Finding 1156775 (2024-001)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2025-09-30
Audit: 369106
Organization: Special Children's Charities (IL)

AI Summary

  • Core Issue: The Organization lacks documented procurement policies that meet federal standards.
  • Impacted Requirements: Compliance with 2 CFR §§200.318–200.320 regarding conflict of interest, competitive bidding, and vendor checks.
  • Recommended Follow-up: Revise procurement policies to align with federal requirements and provide staff training.

Finding Text

Federal Program: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number 21.027 Federal Agency: U.S. Department of Treasury Pass-through Entity: Illinois Department of Human Services Condition: The Organization does not have documented procurement policies that address all required federal standards, including conflict-of-interest disclosures, thresholds for competitive bidding, and vendor suspension/debarment checks. Criteria: 2 CFR §§200.318–200.320 require non-federal entities to use documented procurement procedures consistent with federal standards, including conflict of interest, competitive procurement thresholds, and vendor responsibility checks. Cause: Lack of awareness of Uniform Guidance procurement standards and incomplete written policies. Effect: SCC risks awarding contracts that are not allowable or are subject to disallowance under federal regulations. Questioned Costs: None noted during audit testing. Auditor’s Recommendation: The Organization should revise and implement procurement policies and procedures that meet all requirements of 2 CFR 200 and train staff accordingly.

Corrective Action Plan

The audit identified gaps in our procurement policies and procedures. In response, updated procurement policies have already been drafted. These policies align with federal requirements, strengthen internal controls, and establish clearer guidelines for competitive bidding, documentation and approval processes. The draft policies are currently under review by the Executive Director and will be finalized and implemented promptly.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1156776 2024-002
    Material Weakness Repeat
  • 1156777 2024-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $5.45M
84.427 Congressionally Directed Spending—rehabilitation Services and Disability Research $57,615