2023-001 – Documentation of Procurement Process
Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Control over Compliance (Procurement, Suspension and Debarment).
Program. Coronavirus State and Local Fiscal Recovery Funds; U.S. Department of Treasury; ALN 21.027.
Criteria. A recipient of federal awards is required to apply procurement policies and procedures consistently for federal and non-federal transactions. In addition, when using a contractor for $25,000+ in services, the entity is required to determine whether the contractor has been suspended or debarred by the federal government.
Condition. The Organization does not have documentation of their process for noncompetitive procurement, specifically related to sole source procurement. In addition, the Organization reviews vendors standing with the State of Michigan and LARA, but not with www.sam.gov. No documentation of this review is retained.
Cause. This condition was caused by management oversight in knowing the federal compliance requirements of the grant.
Effect. As a result of this condition, the Organization did not fully comply with the requirements of the Uniform Guidance.
Questioned Costs. No costs have been questioned as a result of this finding, inasmuch as no suspended or debarred transactions were noted.
Recommendation. We recommend that the Organization retain documentation of their procurement process including checking vendors for potential exclusions from federal award work.
View of Responsible Officials. LEAP has recently learned, through this audit process and a non-material note, that it can continue to improve its process for non-competitive procurement, specifically related to sole source procurement. We welcome the opportunity to modify documentation in 2024.
2023-002 – Written Policies and Procedures Required by the Uniform Grant Guidance
Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Control over Compliance (Cash Management, Procurement, Suspension and Debarment).
Program. Coronavirus State and Local Fiscal Recovery Funds; U.S. Department of Treasury; ALN 21.027.
Criteria. The Uniform Guidance requires a non-federal entity that has expended federal awards for a grant awarded on or after December 26, 2014 to have written policies pertaining to various areas, including: 1) Payments (draws of federal funds and how to minimize the time elapsing between the receipt of federal funds and the disbursement to contractors/employees/subrecipients) (§200.302 (6)); 2) Procurement (including bidding and a conflict of interest policy) (§200.318); 3) Allowability of costs charged to federal programs (§200.302 (7)); 4) Compensation (personnel and benefits policy) (§200.430 and §200.431); and 5) Travel costs (including mileage and per diem) (§200.474).
Condition. Although the Organization has processes in place to cover this area, the Organization has no formal written policies covering cash management or procurement that address all of the areas required by the Uniform Guidance.
Cause. This condition appears to be the result of a time lag in identifying the requirement and developing a plan for compliance.
Effect. As a result of this condition, the Organization did not fully comply with the Uniform Guidance.
Questioned Costs. No costs were required to be questioned as a result of this finding inasmuch as our testing did not reveal any unallowed costs.
Recommendation. We recommend that the Organization draft the required policies as soon as practical, but no later then the end of fiscal year 2024.
View of Responsible Officials. LEAP has recently learned, through the audit process and a non-material note, that it can continue to improve its written policies covering payments or procurements that address all areas required by the Uniform Guidance. We welcome the opportunity to modify written policies in 2024.
2023-001 – Documentation of Procurement Process
Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Control over Compliance (Procurement, Suspension and Debarment).
Program. Coronavirus State and Local Fiscal Recovery Funds; U.S. Department of Treasury; ALN 21.027.
Criteria. A recipient of federal awards is required to apply procurement policies and procedures consistently for federal and non-federal transactions. In addition, when using a contractor for $25,000+ in services, the entity is required to determine whether the contractor has been suspended or debarred by the federal government.
Condition. The Organization does not have documentation of their process for noncompetitive procurement, specifically related to sole source procurement. In addition, the Organization reviews vendors standing with the State of Michigan and LARA, but not with www.sam.gov. No documentation of this review is retained.
Cause. This condition was caused by management oversight in knowing the federal compliance requirements of the grant.
Effect. As a result of this condition, the Organization did not fully comply with the requirements of the Uniform Guidance.
Questioned Costs. No costs have been questioned as a result of this finding, inasmuch as no suspended or debarred transactions were noted.
