Finding Text
U.S. Department of Agriculture Passed through the Alabama State Department of Education Program: Child and Adult Care Food Program CFDA: 10.558 Grant Number: AF6-0000 Noncompliance/Significant Deficiency Procurement Criteria Per 2 CFR 200.318-200.326, non-federal entities must follow federal procurement standards when acquiring goods and services, including proper documentation. Condition During our audit of procurement activities, we identifed two food vendors that do not have formal agreements with the entity. Cause Staff believed that long-standing relations with vendors were sufficient and did not realize that federal procurement rules still apply annually. Effect Failure to follow procurement guidelines may affect allowability of expenditures charged to the program. Recommendation We recommend that the entity train staff on federal procurement guidelines. These guidelines should be followed for all vendors from which it is reasonably foreseeable that total purchases will exceed $10,000. Documentation should be maintained for all vendors. Management's Response The YMCA will implement additional procedures to ensure compliance with federal procurement requirements under Uniform Guidance. Staff responsible for purchasing and vendor management will receive additional training related to procurement standards, documentation requirements, and contract oversight. Management will also establish a formal review process to identify vendors expected to exceed the federal threshold and ensure appropriate agreements and supporting documentation are maintained annually.