Finding 1161460 (2024-004)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2025-10-28
Audit: 371378
Auditor: RFH PLLC

AI Summary

  • Core Issue: The Home lacks written procurement standards that meet the requirements of 2 CFR 200.317 through 200.326.
  • Impacted Requirements: Compliance with federal procurement standards is not being met, risking potential funding issues.
  • Recommended Follow-Up: Update the purchasing policy to fully align with 2 CFR 200.317 through 200.326 and ensure ongoing compliance.

Finding Text

Criteria: The Home should have in place written procurement standards found in 2 CFR 200.317 through 200.326 of the Uniform Guidance. Condition: The Home does not have written procurement standards that are in accordance with the standards found in 2 CFR 200.317 through 200.326 of the Uniform Guidance. Cause: The Home’s written purchasing policy has not been updated to incorporate the standards found in 2 CFR 200.317 through 200.326 of the Uniform Guidance. Effect: The Home is not in compliance with the procurement standards found in 2 CFR 200.317 through 200.326 of the Uniform Guidance. Recommendation: We recommend the Home update its written purchasing policy to ensure the procurement standards found in 2 CFR 200.317 through 200.326 of the Uniform Guidance are incorporated. Management’s Response: Although this is the same recommendation as from 2023, the agency did make a change to the purchasing policy; however, it was not as detailed as necessary. The agency’s purchasing policy will be revised to ensure that the standards outlined in 2 CFR 200.317 – 200.326 are incorporated and followed.

Corrective Action Plan

We will incorporate oversight of procurement for the agency to our Accounts Payagble Manager’s job duties and in addition revise our protocols and procedures to adhere to procurement standards found in 2 CFR 200.317-200.326 of the Uniform Guidance. The protocols and procedures will include the following methods of procurement: o Micro-purchases (≤ $10,000): Award without competitive quotations if the price is reasonable; distribute purchases equitably among qualified suppliers. o Small purchases ($10,000–$250,000): Obtain price or rate quotations from at least two qualified sources; document quotes and selection rationale. o Sealed bids (≥ $250,000): Publicly solicit bids; award to the lowest responsible bidder. o Competitive proposals (≥ $250,000): Use when sealed bids are not appropriate; publicize RFPs and evaluate proposals based on predetermined factors o Non-competitive proposals (sole source): Use only when justified (e.g., single source, emergency, federal authorization, inadequate competition). o Maintain Oversight of Contractors to ensure contractors perform according to contract terms. o Record Keeping including: Rationale for method used, selection of contract, selection and rejection of contractor o Training - Provide training to all staff responsible for procurement on the updated policy and procedures.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1161461 2024-003
    Material Weakness Repeat
  • 1161462 2024-002
    Material Weakness Repeat
  • 1161463 2024-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.676 UNACCOMPANIED CHILDREN PROGRAM $5.69M