Finding 1080479 (2023-002)

Significant Deficiency Repeat Finding
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-10-29
Audit: 326466
Organization: Freshfarm Markets, Inc. (DC)
Auditor: Wegner CPAS

AI Summary

  • Core Issue: The organization failed to document procurements according to federal standards outlined in 2 CFR sections 200.318 to 200.320.
  • Impacted Requirements: Lack of formal written policies means procurements may not comply with federal, state, or local laws.
  • Recommended Follow-Up: Develop and finalize written procurement policies to align with 2 CFR standards.

Finding Text

Criterial or Specific Requirement: Nonfederal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. Condition: The organization did not document procurements consistent with the standards of 2 CFR sections 200.318, 200.319, and 200.320. Cause: There are no formally approved written policies and procedures for procurement. Effect or Potential Effect: The cost of the procurements may be disallowed. Recommendation: The organization should become familiar with the procurement standards set out at 2 CFR sections 200.318 through 200.326 and establish written policies and procedures for procurement. Views of Responsible Officials: Management agrees with the finding and is in the process of finalizing written policies and procedures for procurement.

Categories

Procurement, Suspension & Debarment Subrecipient Monitoring Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 504036 2023-002
    Significant Deficiency Repeat
  • 504037 2023-002
    Significant Deficiency Repeat
  • 504038 2023-002
    Significant Deficiency Repeat
  • 1080478 2023-002
    Significant Deficiency Repeat
  • 1080480 2023-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $255,162
93.426 The National Cardiovascular Health Program $41,000
10.175 Farmers Market and Local Food Promotion Program $33,547
10.522 Food and Agriculture Service Learning Program $24,134
10.170 Specialty Crop Block Grant Program - Farm Bill $21,376
93.421 Strengthening Public Health Systems and Services Through National Partnerships to Improve and Protect the Nation�s Health $14,565
10.331 Gus Schumacher Nutrition Incentive Program $9,550