Finding 19961 (2022-001)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-07-26
Audit: 18280
Organization: Special Olympics Ohio INC (OH)

AI Summary

  • Core Issue: The Organization's procurement policy lacks necessary provisions for federal grant expenditures.
  • Impacted Requirements: Nonprofits must adhere to strict purchasing rules under the Uniform Guidance for federal funding.
  • Recommended Follow-Up: Develop a dedicated procurement policy that aligns with Uniform Guidance for federal grants.

Finding Text

U.S. Department of Education Special Education - Special Olympics Education Programs (CFDA 84.380) - 2022-001: Procurement Policy Condition: Significant Deficiency: The Organization's procurement policy does not contain the required provisions related to federal grant expenditures. Criteria: The Uniform Guidance imposes strict purchasing requirements on nonprofits expending non-payroll related federal funding. Cause: The Organization did not know that there were specific procurement policy requirements related to expenditures of federal funding. Effect: Purchases made by the Organization utilizing federal funding in excess of $10,000, in the aggregate, may not meet the Uniform Guidance requirements. However, in the testing performed in the sampled non-payroll expenditures, the Organization had various purchases in excess of $10,000. Recommendation: We recommend that the Organization implement a separate procurement policy that is specific for federal grant expenditures that follows the Uniform Guidance requirements. Views of Responsible Officials and Correction Action: Refer to the Corrective Action Plan.

Corrective Action Plan

CORRECTIVE ACTION PLAN 2022-001: Procurement Policy Special OlyUJpics Ohio Response: The Organization agrees with the finding and will develop a separate procurement policy for use with all federal award expenditures that contains the specific requirements by the Uniform Guidance. Scott Dodson, Chief Financial Officer, will oversee the implementation of this new policy by September 30, 2023.

Categories

Procurement, Suspension & Debarment Significant Deficiency

Other Findings in this Audit

  • 596403 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.380 Special Education -- Olympic Education Programs $558,760
93.184 Disabilities Prevention $180,922
93.667 Social Services Block Grant $169,296