Audit 22864

FY End
2022-06-30
Total Expended
$22.24M
Findings
18
Programs
5
Organization: Food Lifeline (WA)
Year: 2022 Accepted: 2023-03-30
Auditor: Bdo USA LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
26084 2022-002 Material Weakness - E
26085 2022-002 Material Weakness - E
26086 2022-002 Material Weakness - E
26087 2022-002 Material Weakness - E
26088 2022-002 Material Weakness - E
26089 2022-002 Material Weakness - E
26090 2022-003 Material Weakness - I
26091 2022-003 Material Weakness - I
26092 2022-003 Material Weakness - I
602526 2022-002 Material Weakness - E
602527 2022-002 Material Weakness - E
602528 2022-002 Material Weakness - E
602529 2022-002 Material Weakness - E
602530 2022-002 Material Weakness - E
602531 2022-002 Material Weakness - E
602532 2022-003 Material Weakness - I
602533 2022-003 Material Weakness - I
602534 2022-003 Material Weakness - I

Contacts

Name Title Type
MZDTD2GWJUR9 Samantha Franklin Auditee
2064323601 Michaela Kay 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.Pass through entity identifying numbers are presented, when available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Food Lifeline and Food Lifeline Foundation (collectively, the Organization) under programs of the federal government for the year ended June 30, 2022. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administration Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.
Title: Food Distribution 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.Pass through entity identifying numbers are presented, when available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Nonmonetary assistance is reported in the Schedule at the fair value of the commodities received and disbursed. At June 30, 2022, the Organization had $605,179 of food commodities in inventory relating to The Emergency Food Assistance Program

Finding Details

Federal Agencies: Department of Agriculture Federal Assistance Listing Numbers: 10.568, 10.569 Program or Cluster: COVID-19 Food Distribution Cluster Pass-Through Entity Identifying Numbers: K2770 Criteria: 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal controls over federal awards that provide reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Additionally, Part 6 of the Compliance Supplement states that the Organization should have controls in place to ensure that the accuracy and completeness of data used to determine eligibility requirements are reviewed and agreed to support as necessary by staff and are reviewed by a knowledgeable supervisor. Condition: These activities were temporarily suspended during the COVID-19 pandemic; however the eligibility requirements resumed during the year ended June 30, 2022. The Organization did not resume eligibility verifications when the requirements were reinstated. A risk assessment spreadsheet is maintained and submitted to the funder annually, which details if subrecipients meet the required eligibility criteria. However, the Organization does not have controls in place to review these eligibility determinations to verify that they are complete and correct. Cause: There has been turnover in management personnel for the program and management did not know the requirements for subrecipient eligibility verifications had been reinstated. Effect or Potential Effect: There is a reasonable possibility that resources were provided to subrecipients who were not eligible. The Organization does not have the documentation to verify that eligibility procedures performed over prospective subrecipients occurred. Questioned Costs: Unknown Recommendation: Additional internal controls should be implemented to ensure that certifications are performed over all prospective subrecipients, and documentation is maintained and reviewed by an appropriate member of management. Appropriate personnel should also have adequate training related to eligibility compliance requirements and changes in program requirements. Views of Responsible Officials: Management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.
Federal Agencies: Department of Agriculture Federal Assistance Listing Numbers: 10.568, 10.569 Program or Cluster: COVID-19 Food Distribution Cluster Pass-Through Entity Identifying Numbers: K2770 Criteria: 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal controls over federal awards that provide reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Additionally, Part 6 of the Compliance Supplement states that the Organization should have controls in place to ensure that the accuracy and completeness of data used to determine eligibility requirements are reviewed and agreed to support as necessary by staff and are reviewed by a knowledgeable supervisor. Condition: These activities were temporarily suspended during the COVID-19 pandemic; however the eligibility requirements resumed during the year ended June 30, 2022. The Organization did not resume eligibility verifications when the requirements were reinstated. A risk assessment spreadsheet is maintained and submitted to the funder annually, which details if subrecipients meet the required eligibility criteria. However, the Organization does not have controls in place to review these eligibility determinations to verify that they are complete and correct. Cause: There has been turnover in management personnel for the program and management did not know the requirements for subrecipient eligibility verifications had been reinstated. Effect or Potential Effect: There is a reasonable possibility that resources were provided to subrecipients who were not eligible. The Organization does not have the documentation to verify that eligibility procedures performed over prospective subrecipients occurred. Questioned Costs: Unknown Recommendation: Additional internal controls should be implemented to ensure that certifications are performed over all prospective subrecipients, and documentation is maintained and reviewed by an appropriate member of management. Appropriate personnel should also have adequate training related to eligibility compliance requirements and changes in program requirements. Views of Responsible Officials: Management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.
