received funding. Based on our review of the

1
Families First Coronavirus Response Act, Pub. L. No. 116-127, 134 Stat. 178.
2
Coronavirus Aid, Relief, and Economic Security Act, Pub. L. No. 116-136, 134 Stat. 281.
3
As of the date of this memorandum, there has been public discussion that Congress may approve additional
funding for FNS for the COVID-19 pandemic. However, no other bills have been passed to date.
4
FNS received COVID-19 funding for: the Supplemental Nutrition Program for Women, Infants, and Children
(WIC); Nutrition Assistance Program to the Commonwealth of the Northern Mariana Islands, Puerto Rico, and
American Samoa (NAP); the Supplemental Nutrition Assistance Program (SNAP); the Commodity Assistance
Program (CAP); and its Child Nutrition Programs.
5
As part of the CARES Act, OIG received $750,000 to provide oversight of USDA funding received in the CARES
Act. OIG USDA, OIG Plan—Oversight of COVID19 Funding (in effect since April 20, 2020; last accessed May 20,
2020), https://www.usda.gov/oig/webdocs/OIG_COVID19_OversightPlan.pdf.
Pamilyn Miller Page 2

123 open FNS recommendations 6 as of May 4, 2020, 7 we identified 30 recommendations for
findings related to internal controls for which FNS or the State has yet to implement corrective
actions (for a complete list of these recommendations, see Attachment 3). 8 For 11 of these 30
recommendations, FNS had not implemented the agreed-upon corrective actions within the
mandatory 1-year timeframe. 9 We noted that 10 of these 11 recommendations are related to a
specific State agency and are contingent on the actions of the State agency for achieving
resolution. However, FNS should still review these open recommendations to determine which
of them, if left unresolved or not mitigated, would introduce a significant risk of inefficient
or improper use of COVID-19 funding. Also, while FNS has only agreed to take corrective
action related to the specific State, it may be a best practice for FNS to consider if
encouraging similar actions nationwide could help prevent or mitigate the risk of any
potential improper use of funds during this unprecedented influx of funding.

Table 1: Summary of Open Recommendations for Findings Related to Internal Control
Deficiencies

Number of Open Recommendations
Audit Strengthening Internal Controls as of
May 4, 2020
27601-0002-41, FNS Quality Control Process for
SNAP Error Rate
1
27702-0001-22, Review of FNS’ Nutrition
Assistance Program Disaster Funding to Puerto 3
Rico as a Result of Hurricanes Irma and Maria
27601-0001-21, Food Distribution Program on
5
Indian Reservations
27601-0002-23, Assessment of Women, Infants,
and Children National Program Integrity 1 10
Monitoring Branch Activities
27004-0001-31, Florida’s Controls Over Summer
9
Food Service Program
27004-0001-41, California’s Controls Over
1
Summer Food Service Program
27004-0003-21, Summer Food Service Program
5
in Texas—Sponsor Costs
27004-0004-21, Texas’ Controls Over Summer
5
Food Service Program

6
Open recommendations are recommendations for which OIG and FNS have reached management decision, but the
corrective actions have not yet been implemented.
7
The Office of the Chief Financial Officer provided the status of open OIG audit recommendations as of May 4,
2020. We also included two open recommendations in the most recent OIG report, Audit Report 27601-0002-23,
Assessment of Women, Infants, and Children National Program Integrity Monitoring Branch Activities (May 11,
2020).
8
Of the 30 recommendations, 20 are related to State agencies and contingent on the actions of the related State
agencies for achieving resolution.
9
Corrective actions on the other 19 recommendations were not late and are still within the 1-year time frame.
10
Management decision for this recommendation was reached on May 11, 2020.
Pamilyn Miller Page 3

We also note for FNS’ consideration that the upcoming release of Audit Report 27601-0005-41,
Consolidated Report of FNS and Selected State Agencies’ Controls Over SFSP, identifies
common control issues found during six audits of FNS’ Summer Food Service Program (SFSP)
and four State agencies’ administration of SFSP. The report concluded that FNS should
proactively determine how implementing the corrective actions will help ensure funds are used
as intended to feed children during this critical period.

Overall, we suggest that FNS review all open audit recommendations and take action when
necessary to address any identified deficiencies in its internal controls to protect the integrity
of its use of COVID-19 funding. FNS may need to coordinate with State agencies as part of
these efforts.

