Finding 20477 (2022-003)

Material Weakness
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-09-07

AI Summary

  • Core Issue: Procurement records were not maintained, leading to non-compliance with Uniform Guidance.
  • Impacted Requirements: Failure to follow procurement procedures may result in ineffective purchasing and violations of federal regulations.
  • Recommended Follow-Up: Implement compliant procurement policies and procedures to meet grantor requirements and ensure oversight.

Finding Text

United States Department of Agriculture Federal Assistance Listing Number 10.558 Child and Adult Care Food Program Criteria or specific requirement: Procurement and Suspension and Debarment (2 CFR 200.214, 2 CFR 200.318) Non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. The non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. Condition: Procurement records were not maintained and the Organization's procurement policy was not in compliance with Uniform Guidance. Questioned Costs: None Context: A sample of one vendor was tested out of the total population of 10 vendors. Procurement procedures were not completed for the one vendor. The sampling methodology used is not and is not intended to be statistically valid. Effect: Purchases of goods or services were made that may not have been obtained in the most effective manner or in compliance with Uniform Guidance. Cause: The Organization did not have proper oversight to ensure procurement procedures were completed. Identification as a Repeat Finding: Not a repeat finding. Recommendation: We recommend implementing procurement policies that comply with the Uniform Guidance and procedures to ensure procurement requirements as required by grantors are being met. Views of Responsible Officials and Planned Corrective Actions: Management concurs with findings and plans to implement the recommendations above. Starting in August 2023, SADCCF will notify potential bidders of the opportunity to bid on the USDA meal program by radio announcement.

Corrective Action Plan

Contact Name: Barbara Staggs, CFO Contact Phone Number: 870-863-8194 Audit Period Ending: June 30, 2022 Audit Firm: FORVIS, LLP Federal Program: Child and Adult Food Care Program, Assistance Listing No. 10.558 Federal Agency: U.S. Department of Health and Human Services Starting in August 2023, SADCCF will notify potential bidders of the opportunity to bid on the USDA meal program by radio announcement.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 20474 2022-004
    Material Weakness
  • 20475 2022-001
    Material Weakness
  • 20476 2022-002
    Material Weakness
  • 596916 2022-004
    Material Weakness
  • 596917 2022-001
    Material Weakness
  • 596918 2022-002
    Material Weakness
  • 596919 2022-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund and American Rescue Plan (arp) Rural Distribution $301,167
93.575 Covid-19 Child Care and Development Block Grant $216,600
10.558 Child and Adult Care Food Program $204,657
93.575 Child Care and Development Block Grant $61,901
93.667 Social Services Block Grant $9,640