Finding Text
2023-001
Agency and Pass Through Entities: U.S. Department of Treasury passed through Wisconsin Department of Agriculture, Trade and Consumer Protection and Feeding Wisconsin, Inc.
Federal Program and Award Numbers: 21.027, COVID-19 - Coronavirus State and Local Fiscal Recovery Funds (ARP). Award number 445404.
Criteria: Uniform Guidance requires the Organization establish and maintain effective internal control over federal awards over procurement by obtaining price quotations from an adequate number of
sources when payments are expected to be greater than the simplified acquisition threshold ($10,000).
Statement of Condition: The Organization did not retain documentation that supported that a review occurred over multiple bids that were obtained when purchases exceeded the simplified acquisition
threshold ($10,000). During the course of the audit process, management reproduced and provided evidence that the Organization complied with the requirements.
Questioned Costs: The amount of questioned costs could not be determined.
Context: In four out of the eight selections tested, management obtained multiple price quotations but did not retain documentation that supported a review occurred for purchases that exceeded the simplified acquisition threshold ($10,000).
Effect: Federal funds could be used with bias or inefficiently.
Cause: Management did not have controls in place to ensure documentation was retained and documentation that the bids and quotes were reviewed when purchases exceeded the simplified acquisition threshold ($10,000).
Recommendation: We recommend management implement procedures and controls in which the Organization retains documentation to support multiple quotes were obtained for purchases that exceeded the simplified acquisition threshold ($10,000). Management should designate an individual to perform a review of the procurement process and supporting documentation prior to purchases occurring.
Management Response: Management acknowledges that while the Organization has the policies in place and obtained the required number of quotes/bids, the Organization did not have consistent adherence to documentation of all quotes/bids. Management agrees with the recommendation and have prepared a corrective action plan with the VP of Finance reviewing the procurement process and ensuring supporting documentation prior to these specific purchases occurring.