Finding 52184 (2022-003)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2022-11-17
Audit: 49631
Auditor: Forvis

AI Summary

  • Core Issue: There is a significant deficiency in internal controls over compliance related to procurement practices.
  • Impacted Requirements: The Organization failed to follow procurement policies by not obtaining required quotes for food commodities.
  • Recommended Follow-Up: Management should adhere to procurement policies or document reasons for any exceptions before making purchases.

Finding Text

Type of Finding: Significant deficiency in internal controls over compliance Criteria: Recipient are required to have procurement policies and procedures in place that comply with the procurement standards outlined in the Uniform Guidance. Condition: Goods were purchased from vendors without going through the proper bid process. Effect: The Organization procured food commodities without obtaining required quotes from vendors. Cause: Due to supply chain constraints with COVID-19, certain products were unavailable and therefore the Organization could not obtain three procurement quotes. Questioned Costs: None Recommendation: We recommend that management follow the Organization?s procurement policy or documents reasons for any exceptions prior to procurement. Views of Responsible Officials and Planned Corrective Actions: Management agrees with comments regarding significant deficiency in internal controls over compliance. See corrective action plan.

Corrective Action Plan

Significant Deficiency in Internal Control over Compliance Finding 2022-003 ? Procurement Name of Contact Person: Dean Wooten The procurement process requires 3 bids for purchases over $10,000. Due to supply chain issues related to Covid 19 and the related shortages there have been many times where there were not three vendors who were offering products for purchase. Proper documentation was not maintained to show that this was the case. Management has worked with the procurement staff to ensure that the procurement process is properly documented for each purchase over $10,000 and bids will be obtained when product is available from multiple vendors. When multiple vendors are not available for bids, efforts made to find competitive bids will be documented and attached with the purchase order. Purchase orders will be reviewed and approved by the Director of Finance. Proposed Completion Date: November 1, 2022

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 52180 2022-001
    Material Weakness
  • 52181 2022-001
    Material Weakness
  • 52182 2022-001
    Material Weakness
  • 52183 2022-001
    Material Weakness
  • 52185 2022-001
    Material Weakness
  • 628622 2022-001
    Material Weakness
  • 628623 2022-001
    Material Weakness
  • 628624 2022-001
    Material Weakness
  • 628625 2022-001
    Material Weakness
  • 628626 2022-003
    Significant Deficiency
  • 628627 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.228 Covid-19 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $1.49M
10.569 Emergency Food Assistance Program (food Commodities) $1.16M
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.01M
93.558 Temporary Assistance for Needy Families $577,216
10.569 Covid-19 Emergency Food Assistance Program $405,289
10.568 Emergency Food Assistance Program (administrative Costs) $323,198
10.558 Child and Adult Care Food Program $225,886
10.559 Summer Food Service Program for Children $118,475
97.024 Emergency Food and Shelter National Board Program $89,717
14.218 Community Development Block Grants/entitlement Grants $25,000
10.565 Commodity Supplemental Food Program $24,333