Finding Text
Material weakness in internal controls over compliance and instances of noncompliance related to procurement. Federal Agency: U.S. Department of Treasury Program Titles: Coronavirus State and Local Fiscal Recovery Fund Assistance Listing Number: 21.027 Award Number: EL-23-AR-47-048; HCS-24-AR-2107-048 Project Period: July 1, 2023 - June 30, 2026 Criteria Under 2 CFR § 200.318, a recipient must maintain and use documented procedures for procurement transactions under a federal award or subaward that are consistent with the standards identified under Uniform Guidance. In addition, recipient must maintain records sufficient to detail the history of each procurement transaction. These records must include the rationale for the procurement method, contract type selection, contractor selection or rejection, and the basis for the contract price. Condition/Context for Evaluation During the audit for the year ending June 30, 2025, it was noted that the Agency's procurement policy was not in compliance with Uniform Guidance. In addition, there were two selections out of four selections when the Agency was not following its own procurement policy. This is not considered a statistical sample. Cause Housing Hope's procurement policy did not include all the requirements outlined in 2 CFR 200.317 through 200.327. Effect or Potential Effect The Agency did not fully comply with the requirements regarding procurement. Questioned Costs Not applicable as finding relates to a policy not being in compliant. Repeat Finding Not applicable Recommendation We recommend that the Agency update their procurement policy to ensure procurement requirements are in line with Uniform Guidance and that proper documentation is retained for all procurements. Views of Responsible Officials of Auditee Management concurs with the finding and has provided the accompanying management corrective action.