Finding 626568 (2022-002)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-07-12

AI Summary

  • Core Issue: The Food Bank failed to check contractors for compliance with debarment requirements, risking payments to ineligible vendors.
  • Impacted Requirements: Non-compliance with 2 CFR Section 200.213, which mandates that only eligible parties participate in Federal assistance programs.
  • Recommended Follow-Up: The Food Bank should review 2 CFR Section 200.213 and establish a process to verify vendor eligibility before making payments.

Finding Text

2022-002 Federal Agency: Department of Agriculture (USDA) Pass-Through Entity: State of New York Executive Department of General Services Assistance Listing Numbers: 10.568 , 10.569 Pass-through Grant Numbers: 4NY810809, 4NY100105, 4NY430803, 8NY200100 Program Name: The Emergency Food Assistance Program (TEFAP), Food Distribution Cluster Criteria: : 2 CFR Section 200.318 stipulates that a non-Federal entity must use its own documented procurement procedures which reflect applicable state, local, and tribal laws and regulations, provided that the procurements conform to applicable Federal law and the standards identified in Part 200 Subpart D. Additionally, 2 CFR Section 200.213 stipulates that no awards, subawards, or contracts be awarded to parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition: During our testing, we noted the following: - The contractors utilized by the Food Bank in 2022 were not properly checked for compliance requirements regarding debarment. They did not have a control in place to ensure the contractors used for their covered transactions were not made with a debarred or suspended party. Cause: The Food Bank did not review compliance requirements related to procurement outlined in 2 CFR Section 200.318 and Section 200.213. Effect: The Food Bank is not in compliance with 2 CFR Section 200.213. The Food Bank is not performing required procedures, as a result, vendors that are not eligible for participation in Federal assistance programs or activities could be selected or the Food Bank could be overpaying for goods and services. Questioned Costs: None Context/Sampling: The Food Bank performed a subsequent review of all vendors paid with federal dollars under the major program, noting none of the vendors used were precluded from being paid with federal dollars. Repeat Finding: No Recommendation: We recommend that the Food Bank review the requirements of 2 CFR Section 200.213 and ensure that a review of the eligibility of potential vendors to participate in Federal assistance programs or activities is performed prior to disbursing funds to the vendor. View of Responsible Officials: Management agrees with the finding and will implement the recommendations.

Categories

Procurement, Suspension & Debarment Subrecipient Monitoring Eligibility

Other Findings in this Audit

  • 50125 2022-001
    Significant Deficiency
  • 50126 2022-002
    Significant Deficiency
  • 50127 2022-001
    Significant Deficiency
  • 50128 2022-002
    Significant Deficiency
  • 50129 2022-001
    Significant Deficiency
  • 50130 2022-002
    Significant Deficiency
  • 50131 2022-001
    Significant Deficiency
  • 50132 2022-002
    Significant Deficiency
  • 50133 2022-001
    Significant Deficiency
  • 50134 2022-002
    Significant Deficiency
  • 626567 2022-001
    Significant Deficiency
  • 626569 2022-001
    Significant Deficiency
  • 626570 2022-002
    Significant Deficiency
  • 626571 2022-001
    Significant Deficiency
  • 626572 2022-002
    Significant Deficiency
  • 626573 2022-001
    Significant Deficiency
  • 626574 2022-002
    Significant Deficiency
  • 626575 2022-001
    Significant Deficiency
  • 626576 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.569 Emergency Food Assistance Program (food Commodities) $10.78M
10.568 Emergency Food Assistance Program (administrative Costs) $655,279
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $158,886
97.024 Emergency Food and Shelter National Board Program $95,962