Finding 1158022 (2024-002)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2025-09-30
Audit: 369989
Auditor: Wipfli LLP

AI Summary

  • Core Issue: The Center for Black Excellence and Culture, Inc. lacks necessary procurement documentation.
  • Impacted Requirements: Compliance with Uniform Guidance 200.318(i) for maintaining detailed procurement records.
  • Recommended Follow-Up: Ensure procurement evidence is accessible to management and demonstrates compliance with regulations.

Finding Text

2024 002 Procurement Documentation Retention Federal program information: Funding Agency: U.S. Department of Housing and Urban Development Title: Economic Development Initiative, Community Project Funding, and Miscellaneous Grants AL Number: 14.251 Award year and number: 01/01/2024 12/31/2024 B 22 CP WI 0969 Questioned Costs: None Condition: During the audit we were unable to observe the Center for Black Excellence and Culture, Inc.'s documentation related to the procurement process. Criteria: Uniform Guidance 200.318(i) states the recipient must "maintain records sufficient to detail the history of each procurement transaction. These records must include the rationale for the procurement method, contract type selection, contractor selection or rejection, and the basis for the contract price." Effect: With the Center for Black Excellence and Culture, Inc.'s development in 2024, external monitoring sources may request documentation used to evaluate and select construction contractor. Failure to provide proper procurement documentation may result in noncompliance with applicable regulations. Auditor's Recommendation: We recommend the Center for Black Excellence and Culture, Inc. retain evidence in a location accessible to management to show the procurement requirements were met and support was obtained from a sufficient number of qualified sources. View of Responsible Officials: Management agrees with this finding and has prepared a corrective action plan.

Corrective Action Plan

2024-002 Procurement Documentation Retention Corrective Action Plan The Center for Black Excellence and Culture Inc will obtain procurement documentation for all vendors and keep for our records electronically in our shared google drive folders. We will have the board review and approve a criteria for RFP evaluation and a procurement policy. Person(s) Responsible: Jason Fields, Chief Operations Officer Timing for Implementation: No later than December 31, 2025

Categories

Procurement, Suspension & Debarment Subrecipient Monitoring

Other Findings in this Audit

  • 1158021 2024-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.251 Economic Development Initiative, Community Project Funding, and Miscellaneous Grants $1.00M