This memorandum contains publicly available information and will be posted in its entirety to
our website (http://www.usda.gov/oig) in the near future. FNS has reviewed this letter and the
agency response is attached, in its entirety, at the end.
Pamilyn Miller Page 4

Attachment 1: FNS COVID-19 Funds Provided by the Families First Coronavirus
Response Act

Families First Coronavirus Response Act, Pub. L. No. 116-127, 134 Stat. 178
Funding Funding Amount How Funds are to be Used
Special
Provided, That such amount is designated by the
Supplemental
Congress as being for an emergency requirement
Nutrition Program
$500,000,000 pursuant to section 251(b)(2)(A)(i) of the
for Women,
Balanced Budget and Emergency Deficit Control
Infants, and
Act of 1985.
Children
Provided, That of the funds made available, the
Commodity
$400,000,000 Secretary may use up to $100,000,000 for costs
Assistance Program
associated with the distribution of commodities.
Shall be available for the Secretary of Agriculture
Supplemental
to provide grants to the Commonwealth of the
Nutrition
$100,000,000 Northern Mariana Islands, Puerto Rico, and
Assistance
American Samoa for nutrition assistance in
Programs
response to a COVID-19 public health emergency.
To carry out this section, the Secretary of
Agriculture may approve State agency plans for
temporary emergency standards of eligibility and
Supplemental levels of benefits under the Food and Nutrition Act
Nutrition Such Sums as of 2008 (7 U.S.C. 2011 et seq.) for households
Assistance Necessary with eligible children. Plans approved by the
Programs Secretary shall provide for supplemental
allotments to households receiving benefits under
such Act, and issuances to households not already
receiving benefits.
Pamilyn Miller Page 5

Attachment 2: FNS COVID-19 Funds Provided by the Coronavirus Aid, Relief, and
Economic Security Act

Coronavirus, Aid, Relief, and Economic Security Act, Pub. L. No. 116-136, 134 Stat. 281
Funding Funding Amount How Funds are to be Used
Child
To prevent, prepare for, and respond to coronavirus,
Nutrition $8,800,000,000
domestically or internationally.
Programs
$15,810,000,000 To prevent, prepare for, and respond to coronavirus,
domestically or internationally

• $15,510,000,000 Shall be placed in a contingency reserve to be
allocated as the Secretary deems necessary to
support participation should cost or
participation exceed budget estimates to
prevent, prepare for, and respond to
coronavirus.

• $100,000,000 Shall be for the food distribution program on
Indian reservations program as authorized to
Supplemental prevent, prepare for, and respond to
Nutrition coronavirus.
Assistance
Program o $50,000,000 Shall be for facility improvements and
equipment upgrades.

o $50,000,000 Shall be for the costs relating to
additional food purchases.

• $200,000,000 Shall be available for the Secretary of
Agriculture to provide grants to the
Commonwealth of the Northern Mariana
Islands, Puerto Rico, and American Samoa for
nutrition assistance to prevent, prepare for,
and respond to coronavirus, domestically or
internationally.
To prevent, prepare for, and respond to coronavirus,
domestically or internationally, for the emergency
Commodity
food assistance program. Provided, that of the funds
Assistance $450,000,000
made available, the Secretary may use up to
Program
$150,000,000 for costs associated with the
distribution of commodities.
Pamilyn Miller Page 6

