Finding 11290 (2022-003)

Significant Deficiency

Requirement

Questioned Costs

Year

2022

Accepted

2024-02-01

Audit: 15127

Organization: Practical Farmers of Iowa (IA)

Auditor: Cliftonlarsonallen

AI Summary

Core Issue: Missing documentation for procurement methods in all four audited purchases.
Impacted Requirements: Non-compliance with Uniform Guidance section 200.318 regarding record-keeping for procurement history.
Recommended Follow-Up: Review procurement policies and train staff to ensure compliance with documentation requirements.

Finding Text

Criteria: Uniform Guidance section 200.318 states non-Federal entities must maintain records sufficient to detail the history of procurements. These records will 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. Condition: For all four purchases selected for audit testing, we noted that written documentation on the selection method was not retained in the procurement file. Questioned costs: None Context: Four out of four items selected for testing of procurement and suspension and debarment did not have proper documentation. Cause: Written support was not retained in the procurement file at the time of the procurement. Effect: Procuring vendors without full and open competition. Repeat Finding: No Recommendation: We recommend the Organization review the various procurement requirements with the individuals involved in this process to ensure they understand the requirements. It is also recommended to review the policies and procedures around procurement to ensure key individuals are following them. Views of Responsible Officials: There is no disagreement with the audit finding.

Corrective Action Plan

Recommendation: We recommend the Organization review the various procurement requirements with the individuals involved in this process to ensure they understand the requirements. It is also recommended to review the policies and procedures around procurement to ensure key individuals are following them.. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We plan on documenting this better going forward. Before this was done and conversations happened verbally and followed up with email confirmations. Going forward there will be more than one quote provided and written down and saved with the grant files for reference. Name(s) of the contact person(s) responsible for corrective action: All staff will need to be aware of this as it relates to all grants and not just specific funding sources. For consistency we will follow a universal procurement policy to align will all funding types. Christine Zrostlik, Communications and Marketing Director, Rachel Deutmeyer, Senior Video Coordinator, Sally Worley, Executive Director, Kasey Bunce, Finance Director, Alisha Bower, Senior Operations Director Planned completion date for correctiv e action plan:February 1, 2024

Other Findings in this Audit

11291 2022-004

Material Weakness
11292 2022-005

Significant Deficiency
11293 2022-006

Material Weakness
587732 2022-003

Significant Deficiency
587733 2022-004

Material Weakness
587734 2022-005

Significant Deficiency
587735 2022-006

Material Weakness

Programs in Audit

ALN	Program Name	Expenditures
66.475	Gulf of Mexico Program	$540,809
10.912	Environmental Quality Incentives Program	$397,774
10.311	Beginning Farmer and Rancher Development Program	$191,482
10.443	Outreach and Assistance for Socially Disadvantaged and Veteran Farmers and Ranchers	$179,064
10.175	Farmers Market and Local Food Promotion Program (b)	$79,782
10.310	Agriculture and Food Research Initiative (afri)	$57,443
10.902	Soil and Water Conservation	$38,214
10.215	Sustainable Agriculture Research and Education	$26,478
10.170	Specialty Crop Block Grant Program - Farm Bill	$24,000
10.932	Regional Conservation Partnership Program	$10,306
10.182	Local Food Purchase Assistance	$7,042