Federal Agencies: Department of Agriculture Federal Assistance Listing Numbers: 10.568, 10.569 Program or Cluster: COVID-19 Food Distribution Cluster Pass-Through Entity Identifying Numbers: K2770 Criteria: 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal controls over federal awards that provide reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Additionally, Part 6 of the Compliance Supplement states that the Organization should have controls in place to ensure that the accuracy and completeness of data used to determine eligibility requirements are reviewed and agreed to support as necessary by staff and are reviewed by a knowledgeable supervisor. Condition: These activities were temporarily suspended during the COVID-19 pandemic; however the eligibility requirements resumed during the year ended June 30, 2022. The Organization did not resume eligibility verifications when the requirements were reinstated. A risk assessment spreadsheet is maintained and submitted to the funder annually, which details if subrecipients meet the required eligibility criteria. However, the Organization does not have controls in place to review these eligibility determinations to verify that they are complete and correct. Cause: There has been turnover in management personnel for the program and management did not know the requirements for subrecipient eligibility verifications had been reinstated. Effect or Potential Effect: There is a reasonable possibility that resources were provided to subrecipients who were not eligible. The Organization does not have the documentation to verify that eligibility procedures performed over prospective subrecipients occurred. Questioned Costs: Unknown Recommendation: Additional internal controls should be implemented to ensure that certifications are performed over all prospective subrecipients, and documentation is maintained and reviewed by an appropriate member of management. Appropriate personnel should also have adequate training related to eligibility compliance requirements and changes in program requirements. Views of Responsible Officials: Management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.
Federal Agencies: Department of Agriculture Federal Assistance Listing Numbers: 10.568, 10.569 Program or Cluster: COVID-19 Food Distribution Cluster Pass-Through Entity Identifying Numbers: K2770 Criteria: 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal controls over federal awards that provide reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Additionally, Part 6 of the Compliance Supplement states that the Organization should have controls in place to ensure that the accuracy and completeness of data used to determine eligibility requirements are reviewed and agreed to support as necessary by staff and are reviewed by a knowledgeable supervisor. Condition: These activities were temporarily suspended during the COVID-19 pandemic; however the eligibility requirements resumed during the year ended June 30, 2022. The Organization did not resume eligibility verifications when the requirements were reinstated. A risk assessment spreadsheet is maintained and submitted to the funder annually, which details if subrecipients meet the required eligibility criteria. However, the Organization does not have controls in place to review these eligibility determinations to verify that they are complete and correct. Cause: There has been turnover in management personnel for the program and management did not know the requirements for subrecipient eligibility verifications had been reinstated. Effect or Potential Effect: There is a reasonable possibility that resources were provided to subrecipients who were not eligible. The Organization does not have the documentation to verify that eligibility procedures performed over prospective subrecipients occurred. Questioned Costs: Unknown Recommendation: Additional internal controls should be implemented to ensure that certifications are performed over all prospective subrecipients, and documentation is maintained and reviewed by an appropriate member of management. Appropriate personnel should also have adequate training related to eligibility compliance requirements and changes in program requirements. Views of Responsible Officials: Management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.
