Finding 1055037 (2023-004)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-07-16
Audit: 315222
Organization: Shelter House, Inc. (VA)
Auditor: Aprio LLP

AI Summary

  • Core Issue: The Organization failed to follow its own procurement policy for purchases between $10,000 and $250,000.
  • Impacted Requirements: They did not obtain necessary price quotations from qualified sources as required by 2 CFR 200.320(a)(2).
  • Recommended Follow-Up: Ensure price quotations are obtained for all relevant material purchases and recurring expenditures related to federal awards.

Finding Text

Program Name: Continuum of Care Assistance listing #: 14.218 Federal Awarding Agency: U.S. Department of Housing and Urban Development Compliance Requirement: Procurement Criteria: According to 2 CFR 200.320(a)(2) price quotations must be obtained from an adequate number of qualified sources for the acquisition of property or services for which the aggregate dollar amount is higher than the micro-purchase threshold but does not exceed the simplified acquisition threshold. Condition: The Organization did not follow their small purchase procedures used according to their procurement policy (for procurements between $10,000 and $250,000). Cause: Many expenses were split between multiple programs over the course of the program. While the expenditures were individually within the micro-purchase threshold, combined, the amounts exceeded this. Effect: The Organization did not adequately meet the requirements for their procurement policy to perform a cost/price analysis on their contractors. Repeat Finding: This is not a repeat finding. Questioned Costs: There were no questioned costs related to this finding. Recommendation: We recommend the Organization receive price quotations for all material purchases and recurring expenditures relevant to federal awards.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 478594 2023-003
    Material Weakness Repeat
  • 478595 2023-004
    Significant Deficiency
  • 478596 2023-003
    Material Weakness Repeat
  • 478597 2023-004
    Significant Deficiency
  • 1055036 2023-003
    Material Weakness Repeat
  • 1055038 2023-003
    Material Weakness Repeat
  • 1055039 2023-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.267 Continuum of Care Program $1.18M
14.218 Community Development Block Grants/entitlement Grants $572,018
21.027 Coronavirus State and Local Fiscal Recovery Funds $489,853
14.231 Community Development Block Grants/entitlement Grants $277,553
16.575 Crime Victim Assistance $231,327
93.558 Temporary Assistance for Needy Families $219,749
14.239 Home Investment Partnerships Program $203,000
14.231 Emergency Solutions Grant Program $191,023
93.671 Family Violence Prevention and Services/domestic Violence Shelter and Supportive Services $20,000