Finding 1155434 (2024-001)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2025-09-25
Audit: 367729
Organization: Ichauway Inc. (GA)

AI Summary

  • Core Issue: There is a material weakness in internal controls over compliance related to procurement practices.
  • Impacted Requirements: Federal procurement rules require price quotes from qualified sources for transactions between $10,000 and $250,000, which were not followed.
  • Recommended Follow-Up: Management needs to update procurement policies to ensure compliance with federal requirements.

Finding Text

FINDING 2024-001 Material Weakness in Internal Controls Over Compliance, Material Noncompliance – Procurement Federal Agency: U.S. Department of Agriculture Pass through Grantor: University of Georgia Research Foundation, Inc. Federal Program: Agriculture and Food Research Initiative Assistance Listing Number: 10.310 Federal Agency: U.S. Department of Agriculture Pass through Grantor: Not Applicable – Direct Award Federal Program: Soil and Water Conservation Assistance Listing Number: 10.902 Federal Award Identification Number: NR243A750023C002 Federal Agency: U.S. Department of Agriculture Pass through Grantor: University of Arizona Federal Program: Soil and Water Conservation Assistance Listing Number: 10.902 Federal Agency: U.S. Department of Agriculture Pass through Grantor: Flint River Soil and Water Conservation District Federal Program: Feral Swine Eradication and Control Pilot Program Assistance Listing Number: 10.934 Federal Agency: U.S. Department of Interior Pass through Grantor: Board of Regents of the University System of Georgia Federal Program: Wildlife Restoration and Basic Hunter Education and Safety Assistance Listing Number: 15.611 Criteria: Per 2 CFR Part 200, Subpart D, 200.320, if the aggregate dollar amount of the procurement transaction is higher than the micro-purchase threshold ($10,000) but does not exceed the simplified acquisition threshold ($250,000), price or rate quotations must be obtained from an adequate number of qualified sources. Condition/Context: Through Procurement testing, we identified 3 vendors which exceeded the micro-purchase threshold but did not exceed the simplified acquisition threshold. The total amount of federal expenditures for the year ended December 31, 2024 for these 3 vendors was $52,327. For all 3 vendors, we determined that the procurement methodology followed did not align with federal simplified acquisition procurement requirements. Cause: Management has not updated their procurement policy for federal awards to ensure it aligns with federal requirements. Effect: Contracts could be awarded to vendors that are not evaluated as required by federal procurement requirements. Questioned Costs: None. Recommendation: Management should develop and implement procurement policies that align with federal requirements. Views of Responsible Officials: See Corrective Action Plan.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1155433 2024-001
    Material Weakness Repeat
  • 1155435 2024-001
    Material Weakness Repeat
  • 1155436 2024-001
    Material Weakness Repeat
  • 1155437 2024-001
    Material Weakness Repeat
  • 1155438 2024-002
    Material Weakness Repeat
  • 1155439 2024-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.934 Feral Swine Eradication and Control Pilot Program $93,400
10.902 Soil and Water Conservation $87,895
47.074 Biological Sciences $81,303
15.611 Wildlife Restoration and Basic Hunter Education and Safety $61,067
10.707 Research Joint Venture and Cost Reimbursable Agreements $36,932
10.701 Stewardship Agreements $17,418
10.310 Agriculture and Food Research Initiative (afri) $8,878
15.615 Cooperative Endangered Species Conservation Fund $8,417
15.657 Endangered Species Recovery Implementation $7,707