Federal Agencies: Department of Agriculture Federal Assistance Listing Numbers: 10.568, 10.569 Program or Cluster: COVID-19 Food Distribution Cluster Pass-Through Entity Identifying Numbers: K2770 Criteria: 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal controls over federal awards that provide reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Additionally, Part 6 of the Compliance Supplement states that the Organization should have controls in place to ensure that the accuracy and completeness of data used to determine eligibility requirements are reviewed and agreed to support as necessary by staff and are reviewed by a knowledgeable supervisor. Condition: These activities were temporarily suspended during the COVID-19 pandemic; however the eligibility requirements resumed during the year ended June 30, 2022. The Organization did not resume eligibility verifications when the requirements were reinstated. A risk assessment spreadsheet is maintained and submitted to the funder annually, which details if subrecipients meet the required eligibility criteria. However, the Organization does not have controls in place to review these eligibility determinations to verify that they are complete and correct. Cause: There has been turnover in management personnel for the program and management did not know the requirements for subrecipient eligibility verifications had been reinstated. Effect or Potential Effect: There is a reasonable possibility that resources were provided to subrecipients who were not eligible. The Organization does not have the documentation to verify that eligibility procedures performed over prospective subrecipients occurred. Questioned Costs: Unknown Recommendation: Additional internal controls should be implemented to ensure that certifications are performed over all prospective subrecipients, and documentation is maintained and reviewed by an appropriate member of management. Appropriate personnel should also have adequate training related to eligibility compliance requirements and changes in program requirements. Views of Responsible Officials: Management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.
Federal Agencies: Department of Agriculture Federal Assistance Listing Numbers: 10.568, 10.569 Program or Cluster: COVID-19 Food Distribution Cluster Pass-Through Entity Identifying Numbers: K2770 Criteria: 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal controls over federal awards that provide reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Additionally, Part 6 of the Compliance Supplement states that the Organization should have controls in place to ensure that the accuracy and completeness of data used to determine eligibility requirements are reviewed and agreed to support as necessary by staff and are reviewed by a knowledgeable supervisor. Condition: These activities were temporarily suspended during the COVID-19 pandemic; however the eligibility requirements resumed during the year ended June 30, 2022. The Organization did not resume eligibility verifications when the requirements were reinstated. A risk assessment spreadsheet is maintained and submitted to the funder annually, which details if subrecipients meet the required eligibility criteria. However, the Organization does not have controls in place to review these eligibility determinations to verify that they are complete and correct. Cause: There has been turnover in management personnel for the program and management did not know the requirements for subrecipient eligibility verifications had been reinstated. Effect or Potential Effect: There is a reasonable possibility that resources were provided to subrecipients who were not eligible. The Organization does not have the documentation to verify that eligibility procedures performed over prospective subrecipients occurred. Questioned Costs: Unknown Recommendation: Additional internal controls should be implemented to ensure that certifications are performed over all prospective subrecipients, and documentation is maintained and reviewed by an appropriate member of management. Appropriate personnel should also have adequate training related to eligibility compliance requirements and changes in program requirements. Views of Responsible Officials: Management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.
Federal Agencies: Department of the Treasury Federal Assistance Listing Numbers: 21.027 Program or Cluster: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Pass-Through Entity Identifying Numbers: K3524, K3633 Criteria: In accordance with ?200.318, the non-federal entity must use its own documented procurement procedures which reflect applicable laws and regulations, provided that the procurements conform to applicable federal law and the standards identified. Additionally, the nonfederal entity must maintain records sufficient to detail the history of the procurement. These records are required to include but are not necessarily limited to the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. All procurement transactions must be conducted in in accordance with ?200.317 through ?200.327. In accordance with ?200.214 non-federal entities cannot enter into awards, subawards, or contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in federal assistance programs or activities. Non-federal entities must either check for exclusions in the System for Award Management (SAM); collect a certification from the entity or add a clause or condition to the covered transaction with the entity prior to entering into a covered transaction with a non-federal entity. Condition: The Organization has a policy outlining procurement and suspension and debarment procedures. The Organization also has standard forms in place guiding purchasing decisions. However, those forms lack elements that prompt staff to perform and document procurement and suspension and debarment procedures. The Organization did not maintain adequate documentation that procurement practices were performed in accordance with the Uniform Grant Guidance requirements. The Organization also did not perform or document suspension and debarment checks on prospective vendors and subrecipients. Cause: The Organization?s personnel did not adhere to the documented policies and procedures for ensuring complete documentation of the history of the procurement and the Organization did not have adequate internal controls in place to identify the need to ensure a check for suspended or debarred vendors on contractors occurred and was documented prior to entering into those agreements. Effect: Failure to maintain proper documentation for vendor selection process and failure to obtain vendor solicitation for procurements is noncompliance with Federal regulations. There is a reasonable possibility that resources were purchased from vendors and/or passed through to subrecipients who were suspended and/or debarred. Questioned Costs: Unknown Recommendation: Standard forms should be updated to incorporate procurement and suspension and debarment criteria for both vendors and subrecipients. Controls should be implemented to ensure that the procurement decisions and suspension and debarment checks are reviewed by an appropriate member of management and are properly stored for future reference. Views of Responsible Officials: Management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.
