Finding 124 (2023-001)

Finding: Item 2023-001 – Procurement and Debarment Federal Program – Child and Adult Care Food Program ALN (CFDA) Numbers – 10.558 Agency Award Number – DC-55-811 Federal Award Year – June 30, 2023 Federal Agency – U.S. Department of Agriculture Pass-Through Entity – Oklahoma Dept. of Education Questioned Costs $ - Criteria: 2 CFR § 200.303, Internal Controls requires that a non-Federal entity establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. The Food Bank's procurement policy states: The CEO will not enter into any new contracts or purchase agreements or new commitments of any kind valued at or above $500,000 per year without Board review and approval. Condition/contex: The Food Bank did not obtain proper approval by the Board for procurement of the food products used for the Child and Adult Care Food Program based on the policy for acquiring goods and services. Cause: The Food Bank did not follow its procurement policy for Board review and approval of the purchase contract under the federal program. Effect: Without appropriate approvals, the Food Bank could obtain food products that are not needed or from vendors who are not approved under the program. Repeat finding: Finding is a repeat of finding 2022-001. Recommendation: The Food Bank should institute a procedure to ensure appropriate approval of all purchases under the program. View of responsible officials: Management's response is reported in "Management's Views and Corrective Action Plan" at the end of this report.