Finding 1223141 (2025-002)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2025
Accepted
2026-07-08

AI Summary

  • Core Issue: Lack of written documentation for procurement selection methods in construction expenses.
  • Impacted Requirements: Non-compliance with Uniform Guidance section 200.318 regarding procurement record-keeping.
  • Recommended Follow-Up: Implement a procurement policy and ensure documentation is retained; conduct and document vendor checks on SAM.gov.

Finding Text

Federal Agency: United States Department of the Treasury Federal Program Name: Coronavirus State and Local Recovery Funds CFDA Number: 21.027 Type of Finding: Material Weakness in Internal Control over Compliance Criteria or specific requirement: Uniform Guidance section 200.318 states non-Federal entities must maintain records sufficient to detail the history of procurements. These records will include, but are not necessarily limited to, the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Condition: For the construction expenses selected for testing, we noted no written documentation on the procurement selection method. Context: The construction expenses did not have proper documentation of procurement. Cause: There is no procurement policy in place. Effect: Procuring vendors without full and open competition. Repeat Finding: No. Recommendation: We recommend the Organization adopt a procurement policy and retain evidence of procurement in their files at the time it takes place. We also recommend the suspension and debarment search be performed on the SAM.gov website and documentation is retained so as to provide evidence that this check was performed. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.

Corrective Action Plan

Coronavirus State and Local Fiscal Recovery Funds – 21.027 Recommendation: We recommend the Organization adopt a written procurement policy to be used when selecting vendors. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: A procurement policy was adopted during the fiscal year. This finding is anticipated to be resolved going forward as it will have been in effect.. Name(s) of the contact person(s) responsible for corrective action: Doug Funke and John Tursi Planned completion date for corrective action plan: Completed as of 6/30/25.

Categories

Procurement, Suspension & Debarment

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $584,699
84.287 TWENTY-FIRST CENTURY COMMUNITY LEARNING CENTERS $298,591
10.558 CHILD AND ADULT CARE FOOD PROGRAM $122,663