Federal Agencies: Department of the Treasury Federal Assistance Listing Numbers: 21.027 Program or Cluster: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Pass-Through Entity Identifying Numbers: K3524, K3633 Criteria: In accordance with ?200.318, the non-federal entity must use its own documented procurement procedures which reflect applicable laws and regulations, provided that the procurements conform to applicable federal law and the standards identified. Additionally, the nonfederal entity must maintain records sufficient to detail the history of the procurement. These records are required to include but are not necessarily limited to the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. All procurement transactions must be conducted in in accordance with ?200.317 through ?200.327. In accordance with ?200.214 non-federal entities cannot enter into awards, subawards, or contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in federal assistance programs or activities. Non-federal entities must either check for exclusions in the System for Award Management (SAM); collect a certification from the entity or add a clause or condition to the covered transaction with the entity prior to entering into a covered transaction with a non-federal entity. Condition: The Organization has a policy outlining procurement and suspension and debarment procedures. The Organization also has standard forms in place guiding purchasing decisions. However, those forms lack elements that prompt staff to perform and document procurement and suspension and debarment procedures. The Organization did not maintain adequate documentation that procurement practices were performed in accordance with the Uniform Grant Guidance requirements. The Organization also did not perform or document suspension and debarment checks on prospective vendors and subrecipients. Cause: The Organization?s personnel did not adhere to the documented policies and procedures for ensuring complete documentation of the history of the procurement and the Organization did not have adequate internal controls in place to identify the need to ensure a check for suspended or debarred vendors on contractors occurred and was documented prior to entering into those agreements. Effect: Failure to maintain proper documentation for vendor selection process and failure to obtain vendor solicitation for procurements is noncompliance with Federal regulations. There is a reasonable possibility that resources were purchased from vendors and/or passed through to subrecipients who were suspended and/or debarred. Questioned Costs: Unknown Recommendation: Standard forms should be updated to incorporate procurement and suspension and debarment criteria for both vendors and subrecipients. Controls should be implemented to ensure that the procurement decisions and suspension and debarment checks are reviewed by an appropriate member of management and are properly stored for future reference. Views of Responsible Officials: Management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.
Federal Agencies: Department of the Treasury Federal Assistance Listing Numbers: 21.027 Program or Cluster: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Pass-Through Entity Identifying Numbers: K3524, K3633 Criteria: In accordance with ?200.318, the non-federal entity must use its own documented procurement procedures which reflect applicable laws and regulations, provided that the procurements conform to applicable federal law and the standards identified. Additionally, the nonfederal entity must maintain records sufficient to detail the history of the procurement. These records are required to include but are not necessarily limited to the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. All procurement transactions must be conducted in in accordance with ?200.317 through ?200.327. In accordance with ?200.214 non-federal entities cannot enter into awards, subawards, or contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in federal assistance programs or activities. Non-federal entities must either check for exclusions in the System for Award Management (SAM); collect a certification from the entity or add a clause or condition to the covered transaction with the entity prior to entering into a covered transaction with a non-federal entity. Condition: The Organization has a policy outlining procurement and suspension and debarment procedures. The Organization also has standard forms in place guiding purchasing decisions. However, those forms lack elements that prompt staff to perform and document procurement and suspension and debarment procedures. The Organization did not maintain adequate documentation that procurement practices were performed in accordance with the Uniform Grant Guidance requirements. The Organization also did not perform or document suspension and debarment checks on prospective vendors and subrecipients. Cause: The Organization?s personnel did not adhere to the documented policies and procedures for ensuring complete documentation of the history of the procurement and the Organization did not have adequate internal controls in place to identify the need to ensure a check for suspended or debarred vendors on contractors occurred and was documented prior to entering into those agreements. Effect: Failure to maintain proper documentation for vendor selection process and failure to obtain vendor solicitation for procurements is noncompliance with Federal regulations. There is a reasonable possibility that resources were purchased from vendors and/or passed through to subrecipients who were suspended and/or debarred. Questioned Costs: Unknown Recommendation: Standard forms should be updated to incorporate procurement and suspension and debarment criteria for both vendors and subrecipients. Controls should be implemented to ensure that the procurement decisions and suspension and debarment checks are reviewed by an appropriate member of management and are properly stored for future reference. Views of Responsible Officials: Management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.
