Finding #2024-002 – Material Weakness and Other Noncompliance. Applicable federal programs: U. S. Department of Agriculture, State Administrative Matching Grants for Supplemental Nutrition Assistance Program (SNAP Cluster), Assistance listing #: 10.561, Passed through Texas Health and Human Services, Contract #: 529-16-002-00002, Contract Year: 10/01/23 – 09/30/24 and 10/01/24 – 09/30/25, Passed through New York Office of Temporary and Disability Assistance and City Harvest, Inc., Contract #: None, Contract Year: 10/01/23 – 09/30/24, Passed through New York Office of Temporary and Disability Assistance, Contract #: TDA01 – C00043GM-3410000, Contract Year: 10/01/24 – 09/30/25, Passed through The Regents of the University of California, Contract #: A22-1456-S002, Contract Year: 10/01/23 – 09/30/24, Passed through Pennsylvania State University, Contract #: S006438-COP-BRB, Contract Year: 10/01/24 – 09/30/25, Passed through New Mexico State University, Contract #: GSA 22-630-9000-0023, Contract Years: 10/01/23 – 09/30/24 and 10/01/24 – 09/30/25. Department of Treasury, Passed through Houston Food Bank, COVID-19 – Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing #: 21.027, Contract #: HHS000493200003, Contact Year: 02/08/23 – 12/31/25. Applicable state programs: Texas A&M AgriLife Extension Service, Surplus Agricultural Products Grant Program, Contract #: GA-555-01, Contract Years: 09/01/23 – 08/31/24 and 09/01/24 – 08/31/25. Criteria: Procurement – Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Subtitle III Procurement Standards and Texas Grant Management Standards Procurement Standards and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance requires simplified acquisition procedures to be used on procurements above the micro purchase threshold, which is $10,000, but below the simplified acquisition threshold, which for Brighter Bites is $250,000. The organization must obtain an adequate number of quotations from qualified sources and must maintain records sufficient to detail the history of each procurement. These records must include the rationale for the procurement method, contract type selection, contractor selection or rejection, and the basis of the contract price. Additionally, Uniform Guidance requires public notice for proposal requests for purchases over the Simplified Acquisition Threshold. Condition and context: During testing of a sample of 5 transactions requiring procurement, we identified that simplified acquisition procedures of obtaining and documenting bids were not performed for a vendor with expenditures greater than $10,000 but less than $250,000 and competitive procurement procedures were not performed for 2 vendors with expenditures greater than $250,000. Brighter Bites’ rational for the selection of the vendor and approval was documented, however the procurement file did not include bids from other vendors under the simplified acquisition procedures and did not include a request for proposal, vendor responses, and an evaluation of the proposals to support Brighter Bites’ procurement rationale. Cause: Failure to follow Brighter Bites’ procurement policy by those responsible for procurement. Effect: Failure to follow Brighter Bites’ procurement policy may result in Brighter Bites purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Provide additional training to employees responsible for procurement on Brighter Bites’ procurement policy. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.