Audit 22784

FY End
2022-06-30
Total Expended
$2.32M
Findings
8
Programs
4
Year: 2022 Accepted: 2023-01-23

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
20971 2022-004 Significant Deficiency - F
20972 2022-005 Significant Deficiency - I
20973 2022-004 Significant Deficiency - F
20974 2022-005 Significant Deficiency - I
597413 2022-004 Significant Deficiency - F
597414 2022-005 Significant Deficiency - I
597415 2022-004 Significant Deficiency - F
597416 2022-005 Significant Deficiency - I

Contacts

Name Title Type
G1PJY4ZQUN98 Leah Paley Auditee
4109234255 Jennifer Rock, CPA Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Anne Arundel County Food Bank, Inc. under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Anne Arundel County Food Bank, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Anne Arundel County Food Bank, Inc.

Finding Details

Statement of Condition: During our testing of internal control policies and procedures over equipment/real property management, we noted management had not created internal control policies and procedures to ensure the organization was in compliance with equipment/real property management. As a result, we noted that management was not properly tracking property purchased by federal grant funds per the OMB compliance requirements and the Code of Federal Regulations (2 CFR Part 200 Subpart D). Criteria: In accordance with the OMB compliance requirements and the Code of Federal Regulations (2 CFR Part 200 Subpart D), management must create and monitor internal control policies and procedures to ensure that property records are maintained for all property purchased using federal grant funds. Adequate maintenance procedures must also be developed to keep the property in good condition. In addition, a physical inventory of the property purchased by federal grant funds is required. Cause: Management did not have the proper internal control policies and procedures to monitor property purchased using federal grant funds nor did they have a proper understanding of equipment/real property management requirements. Therefore, they did not maintain an adequate listing of the property that was purchased with federal grant funds Effect: Appropriate records were not maintained for previously purchased property using federal grant funds. Recommendation: We recommend that management maintain documentation for all property purchased using federal grant funds. These records must include a description of the property, the serial number or other identification number, source of funding (including federal award identification number), who holds title, acquisition date, cost, location, use and condition of property, and any disposition data. In addition, procedures should be developed to ensure that routine maintenance is being completed on a timely basis. Documentation of this maintenance should be maintained within the property records. In addition, a physical inventory of the property purchased by federal grant funds should be performed on a routine basis and reconciled with the property records at least once every two years.
Statement of Condition: During our testing of internal control policies and procedures over procurement and suspension and debarment, we noted that management had established a formal purchasing policy, however, the policy did not address suspension and debarment and no procedures were established to ensure that purchases or subawards made under covered transactions were not made to parties that were suspended or debarred. Criteria: In accordance with the OMB compliance requirements and the Code of Federal Regulations (2 CFR 200.214), management must create and monitor internal control policies and procedures to ensure that when the organization enters into a covered transaction with a vendor or subrecipient, policies and procedures are performed to ensure that the vendor or subrecipient is not suspended or debarred or otherwise excluded from participating in the transaction. Cause: Management did not have the proper internal control policies and procedures to monitor vendors or subrecipients nor did they have a proper understanding of suspension and debarment requirements under the OMB compliance requirements and the Code of Federal Regulations (2 CFR 200.214). Effect: As a result, the client was not in compliance with the suspension and debarment attribute as required. Fortunately, no vendors utilized during the year ended June 30, 2022 were listed as suspended or debarred. Recommendation: We recommend that management develop procedures to ensure suspension and debarment procedures are performed for all new vendors and subrecipients. In addition, recurring vendors and subrecipients should be monitored annually to ensure there is no suspension or debarment of that vendor or subrecipient. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at www.sam.gov, (2) collecting a certification from the entity, or (2) adding a clause or condition to the covered transaction with that vendor or subrecipient.
