Finding 1158125 (2024-003)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2025-09-30
Audit: 370045
Organization: Tulsa Community Foundation (OK)
Auditor: Hogantaylor LLP

AI Summary

  • Core Issue: The Foundation lacks documented procurement policies for federal awards, violating federal standards.
  • Impacted Requirements: Noncompliance with 2 CFR sections 200.318-326 could lead to improper spending and loss of grant funds.
  • Recommended Follow-Up: Develop and implement a formal procurement policy and controls to ensure compliance across all affiliates.

Finding Text

Finding: Item 2024-003 – Procurement Significant Deficiency Federal Program – COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number – 21.027 Pass-through Grantor's Numbers – CMF 2021125, 2159FR0292, 2159FR0310, 2159FR0317, 2159FR0334, 2159FR0318 Federal Award Year – December 31, 2024 Federal Agency – U.S. Department of Treasury Pass-Through Entity – Tulsa County/City of Tulsa Criteria: Nonfederal entities must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326, which stipulates that the organization must have a policy in place to comply with these standards. Condition/context: The Foundation had no documented policies in place over procurement of goods or services with the use of federal awards. As such, evidence was not available to document that federal procurement standards were followed as transactions took place. Cause: The Foundation and affiliates lacked a formally documented policy to prevent or detect inappropriate procurement from being entered into. Effect: The Foundation may improperly award and/or pay more than what could have been obtained for comparable goods or services for the geographic area. If instances of noncompliance with federal procurement have occurred or occur in the future, it could result in loss of grant funds, additional federal oversight of federal funding, or repayment of overspent federal monies could be requested to be paid by the Foundation. Questioned cost: Not applicable. Repeat finding: Yes, 2023-005. Recommendation: The Foundation should create a documented procurement policy that follows federal procurement policies and ensure that all affiliates establish and follow that policy. The Foundation and its affiliates should also establish formally documented controls to ensure that the procurement policies are being followed. View of responsible officials: Management's response is reported in "Corrective Action Plan" at the end of this report.

Corrective Action Plan

Description of Finding: The Foundation and its affiliates did not ensure proper documentation was retained regarding its procurement process. Statement of Concurrence or Nonconcurrence: Tulsa Community Foundation agrees with this finding. Corrective Action: The Foundation will adopt a procurement policy in accordance with UGG 2 CFR 200.318 through 200.327 and will collaborate more closely with project partners of federal grants to ensure documentation requirements for the procurement process are adhered to and work to centralize grant documentation for all awards. This will be in tandem with establishing effective internal controls as per Uniform Guidance 2 CFR 200.303. To support this corrective action, the Foundation has hired an experienced senior accountant to strengthen internal capacity. The qualified senior accountant will oversee federal grants and ensure ongoing compliance with internal controls and help to prevent recurrence of the issue. Name of Contact Person: Kristin Karlin, Controller Projected Completion Date: The Foundation projects the new policy documentation to be complete and centralization of grant documentation to be established by December 31, 2025.

Categories

Procurement, Suspension & Debarment Subrecipient Monitoring Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1158111 2024-001
    Material Weakness Repeat
  • 1158112 2024-002
    Material Weakness Repeat
  • 1158113 2024-003
    Material Weakness Repeat
  • 1158114 2024-001
    Material Weakness Repeat
  • 1158115 2024-002
    Material Weakness Repeat
  • 1158116 2024-003
    Material Weakness Repeat
  • 1158117 2024-001
    Material Weakness Repeat
  • 1158118 2024-002
    Material Weakness Repeat
  • 1158119 2024-003
    Material Weakness Repeat
  • 1158120 2024-001
    Material Weakness Repeat
  • 1158121 2024-002
    Material Weakness Repeat
  • 1158122 2024-003
    Material Weakness Repeat
  • 1158123 2024-001
    Material Weakness Repeat
  • 1158124 2024-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
11.307 Economic Adjustment Assistance $372,627
14.276 Youth Homelessness Demonstration Program $174,493
11.039 Regional Technology and Innovation Hubs $61,453
21.027 Coronavirus State and Local Fiscal Recovery Funds $40,000
11.024 Build to Scale $812