Finding 12131 (2022-001)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-06-25
Audit: 16212
Organization: Midwest Food Bank Nfp (IL)
Auditor: Sikich LLP

AI Summary

  • Core Issue: The Organization lacked a compliant procurement policy throughout 2022, violating Uniform Guidance requirements.
  • Impacted Requirements: Non-compliance with 2 CFR 200.318 - 200.327 could lead to improper fund expenditures.
  • Recommended Follow-Up: Ensure the procurement policy is fully implemented and maintained across the entire organization moving forward.

Finding Text

2022-001: Procurement Requirements Criteria: The Organization is required to establish a procurement policy in accordance with Uniform Guidance requirements, as specified in the compliance supplement. Condition: The Organization did not establish a procurement policy in accordance with Uniform Guidance 2 CFR 200.318 ? 200.327, as required for the major program. The Organization developed and implemented a policy during 2022 but it was not in effect for the whole organization for the entire year. Questioned costs: None Cause and Effect: By not having an updated procurement policy the Organization could expense funds that are not in accordance with the procurement policies established by Uniform Guidance Recommendation: We recommend the Organization establish a procurement policy based on the requirements noted in 2 CFR 200.318-200.327. Auditee Response: The Organization established and implemented a procurement policy in accordance with Uniform Guidance requirements during the year in 2022.

Corrective Action Plan

2022-001: Procurement Requirements Criteria: The Organization is required to establish a procurement policy in accordance with Uniform Guidance requirements, as specified in the compliance supplement. Condition: The Organization did not establish a procurement policy in accordance with Uniform Guidance 2 CFR 200.318 ? 200.327, as required for the major program. The Organization developed and implemented a policy during 2022 but it was not in effect for the whole organization for the entire year. Questioned costs: None Cause and Effect: By not having an updated procurement policy the Organization could expense funds that are not in accordance with the procurement policies established by Uniform Guidance. Corrective Plan: Midwest Food Bank NFP established a procurement policy in accordance with Uniform Guidance in 2022 to be fully implemented across the Organization with an effective date of January 1, 2023, led by Lisa Martin, CFO.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 12130 2022-002
    Significant Deficiency
  • 12132 2022-002
    Significant Deficiency
  • 12133 2022-001
    Significant Deficiency
  • 12134 2022-002
    Significant Deficiency
  • 12135 2022-001
    Significant Deficiency
  • 588572 2022-002
    Significant Deficiency
  • 588573 2022-001
    Significant Deficiency
  • 588574 2022-002
    Significant Deficiency
  • 588575 2022-001
    Significant Deficiency
  • 588576 2022-002
    Significant Deficiency
  • 588577 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $368,945
97.024 Emergency Food and Shelter National Board Program $22,000