Federal Agencies: Department of Agriculture Federal Assistance Listing Numbers: 10.568, 10.569 Program or Cluster: COVID-19 Food Distribution Cluster Pass-Through Entity Identifying Numbers: K2770 Criteria: 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal controls over federal awards that provide reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Additionally, Part 6 of the Compliance Supplement states that the Organization should have controls in place to ensure that the accuracy and completeness of data used to determine eligibility requirements are reviewed and agreed to support as necessary by staff and are reviewed by a knowledgeable supervisor. Condition: These activities were temporarily suspended during the COVID-19 pandemic; however the eligibility requirements resumed during the year ended June 30, 2022. The Organization did not resume eligibility verifications when the requirements were reinstated. A risk assessment spreadsheet is maintained and submitted to the funder annually, which details if subrecipients meet the required eligibility criteria. However, the Organization does not have controls in place to review these eligibility determinations to verify that they are complete and correct. Cause: There has been turnover in management personnel for the program and management did not know the requirements for subrecipient eligibility verifications had been reinstated. Effect or Potential Effect: There is a reasonable possibility that resources were provided to subrecipients who were not eligible. The Organization does not have the documentation to verify that eligibility procedures performed over prospective subrecipients occurred. Questioned Costs: Unknown Recommendation: Additional internal controls should be implemented to ensure that certifications are performed over all prospective subrecipients, and documentation is maintained and reviewed by an appropriate member of management. Appropriate personnel should also have adequate training related to eligibility compliance requirements and changes in program requirements. Views of Responsible Officials: Management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.
Federal Agencies: Department of Agriculture Federal Assistance Listing Numbers: 10.568, 10.569 Program or Cluster: COVID-19 Food Distribution Cluster Pass-Through Entity Identifying Numbers: K2770 Criteria: 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal controls over federal awards that provide reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Additionally, Part 6 of the Compliance Supplement states that the Organization should have controls in place to ensure that the accuracy and completeness of data used to determine eligibility requirements are reviewed and agreed to support as necessary by staff and are reviewed by a knowledgeable supervisor. Condition: These activities were temporarily suspended during the COVID-19 pandemic; however the eligibility requirements resumed during the year ended June 30, 2022. The Organization did not resume eligibility verifications when the requirements were reinstated. A risk assessment spreadsheet is maintained and submitted to the funder annually, which details if subrecipients meet the required eligibility criteria. However, the Organization does not have controls in place to review these eligibility determinations to verify that they are complete and correct. Cause: There has been turnover in management personnel for the program and management did not know the requirements for subrecipient eligibility verifications had been reinstated. Effect or Potential Effect: There is a reasonable possibility that resources were provided to subrecipients who were not eligible. The Organization does not have the documentation to verify that eligibility procedures performed over prospective subrecipients occurred. Questioned Costs: Unknown Recommendation: Additional internal controls should be implemented to ensure that certifications are performed over all prospective subrecipients, and documentation is maintained and reviewed by an appropriate member of management. Appropriate personnel should also have adequate training related to eligibility compliance requirements and changes in program requirements. Views of Responsible Officials: Management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.
