Finding 640718 (2022-001)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2022-10-24
Audit: 74573
Organization: Regional Food Bank of Oklahoma (OK)
Auditor: Hogantaylor LLP

AI Summary

  • Core Issue: The Food Bank failed to get necessary approvals for food product purchases under the Child and Adult Care Food Program.
  • Impacted Requirements: This violates the procurement policy requiring Board review for contracts over $500,000 and 2 CFR 200.303 on internal controls.
  • Recommended Follow-Up: Implement a procedure to ensure all purchases receive proper approvals to comply with federal and internal policies.

Finding Text

Finding: Item 2022-001 ? Procurement and Debarment Federal Program ? Child and Adult Care Food Program ALN (CFDA) Numbers ? 10.558 Agency Award Number ? DC-55-811 Federal Award Year ? June 30, 2022 Federal Agency ? U.S. Department of Agriculture Pass-Through Entity ? Oklahoma Dept. of Education $ - Criteria: 2 CFR ? 200.303, Internal Controls requires that a non-Federal entity establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. The Food Bank's procurement policy states: The CEO will not enter into any new contracts or purchase agreements or new commitments of any kind valued at or above $500,000 per year without Board review and approval. Condition: The Food Bank did not obtain proper approval by the CEO or the Board for procurement of the food products used for the Child and Adult Care Food Program based on the policy for acquiring goods and services. Cause: The Food Bank did not follow its procurement policy for Board review and approval of the purchase contract under the federal program. Effect: Without appropriate approvals, the Food Bank could obtain food products that are not needed or from vendors who are not approved under the program. Context: Not applicable. Recommendation: The Food Bank should institute a procedure to ensure appropriate approval of all purchases under the program. View of responsible officials: Management's response is reported in "Management's Views and Corrective Action Plan" at the end of this report.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 64276 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.569 Emergency Food Assistance Program (food Commodities) $8.75M
10.569 Covid-19 - Emergency Food Assistance Program (food Commodities) $4.60M
10.568 Emergency Food Assistance Program (administrative Costs) $1.49M
10.559 Summer Food Service Program for Children $774,895
10.558 Child and Adult Care Food Program $753,691
10.565 Commodity Supplemental Food Program $338,725
93.558 Temporary Assistance for Needy Families $227,500