Recommendation. We recommend that the Organization retain documentation of their procurement process including checking vendors for potential exclusions from federal award work.
View of Responsible Officials. LEAP has recently learned, through this audit process and a non-material note, that it can continue to improve its process for non-competitive procurement, specifically related to sole source procurement. We welcome the opportunity to modify documentation in 2024.
2023-002 – Written Policies and Procedures Required by the Uniform Grant Guidance
Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Control over Compliance (Cash Management, Procurement, Suspension and Debarment).
Program. Coronavirus State and Local Fiscal Recovery Funds; U.S. Department of Treasury; ALN 21.027.
Criteria. The Uniform Guidance requires a non-federal entity that has expended federal awards for a grant awarded on or after December 26, 2014 to have written policies pertaining to various areas, including: 1) Payments (draws of federal funds and how to minimize the time elapsing between the receipt of federal funds and the disbursement to contractors/employees/subrecipients) (§200.302 (6)); 2) Procurement (including bidding and a conflict of interest policy) (§200.318); 3) Allowability of costs charged to federal programs (§200.302 (7)); 4) Compensation (personnel and benefits policy) (§200.430 and §200.431); and 5) Travel costs (including mileage and per diem) (§200.474).
Condition. Although the Organization has processes in place to cover this area, the Organization has no formal written policies covering cash management or procurement that address all of the areas required by the Uniform Guidance.
Cause. This condition appears to be the result of a time lag in identifying the requirement and developing a plan for compliance.
Effect. As a result of this condition, the Organization did not fully comply with the Uniform Guidance.
Questioned Costs. No costs were required to be questioned as a result of this finding inasmuch as our testing did not reveal any unallowed costs.
Recommendation. We recommend that the Organization draft the required policies as soon as practical, but no later then the end of fiscal year 2024.
View of Responsible Officials. LEAP has recently learned, through the audit process and a non-material note, that it can continue to improve its written policies covering payments or procurements that address all areas required by the Uniform Guidance. We welcome the opportunity to modify written policies in 2024.
2023-001 – Documentation of Procurement Process
Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Control over Compliance (Procurement, Suspension and Debarment).
Program. Coronavirus State and Local Fiscal Recovery Funds; U.S. Department of Treasury; ALN 21.027.
Criteria. A recipient of federal awards is required to apply procurement policies and procedures consistently for federal and non-federal transactions. In addition, when using a contractor for $25,000+ in services, the entity is required to determine whether the contractor has been suspended or debarred by the federal government.
Condition. The Organization does not have documentation of their process for noncompetitive procurement, specifically related to sole source procurement. In addition, the Organization reviews vendors standing with the State of Michigan and LARA, but not with www.sam.gov. No documentation of this review is retained.
Cause. This condition was caused by management oversight in knowing the federal compliance requirements of the grant.
Effect. As a result of this condition, the Organization did not fully comply with the requirements of the Uniform Guidance.
Questioned Costs. No costs have been questioned as a result of this finding, inasmuch as no suspended or debarred transactions were noted.
Recommendation. We recommend that the Organization retain documentation of their procurement process including checking vendors for potential exclusions from federal award work.
View of Responsible Officials. LEAP has recently learned, through this audit process and a non-material note, that it can continue to improve its process for non-competitive procurement, specifically related to sole source procurement. We welcome the opportunity to modify documentation in 2024.
2023-002 – Written Policies and Procedures Required by the Uniform Grant Guidance
Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Control over Compliance (Cash Management, Procurement, Suspension and Debarment).
Program. Coronavirus State and Local Fiscal Recovery Funds; U.S. Department of Treasury; ALN 21.027.
Criteria. The Uniform Guidance requires a non-federal entity that has expended federal awards for a grant awarded on or after December 26, 2014 to have written policies pertaining to various areas, including: 1) Payments (draws of federal funds and how to minimize the time elapsing between the receipt of federal funds and the disbursement to contractors/employees/subrecipients) (§200.302 (6)); 2) Procurement (including bidding and a conflict of interest policy) (§200.318); 3) Allowability of costs charged to federal programs (§200.302 (7)); 4) Compensation (personnel and benefits policy) (§200.430 and §200.431); and 5) Travel costs (including mileage and per diem) (§200.474).
