Finding 1157322 (2024-001)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2025-09-30
Audit: 369604
Organization: Giraffe Laugh, Inc. (ID)
Auditor: Sorren CPAS PC

AI Summary

  • Core Issue: The organization lacks written procurement policies that meet federal standards as required by 2 CFR Part 200, Section 200.318.
  • Impacted Requirements: Policies must address procurement methods, competition requirements, and documentation standards.
  • Recommended Follow-Up: Management should establish and adopt compliant written procurement policies to ensure adherence to federal regulations.

Finding Text

2 CFR PART 200, SECTION 200.318 REQUIRES NON-FEDERAL ENTITIES TO MAINTAIN WRITTEN PROCUREMENT POLICIES AND PROCEDURES THAT CONFORM TO APPLICABLE FEDERAL LAWS, REGULATIONS, AND STANDARDS. THESE POLICIES MUST COVER METHODS OF PROCUREMENT, COMPETITION REQUIREMENTS, AND DOCUMENTATION STANDARDS. THE ORGANIZATION’S WRITTEN PROCUREMENT POLICY DID NOT CONFORM TO FEDERAL PROCUREMENT STANDARDS. CAUSE: MANAGEMENT DID NOT ESTABLISH OR ADOPT PROCUREMENT POLICIES AND PROCEDURES AS REQUIRED BY UNIFORM GUIDANCE. ALTHOUGH TESTING OF PROCUREMENT TRANSACTIONS INDICATED THAT THE ORGANIZATION FOLLOWED PRACTICES CONSISTENT WITH FEDERAL PROCUREMENT REQUIREMENTS, THE ABSENCE OF A WRITTEN POLICY REPRESENTS NONCOMPLIANCE WITH 2 CFR PART 200, SECTION 200.318.

Corrective Action Plan

Giraffe Laugh will update the current procedural manaul to ensure that proper action is taken at the time invoices are submitted for approval. We anticipate having the procedure manual updated and ready by the end of the first quarter of the fiscal year 2026. Wihle proper protocols were being follwed, the manual was not adequately updated to reflect best practices. Anticipated completion date: March 31, 2026

Categories

Procurement, Suspension & Debarment Matching / Level of Effort / Earmarking

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.12M
93.434 Every Student Succeeds Act/preschool Development Grants $26,500