Finding 1170991 (2023-003)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2026-01-29
Audit: 384386
Organization: Fusion Parterships, Inc. (MD)

AI Summary

  • Core Issue: Lack of established procedures for evaluating bid proposals and contract comparisons leads to inconsistencies in procurement.
  • Impacted Requirements: Incomplete contract execution and missing signatures raise concerns about the validity of agreements and compliance with vendor guidelines.
  • Recommended Follow-Up: Develop and document clear procedures for bid evaluations and contract management to ensure compliance and optimize vendor selection.

Finding Text

During our examination of internal controls, we identified the absence of established procedures. There are no documented procedures in place for the evaluation of bid proposals and subsequent contract comparisons. The lack of structured guidelines contributes to inconsistencies in the procurement process. We also identified the incomplete contract execution, in some instances, contracts were obtained without both parties' signatures, raising concerns about the completeness and validity of the agreements. We noted instances where it was challenging to determine if comparisons were conducted to ensure the selection of the most cost-effective vendor for the organization. The absence of such evaluations may impact the organization's ability to optimize its financial resources. Documentation confirming the sole source status of certain vendors was not consistently provided. This absence introduces uncertainty regarding the organization's compliance with sole source vendor guidelines.

Corrective Action Plan

We also added a Procurement Coordinator as of May 9, 2023. We have overhauled our Procurement Policies and implemented changes to be in compliance beginning January 1, 2024. This process is documented as we obtain the various quotes from vendors over dollar amount thresholds and have implemented a bidding process for contracts over a larger threshold. Documentation of such is maintained in the vendor files. Additionally, the purchasing coordinator attends partner engagement coordinator meetings regularly to discuss purchases that are subject to increased scrutiny in order to improve cross departmental communication. A standardized bid evaluation policies and procedures document will be created to give clear direction to internal stakeholders. A comprehensive training course will also be created and made available to all parties involved in the bid evaluation process.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1170986 2023-001
    Material Weakness Repeat
  • 1170987 2023-001
    Material Weakness Repeat
  • 1170988 2023-002
    Material Weakness Repeat
  • 1170989 2023-002
    Material Weakness Repeat
  • 1170990 2023-003
    Material Weakness Repeat
  • 1170992 2023-004
    Material Weakness Repeat
  • 1170993 2023-005
    Material Weakness Repeat
  • 1170994 2023-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.788 SUBSTANCE ABUSE MORBIDITY $433,693
00.000 PAROLE HEARING AND REENTRY PREPARATION $429,570
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $274,505
00.000 BLUEPRINT FOR MARYLAND'S FUTURE $190,131
93.307 CENTER FOR URBAN HEALTH DISPARITIES RESEARCH & INNOVATION $162,964
00.000 STATE TOURISM $123,995
16.540 BALTIMORE YOUTH ARTS - STUDIO APPRENTICE PROGRAM I $104,127
16.738 BALTIMORE YOUTH ARTS APPRENTICE PROGRAM AND ALUMNI ENGAGEMENT $96,746
20.272 COLLECTIVE FOR ANTIRACIST CHILD AND FAMILY SYSTEMS $82,843
93.185 SUPPORT TO INCREASE EQUITABLE VACCINATION COVERAGE $73,906
20.616 NIGHT LIGHT $47,026
45.025 MID ATLANTIC FOLD AND TRADITIONAL ARTS COMMUNITY PROJECTS $23,836
00.000 COMMUNITY SAFETY WORKS PROGRAM $22,500
00.000 COMMUNITY ENGAGEMENT RESEARCH ALLIANCE $12,980