Finding 2694 (2022-002)

Significant Deficiency Repeat Finding
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-11-29

AI Summary

  • Core Issue: The Society lacks a formal documented procurement policy, which is required to meet federal standards.
  • Impacted Requirements: Without proper documentation, there's a risk of charging unallowable costs to federal programs, leading to potential liabilities.
  • Recommended Follow-Up: Management should create and implement a documented procurement policy that aligns with federal requirements.

Finding Text

Criteria - The Society is responsible to have documented procurement procedures and policies that complies with federal procurement standards. Condition - We noted the Society does not have a formal documented procurement policy. Cause - Management received a large amount of federal funding during because of the COVID-19 pandemic. While Management verbally requests two or more quotes, there was no formal documented policy to ensure the procurement method used was appropriate. Effect - If the Society does not maintain documented procurement procedures as required, it may result in the Society charging unallowable expenditures to the program or having expenditures being disallowed, both of which will create a liability to the granting agencies. Questioned Costs - No costs were questioned. Context - This finding was systematic amongst the major program audited. Recommendations - We recommend that management develop and document a procurement policy that complies with federal procurement standards. Repeat Finding - This is a repeat finding from prior year’s audit. Finding No. 2021-003

Corrective Action Plan

The Society will develop and document a procument policy that complies with federal procurement standards.

Categories

Procurement, Suspension & Debarment Allowable Costs / Cost Principles

Other Findings in this Audit

  • 2695 2022-002
    Significant Deficiency Repeat
  • 2696 2022-003
    Significant Deficiency
  • 2697 2022-003
    Significant Deficiency
  • 579136 2022-002
    Significant Deficiency Repeat
  • 579137 2022-002
    Significant Deficiency Repeat
  • 579138 2022-003
    Significant Deficiency
  • 579139 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.50M
84.425 Education Stabilization Fund $199,976