Federal Agencies: Department of Agriculture Federal Assistance Listing Numbers: 10.568, 10.569 Program or Cluster: COVID-19 Food Distribution Cluster Pass-Through Entity Identifying Numbers: K2770 Criteria: 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal controls over federal awards that provide reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Additionally, Part 6 of the Compliance Supplement states that the Organization should have controls in place to ensure that the accuracy and completeness of data used to determine eligibility requirements are reviewed and agreed to support as necessary by staff and are reviewed by a knowledgeable supervisor. Condition: These activities were temporarily suspended during the COVID-19 pandemic; however the eligibility requirements resumed during the year ended June 30, 2022. The Organization did not resume eligibility verifications when the requirements were reinstated. A risk assessment spreadsheet is maintained and submitted to the funder annually, which details if subrecipients meet the required eligibility criteria. However, the Organization does not have controls in place to review these eligibility determinations to verify that they are complete and correct. Cause: There has been turnover in management personnel for the program and management did not know the requirements for subrecipient eligibility verifications had been reinstated. Effect or Potential Effect: There is a reasonable possibility that resources were provided to subrecipients who were not eligible. The Organization does not have the documentation to verify that eligibility procedures performed over prospective subrecipients occurred. Questioned Costs: Unknown Recommendation: Additional internal controls should be implemented to ensure that certifications are performed over all prospective subrecipients, and documentation is maintained and reviewed by an appropriate member of management. Appropriate personnel should also have adequate training related to eligibility compliance requirements and changes in program requirements. Views of Responsible Officials: Management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.
Federal Agencies: Department of Agriculture Federal Assistance Listing Numbers: 10.568, 10.569 Program or Cluster: COVID-19 Food Distribution Cluster Pass-Through Entity Identifying Numbers: K2770 Criteria: 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal controls over federal awards that provide reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Additionally, Part 6 of the Compliance Supplement states that the Organization should have controls in place to ensure that the accuracy and completeness of data used to determine eligibility requirements are reviewed and agreed to support as necessary by staff and are reviewed by a knowledgeable supervisor. Condition: These activities were temporarily suspended during the COVID-19 pandemic; however the eligibility requirements resumed during the year ended June 30, 2022. The Organization did not resume eligibility verifications when the requirements were reinstated. A risk assessment spreadsheet is maintained and submitted to the funder annually, which details if subrecipients meet the required eligibility criteria. However, the Organization does not have controls in place to review these eligibility determinations to verify that they are complete and correct. Cause: There has been turnover in management personnel for the program and management did not know the requirements for subrecipient eligibility verifications had been reinstated. Effect or Potential Effect: There is a reasonable possibility that resources were provided to subrecipients who were not eligible. The Organization does not have the documentation to verify that eligibility procedures performed over prospective subrecipients occurred. Questioned Costs: Unknown Recommendation: Additional internal controls should be implemented to ensure that certifications are performed over all prospective subrecipients, and documentation is maintained and reviewed by an appropriate member of management. Appropriate personnel should also have adequate training related to eligibility compliance requirements and changes in program requirements. Views of Responsible Officials: Management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.
Federal Agencies: Department of Agriculture Federal Assistance Listing Numbers: 10.568, 10.569 Program or Cluster: COVID-19 Food Distribution Cluster Pass-Through Entity Identifying Numbers: K2770 Criteria: 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal controls over federal awards that provide reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Additionally, Part 6 of the Compliance Supplement states that the Organization should have controls in place to ensure that the accuracy and completeness of data used to determine eligibility requirements are reviewed and agreed to support as necessary by staff and are reviewed by a knowledgeable supervisor. Condition: These activities were temporarily suspended during the COVID-19 pandemic; however the eligibility requirements resumed during the year ended June 30, 2022. The Organization did not resume eligibility verifications when the requirements were reinstated. A risk assessment spreadsheet is maintained and submitted to the funder annually, which details if subrecipients meet the required eligibility criteria. However, the Organization does not have controls in place to review these eligibility determinations to verify that they are complete and correct. Cause: There has been turnover in management personnel for the program and management did not know the requirements for subrecipient eligibility verifications had been reinstated. Effect or Potential Effect: There is a reasonable possibility that resources were provided to subrecipients who were not eligible. The Organization does not have the documentation to verify that eligibility procedures performed over prospective subrecipients occurred. Questioned Costs: Unknown Recommendation: Additional internal controls should be implemented to ensure that certifications are performed over all prospective subrecipients, and documentation is maintained and reviewed by an appropriate member of management. Appropriate personnel should also have adequate training related to eligibility compliance requirements and changes in program requirements. Views of Responsible Officials: Management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.