Attachment 3: Open Recommendations Strengthening Internal Controls
Recommendation
Rec. # (*indicates that the agreed-upon corrective action for the recommendation had not been
implemented within the mandatory 1-year timeframe.)
27601-0002-41, FNS Quality Control Process for SNAP Error Rate
1 Recommendation 11.* Amend FNS Quality Control (QC) policies and procedures (including
FNS Handbook 310) to require the error tolerance threshold not be applied when calculating the
SNAP recipient’s reportable error amount until all variances (including those permitted by
SNAP policy) have been properly identified and accounted for during the QC process.
27702-0001-22, Review of FNS’ Nutrition Assistance Program Disaster Funding to Puerto Rico as a
Result of Hurricanes Irma and Maria
2 Recommendation 5. Require the Administration for Socioeconomic Development of the
Family (ADSEF) to correct its eligibility system to prevent the retroactive/claims module from
overwriting the budget module going forward.
3 Recommendation 6. Perform and document a review of ADSEF’s eligibility system to verify
that the retroactive/claims module is no longer modifying data in the budget module.
4 Recommendation 8. Require ADSEF to regularly perform checks against Social Security
Administration national death information to ensure deceased individuals are not receiving
benefits. Review cases identified through the audit and establish claims for overpayments, as
appropriate.
27601-0001-21, Food Distribution Program on Indian Reservations
5 Recommendation 1. Require the Southwest Regional Office (SWRO) to review all current
and future changes to Food Distribution Program on Indian Reservations (FDPIR) Federal State
agreements and plans of operation for the Indian Tribal Organizations (ITOs) within its
jurisdiction to ensure that they reflect relevant updates and confirm that forms are signed and
dated by all required parties.
6 Recommendation 2. Require SWRO to develop and implement a documented process to
ensure ITOs timely submit all required FDPIR reports. The process should include procedures
for following up with ITOs that do not submit reports timely and procedures to escalate actions
against ITOs that continue to be noncompliant in this area.
7 Recommendation 3. Require SWRO to routinely obtain and evaluate ITOs’ completed annual
operations reviews to identify potential issues or trends as well as to ensure that ITOs
implement corrective actions to address issues or concerns.
8 Recommendation 4. Direct SWRO to work with the certification specialist from the ITO with
identified documentation deficiencies to complete eligibility certification training.
9 Recommendation 5. Develop and implement additional guidance to FNS Handbook 501,
Chapter 3, Section 3533, to include a description of what would be considered reasonable and
sufficient documentation to adequately support eligibility determinations and to document
third-party verification for any FDPIR applicant who reports $0 income.
27601-0002-23, Assessment of Women, Infants, and Children National Program Integrity Monitoring
Branch Activities
10 Recommendation 1. FNS needs to update and document the roles, responsibilities, and
expectations of the WIC Program Integrity and Monitoring Branch and the other units as they
relate to improving WIC program integrity, including designating who would lead oversight
efforts.
27004-0001-31, Florida’s Controls Over Summer Food Service Program
11 Recommendation 1. Direct the State agency to ensure SFSP sponsors fully address all
application questions before the State agency approves their applications.
Pamilyn Miller Page 7

Recommendation
Rec. # (*indicates that the agreed-upon corrective action for the recommendation had not been
implemented within the mandatory 1-year timeframe.)
12 Recommendation 2. Direct the State agency to test and verify its data system enhancement to
prevent retroactive site approvals.
13 Recommendation 6. Advise the State agency on best practices to ensure that SFSP sponsors
have the financial and administrative capability necessary to operate their sites and, if
applicable, expand their programs.
14 Recommendation 7. Direct the State agency to provide its staff with training on the enhanced
application procedures addressing concerns we identified on SFSP site applications.
15 Recommendation 8. Request the State agency to strengthen its guidance on how agency staff
are to support conclusions made during administrative reviews. The guidance should include
procedures to document what records or transactions they tested to verify the adequacy of
sponsor processes or provide the basis for its staff’s conclusions that sponsors complied with
SFSP regulations.
16 Recommendation 13. Direct the State agency to develop and implement procedures to ensure
that SFSP sponsors’ corrective actions adequately address the underlying cause of sponsors’
noncompliance, and follow up to ensure the corrective actions are effective.
17 Recommendation 16. Direct the State agency to train its review staff on how to implement the
above recommendations and expand its training on SFSP financial accountability requirements.
18 Recommendation 23. Request the State agency to consider taking additional actions to ensure
that SFSP sponsors make it clearer to the public that meals at their sites are available to all
children residing in the area.
19 Recommendation 24. Direct the State agency to improve monitoring for the “And Justice for
All” poster display by ensuring that all questions are answered on the site review tool.
27004-0001-41, California’s Controls Over Summer Food Service Program
20 Recommendation 1. Direct the State agency to develop and implement procedures to assess
the adequacy of SFSP applicants’ financial management capabilities to separately track SFSP
funds and support SFSP costs during the application process, and ensure sponsors demonstrate
financial and management capabilities for program operations.
27004-0003-21, Summer Food Service Program in Texas—Sponsor Costs
21 Recommendation 13.* Request the State agency to develop a system security plan for Texas
Unified Nutrition Programs System using the risk assessment and recommendations provided
by the Texas Department of Information Resources and aligned with the agency-specific
security plan. Implement application security controls to mitigate vulnerabilities to the system
and improve data integrity.
22 Recommendation 14.* Request that the State agency work with its third-party vendor to
ensure implementation of applicable security controls identified through its assessment.
23 Recommendation 15.* Develop and disseminate specific guidance for reviewing requests for
large advance payments, specifically concerning how the State agencies are to determine if a
sponsor has sufficient capability to administer these larger sums.
24 Recommendation 16.* Ensure this guidance requires that reviewers consider prior year
administrative findings and the amount of unused reimbursements available from prior years.
25 Recommendation 17.* Ensure this guidance requires that reviewers should document their
justifications for approving advance payments.
27004-0004-21, Texas’ Controls Over Summer Food Service Program
26 Recommendation 1.* Direct the State agency to ensure that its staff follows its policy that
requires staff to examine the reasonableness of average daily participation (ADP) based on
additional factors such as the historical record of attendance.
Pamilyn Miller Page 8

