Finding Text
Finding No. 2024-003 – Procurement Federal Agency: U.S. Department of Agriculture Federal Program: Special Supplement Nutrition Program for Women, Infants, and Children Assistance Listing No.: 10.557 Federal Award Identification No. and Year: 238DC000M2003 (2023) Pass-through Agency: Food Research and Action Center Pass-through No.: V5KQJY61BB96 Award Period: May 1, 2023 through October 31, 2024 Type of Finding: Significant Deficiency in Internal Control and Other Matter Criteria or Specific Requirement: Non-federal entities are required by Uniform Guidance to comply with, and to establish and maintain effective internal control over compliance with, federal statutes, regulations, and the terms and conditions of the federal award. Condition: During our audit, we identified that ACHD did comply with, or establish adequate internal control over compliance with, federal procurement requirements as mandated by Uniform Guidance. Questioned Costs: None Context: The procurement policies of ACHD, specifically its micro-purchase threshold, does not comply with the minimum threshold required by Uniform Guidance. Effect: Lack of compliance, and lack of internal control over compliance, could result in noncompliance with federal procurement requirements, potentially leading to penalties or loss of federal funding. Cause: ACHD did not update its purchasing policy to align with Uniform Guidance. Recommendation: We recommend that ACHD update its purchasing policy to align with Uniform Guidance.