Finding 1149091 (2024-002)

Material Weakness
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2025-08-05
Audit: 363745
Organization: The Harbour Inc. (IL)
Auditor: Porte Brown LLC

AI Summary

  • Core Issue: The Organization lacks written procurement policies that meet the Uniform Guidance requirements.
  • Impacted Requirements: OMB Uniform Guidance §200.318 mandates documented procurement procedures, including standards for conflicts of interest.
  • Recommended Follow-Up: Develop and implement a written procurement policy and standards of conduct to ensure compliance.

Finding Text

Condition: The Organization does not have written procurement policies in accordance with procurement requirements contained within the Uniform Guidance. Criteria: OMB Uniform Guidance §200.318 required that entities must have and use documented procurement procedures that conform to the procurement standards identified in §200.317 through §200.327. These procedures must include written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award and administration of contracts. Cause: The Organization's federal funding significantly increased in the year ended June 30, 2024 and is the first year that the Organization was required to undergo an audit in accordance with the Uniform Guidance. The Organization has existing purchasing and conflict of interest policies in place; however, it was not aware that its existing purchasing policies were required to be updated to explicitly comply with the standards in the Uniform Guidance. Effect: In the absence of a written policy, it is more likely that the Organization's procurement practices will not comply with the Uniform Guidance. The Organization did not comply with the procurement standards concerning suspension and debarment and documentation of procurement activities. Recommendation: A written procurement policy and a written standard of conduct should be established in accordance with procurement requirements contained in the Uniform Guidance. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding, see corrective action plan.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 572646 2024-001
    Significant Deficiency
  • 572647 2024-001
    Significant Deficiency
  • 572648 2024-002
    Material Weakness
  • 572649 2024-002
    Material Weakness
  • 572650 2024-003
    Significant Deficiency
  • 572651 2024-003
    Significant Deficiency
  • 1149088 2024-001
    Significant Deficiency
  • 1149089 2024-001
    Significant Deficiency
  • 1149090 2024-002
    Material Weakness
  • 1149092 2024-003
    Significant Deficiency
  • 1149093 2024-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.550 Transitional Living for Homeless Youth $309,321
16.320 Services for Trafficking Victims $164,743
21.027 Coronavirus State and Local Fiscal Recovery Funds $26,827