Recommendation
Rec. # (*indicates that the agreed-upon corrective action for the recommendation had not been
implemented within the mandatory 1-year timeframe.)
27 Recommendation 2.* Request the State agency to establish a reasonable range by which the
ADP it approves can exceed the historical average of meals served per day.
28 Recommendation 5.* Establish guidance that details information State agencies should
consider during its evaluation and approval of sponsors’ budgets (such as consideration of prior
year reimbursements and prior administrative review findings).
29 Recommendation 13.* Request the State agency to ensure identified sponsors provide
additional, enhanced SFSP training to site staff to ensure staff have sufficient knowledge of
program requirements when operating sites and serving meals.
30 Recommendation 16.* Direct the State agency to monitor and assess the identified sponsors’
enhanced site training, specialized site monitor training, and increased level of site monitoring
to ensure the identified sponsors’ compliance.
Food and
Nutrition
Service
DATE: June 18, 2020

1320
Braddock TO: Gil H. Harden
Place
Alexandria,
Assistant Inspector General for Audit
VA
22314 FROM: Pamilyn Miller /s/
Administrator
Food and Nutrition Service

SUBJECT: Potential Risks to the Food and Nutrition Service’s Coronavirus Aid Relief

This letter responds to OIG’s memo dated June 8, 2020, titled “Potential Risks to the Food and
Nutrition Service’s Coronavirus Aid Relief”. The Food and Nutrition Service (FNS) appreciates
that OIG has taken the time to review FNS’ open audit recommendations as of early May 2020
and identify those that could impact internal controls over COVID-19 activities for FNS
programs where funding was received.

Under a separate cover, FNS has provided OIG with a technical comment on Attachment 1 of the
draft letter and hopes OIG will incorporate this suggested edit into the final version of the
document. For the purpose of this response, FNS believes it is necessary to respond specifically
to information described in paragraph 2 of the letter and the accompanying Attachment 3.

FNS has agreed to take action and management decision has been achieved on each of the 30
recommendations cited in Attachment 3. It is misleading to the reader to state that “FNS or the
State has yet to implement corrective actions” without providing additional context on the steps
it takes to formally achieve final action. A recommendation remaining open for a period of time
does not mean that it is not actively being worked on by FNS staff, State agency staff, and other
parties involved in the formal final action process, such as USDA’s Office of the Chief Financial
Officer (OCFO). There are various reasons a recommendation can remain in the “open” status
category for a period of time following release of the final audit report, including but not limited
to:
1) resolution of the recommendation is contingent upon rule-making,
2) the audit report was recently released and the agency has provided a reasonable estimated
completion date for implementation that is in the near future,
3) disallowed costs are being pursued for State-specific audit recommendations, and in
many cases program operators at the local level have appeal rights, and
4) FNS National Office (FNS NO) staff involved in reviewing and writing up final action
materials provided by State agencies and FNS Regional offices also have increased
workloads due to COVID-19, etc.

