Finding Text
Finding #2024-001 – Significant Deficiency and Other Noncompliance. Applicable federal programs: U. S. Department of Housing and Urban Development, Economic Development Initiative, Community Project Funding, and Miscellaneous Grants, Assistance Listing #14.251, Contract Number: В-23-СР-TX-1411, Contract Year: 02/15/24 – 08/31/31, Harris County, Passed through The Houston Food Bank, COVID-19 Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing #21.027, Contract Number: N/A, Contract Year: 02/08/23 – 12/31/24. Criteria: Procurement – Nonprofit organizations are required to maintain and use documented procedures for procurement transactions under a federal award and conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Subtitle III Procurement Standards and conform to federal and state laws and regulations and other contractual requirements. Simplified acquisition procedures are to be performed for procurement decisions greater than $10,000 and less than $250,000. Condition and context: Target Hunger does not have a documented procurement policy. For 1 of 6 transactions tested for procurement documentation, there were no simplified acquisition procurement procedures performed for professional services totaling $30,000. Cause: Failure to have a procurement policy and to perform simplified acquisition procedures for professional services. Effect: Failure to follow formal procurement methods may result in the organization purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Questioned costs: Unknown. Recommendation: Develop a formal procurement policy and provide training to staff responsible for procurement. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.