Condition. Although the Organization has processes in place to cover this area, the Organization has no formal written policies covering cash management or procurement that address all of the areas required by the Uniform Guidance.
Cause. This condition appears to be the result of a time lag in identifying the requirement and developing a plan for compliance.
Effect. As a result of this condition, the Organization did not fully comply with the Uniform Guidance.
Questioned Costs. No costs were required to be questioned as a result of this finding inasmuch as our testing did not reveal any unallowed costs.
Recommendation. We recommend that the Organization draft the required policies as soon as practical, but no later then the end of fiscal year 2024.
View of Responsible Officials. LEAP has recently learned, through the audit process and a non-material note, that it can continue to improve its written policies covering payments or procurements that address all areas required by the Uniform Guidance. We welcome the opportunity to modify written policies in 2024.
2023-001 – Documentation of Procurement Process
Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Control over Compliance (Procurement, Suspension and Debarment).
Program. Coronavirus State and Local Fiscal Recovery Funds; U.S. Department of Treasury; ALN 21.027.
Criteria. A recipient of federal awards is required to apply procurement policies and procedures consistently for federal and non-federal transactions. In addition, when using a contractor for $25,000+ in services, the entity is required to determine whether the contractor has been suspended or debarred by the federal government.
Condition. The Organization does not have documentation of their process for noncompetitive procurement, specifically related to sole source procurement. In addition, the Organization reviews vendors standing with the State of Michigan and LARA, but not with www.sam.gov. No documentation of this review is retained.
Cause. This condition was caused by management oversight in knowing the federal compliance requirements of the grant.
Effect. As a result of this condition, the Organization did not fully comply with the requirements of the Uniform Guidance.
Questioned Costs. No costs have been questioned as a result of this finding, inasmuch as no suspended or debarred transactions were noted.
Recommendation. We recommend that the Organization retain documentation of their procurement process including checking vendors for potential exclusions from federal award work.
View of Responsible Officials. LEAP has recently learned, through this audit process and a non-material note, that it can continue to improve its process for non-competitive procurement, specifically related to sole source procurement. We welcome the opportunity to modify documentation in 2024.
2023-002 – Written Policies and Procedures Required by the Uniform Grant Guidance
Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Control over Compliance (Cash Management, Procurement, Suspension and Debarment).
Program. Coronavirus State and Local Fiscal Recovery Funds; U.S. Department of Treasury; ALN 21.027.
Criteria. The Uniform Guidance requires a non-federal entity that has expended federal awards for a grant awarded on or after December 26, 2014 to have written policies pertaining to various areas, including: 1) Payments (draws of federal funds and how to minimize the time elapsing between the receipt of federal funds and the disbursement to contractors/employees/subrecipients) (§200.302 (6)); 2) Procurement (including bidding and a conflict of interest policy) (§200.318); 3) Allowability of costs charged to federal programs (§200.302 (7)); 4) Compensation (personnel and benefits policy) (§200.430 and §200.431); and 5) Travel costs (including mileage and per diem) (§200.474).
Condition. Although the Organization has processes in place to cover this area, the Organization has no formal written policies covering cash management or procurement that address all of the areas required by the Uniform Guidance.
Cause. This condition appears to be the result of a time lag in identifying the requirement and developing a plan for compliance.
Effect. As a result of this condition, the Organization did not fully comply with the Uniform Guidance.
Questioned Costs. No costs were required to be questioned as a result of this finding inasmuch as our testing did not reveal any unallowed costs.
Recommendation. We recommend that the Organization draft the required policies as soon as practical, but no later then the end of fiscal year 2024.
View of Responsible Officials. LEAP has recently learned, through the audit process and a non-material note, that it can continue to improve its written policies covering payments or procurements that address all areas required by the Uniform Guidance. We welcome the opportunity to modify written policies in 2024.