Finding 1181405 (2025-001)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2025
Accepted
2026-03-18
Audit: 392656
Organization: Ucan (IL)
Auditor: PORTE BROWN LLC

AI Summary

  • Core Issue: The Organization lacks sufficient documentation for procurement decisions, violating 2 CFR 200.320 requirements.
  • Impacted Requirements: Documentation for procurement methods, especially for contracts below the simplified acquisition threshold, is inadequate.
  • Recommended Follow-Up: Implement a system to retain formal documentation of procurement decisions and ensure alignment with the procurement policy.

Finding Text

Criteria: 2 CFR 200.320 details various methods of procurement to be followed based on the intended dollar value and nature of the contract. While the specific required documentation may vary based on each of the various methods, all mandate specific documentation concerning procurement decisions. Condition: The Organization did not maintain sufficient documentation of its procurement decisions. During our testing of 25 procurement files, 3 were below the simplified acquisition threshold which require price quotations, the documentation did not evidence price quotations were received for the 3. Cause: The Organization has contracts with vendors that existed prior to the procurement guidelines. As a result, several of these contracts do not have sufficient documentation of procurement evaluations and decisions. Effect: Despite having a written procurement policy, if the Organization does not maintain sufficient documentation of procurement evaluations and decisions, the Organization's procurement practices will not comply with the Uniform Guidance. Questioned Costs: None Recommendation: The Organization should retain formal documentation with regard to its procurement decisions and document how the procurement decisions were made, including how these decisions align with the procurement policy. It is noted that this finding was identified in the prior year and a corrective action plan was put in place by the end of the fiscal year however, this current year finding addresses the period of time prior to the implementation of that corrective action plan. Management's Response: We agree with this finding. See corrective action plan.

Corrective Action Plan

Procurement policies and procedures were being updated to include clearer direction for documenting purchases, including a strengthened retention policy for procurement documentation. This was implemented at year end but was not present for the transactions during the year.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1181404 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $1.25M
94.011 FOSTER GRANDPARENT PROGRAM $822,839
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $418,221
17.259 WIA YOUTH ACTIVITIES $332,500
93.493 CONGRESSIONAL DIRECTIVES $319,487
10.561 STATE ADMINISTRATIVE MATCHING GRANTS FOR THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM $256,931
10.555 NATIONAL SCHOOL LUNCH PROGRAM $102,082
10.553 SCHOOL BREAKFAST PROGRAM $81,194
93.213 RESEARCH AND TRAINING IN COMPLEMENTARY AND INTEGRATIVE HEALTH $78,757
84.126 REHABILITATION SERVICES_VOCATIONAL REHABILITATION GRANTS TO STATES $26,964
93.958 BLOCK GRANTS FOR COMMUNITY MENTAL HEALTH SERVICES $22,373
16.582 CRIME VICTIM ASSISTANCE $20,994
14.881 MOVING TO WORK DEMONSTRATION PROGRAM $7,637