Therefore, while FNS does not dispute that the 30 recommendations cited by OIG remain open,
FNS believes it is important to be transparent and provide the reader with additional information
regarding the current status of each recommendation. To do this, FNS added a column to OIG’s
Attachment 3 to provide a current status of each recommendation.
USDA is an Equal Opportunity Provider, Employer and Lender
Below is an expanded table, updated as of June 12, 2020. The table provides context and current
information on the outstanding audit recommendations. FNS has reached management decision
on all of the identified open audit recommendations. Two (2) recommendations are currently
under review by the USDA OCFO awaiting final action. FNS’ Office of Internal Controls,
Audits and Investigations is finalizing formal final action requests for 17 recommendations.

Attachment 3: Open Recommendations Strengthening Internal Controls
Recommendation Current Recommendation Status Based
(*indicates that the agreed-upon corrective on FNS Records
Rec.
action for the recommendation had not been
# implemented within the mandatory 1-year
timeframe.)
27601-0002-41, FNS Quality Control Process for
SNAP Error Rate
1 Recommendation 11.* Amend FNS Quality Implementation in process. Resolution of
Control (QC) policies and procedures recommendation is contingent upon rule-
(including FNS Handbook 310) to require the making.
error tolerance threshold not be applied when
calculating the SNAP recipient’s reportable
error amount until all variances (including
those permitted by SNAP policy) have been
properly identified and accounted for during
the QC process.

27702-0001-22, Review of FNS’ Nutrition Assistance
Program Disaster Funding to Puerto Rico as a
Result of Hurricanes Irma and Maria
2 Recommendation 5. Require the Implementation nearing completion. FNS Mid-
Administration for Socioeconomic Atlantic Regional Office (FNS MARO)
Development of the Family (ADSEF) to collecting documents to submit to FNS NO for
correct its eligibility system to prevent the formal final action request.
retroactive/claims module from overwriting
the budget module going forward.

3 Recommendation 6. Perform and document Implementation nearing completion. FNS
a review of ADSEF’s eligibility system to MARO collecting documents to submit to FNS
verify that the retroactive/claims module is no NO for formal final action request.
longer modifying data in the budget module.

4 Recommendation 8. Require ADSEF to Implementation nearing completion. FNS
regularly perform checks against Social MARO collecting documents to submit to FNS
Security Administration national death NO for formal final action request.
information to ensure deceased individuals
are not receiving benefits. Review cases
identified through the audit and establish
claims for overpayments, as appropriate.

27601-0001-21, Food Distribution Program on
Indian Reservations

USDA is an Equal Opportunity Provider, Employer and Lender
5 Recommendation 1. Require the Southwest Implementation complete. FNS Southwest
Regional Office (SWRO) to review all Regional Office (FNS SWRO) preparing
current and future changes to Food documents to submit to FNS NO for formal final
Distribution Program on Indian Reservations action request. FNS SWRO staff responsible for
(FDPIR) Federal State agreements and plans resolving this recommendation are the same staff
of operation for the Indian Tribal responsible for resolving the recommendations
Organizations (ITOs) within its jurisdiction to made for the two Texas Summer Food Service
ensure that they reflect relevant updates and Program (SFSP) audits mentioned below. Staff
confirm that forms are signed and dated by all focused on Texas SFSP first given the earlier
required parties. release dates of those final reports.

6 Recommendation 2. Require SWRO to Implementation in process. FNS is on track with
develop and implement a documented process original estimated completion date of September
to ensure ITOs timely submit all required 20, 2020.
FDPIR reports. The process should include
procedures for following up with ITOs that do
not submit reports timely and procedures to
escalate actions against ITOs that continue to
be noncompliant in this area.

7 Recommendation 3. Require SWRO to Implementation in process. FNS is on track with
routinely obtain and evaluate ITOs completed original estimated completion date of September
annual operations reviews to identify 30, 2020.
potential issues or trends as well as to ensure
that ITOs implement corrective actions to
address issues or concerns.

8 Recommendation 4. Direct SWRO to work Implementation in process. FNS needed to
with the certification specialist from the ITO obtain additional info from OIG workpapers to
with identified documentation deficiencies to track down certification specialist that requires
complete eligibility certification training. training. FNS SWRO staff responsible for
resolving this recommendation are the same staff
responsible for resolving the recommendations
made for the two Texas SFSP audits mentioned
below. Staff focused on Texas SFSP first given
the earlier release dates of those final reports.

