Audit 364728

U.S. Department of Agriculture Passed through the Alabama State Department of Education Program: Summer Food Service Program CFDA: 10.559 Grant Number: AF6-0000 Noncompliance/Significant Deficiency Procurement Criteria Per 2 CFR 200.318-200.326, non-federal entities must follow federal procurement standards when acquiring goods and services, including adherence to competition requirements and proper documentation. Condition During our audit of procurement activities, we identified purchases made from two food vendors that exceeded the micro-purchase threshold of $10,000. There was no evidence that the entity obtained price comparisons or quotations from other sources prior to selecting these vendors. Each vendor was used repeatedly throughout the year, and the cumulative totals were $38,998. Cause Staff believed that long-standing relationships with vendors or prior approvals were sufficient and did not realize that federal procurement rules still apply annually. Effect Failure to follow small purchase procedures increases the risk of overpaying for goods and may affect allowability of expenditures charged to the program. Recommendation We recommend the entity train staff on federal procurement guidelines. Purchases from vendors should be forecasted at the beginning of each grant period. Procurement guidelines should be followed for all vendors from which it is reasonably foreseeable that total purchases will exceed $10,000. Documentation should be maintained for all price quotations and comparisons reviewed prior to purchases for items exceeding the micro-purchase threshold. Management's Response Management acknowledges the importance of adhering to federal procurement standards, including the requirement for competitive pricing and documentation for purchases exceeding the micro-purchase threshold

U.S. Department of Agriculture Passed through the Alabama State Department of Education Program: Summer Food Service Program CFDA: 10.559 Grant Number: AF6-0000 Noncompliance/Significant Deficiency Eligibility Criteria Under 7 CFR 225.6(c) and 2 CFR 200.303, sponsors of the Summer Food Service Program must ensure that all sites meet federal eligibility criteria. Sponsors are responsible for collecting and maintaining documentation that demonstrates site eligibility and must conduct appropriate oversight of sites to ensure ongoing compliance. Condition During our audit, we identified two closed enrolled operating sites for which the YMCA did not provide documentation to support eligiblity based on enrollment of children. The YMCA did not perform sufficient oversight as a sponsor of the sites to verify that required eligibility records were obtained and maintained. Cause Operating sites are separate from the YMCA. As such, all enrollment and child records are maintained separately by the operating site. The YMCA verified that free meals may be provided to children based on the appropriate data maintained by schools; however, the YMCA failed to monitor that the operating sites were maintaining records to support that meals were only being provided to enrolled children. Effect Operating sites without documented eligibility may result in unallowable costs and reimbursements for ineligible meals or sites, placing the program at risk for disallowed funding. As a result, questioned costs totaling $4,163 were identified for meals claimed at the two sites lacking eligibility support. Recommendation We recommend the entity implement and enforce procedures to collect and retain all required eligibility documents for each SFSP site. Management's Response Management recognizes the critival role of eligibility documentation in maintaining compliance with SFSP regulations and ensuring program integrity.

U.S. Department of Agriculture Passed through the Alabama State Department of Education Program: Summer Food Service Program CFDA: 10.559 Grant Number: AF6-0000 Noncompliance/Significant Deficiency Procurement Criteria Per 2 CFR 200.318-200.326, non-federal entities must follow federal procurement standards when acquiring goods and services, including adherence to competition requirements and proper documentation. Condition During our audit of procurement activities, we identified purchases made from two food vendors that exceeded the micro-purchase threshold of $10,000. There was no evidence that the entity obtained price comparisons or quotations from other sources prior to selecting these vendors. Each vendor was used repeatedly throughout the year, and the cumulative totals were $38,998. Cause Staff believed that long-standing relationships with vendors or prior approvals were sufficient and did not realize that federal procurement rules still apply annually. Effect Failure to follow small purchase procedures increases the risk of overpaying for goods and may affect allowability of expenditures charged to the program. Recommendation We recommend the entity train staff on federal procurement guidelines. Purchases from vendors should be forecasted at the beginning of each grant period. Procurement guidelines should be followed for all vendors from which it is reasonably foreseeable that total purchases will exceed $10,000. Documentation should be maintained for all price quotations and comparisons reviewed prior to purchases for items exceeding the micro-purchase threshold. Management's Response Management acknowledges the importance of adhering to federal procurement standards, including the requirement for competitive pricing and documentation for purchases exceeding the micro-purchase threshold

U.S. Department of Agriculture Passed through the Alabama State Department of Education Program: Summer Food Service Program CFDA: 10.559 Grant Number: AF6-0000 Noncompliance/Significant Deficiency Eligibility Criteria Under 7 CFR 225.6(c) and 2 CFR 200.303, sponsors of the Summer Food Service Program must ensure that all sites meet federal eligibility criteria. Sponsors are responsible for collecting and maintaining documentation that demonstrates site eligibility and must conduct appropriate oversight of sites to ensure ongoing compliance. Condition During our audit, we identified two closed enrolled operating sites for which the YMCA did not provide documentation to support eligiblity based on enrollment of children. The YMCA did not perform sufficient oversight as a sponsor of the sites to verify that required eligibility records were obtained and maintained. Cause Operating sites are separate from the YMCA. As such, all enrollment and child records are maintained separately by the operating site. The YMCA verified that free meals may be provided to children based on the appropriate data maintained by schools; however, the YMCA failed to monitor that the operating sites were maintaining records to support that meals were only being provided to enrolled children. Effect Operating sites without documented eligibility may result in unallowable costs and reimbursements for ineligible meals or sites, placing the program at risk for disallowed funding. As a result, questioned costs totaling $4,163 were identified for meals claimed at the two sites lacking eligibility support. Recommendation We recommend the entity implement and enforce procedures to collect and retain all required eligibility documents for each SFSP site. Management's Response Management recognizes the critival role of eligibility documentation in maintaining compliance with SFSP regulations and ensuring program integrity.