Finding 1168916 (2022-003)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2026-01-13
Audit: 381373
Organization: Weld Seattle (WA)

AI Summary

  • Core Issue: The Organization lacks a documented procurement policy required for compliance with federal standards.
  • Impacted Requirements: Failure to meet the procurement standards outlined in 2 CFR 200.320 affects service acquisition.
  • Recommended Follow-Up: Implement a compliant procurement policy and ensure all staff are trained on the new requirements.

Finding Text

Finding: 2022-003 – Procurement – Material Weakness in Internal Control over Compliance Criteria: The Organization should have and use documented procurement procedures, consistent with the standards for any method of procurement used for the acquisition of property or services required under a Federal or sub-award. Condition: During the audit, we noted that a procurement policy meeting the minimum requirements under 2 CFR 200.320 was not in place at the Organization. Cause: The Organization received a new grant in 2022 and was therefore required to have a procurement policy in place meeting the minimum standards under 2 CFR 200.320. The Organization was unaware of the requirement and did not implement a policy. Effect: Due to the condition above noted, the Organization did not follow procurement standards under 2 CFR 200.320 when acquiring services. Recommendation: The Organization should implement a procurement policy that meets the standards requirement under CFR 200.320 and ensure that all relevant personnel are aware of and follow the requirements in place View of Responsible Officials and Planned Correction Action: Management agrees with the finding presented by the audit. Management has taken corrective actions to meet this standard.

Corrective Action Plan

Management agrees with the finding presented by the audit. Management has taken corrective actions to meet this standard. The Organization has taken corrective actions to meet this standard for FY23. These actions include the Organization's implementation of a procurement policy with multiple levels of review. All purchases greater than or equal to $30,000 must receive three separate bids from outside vendors. Once the bids are received, the Executive Director will review and present the bids to the Board. The Board will approve the bid that is the most favorable purchase option for the Organization. The finance department will retain all bids received. Additionally, all purchases less than $30,000 that are consistent with the budgeted expenses for the year may require review and signature approval at the discretion of the Executive Director. Employees at the Director level have purchasing authority up to $5,000 and are authorized credit card holders. Employees who are below the Director level and are authorized card holders have purchasing authority up to $1,000. Any purchases greater than the $1,000 limit are required to have approval by their immediate supervisor before the purchase can be made. Once a purchase is made, regardless of the dollar amount, the procurement form must be submitted, with the respective receipt or invoice, to the finance department for processing.

Categories

Procurement, Suspension & Debarment Subrecipient Monitoring Material Weakness Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1168915 2022-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $705,588
10.561 STATE ADMINISTRATIVE MATCHING GRANTS FOR THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM $91,170