Finding Text
Federal Agency: U.S Department of Agriculture
Federal Program Name: The Emergency and Food Assistance Program
Federal Assistance Listing Number: Food distribution Cluster (ALN 10.569 and 10.568)
Award Period: July 1, 2023 through June 30, 2024
Type of Finding:
• Material Weakness in Internal Control over Compliance
Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment, specifically a cost or price analysis is required for each procurement action in excess of the simplified Acquisition Method. Procurement records and files for the small threshold method ($10,000-$250,000) must include the following at the minimum – basis for contractor selection, justification for lack of competition when competitive bids are not obtained and
basis for award cost or price.
Condition: During our testing, we noted the Organization did not adhere to established internal controls to ensure that documentation surrounding the cost or price analysis was maintained.
Questioned costs: None
Context: During our testing, it was noted that the Organization did not keep evidence of the cost or price analysis or reasoning for vendor selection.
Cause: The Organization was not adhering to their procurement policy with respect to maintaining vendor files.
Effect: There is no evidence of price analysis or vendor selection for any of the vendors selected for testing.
Repeat Finding: No
Recommendation: We recommend the Organization adheres to its written procurement policy to ensure that all required procedures are performed.
View of responsible officials: Management has put a review policy in place to monitor all procurements and has remediated this finding in the subsequent period. See corrective action plan.