FAC Explorer

Finding 525313 (2023-005)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2025-03-03
Audit: 344536
Organization: Second Harvest Community Foodbank (MO)
Auditor: Uhy LLP

AI Summary

  • Answer: Second Harvest is not following its own procurement policy consistently.
  • Trend: Vendor evaluations are based on individual invoices instead of total contract amounts.
  • List: Review all vendor contracts to ensure compliance with procurement procedures.

Finding Text

Second Harvest considers procurement procedures for vendors based on individual invoices, rather than based on total contract expenditures. As such, not all vendors were evaluated in accordance with Second Harvest’s procurement policy.

Corrective Action Plan

We agree with the auditor's comments and the following action will be taken to improve this situation. Second Harvest staff have started a process to build a comprehensive vendor list to properly evaluate vendors through the procurement process. Second Harvest also intends to update its Financial Policies and Procedures in the coming year, and which will include the guiding process as well as a review of the organizational practices around procurement. We intend to utilize the comprehensive vendor list and develop a schedule to review vendors in accordance with our Financial Policies and Procedures on a regular basis based on the anticipated and/ or historical aggregate spend for goods and services. This corrective action will be implemented by June 1, 2025.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 525309 2023-003
    Material Weakness Repeat
  • 525310 2023-004
    Material Weakness Repeat
  • 525311 2023-006
    Significant Deficiency
  • 525312 2023-007
    Significant Deficiency
  • 1101751 2023-003
    Material Weakness Repeat
  • 1101752 2023-004
    Material Weakness Repeat
  • 1101753 2023-006
    Significant Deficiency
  • 1101754 2023-007
    Significant Deficiency
  • 1101755 2023-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.569 Emergency Food Assistance Program (food Commodities) $270,791
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $112,408
10.766 Community Facilities Loans and Grants $68,430
10.558 Child and Adult Care Food Program $51,332
10.568 Emergency Food Assistance Program (administrative Costs) $47,771
10.559 Summer Food Service Program for Children $46,926
14.218 Community Development Block Grants/entitlement Grants $23,750
10.182 Pandemic Relief Activities: Local Food Purchase Agreements with States, Tribes, and Local Governments $14,776