Audit 371116

Reference Number: 2023-002 United States Department of Agriculture Federal Assistance Listing Number & Program Name: 10.553 & 10.555 Child Nutrition Cluster Description: Procurement Criteria: 2 CFR 200.320 Methods of Procurement state that if the Sealed Bids method is used - This is a procurement method in which bids are publicly solicited through an invitation and a firm fixed-price contract (lump sum or unit price) is awarded to the responsible bidder whose bid conforms to all the material terms and conditions of the invitation and is the lowest in price. The Organization’s procurement policy also states that purchases ranging from >$100,000 require a minimum of three written bids. Condition: During our testing of procurement transactions, we totaled purchases from one vendor above $100,000 in purchases had no price quotes as required by the Organization’s procurement policy. Cause: The Organization did not follow their Federal Funds Procurement policy related to the appropriate methods of procurement. Effect: Obtaining price quotes or proposals from an adequate number of vendors allows the Organization to use federal funds in the most fiscally responsible way. The lack of quotes and proposals may cause the Organization to overpay for supplies or services. Auditors’ Recommendation: We recommend the Organization review their procurement policy and adhere to current policy for going out for the minimum amount of bids on required vendors. Corrective Action Plan: See attachment for Organization’s corrective action plan.

Reference Number: 2023-003 United States Department of Agriculture Federal ID# & Program Name: 10.553 & 10.555 Child Nutrition Cluster Description: Suspension and Debarment Verification Criteria: Internal controls require that management confirm and maintain evidence that the vendors suspension and debarment status prior to vendors being included on grant claims. Condition: For four vendors that were awarded more than $25,000, documentation supporting that confirmation of vendor status occurred, prior to grant claim submission, was not maintained. Cause: Inadequate controls to ensure verification and maintain evidence of vendors that are not suspended or debarred are properly maintained. Effect: Determining that adequate controls are place for testing the suspension and debarment status of vendors was unverifiable for all five vendors. Auditors’ Recommendation: The Organization should maintain evidence that vendors were verified prior to the submission of grant claims. Corrective Action Plan: See attachment for Organization’s corrective action plan.