Finding 1213967 (2025-003)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2025

Accepted

2026-05-07

Audit: 400824

Organization: United Methodist Community House (MI)

Auditor: VREDEVELD HAEFNER LLC

AI Summary

Core Issue: The Organization lacks written policies and procedures for federal awards as required by 2CFR 200.
Impacted Requirements: Missing procurement standards, including bidding procedures and vendor suspension reviews.
Recommended Follow-Up: Establish formal written federal grant policies and procedures to comply with 2CFR 200.

Finding Text

Condition and Criteria: The Organization does not have written policies and procedures regarding federal awards required by 2CFR 200. This includes procurement standards, including bidding procedures and review for vendor suspension and debarment. Cause: The Organization has had minimal federal grant funding in the past and has not implemented written federal grant policies and procedures as required by 2CFR 200. Effect: The Organization expended federal funds without implementing written federal grant policies and procedures, and did not follow the federal requirements for bidding and review for vendor suspension and debarment. Recommendation: The Organization should establish formal written federal grant policies and procedures. Management Response: Management will establish formal written federal grant policies and procedures as required by 2CFR 200.

Corrective Action Plan

United Methodist Community House agrees with the finding identified and respectfully submits the following Corrective Action Plan for the year ending December 31, 2025. United Methodist Community House did not document the part of the policy that is needed to show that the vendor was not suspended or debarred from the Federal Government through SAM.gov before the contract was entered into. United Methodist Community House has discussed the procedure of policy and has identified that the review and documentation on the selected vendor needs to happen prior to approval of the contract by Board of Directors. It will be the responsibility of the Finance Manager and the Chief Executive Officer to adhere to the policy to document the review of the vendor through SAM.gov. If there are any questions about the plan, please contact the Breanna Cook at 616-452-3226 ext 3026 or bcook@umchousegr.org.

Other Findings in this Audit

1213966 2025-003

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
21.027	CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS	$712,500
14.251	ECONOMIC DEVELOPMENT INITIATIVE, COMMUNITY PROJECT FUNDING, AND MISCELLANEOUS GRANTS	$391,645
10.558	CHILD AND ADULT CARE FOOD PROGRAM	$42,500