FAC Explorer

Finding 252560 (2022-002)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2022-11-07
Audit: 257571
Organization: United Food Bank (AZ)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: There was a significant deficiency in internal controls over procurement, leading to noncompliance with federal requirements.
  • Impacted Requirements: Failure to document vendor approval as per 2 CFR 200.318(i) and maintain effective controls as required by 2 CFR 200.303(a).
  • Recommended Follow-Up: Ensure all procurement forms are completed to document vendor approval and compliance with procurement processes.

Finding Text

2022-002 U.S. Department of Agriculture, Food, and Nutrition Service Emergency Food Assistance Program Assistance Listing Number: 10.568/10.569 Passed Through: The Arizona Department of Economic Security Pass Through Number: CtR052634 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding ? Significant Deficiency in Internal Control Over Compliance Condition/Context ? Internal control procedures over procurement requirements did not ensure compliance with federal awards. For 1 of 8 vendors tested, there was no documented evidence that the vendor was reviewed and approved in accordance with the Organization?s procurement policy. Criteria ? In accordance with Uniform Guidance, 2 CFR 200.318(i) requires that an entity maintain records sufficient to detail history of procurement including the rationale for the method of procurement, contractor selection, and the basis for the contract price. 2 CFR 200.303(a) requires an entity to establish and maintain effective internal control over the Federal awards that provides reasonable assurance that the entity is managing the award in compliance with Federal statutes. Cause ? Clerical oversight. Effect ? Noncompliance with the Compliance Supplement and Uniform Guidance. Repeat Finding ? No Questioned Costs ? None Recommendation ? The Organization complete procurement forms or another form of documentation showing that a vendor was approved and that procurement processes were appropriately performed. View of Responsible Officials - There is no disagreement with the audit findings.

Corrective Action Plan

2022-002 U.S. Department of Agriculture, Food, and Nutrition Service Emergency Food Assistance Program CFDA Number: 10.568/10.569 Passed Through: The Arizona Department of Economic Security Pass Through Number: CtR052634 Award Period: July 1, 2021 ? June 30, 2022 Condition/Context ? Internal control procedures over procurement requirements did not ensure compliance with federal awards. For 1 of 8 vendors tested, there was no documented evidence that the vendor was reviewed and approved in accordance with the Organization?s procurement policy. Contact Person ? Megan Montalvo, Chief Financial Officer Corrective Action Plan ? United Food Bank follows the set procurement policy. Quotes are obtained for all vendors who meet a certain dollar threshold. For the instance that occurred, quotes were obtained and reviewed. A meeting was held to discuss the quotes received, and it was decided to use the service of all of the vendors that quotes were obtained from, not just a single vendor. The failure occurred due to not documenting the selection of using multiple vendors for the same service on the Organization?s Vendor Selection Form. The Vendor Selection Form will be completed for all procurement services, even if multiple vendors are selected for the same type of goods or services.

Categories

Internal Control / Segregation of Duties Procurement, Suspension & Debarment Significant Deficiency

Other Findings in this Audit

  • 252559 2022-001
    Significant Deficiency Repeat
  • 252561 2022-001
    Significant Deficiency Repeat
  • 252562 2022-002
    Significant Deficiency
  • 252563 2022-001
    Significant Deficiency Repeat
  • 252564 2022-002
    Significant Deficiency
  • 829001 2022-001
    Significant Deficiency Repeat
  • 829002 2022-002
    Significant Deficiency
  • 829003 2022-001
    Significant Deficiency Repeat
  • 829004 2022-002
    Significant Deficiency
  • 829005 2022-001
    Significant Deficiency Repeat
  • 829006 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.569 Emergency Food Assistance Program (food Commodities) $9.08M
10.568 Emergency Food Assistance Program (administrative Costs) $1.78M
10.565 Commodity Supplemental Food Program $1.23M
21.019 Coronavirus Relief Fund $854,906
93.667 Social Services Block Grant $213,328
93.558 Temporary Assistance for Needy Families $90,346
97.024 Emergency Food and Shelter National Board Program $56,834