Finding 1170169 (2025-001)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2025
Accepted
2026-01-21

AI Summary

  • Core Issue: Organization lacks required written procurement policies as per 2 CFR 200, Sections 200.318 – 200.327.
  • Impacted Requirements: Non-compliance with Uniform Guidance leads to incomplete internal controls.
  • Recommended Follow-Up: Management should finalize and adopt compliant procurement policies by fiscal year 2026.

Finding Text

Criteria: The Uniform Guidance requires that Organization have written procurement policies in place that comply with 2 CFR 200, Sections Subparts D and E. Condition: While testing compliance with 2 CFR 200, Sections Subparts D and E we found that management had not adopted the required procurement policies under 2 CFR Sections 200.318 – 200.327. Cause: Management does not regularly expend federal dollars above the threshold requiring a Single Audit under the Uniform Guidance. As such, policies related to procurement were not adopted. Effect: Internal controls surrounding Uniform Guidance are incomplete. Recommendation: Management should review 2 CFR Sections 200.138 – 300.327 and develop written policies that comply with the compliance requirements. Questioned Costs: None Management’s Response: Management has started incorporating 2 CFR Sections 200.138 – 300.327 into their current procurement policies and will adopt the policy changes in fiscal year 2026.

Corrective Action Plan

We agree that our current procurement policies are not compliant with current federal regulations. We have reviewed the required policies and will adopt these policies in fiscal year 2026. Management will review their current procurement policies and make any necessary changes to update the policies to be compliant with 2 CFR Sections 200.138 – 200.327. We anticipate that the corrective action will be completed within 12 months.

Categories

Procurement, Suspension & Debarment Internal Control / Segregation of Duties

Programs in Audit

ALN Program Name Expenditures
14.275 HOUSING TRUST FUND $763,274
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $680,090
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $225,000
93.958 BLOCK GRANTS FOR COMMUNITY MENTAL HEALTH SERVICES $125,513
14.195 SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM $74,925