Finding Text
Finding #2022-003 ? Material Weakness and Other Noncompliance Applicable federal programs: 19.510 U. S. Refugee Admissions Program 93.566 Refugee and Entrant Assistance State/Replacement Designee Administered Programs 93.567 Refugee and Entrant Assistance Voluntary Agency Programs 93.576 Refugee and Entrant Assistance Discretionary Grants 93.676 Unaccompanied Alien Children Program Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Subtitle III Procurement Standards and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance requires public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which for the YMCA is $150,000. Additionally, the YMCA?s internal control policy requires approval of sole source procurement. Condition and context: During our testing of a sample of expenditures for proper procurement in accordance with the YMCA?s policies and Uniform Guidance, we identified the following exceptions: ? Competitive procurement for furniture expenditures greater than $250,000 was not performed. ? Documentation of the reason for sole source procurement for two procurements was not approved by the Vice President of Social Equity and Inclusion as required by the YMCA?s policy. Cause: Failure to follow the YMCA?s procurement policy by those responsible for procurement. Effect: Failure to follow formal procurement methods may result in the YMCA purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Questioned costs: Unknown Recommendation: Provide additional education to employee?s responsible for procurement on the YMCA?s procurement policy. Views of responsible officials: Management agrees with the finding. See Corrective Action Plan.