Federal Agencies: Department of Agriculture Federal Assistance Listing Numbers: 10.568, 10.569 Program or Cluster: COVID-19 Food Distribution Cluster Pass-Through Entity Identifying Numbers: K2770 Criteria: 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal controls over federal awards that provide reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Additionally, Part 6 of the Compliance Supplement states that the Organization should have controls in place to ensure that the accuracy and completeness of data used to determine eligibility requirements are reviewed and agreed to support as necessary by staff and are reviewed by a knowledgeable supervisor. Condition: These activities were temporarily suspended during the COVID-19 pandemic; however the eligibility requirements resumed during the year ended June 30, 2022. The Organization did not resume eligibility verifications when the requirements were reinstated. A risk assessment spreadsheet is maintained and submitted to the funder annually, which details if subrecipients meet the required eligibility criteria. However, the Organization does not have controls in place to review these eligibility determinations to verify that they are complete and correct. Cause: There has been turnover in management personnel for the program and management did not know the requirements for subrecipient eligibility verifications had been reinstated. Effect or Potential Effect: There is a reasonable possibility that resources were provided to subrecipients who were not eligible. The Organization does not have the documentation to verify that eligibility procedures performed over prospective subrecipients occurred. Questioned Costs: Unknown Recommendation: Additional internal controls should be implemented to ensure that certifications are performed over all prospective subrecipients, and documentation is maintained and reviewed by an appropriate member of management. Appropriate personnel should also have adequate training related to eligibility compliance requirements and changes in program requirements. Views of Responsible Officials: Management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.
Federal Agencies: Department of the Treasury Federal Assistance Listing Numbers: 21.027 Program or Cluster: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Pass-Through Entity Identifying Numbers: K3524, K3633 Criteria: In accordance with ?200.318, the non-federal entity must use its own documented procurement procedures which reflect applicable laws and regulations, provided that the procurements conform to applicable federal law and the standards identified. Additionally, the nonfederal entity must maintain records sufficient to detail the history of the procurement. These records are required to include but are not necessarily limited to the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. All procurement transactions must be conducted in in accordance with ?200.317 through ?200.327. In accordance with ?200.214 non-federal entities cannot enter into awards, subawards, or contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in federal assistance programs or activities. Non-federal entities must either check for exclusions in the System for Award Management (SAM); collect a certification from the entity or add a clause or condition to the covered transaction with the entity prior to entering into a covered transaction with a non-federal entity. Condition: The Organization has a policy outlining procurement and suspension and debarment procedures. The Organization also has standard forms in place guiding purchasing decisions. However, those forms lack elements that prompt staff to perform and document procurement and suspension and debarment procedures. The Organization did not maintain adequate documentation that procurement practices were performed in accordance with the Uniform Grant Guidance requirements. The Organization also did not perform or document suspension and debarment checks on prospective vendors and subrecipients. Cause: The Organization?s personnel did not adhere to the documented policies and procedures for ensuring complete documentation of the history of the procurement and the Organization did not have adequate internal controls in place to identify the need to ensure a check for suspended or debarred vendors on contractors occurred and was documented prior to entering into those agreements. Effect: Failure to maintain proper documentation for vendor selection process and failure to obtain vendor solicitation for procurements is noncompliance with Federal regulations. There is a reasonable possibility that resources were purchased from vendors and/or passed through to subrecipients who were suspended and/or debarred. Questioned Costs: Unknown Recommendation: Standard forms should be updated to incorporate procurement and suspension and debarment criteria for both vendors and subrecipients. Controls should be implemented to ensure that the procurement decisions and suspension and debarment checks are reviewed by an appropriate member of management and are properly stored for future reference. Views of Responsible Officials: Management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.
