Finding 969625 (2023-002)

Material Weakness
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-04-15
Audit: 303509
Organization: Oregon Food Bank, Inc. (OR)

AI Summary

  • Core Issue: Oregon Food Bank, Inc. failed to verify if subrecipients were suspended or debarred before distributing federal funds.
  • Impacted Requirements: Non-federal entities must ensure compliance with 2 CFR section 180 to avoid contracting with suspended or debarred parties.
  • Recommended Follow-up: Update policies to include verification procedures for vendor and subrecipient eligibility regarding suspension and debarment.

Finding Text

2023-002 Finding – Federal Award Type: Federal Award – Material Weakness and Material Noncompliance – Procurement, Suspension and Debarment Identification of Federal Program: 21.027 – Coronavirus State and Local Fiscal Recovery Funds 10.182 – Local Food Purchase Agreements with State, Tribes, and Local Governments Criteria/Requirement: Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. According to 2 CFR section 180, when a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity is not suspended or debarred or otherwise excluded from participating in the transaction. Condition/Context: OFB passed through $4,027,781 in funding to subrecipients under Assistance Listing 21.027 and $1,825,785 in funding to subrecipients under Assistance Listing 10.182. During our audit, we noted that Oregon Food Bank, Inc did not verify subrecipients for suspension or debarment. Cause: The organization’s policy does not include language regarding verifying if a vendor or subrecipient is suspended or debarred. Effect: A suspended or debarred vendor subrecipient may receive federal funding. Questioned Costs: None Recommendation: Revise policies to include language for verifying if vendor or subrecipient is suspended or debarred before entering contracted transactions. Management’s Response: Management concurs with the finding and has developed a corrective action plan.

Categories

Procurement, Suspension & Debarment Subrecipient Monitoring

Other Findings in this Audit

  • 393182 2023-001
    Material Weakness
  • 393183 2023-002
    Material Weakness
  • 393184 2023-001
    Material Weakness
  • 393185 2023-002
    Material Weakness
  • 969624 2023-001
    Material Weakness
  • 969626 2023-001
    Material Weakness
  • 969627 2023-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.569 Emergency Food Assistance Program (administrative Costs) $16.92M
21.027 Coronavirus State and Local Fiscal Recovery Funds $4.61M
10.568 Emergency Food Assistance Program (administrative Costs) $2.85M
10.182 Local Food Purchase Assistance $1.25M
10.565 Commodity Supplemental Food Program $347,211
97.024 Emergency Food and Shelter National Board Program $221,993
10.766 Community Facilities Loans and Grants $100,000
10.177 Regional Food System Partnerships (b) $93,213
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $77,373
10.331 Food Insecurity Nutrition Incentive Grants Program $32,378