Finding 12719 (2022-005)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-03-29
Audit: 17548
Organization: The Inner Voice, Inc. (IL)

AI Summary

  • Core Issue: Inner Voice lacks formal procurement policies and procedures, risking non-compliance with federal standards.
  • Impacted Requirements: Compliance with UG §200.318 (general procurement standards), §200.319 (competition), and §200.320 (methods of procurement) is not met.
  • Recommended Follow-Up: Implement a comprehensive procurement policy that includes documentation and oversight, ensuring adherence to all compliance requirements.

Finding Text

Federal Agency: Department of Veterans Affairs Federal Program Name: VA Homeless Providers Grant and Per Diem Program Assistance Listing Number: 64.024 Federal Award Identification Number and Year: INNV143-1419-537-PD-21; INNV143-1620-537-TP-21; INNV143-1075-537-CM20; INNV143-2290-537-CM-22 Award Period: 10/1/20-9/30/21; 10/1/21-9/30/22; 10/1/20-9/30/23 Type of Finding: ? Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Inner Voice is required to have documented procurement policies and procedures which comply with the compliance requirement UG ?200.318 general procurement standards, UG ?200.319 competition, and ?200.320 methods of procurement to be followed. Condition: The Inner Voice does not have formal policies and procedures over procurement. Questioned costs: None. Context: The Inner Voice does not have formal policies and procedures over procurement to ensure requirements are met and properly documented. Cause: The current policy was not updated to comply with compliance requirement UG ?200.318 general procurement standards, UG ?200.319 competition, and ?200.320 methods of procurement. Effect: Possible payment of federal funds to vendors that did not properly go through the required procurement steps in accordance with Uniform Guidance. Repeat Finding: This is not a repeat finding. Recommendation: The Inner Voice should implement a procurement policy and procedure that includes the selection and documentation of procurement rationale, controls and oversight. This policy should be followed for all procurement transactions and include compliance requirements UG ?200.318 general procurement standards, UG ?200.319 competition, and ?200.320 methods of procurement. Views of responsible officials: Procurement policy is drafted and under discussion before bring this to the Board for a formal approval and its implementation.

Corrective Action Plan

2022-005 VA Homeless Providers Grant and Per Diem Program ? Assistance Listing No. 64.024 Recommendation: The Inner Voice should implement a procurement policy and procedure that includes the selection and documentation of procurement rationale, controls and oversight. This policy should be followed for all procurement transactions and include compliance requirements UG ?200.318 general procurement standards, UG ?200.319 competition, and ?200.320 methods of procurement. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Procurement policy is drafted and under discussion before bring this to the Board for a formal approval and its implementation. Name of the contact person responsible for corrective action: CFO Planned completion date for corrective action plan: After the approval of the Board that is planned to be held during the month of March.

Categories

Internal Control / Segregation of Duties Procurement, Suspension & Debarment Significant Deficiency

Other Findings in this Audit

  • 12716 2022-001
    Material Weakness
  • 12717 2022-002
    Significant Deficiency
  • 12718 2022-004
    Significant Deficiency
  • 12720 2022-006
    Significant Deficiency
  • 12721 2022-003
    Significant Deficiency
  • 589158 2022-001
    Material Weakness
  • 589159 2022-002
    Significant Deficiency
  • 589160 2022-004
    Significant Deficiency
  • 589161 2022-005
    Significant Deficiency
  • 589162 2022-006
    Significant Deficiency
  • 589163 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
17.805 Homeless Veterans Reintegration Project $498,884
64.024 Va Homeless Providers Grant and Per Diem Program $116,879
21.027 Coronavirus State and Local Fiscal Recovery Funds $55,000
14.218 Community Development Block Grants/entitlement Grants $33,496
14.267 Continuum of Care Program $24,465
97.024 Emergency Food and Shelter National Board Program $10,000
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $7,500
14.231 Emergency Solutions Grant Program $2,700