9 Recommendation 5. Develop and Implementation in process. FNS is on track with
implement additional guidance to FNS original estimated completion date of September
Handbook 501, Chapter 3, Section 3533, to 30, 2020.
include a description of what would be
considered reasonable and sufficient
documentation to adequately support
eligibility determinations and to document
third-party verification for any FDPIR
applicant who reports $0 income.

27601-0002-23, Assessment of Women, Infants, and
Children National Program Integrity Monitoring
Branch Activities
10 Recommendation 1. FNS needs to update Audit report just released on May 11, 2020.
and document the roles, responsibilities, and Implementation in process. FNS is on track with
USDA is an Equal Opportunity Provider, Employer and Lender
expectations of the WIC Program Integrity original estimated completion date of October 1,
and Monitoring Branch and the other units as 2020.
they relate to improving WIC program
integrity, including designating who would
lead oversight efforts.

27004-0001-31, Florida’s Controls Over Summer
Food Service Program
11 Recommendation 1. Direct the State agency Implementation complete by State agency. FNS
to ensure SFSP sponsors fully address all originally requested final action as part of FNS
application questions before the State agency official response. OIG chose not to grant final
approves their applications. action concurrently with management decision
despite precedent for doing so in prior audits.
This requires FNS and USDA’s OCFO to go
through additional administrative steps to
complete formal final action process. FNS NO
Child Nutrition (CN) and FNS Office of Internal
Controls, Audits, and Investigations (OICAI)
currently finalizing formal final action request.

12 Recommendation 2. Direct the State agency Implementation complete by State agency. Final
to test and verify its data system enhancement action materials have been reviewed by FNS
to prevent retroactive site approvals. Southeast Regional Office (FNS SERO) and
submitted to FNS NO. FNS NO CN and FM
OICAI currently finalizing formal final action
request.

13 Recommendation 6. Advise the State Implementation complete by State agency. FNS
agency on best practices to ensure that SFSP originally requested final action as part of FNS
sponsors have the financial and administrative official response. OIG chose not to grant final
capability necessary to operate their sites and, action concurrently with management decision
if applicable, expand their programs. despite precedent for doing so in prior audits.
This requires FNS and USDA’s OCFO to go
through additional administrative steps to
complete formal final action process. FNS NO
CN and FNS OICAI currently finalizing formal
final action request.

14 Recommendation 7. Direct the State agency Implementation complete by State agency. FNS
to provide its staff with training on the originally requested final action as part of FNS
enhanced application procedures addressing official response. OIG chose not to grant final
concerns we identified on SFSP site action concurrently with management decision
applications. despite precedent for doing so in prior audits.
This requires FNS and USDA’s OCFO to go
through additional administrative steps to
complete formal final action process. FNS NO
CN and FNS OICAI currently finalizing formal
final action request.

15 Recommendation 8. Request the State Implementation complete by State agency. Final
agency to strengthen its guidance on how action materials have been reviewed by FNS
USDA is an Equal Opportunity Provider, Employer and Lender
agency staff are to support conclusions made SERO) and submitted to FNS NO. FNS NO CN
during administrative reviews. The guidance and FM OICAI currently finalizing formal final
should include procedures to document what action request.
records or transactions they tested to verify
the adequacy of sponsor processes or provide
the basis for its staff’s conclusions that
sponsors complied with SFSP regulations.
16 Recommendation 13. Direct the State Implementation complete by State agency. Final
agency to develop and implement procedures action materials have been reviewed by FNS
to ensure that SFSP sponsors’ corrective SERO) and submitted to FNS NO. FNS NO CN
actions adequately address the underlying and FM OICAI currently finalizing formal final
cause of sponsors’ noncompliance, and action request.
follow up to ensure the corrective actions are
effective.

17 Recommendation 16. Direct the State Implementation complete by State agency. FNS
agency to train its review staff on how to originally requested final action as part of FNS
implement the above recommendations and official response. OIG chose not to grant final
expand its training on SFSP financial action concurrently with management decision
accountability requirements. despite precedent for doing so in prior audits.
This requires FNS and USDA’s OCFO to go
through additional administrative steps to
complete formal final action process. FNS NO
CN and FNS OICAI currently finalizing formal
final action request.

