Finding Text
Finding 2024-002, 2023-002: Allowable Activities – Procurement
Program Names and Community Services Block Grant, 93.569, Passed through Michigan
Awarding Agencies: Department of Health and Human Services
Finding Type: Significant Deficiency on Internal Controls over Compliance and
Noncompliance
Questioned Cost Amount: Based on deviations noted in our testwork the projected likely questioned
costs resulting in noncompliance are as follows:
Community Services Block Grant, 93.569: $100,059
Context / Criteria: Wayne Metropolitan Community Action Agency and Affiliates has a policy
for all purchases over $25,000 to have written bids from vendors. This
policy should be followed to adhere to the Organization’s policy and ensure
compliance with Uniform Guidance procurement requirements.
Condition: During our disbursement testing we noted the following that suggest a
deficiency in internal control and noncompliance:
Community Services Block Grant, 93.569: 2 out of 40 purchases did not
have formal bids, even though they were over the bid threshold of $25,000.
Cause / Effect: Wayne Metropolitan Community Action Agency and Affiliates did not
maintain sufficient procedures to ensure the procurement policy was
followed. The effect of this finding could have a significant impact on the
Wayne Metropolitan Community Action Agency and Affiliates compliance
with other federal and non-federal awards.
Recommendation: Wayne Metropolitan Community Action Agency and Affiliates and Uniform
Guidance requires disbursements to be supported by proper
documentation, including vendor selection forms and bid documentation.
We recommend that the Organization implement controls to ensure they
are in compliance with Uniform Guidance and their purchasing policy.
Views of Responsible
Officials and Corrective Management agrees with the finding. See accompanying corrective action
Actions: plan.