Finding 599178 (2022-221)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-07-24
Audit: 19742
Organization: Nachlas Bais Yaakov INC (NJ)

AI Summary

  • Core Issue: The School did not properly document the procurement process for some vendors, violating OMB Circular 2 CFR 200 standards.
  • Impacted Requirements: The School must maintain records of procurement history and adhere to specific procurement procedures.
  • Recommended Follow-Up: Ensure all employees involved in procurement understand their responsibilities to improve documentation practices.

Finding Text

Condition: The School did not document the procurement process for a few vendors according to the procurement standards as codified under OMB Circular 2 CFR 200. Significant Deficiency Criteria: The School is required to follow certain procurement procedures including maintaining records of its procurement history and following the requirements of each procurement method being used. Cause: The School did not have clear communication with its employees about the division of responsibility relating to procurement and, although procurement was in fact done, the School failed to document it properly for a few vendors. Effect of Finding: After discussions with management, the auditor has determined that although the School failed to document the procurement process properly, they were in fact following the required procurement process as codified under OMB Circular 2 CFR. As such, the effects of this deficiency are minimal. Recommendation: To ensure that each employee involved in the procurement process has a clear understanding of their responsibilities to ensure that the procurement process is documented properly for all vendors View of Responsible Party and Planned Corrective Action: Since being made aware of the issue, the school?s administrator met with each of the employees involved in procurement and discussed their responsibilities to ensure that procurement is documented properly. As such, the required correction actions have been implemented.

Categories

Procurement, Suspension & Debarment Significant Deficiency

Other Findings in this Audit

  • 22736 2022-221
    Significant Deficiency
  • 22737 2022-222
    Significant Deficiency
  • 599179 2022-222
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.559 Summer Food Service Program for Children $336,092
10.553 School Breakfast Program $183,996
10.555 National School Lunch Program $13,099