Finding Text
Program: Child and Adult Care Food Program
Assistance Listing Number: 10.558
Federal Agency: U.S. Department of Agriculture
Pass-Through Grantor: New York State Department of Health
Award Identification: 03257 Year 2022
Criteria: Procurement – Entities must have an use documented procurement procedures that conform to the federal requirements.
Condition: During the course of our audit procedures performed on procurement it was noted that the organization is not following its documented procurement procedures.
Questioned costs: None.
Context: Per the organization’s procurement procedures, purchases below $3,000 should be distributed among qualified vendors, and purchases greater than $3,000 require three written bids and documentation of how the decision to choose a specific vendor was made. We noted that although there is no contract with vendors of food for the Child and Adult Care Food Program, 82% ($227,893) of food purchases were from an individual vendor. This was comprised of multiple purchases both above and below the $3,000 threshold. However, the most recent documentation supporting a bidding process was from 2018.
Effect: Procurement procedures were not followed which allows for the possibility that federal funds were not expended equitably among qualified vendors.
Cause: The Settlement did not have internal controls in place related to procurement to ensure that documented processes are followed as required.
Repeat finding: This is a not a repeat finding.
Recommendation: We recommend that the organization adhere to its documented procurement policies.
Views of responsible officials and planned corrective actions: The Settlement agrees with the finding.
Bids will be collected for purchases over $3,000 per the procurement requirements. The program team will review and update the policies and procedures to clearly state the bidding requirements. Program and Fiscal management will train staff and oversee the process by June 2024.