Statement of Condition: During our testing of internal control policies and procedures over equipment/real property management, we noted management had not created internal control policies and procedures to ensure the organization was in compliance with equipment/real property management. As a result, we noted that management was not properly tracking property purchased by federal grant funds per the OMB compliance requirements and the Code of Federal Regulations (2 CFR Part 200 Subpart D). Criteria: In accordance with the OMB compliance requirements and the Code of Federal Regulations (2 CFR Part 200 Subpart D), management must create and monitor internal control policies and procedures to ensure that property records are maintained for all property purchased using federal grant funds. Adequate maintenance procedures must also be developed to keep the property in good condition. In addition, a physical inventory of the property purchased by federal grant funds is required. Cause: Management did not have the proper internal control policies and procedures to monitor property purchased using federal grant funds nor did they have a proper understanding of equipment/real property management requirements. Therefore, they did not maintain an adequate listing of the property that was purchased with federal grant funds Effect: Appropriate records were not maintained for previously purchased property using federal grant funds. Recommendation: We recommend that management maintain documentation for all property purchased using federal grant funds. These records must include a description of the property, the serial number or other identification number, source of funding (including federal award identification number), who holds title, acquisition date, cost, location, use and condition of property, and any disposition data. In addition, procedures should be developed to ensure that routine maintenance is being completed on a timely basis. Documentation of this maintenance should be maintained within the property records. In addition, a physical inventory of the property purchased by federal grant funds should be performed on a routine basis and reconciled with the property records at least once every two years.
Statement of Condition: During our testing of internal control policies and procedures over procurement and suspension and debarment, we noted that management had established a formal purchasing policy, however, the policy did not address suspension and debarment and no procedures were established to ensure that purchases or subawards made under covered transactions were not made to parties that were suspended or debarred. Criteria: In accordance with the OMB compliance requirements and the Code of Federal Regulations (2 CFR 200.214), management must create and monitor internal control policies and procedures to ensure that when the organization enters into a covered transaction with a vendor or subrecipient, policies and procedures are performed to ensure that the vendor or subrecipient is not suspended or debarred or otherwise excluded from participating in the transaction. Cause: Management did not have the proper internal control policies and procedures to monitor vendors or subrecipients nor did they have a proper understanding of suspension and debarment requirements under the OMB compliance requirements and the Code of Federal Regulations (2 CFR 200.214). Effect: As a result, the client was not in compliance with the suspension and debarment attribute as required. Fortunately, no vendors utilized during the year ended June 30, 2022 were listed as suspended or debarred. Recommendation: We recommend that management develop procedures to ensure suspension and debarment procedures are performed for all new vendors and subrecipients. In addition, recurring vendors and subrecipients should be monitored annually to ensure there is no suspension or debarment of that vendor or subrecipient. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at www.sam.gov, (2) collecting a certification from the entity, or (2) adding a clause or condition to the covered transaction with that vendor or subrecipient.
Statement of Condition: During our testing of internal control policies and procedures over equipment/real property management, we noted management had not created internal control policies and procedures to ensure the organization was in compliance with equipment/real property management. As a result, we noted that management was not properly tracking property purchased by federal grant funds per the OMB compliance requirements and the Code of Federal Regulations (2 CFR Part 200 Subpart D). Criteria: In accordance with the OMB compliance requirements and the Code of Federal Regulations (2 CFR Part 200 Subpart D), management must create and monitor internal control policies and procedures to ensure that property records are maintained for all property purchased using federal grant funds. Adequate maintenance procedures must also be developed to keep the property in good condition. In addition, a physical inventory of the property purchased by federal grant funds is required. Cause: Management did not have the proper internal control policies and procedures to monitor property purchased using federal grant funds nor did they have a proper understanding of equipment/real property management requirements. Therefore, they did not maintain an adequate listing of the property that was purchased with federal grant funds Effect: Appropriate records were not maintained for previously purchased property using federal grant funds. Recommendation: We recommend that management maintain documentation for all property purchased using federal grant funds. These records must include a description of the property, the serial number or other identification number, source of funding (including federal award identification number), who holds title, acquisition date, cost, location, use and condition of property, and any disposition data. In addition, procedures should be developed to ensure that routine maintenance is being completed on a timely basis. Documentation of this maintenance should be maintained within the property records. In addition, a physical inventory of the property purchased by federal grant funds should be performed on a routine basis and reconciled with the property records at least once every two years.
