FAC Explorer

Finding 22998 (2022-001)

Significant Deficiency
Requirement
I
Questioned Costs
$1
Year
2022
Accepted
2023-05-16
Audit: 23141
Organization: Central Texas Food Bank (TX)
Auditor: Atchley & Associates LLP

AI Summary

  • Core Issue: Management did not adhere to the procurement policy for purchases over $50,000, failing to obtain the required competitive bids.
  • Impacted Requirements: The purchase of a 2022 freightliner tractor for $109,401 lacked sufficient bids, violating the policy that mandates at least two bids.
  • Recommended Follow-Up: Management should ensure compliance with the procurement policy and refrain from approving payments without proper documentation of the bidding process.

Finding Text

Type: Significant Deficiency Criteria: Management did not follow the procurement policy for purchases that exceed $50,000, which should have resulted in the use of competitive sealed bids and public advertisement to an adequate number of known providers. Condition: CTFB purchased a 2022 freightliner tractor for the amount of $109,401 on 12/16/2021 invoice #7302 from North Jersey Truck Center Inc. However, CTFB did not receive more than two bids for this purchase per their procurement process which they need at least two bids. Context: We selected 3 vendors with purchases greater than $50,000 and 1 of the vendors did not go through the normal procurement process. Cause: The procurement policy was not followed for this purchase. Effect: There could have been a better price or a better quality of product available. Questioned Costs: $109,401 Recommendation: We recommend that management review and follow the procurement policy set forth and that purchasing not approve invoices for payment that did not have proper documentation of the procurement process.

Corrective Action Plan

Planned Corrective Action: ? CTFB is transitioning to a centralized purchasing model, which will require purchase requests to go through the finance department for final approval whereas previously, purchase request approval could be obtained before reaching finance. Purchase requests will require approval from the appropriate level of management and will adhere to CTFB?s revised procurement policy, including competitive bidding, prior to final approval and submission. Through a centralized process, the acquisition of items will follow the competitive process, requiring approval from the Chief Financial Officer and/or Chief Executive Officer. All staff with appropriate authority will be trained on CTFB?s centralized purchasing process and procurement policy. o Due Date: Current transition in progress as of March 2023. ? CTFB has hired and is in the process of hiring new management over finance, logistics, and executive administration; management overseeing the questioned cost are no longer involved in the operations of the business. o Due Date: Current transition in progress as of March 2023. Name of Contact Person: Thomas Foster, Controller tfoster@centraltexasfoodbank.org 512-684-2102

Categories

Questioned Costs Procurement, Suspension & Debarment

Other Findings in this Audit

  • 599440 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.569 Emergency Food Assistance Program (food Commodities) $12.48M
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $2.64M
10.568 Emergency Food Assistance Program (administrative Costs) $1.25M
97.024 Emergency Food and Shelter National Board Program $1.19M
21.027 Coronavirus State and Local Fiscal Recovery Funds $635,167
93.558 Temporary Assistance for Needy Families $528,248
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $465,990
10.551 Supplemental Nutrition Assistance Program $432,119
10.558 Child and Adult Care Food Program $282,522
10.565 Commodity Supplemental Food Program $227,757
10.559 Summer Food Service Program for Children $151,342