Special Supplemental Nutrition Program

Question: Discuss about the Special Supplemental Nutrition Program. Answer: Introduction The paper depicts the importance of implementing internal control system in Fruito a local fruit and vegetable selling shop that helps the shop to mitigate the risks. During ordering and receiving fruit and vegetable stock, Fruito is facing several risks. The possible risk factors will be encountered and their impact on the business will be demonstrated in this paper. In order to mitigate the risks certain internal control systems are identified. Implementation of those internal control systems will be illustrated in this paper. The impact of those risk management factors will also be elaborated in this paper. Identification of risks and their impact during ordering and receiving of stocks During identification it has been found that, Fruito, local business is getting affected due to lack of management-oriented risks. The potential business risks and potential impact of the risks are as follows: Risks Impact Information reliability Fruito serves a proper authorized purchase orders to supply fruits and vegetables. The standard quality will not meet if good foods are purchased from unauthenticated vendors (Lee Eom, 2015). If the ordered and supplied products are completely prepared on a timely manner then the unfulfilled requirements of the consumers will not be able to determine by the management. The transaction of the purchased orders are processed reliably and reported in an organized manner. The files might lose from the storage or damaged during transaction (Nicolaou, Ibrahim Van Heck, 2013). The recipient of Fruito are completely authorized thus, if the received material do not meet the pre specified stock then it will be a major risk for Fruito. Performance measurement Different performance measurement tools are used by Fruito for their business process development. During performance evaluation if Fruito uses inappropriate measurement tools then, it will interrupt the decision making approach of the local fruit shop (Ayala et al., 2015). In order to obtain the accurate information relevance to Fruito the employees and management are needed to frame control process system. Lacks of planning processes will incorrect perception to the consumers. In a timely manner up gradation of the managing software system is not possible if required information is not available. Operational ineffectiveness and inefficiency The fruits and vegetables purchased by the local fruit shop are required to maintain the security during the ongoing process (Martin et al., 2012). Inadequate physical safeguard Temporary diversion and unauthorized services to serve the purposes will lost or damage the products. Unsafe receiving process During logistics rather import and export of the products if any accident took place then, it will harm the employees and the products also Glanz, Bader Iyer, 2012 (. Fruito will not observe the regulatory requirements. Complain on law and the regulations served by Fruito Due to lack of management availability Fruito faced penalties and fines from the government. The company will not be able to stand in front of the competitive advantages in the marketplace from the same domain. Inappropriate links and cooperation among the buyers and suppliers will put high impact on the business served by Fruito In appropriate management facilities Lack of business strategies is another risk associated with Fruito. If the strategies are not up to the mark then, the company will not be able to reach the ultimate business results (Heise, Strecker Frank, 2014). For incorrect adversarial approaches and lack of technical management the local fruit shop will lack the competitive advantages, which will affect both the suppliers and the buyers. Recommendations to internal control system that is needed to be implemented The risks that have been occurred in Fruito can be mitigated by implementing certain internal control system. Information reliability: The purchase orders are needed to be completely authorized. For all the supplied, purchased orders purchase requisition is needed to be prepared particular departments of Fruito. Before formation of the commitments, all the requisitions such as vendors, price, quality and quantity are needed to be approved (Nicolaou, Ibrahim Van Heck, 2013). In order to generate the purchase orders digital support in terms of computer and database are needed. Automatic verification system is needed to be developed during the entry of the purchase orders. Fruito must ensure that during creation of the purchase order they are using only the authorized terms. Performance measurement: In order to measure and process the performance that is based on the data gathered during transaction internal control system are implemented. It helps in time management, delivery timing. The actual process of the performance can also be periodically reviewed. In order to improve the procurement and processes different information are needed to be gathered from various resources (Tolle, 2016). Performance measurement system will give timely management and favorable cost to the consumers. The pre determined objectives of Fruito could be easily achieved. Operational effectiveness and efficiency: Periodic update of vendors and their capabilities measurement will help to improve the product line and quality as well. Specified procedures will reduce the performance related problems. Reevaluation of data is possible for alternative vendors and their decisions. Constant evaluation of the cross-functional teams becoming valid after the adaptation of the internal control system. Adequate physical safeguard: Restriction in receiving and the storage area will provide security to the entire process. The receiving and delivery will remain off if the processing is closed (Andreyeva Luedicke, 2015). During shipping of products safe shipping facilities will be available after adopting the internal control system. Unless a good business practice is facilitates, the receiving functions are keep on physically segregated. Safe receiving process: It provides completely trained employees, who are capable to inspect the entire system on regular basis. Complain on law and the regulations served by Fruito: Required laws and regulations become available after adopting this internal control system. Different processes are deployed that fulfill all the requirements. All possible future requirements such as distributive information flow, regulatory environment management can be served easily (Martin et al., 2012). Management control system is one of the most important business strategies that help to develop the relation between the suppliers and the buyers as well. Summary of the Findings for the CFO Risks Impact Control Information are not reliable It creates problem in maintain the stock of the shop effectively (Nicolaou, Ibrahim Van Heck, 2013). The data and information related with the stock can be misplaced Collecting proper Reliable information by maintaining the database Improper Performance measurement Interrupt the decision making approach of the local fruit shop Lack of planning process creates problem for the consumers (Andreyeva Luedicke, 2015) Performance measurement must be developed Operational ineffectiveness and inefficiency Causes problem in ordering and delivering items The management are unable to manage the different administrative operations effectively Security issues may arise Periodic update of vendors and their capabilities measurement helps in improving the product line as well as quality. Inadequate physical safeguard It increases the chances of product damage Improper customer satisfaction Restriction must be there in storing as well as receiving storage area. Unsafe receiving process Products gets damaged during receiving them (Heise, Strecker Frank, 2014). The fruit shop have undergo loss of revenue The receiving process must be developed by utilizing different emerging technologies. In appropriate management facilities Lack of business strategies Improper management Proper management procedure must be followed. Conclusion From the overall discussion it can be conceded that, the chief financial accountant of Fruito should adopt different internal control system to develop the business process and mitigate different risks that are continuously occurring. It has been found that, during receiving and ordering of stock Fruito is facing many risks and after adopting different internal control management system the risks can be mitigated. References Andreyeva, T., Luedicke, J. (2015). Incentivizing fruit and vegetable purchases among participants in the Special Supplemental Nutrition Program for Women, Infants, and Children.Public health nutrition,18(01), 33-41. Ayala, G. X., Baquero, B., Pickrel, J. L., Mayer, J., Belch, G., Rock, C. L., ... 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