18 Recommendation 23. Request the State Implementation complete by State agency. FNS
agency to consider taking additional actions originally requested final action as part of FNS
to ensure that SFSP sponsors make it clearer official response. OIG chose not to grant final
to the public that meals at their sites are action concurrently with management decision
available to all children residing in the area. despite precedent for doing so in prior audits.
This requires FNS and USDA’s OCFO to go
through additional administrative steps to
complete formal final action process. FNS NO
CN and FNS OICAI currently finalizing formal
final action request.

19 Recommendation 24. Direct the State Implementation complete by State agency. FNS
agency to improve monitoring for the “And originally requested final action as part of FNS
Justice for All” poster display by ensuring official response. OIG chose not to grant final
that all questions are answered on the site action concurrently with management decision
review tool. despite precedent for doing so in prior audits.
This requires FNS and USDA’s OCFO to go
through additional administrative steps to
complete formal final action process. FNS NO
CN and FNS OICAI currently finalizing formal
final action request.

27004-0001-41, California’s Controls Over Summer
Food Service Program
20 Recommendation 1. Direct the State agency Implementation complete by State agency. FNS
to develop and implement procedures to NO CN and FNS OICAI working through some
USDA is an Equal Opportunity Provider, Employer and Lender
assess the adequacy of SFSP applicants’ follow-up questions with FNS Western Regional
financial management capabilities to Office (FNS WRO) to ensure formal final action
separately track SFSP funds and support request is complete before submitting to
SFSP costs during the application process, USDA’s OCFO.
and ensure sponsors demonstrate financial
and management capabilities for program
operations.
27004-0003-21, Summer Food Service Program in
Texas—Sponsor Costs
21 Recommendation 13.* Request the State Implementation complete by State agency and
agency to develop a system security plan for FNS. Formal final action request has been
Texas Unified Nutrition Programs System submitted to USDA’s OCFO and is pending
using the risk assessment and approval.
recommendations provided by the Texas
Department of Information Resources and
aligned with the agency-specific security
plan. Implement application security controls
to mitigate vulnerabilities to the system and
improve data integrity.
22 Recommendation 14.* Request that the State Implementation complete by State agency and
agency work with its third-party vendor to FNS. Formal final action request has been
ensure implementation of applicable security submitted to USDA’s OCFO and is pending
controls identified through its assessment. approval.

23 Recommendation 15.* Develop and Implementation complete by State agency. Final
disseminate specific guidance for reviewing action materials have been reviewed by FNS
requests for large advance payments, SWRO and submitted to FNS NO. FNS NO CN
specifically concerning how the State and FNS OICAI currently finalizing formal final
agencies are to determine if a sponsor has action request.
sufficient capability to administer these larger
sums.
24 Recommendation 16.* Ensure this guidance Implementation complete by State agency. Final
requires that reviewers consider prior year action materials have been reviewed by FNS
administrative findings and the amount of SWRO and submitted to FNS NO. FNS NO CN
unused reimbursements available from prior and FNS OICAI currently finalizing formal final
years. action request.

25 Recommendation 17.* Ensure this guidance Implementation complete by State agency. Final
requires that reviewers should document their action materials have been reviewed by FNS
justifications for approving advance SWRO and submitted to FNS NO. FNS NO CN
payments. and FNS OICAI currently finalizing formal final
action request.

27004-0004-21, Texas’ Controls Over Summer Food
Service Program
26 Recommendation 1.* Direct the State Implementation complete by State agency. Final
agency to ensure that its staff follows its action materials have been reviewed by FNS
policy that requires staff to examine the SWRO and submitted to FNS NO. FNS NO CN
reasonableness of average daily participation and FNS OICAI currently finalizing formal final
(ADP) based on additional factors such as the action request.
historical record of attendance.

USDA is an Equal Opportunity Provider, Employer and Lender
27 Recommendation 2.* Request the State Implementation complete by State agency. Final
agency to establish a reasonable range by action materials have been reviewed by FNS
which the ADP it approves can exceed the SWRO and submitted to FNS NO. FNS NO CN
historical average of meals served per day. and FNS OICAI currently finalizing formal final
action request.

