Audit 32646

Finding 2022-001: Compliance Requirement Procurement, Suspension, and Debarment Finding Type Significant Deficiency in Compliance Federal Agency U.S. Department of Energy Federal Program Title Weatherization Assistance for Low-Income Persons Assistance Listing Number 81.042 Criteria or Specific Requirement: The general procurement standards (2 CFR 200.318) requires a non-Federal entity must have and use documented procurement procedures, consistent with state, local and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in 2 CFR 200.317 through 2 CFR 200.327. Condition: The Organization has adopted procurement policies as required by 2 CFR 200.317 through 200.327. The procurement policies adopted by the Organization are more restrictive than that required under Uniform Guidance. However, it was noted that the Organization is not following its adopted procurement policies. Cause: Failure to follow established policies and procedures due to program directors/leaders not being fully informed of the Organization's adopted procurement policy. Effect: When procurement procedures are not followed, the Organization increases their risk of making payments that exceed allowed costs. Recommendation: Management and the Board of Directors should review the Organization's procurement policies and procedures for consistency and to make sure that any adopted procurement policies or procedures align with those required under 2 CFR 200.317 through 2 CFR 200.327. The fiscal department needs to make sure the Organization's adopted procurement policy is communicated to all program directors/leaders and is understood and followed. View of Responsible Official (Unaudited): The Organization agrees with this finding. See corrective action plan. SECTION IV - PRIOR YEAR FINDINGS The audit for the year June 30, 2021, disclosed no findings.

Finding 2022-001: Compliance Requirement Procurement, Suspension, and Debarment Finding Type Significant Deficiency in Compliance Federal Agency U.S. Department of Energy Federal Program Title Weatherization Assistance for Low-Income Persons Assistance Listing Number 81.042 Criteria or Specific Requirement: The general procurement standards (2 CFR 200.318) requires a non-Federal entity must have and use documented procurement procedures, consistent with state, local and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in 2 CFR 200.317 through 2 CFR 200.327. Condition: The Organization has adopted procurement policies as required by 2 CFR 200.317 through 200.327. The procurement policies adopted by the Organization are more restrictive than that required under Uniform Guidance. However, it was noted that the Organization is not following its adopted procurement policies. Cause: Failure to follow established policies and procedures due to program directors/leaders not being fully informed of the Organization's adopted procurement policy. Effect: When procurement procedures are not followed, the Organization increases their risk of making payments that exceed allowed costs. Recommendation: Management and the Board of Directors should review the Organization's procurement policies and procedures for consistency and to make sure that any adopted procurement policies or procedures align with those required under 2 CFR 200.317 through 2 CFR 200.327. The fiscal department needs to make sure the Organization's adopted procurement policy is communicated to all program directors/leaders and is understood and followed. View of Responsible Official (Unaudited): The Organization agrees with this finding. See corrective action plan. SECTION IV - PRIOR YEAR FINDINGS The audit for the year June 30, 2021, disclosed no findings.