Finding 1216166 (2025-005)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2025
Accepted
2026-05-29

AI Summary

  • Core Issue: The Club's procurement policy lacks necessary standards and provisions required by federal regulations.
  • Impacted Requirements: The policy does not comply with the standards set in §200.317 through §200.327 of the Uniform Guidance.
  • Recommended Follow-Up: Update procurement procedures to align with federal requirements and ensure ongoing compliance.

Finding Text

Federal Agency: U.S. Department of Treasury Federal Program Name: COVID-19: American Rescue Plan Act - Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Pass-Through Agency: City of Pasco Pass-Through Number(s): N/A Award Period: July 26, 2024 – September 2, 2026 Type of Finding:  Significant Deficiency in Internal Control Over Compliance – Procurement  Other Matters Criteria or specific requirement: Management is responsible for maintaining and using documented procedures for procurement transactions under Federal awards or subawards that are consistent with laws and regulations and the standards identified in §200.317 through §200.327. Condition: The Club's procurement policy in effect at the time of the procurement did not address all required standards of conduct, conflict-of-interest provisions, and mandatory federal contract clauses applicable to covered procurement transactions. Questioned costs: None. Context: Contracts were procured during the audit period based on a procurement policy that did not fully align with the requirements of the Uniform Guidance. Cause: The procurement policy did not include all of the required elements under the Uniform Guidance. Effect: The Club's procurement policy did not meet all of the requirements of the Uniform Guidance. Repeat finding: Not a repeat finding. Recommendation: We recommend the Club establish procedures to ensure internal policies remain up to date and are revised to incorporate changes from regulatory agencies as needed. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

Action taken in response to finding: The Club will implement procedures to periodically review and update internal policies to ensure compliance with current regulatory requirements including requesting auditor review on procurement policies prior to approval. Name(s) of the contact person(s) responsible for corrective action: Julie Adelmund Planned completion date for corrective action plan: 05/28/2026

Categories

Procurement, Suspension & Debarment Subrecipient Monitoring Significant Deficiency Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

  • 1216164 2025-002
    Material Weakness Repeat
  • 1216165 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $1.23M
10.558 CHILD AND ADULT CARE FOOD PROGRAM $317,345
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $85,879
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $12,473
93.788 OPIOID STR $7,486