28 Recommendation 5.* Establish guidance Implementation complete by State agency. Final
that details information State agencies should action materials have been reviewed by FNS
consider during its evaluation and approval of SWRO and submitted to FNS NO. FNS NO CN
sponsors’ budgets (such as consideration of and FNS OICAI currently finalizing formal final
prior year reimbursements and prior action request.
administrative review findings).
29 Recommendation 13.* Request the State Implementation complete by State agency. Final
agency to ensure identified sponsors provide action materials have been reviewed by FNS
additional, enhanced SFSP training to site SWRO and submitted to FNS NO. FNS NO CN
staff to ensure staff have sufficient knowledge and FNS OICAI currently finalizing formal final
of program requirements when operating sites action request.
and serving meals.
30 Recommendation 16.* Direct the State Implementation complete by State agency. Final
agency to monitor and assess the identified action materials have been reviewed by FNS
sponsors’ enhanced site training, specialized SWRO and submitted to FNS NO. FNS NO CN
site monitor training, and increased level of and FNS OICAI currently finalizing formal final
site monitoring to ensure the identified action request.
sponsors’ compliance.

Lastly, regarding the language on page 3 of OIG’s letter referencing the upcoming release of
OIG Audit 27601-0005-41 Consolidated Report of FNS and Selected State Agencies’ Controls
Over SFSP, FNS has worked tirelessly with OIG over the past several months to come to an
agreement on how we can best respond to and meet the intent of all of these recommendations
while complying with the Administrative Procedures Act (APA), Executive Order 13891
Promoting the Rule of Law through Improved Agency Guidance Documents, and USDA
implementing regulations. We believe OIG will be pleased with the official response FNS plans
to finalize by the end of June 2020. FNS is confident that our planned corrective actions will
help ensure funds are used as intended to feed children during normal program operations as well
as during the critical period associated with the COVID-19 pandemic.

USDA is an Equal Opportunity Provider, Employer and Lender
Learn more about USDA OIG
Visit our website: www.usda.gov/oig
Follow us on Twitter: @OIGUSDA

Report Suspected Wrongdoing in USDA Programs

OIG Hotline: www.usda.gov/oig/hotline.htm

Local / Washington, D.C. (202) 690-1622
Outside D.C. (800) 424-9121
TTY (Call Collect) (202) 690-1202

Bribery / Assault
(202) 720-7257 (24 hours)

In accordance with Federal civil rights law and U.S. Department of Agriculture Relay Service at (800) 877-8339. Additionally, program information may be made
(USDA) civil rights regulations and policies, USDA, its Agencies, offices, available in languages other than English.
employees, and institutions participating in or administering USDA programs
are prohibited from discriminating based on race, color, national origin, religion, To file a program discrimination complaint, complete the USDA Program
sex, gender identity (including gender expression), sexual orientation, disability, Discrimination Complaint Form, AD-3027, found online at How to File a Program
age, marital status, family/parental status, income derived from a public Discrimination Complaint and at any USDA office or write a letter addressed to
assistance program, political beliefs, or reprisal or retaliation for prior civil rights USDA and provide in the letter all of the information requested in the form. To
activity, in any program or activity conducted or funded by USDA (not all bases request a copy of the complaint form, call (866) 632-9992. Submit your completed
apply to all programs). Remedies and complaint filing deadlines vary by form or letter to USDA by: (1) mail: U.S. Department of Agriculture, Office of the
program or incident. Assistant Secretary for Civil Rights, 1400 Independence Avenue, SW, Washington,
D.C. 20250-9410; (2) fax: (202) 690-7442; or (3) email: program.intake@usda.gov.
Persons with disabilities who require alternative means of communication for
program information (e.g., braille, large print, audiotape, American Sign USDA is an equal opportunity provider, employer, and lender.
Language, etc.) should contact the responsible Agency or USDA’s TARGET
Center at (202) 720-2600 (voice and TTY) or contact USDA through the Federal All photographs on the front and back covers are from USDA’s Flickr site and are in
the public domain. They do not depict any particular audit or investigation.

File and source

File: potential-risks-fns-coronavirus-aid-relief.pdf
Size: 3,951,773 bytes
SHA-256: 440d65c869b0f6805a47b089414b43cad0bdc29c0c92ce9911d97df7316b797e
Our copy: potential-risks-fns-coronavirus-aid-relief.pdf
Original: usdaoig.oversight.gov