Finding 1124450 (2024-008)

Significant Deficiency
Requirement
ABCEP
Questioned Costs
-
Year
2024
Accepted
2025-03-31
Audit: 351904
Organization: Quincy Asian Resources, Inc. (MA)

AI Summary

  • Core Issue: The Organization lacks documented procurement procedures required by the OMB’s Uniform Guidance (UG).
  • Impacted Requirements: Failure to verify vendors against the debarred or suspended list leads to non-compliance with UG.
  • Recommended Follow-Up: Develop and implement procurement policies, ensuring checks against the System for Award Management (SAM) for vendor eligibility.

Finding Text

Condition and Criteria: The OMB’s UG provides that an entity must have and use documented procurement procedures. The methods of procurement differ based on the amount of the procurement (micro-purchase, small purchase, or a simplified acquisition). In addition, UG prohibits the purchase of goods or services with any debarred or suspended party. The Organization does not have procurement procedures in place that are in compliance with the UG requirements including procedures to verify that vendors providing goods and services to the Federal grants have not been suspended or debarred from Federal procurements or contracts. Cause: The Organization was unaware of these requirements. Effect: The Organization is not in compliance with the UG requirements. In addition, any costs associated with a suspended or debarred party could be unallowable. Auditor’s Recommendation: The Organization should develop and implement policies and procedures relating to the different levels of procurement as well as prohibiting procurement with a debarred or suspended party(including verifying that vendors are not included on System for Award Management (SAM) site as ineligible). Views of Responsible Officials and Planned Corrective Action: Quincy Asian Resources, Inc. acknowledges the finding and will create, implement, and document policies and procedures to ensure all procurement activities comply with UG requirements. This will include written documentation of the policies and procedures related to the federal grants.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
93.988 Cooperative Agreements for Diabetes Control Programs $826,496
97.010 Citizenship Education and Training $116,056