Federal Agencies: Department of the Treasury Federal Assistance Listing Numbers: 21.027 Program or Cluster: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Pass-Through Entity Identifying Numbers: K3524, K3633 Criteria: In accordance with ?200.318, the non-federal entity must use its own documented procurement procedures which reflect applicable laws and regulations, provided that the procurements conform to applicable federal law and the standards identified. Additionally, the nonfederal entity must maintain records sufficient to detail the history of the procurement. These records are required to include but are not necessarily limited to the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. All procurement transactions must be conducted in in accordance with ?200.317 through ?200.327. In accordance with ?200.214 non-federal entities cannot enter into awards, subawards, or contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in federal assistance programs or activities. Non-federal entities must either check for exclusions in the System for Award Management (SAM); collect a certification from the entity or add a clause or condition to the covered transaction with the entity prior to entering into a covered transaction with a non-federal entity. Condition: The Organization has a policy outlining procurement and suspension and debarment procedures. The Organization also has standard forms in place guiding purchasing decisions. However, those forms lack elements that prompt staff to perform and document procurement and suspension and debarment procedures. The Organization did not maintain adequate documentation that procurement practices were performed in accordance with the Uniform Grant Guidance requirements. The Organization also did not perform or document suspension and debarment checks on prospective vendors and subrecipients. Cause: The Organization?s personnel did not adhere to the documented policies and procedures for ensuring complete documentation of the history of the procurement and the Organization did not have adequate internal controls in place to identify the need to ensure a check for suspended or debarred vendors on contractors occurred and was documented prior to entering into those agreements. Effect: Failure to maintain proper documentation for vendor selection process and failure to obtain vendor solicitation for procurements is noncompliance with Federal regulations. There is a reasonable possibility that resources were purchased from vendors and/or passed through to subrecipients who were suspended and/or debarred. Questioned Costs: Unknown Recommendation: Standard forms should be updated to incorporate procurement and suspension and debarment criteria for both vendors and subrecipients. Controls should be implemented to ensure that the procurement decisions and suspension and debarment checks are reviewed by an appropriate member of management and are properly stored for future reference. Views of Responsible Officials: Management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.
Federal Agencies: Department of the Treasury Federal Assistance Listing Numbers: 21.027 Program or Cluster: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Pass-Through Entity Identifying Numbers: K3524, K3633 Criteria: In accordance with ?200.318, the non-federal entity must use its own documented procurement procedures which reflect applicable laws and regulations, provided that the procurements conform to applicable federal law and the standards identified. Additionally, the nonfederal entity must maintain records sufficient to detail the history of the procurement. These records are required to include but are not necessarily limited to the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. All procurement transactions must be conducted in in accordance with ?200.317 through ?200.327. In accordance with ?200.214 non-federal entities cannot enter into awards, subawards, or contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in federal assistance programs or activities. Non-federal entities must either check for exclusions in the System for Award Management (SAM); collect a certification from the entity or add a clause or condition to the covered transaction with the entity prior to entering into a covered transaction with a non-federal entity. Condition: The Organization has a policy outlining procurement and suspension and debarment procedures. The Organization also has standard forms in place guiding purchasing decisions. However, those forms lack elements that prompt staff to perform and document procurement and suspension and debarment procedures. The Organization did not maintain adequate documentation that procurement practices were performed in accordance with the Uniform Grant Guidance requirements. The Organization also did not perform or document suspension and debarment checks on prospective vendors and subrecipients. Cause: The Organization?s personnel did not adhere to the documented policies and procedures for ensuring complete documentation of the history of the procurement and the Organization did not have adequate internal controls in place to identify the need to ensure a check for suspended or debarred vendors on contractors occurred and was documented prior to entering into those agreements. Effect: Failure to maintain proper documentation for vendor selection process and failure to obtain vendor solicitation for procurements is noncompliance with Federal regulations. There is a reasonable possibility that resources were purchased from vendors and/or passed through to subrecipients who were suspended and/or debarred. Questioned Costs: Unknown Recommendation: Standard forms should be updated to incorporate procurement and suspension and debarment criteria for both vendors and subrecipients. Controls should be implemented to ensure that the procurement decisions and suspension and debarment checks are reviewed by an appropriate member of management and are properly stored for future reference. Views of Responsible Officials: Management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.