Finding 572509 (2024-005)

Significant Deficiency Repeat Finding
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2025-08-04
Audit: 363656
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 updated its Financial Policies and Procedures as of July 1, 2025, which includes the guiding process, review of the organizational practices around procurement, and a new threshold of $25k. 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 December 31, 2025.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 572506 2024-003
    Material Weakness Repeat
  • 572507 2024-003
    Material Weakness Repeat
  • 572508 2024-004
    Material Weakness Repeat
  • 572510 2024-006
    Significant Deficiency Repeat
  • 1148948 2024-003
    Material Weakness Repeat
  • 1148949 2024-003
    Material Weakness Repeat
  • 1148950 2024-004
    Material Weakness Repeat
  • 1148951 2024-005
    Significant Deficiency Repeat
  • 1148952 2024-006
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
10.569 Emergency Food Assistance Program (food Commodities) $429,992
10.182 Pandemic Relief Activities: Local Food Purchase Agreements with States, Tribes, and Local Governments $109,031
10.766 Community Facilities Loans and Grants $79,516
10.558 Child and Adult Care Food Program $70,863
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $59,854
10.559 Summer Food Service Program for Children $52,906
10.187 The Emergency Food Assistance Program (tefap) Commodity Credit Corporation Eligible Recipient Funds $27,717
14.218 Community Development Block Grants/entitlement Grants $23,750
10.568 Emergency Food Assistance Program (administrative Costs) $14,660