Audit 367714

Item: 2024-001 Assistance Listing Number: 21.027 Programs: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Federal Agency: U.S. Department of the Treasury Pass-Through Agencies: Arizona State Office of the Governor Pass-Through Grantor Identifying Number: Unknown Award Year: January 1, 2022 to December 31, 2024 Compliance Requirement: Procurement, suspension and debarment Criteria: In accordance with 2 CFR § 200.318 - General procurement standards - the entity must use its own documented procurement procedures which reflect applicable. State and local laws and regulations, provided that the procurements conform to applicable Federal law and the standards identified in 2 CFR § 200.318. Condition: The Organization’s procurement policy and related procedures do address the provisions of 2 CFR § 200.318; however, the Organization has not retained documentation to support that the policy is being adhered to. Questioned Costs: n/a Context: In a population of over 250 procurements for program costs, we conducted a non-statistical sample of 60 transactions. In our sample of 60 transactions, it was noted that 57 procurements were below the micro-purchase threshold, and 3 procurements were above the micro-purchase threshold but below the small purchase threshold, which was 100% of the population in this threshold. We noted there was a lack of documentation retained by the Organization to support two of these three procurement transactions above the micro-purchase threshold but below the small purchase threshold. As such, this is deemed to be a material weakness in internal control over compliance. Effect: Undocumented procurement decisions could violate the requirements of 2 CFR § 200.318 Cause: Special Olympics Arizona, Inc. did not implement controls to ensure documentation was retained to support adherence to its own procurement policy. Identification as a Repeat Finding: Partial repeat finding of 2023-04 Recommendation: The entity should implement controls to ensure that documentation is retained to support adherence to its own procurement policy. Views of Responsible Officials: Management of the Organization concurs with the finding. See Corrective Action Plan.