Finding 599440 (2022-001)

Significant Deficiency
Requirement
I
Questioned Costs
$1
Year
2022
Accepted
2023-05-16
Audit: 23141
Organization: Central Texas Food Bank (TX)

AI Summary

  • Core Issue: Management did not adhere to the procurement policy for purchases over $50,000, failing to obtain the required competitive bids.
  • Impacted Requirements: The purchase of a 2022 freightliner tractor for $109,401 lacked sufficient bids, violating the policy that mandates at least two bids.
  • Recommended Follow-Up: Management should ensure compliance with the procurement policy and refrain from approving payments without proper documentation of the bidding process.

Finding Text

Type: Significant Deficiency Criteria: Management did not follow the procurement policy for purchases that exceed $50,000, which should have resulted in the use of competitive sealed bids and public advertisement to an adequate number of known providers. Condition: CTFB purchased a 2022 freightliner tractor for the amount of $109,401 on 12/16/2021 invoice #7302 from North Jersey Truck Center Inc. However, CTFB did not receive more than two bids for this purchase per their procurement process which they need at least two bids. Context: We selected 3 vendors with purchases greater than $50,000 and 1 of the vendors did not go through the normal procurement process. Cause: The procurement policy was not followed for this purchase. Effect: There could have been a better price or a better quality of product available. Questioned Costs: $109,401 Recommendation: We recommend that management review and follow the procurement policy set forth and that purchasing not approve invoices for payment that did not have proper documentation of the procurement process.

Categories

Questioned Costs Procurement, Suspension & Debarment

Other Findings in this Audit

  • 22998 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.569 Emergency Food Assistance Program (food Commodities) $12.48M
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $2.64M
10.568 Emergency Food Assistance Program (administrative Costs) $1.25M
97.024 Emergency Food and Shelter National Board Program $1.19M
21.027 Coronavirus State and Local Fiscal Recovery Funds $635,167
93.558 Temporary Assistance for Needy Families $528,248
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $465,990
10.551 Supplemental Nutrition Assistance Program $432,119
10.558 Child and Adult Care Food Program $282,522
10.565 Commodity Supplemental Food Program $227,757
10.559 Summer Food Service Program for Children $151,342