Statement of Condition: During our testing of internal control policies and procedures over procurement and suspension and debarment, we noted that management had established a formal purchasing policy, however, the policy did not address suspension and debarment and no procedures were established to ensure that purchases or subawards made under covered transactions were not made to parties that were suspended or debarred. Criteria: In accordance with the OMB compliance requirements and the Code of Federal Regulations (2 CFR 200.214), management must create and monitor internal control policies and procedures to ensure that when the organization enters into a covered transaction with a vendor or subrecipient, policies and procedures are performed to ensure that the vendor or subrecipient is not suspended or debarred or otherwise excluded from participating in the transaction. Cause: Management did not have the proper internal control policies and procedures to monitor vendors or subrecipients nor did they have a proper understanding of suspension and debarment requirements under the OMB compliance requirements and the Code of Federal Regulations (2 CFR 200.214). Effect: As a result, the client was not in compliance with the suspension and debarment attribute as required. Fortunately, no vendors utilized during the year ended June 30, 2022 were listed as suspended or debarred. Recommendation: We recommend that management develop procedures to ensure suspension and debarment procedures are performed for all new vendors and subrecipients. In addition, recurring vendors and subrecipients should be monitored annually to ensure there is no suspension or debarment of that vendor or subrecipient. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at www.sam.gov, (2) collecting a certification from the entity, or (2) adding a clause or condition to the covered transaction with that vendor or subrecipient.
Statement of Condition: During our testing of internal control policies and procedures over equipment/real property management, we noted management had not created internal control policies and procedures to ensure the organization was in compliance with equipment/real property management. As a result, we noted that management was not properly tracking property purchased by federal grant funds per the OMB compliance requirements and the Code of Federal Regulations (2 CFR Part 200 Subpart D). Criteria: In accordance with the OMB compliance requirements and the Code of Federal Regulations (2 CFR Part 200 Subpart D), management must create and monitor internal control policies and procedures to ensure that property records are maintained for all property purchased using federal grant funds. Adequate maintenance procedures must also be developed to keep the property in good condition. In addition, a physical inventory of the property purchased by federal grant funds is required. Cause: Management did not have the proper internal control policies and procedures to monitor property purchased using federal grant funds nor did they have a proper understanding of equipment/real property management requirements. Therefore, they did not maintain an adequate listing of the property that was purchased with federal grant funds Effect: Appropriate records were not maintained for previously purchased property using federal grant funds. Recommendation: We recommend that management maintain documentation for all property purchased using federal grant funds. These records must include a description of the property, the serial number or other identification number, source of funding (including federal award identification number), who holds title, acquisition date, cost, location, use and condition of property, and any disposition data. In addition, procedures should be developed to ensure that routine maintenance is being completed on a timely basis. Documentation of this maintenance should be maintained within the property records. In addition, a physical inventory of the property purchased by federal grant funds should be performed on a routine basis and reconciled with the property records at least once every two years.
Statement of Condition: During our testing of internal control policies and procedures over procurement and suspension and debarment, we noted that management had established a formal purchasing policy, however, the policy did not address suspension and debarment and no procedures were established to ensure that purchases or subawards made under covered transactions were not made to parties that were suspended or debarred. Criteria: In accordance with the OMB compliance requirements and the Code of Federal Regulations (2 CFR 200.214), management must create and monitor internal control policies and procedures to ensure that when the organization enters into a covered transaction with a vendor or subrecipient, policies and procedures are performed to ensure that the vendor or subrecipient is not suspended or debarred or otherwise excluded from participating in the transaction. Cause: Management did not have the proper internal control policies and procedures to monitor vendors or subrecipients nor did they have a proper understanding of suspension and debarment requirements under the OMB compliance requirements and the Code of Federal Regulations (2 CFR 200.214). Effect: As a result, the client was not in compliance with the suspension and debarment attribute as required. Fortunately, no vendors utilized during the year ended June 30, 2022 were listed as suspended or debarred. Recommendation: We recommend that management develop procedures to ensure suspension and debarment procedures are performed for all new vendors and subrecipients. In addition, recurring vendors and subrecipients should be monitored annually to ensure there is no suspension or debarment of that vendor or subrecipient. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at www.sam.gov, (2) collecting a certification from the entity, or (2) adding a clause or condition to the covered transaction with that vendor or subrecipient.