Finding 33856 (2022-004)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2022-12-19
Audit: 36700
Organization: Riverview Center, INC (IA)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The organization failed to document competitive bids for purchases over $3,000, violating their own procurement policy.
  • Impacted Requirements: This lack of documentation undermines compliance with the Uniform Guidance and increases the risk of non-advantageous purchases.
  • Recommended Follow-Up: Management should enhance the approval and documentation process for procurement to ensure adherence to established procedures.

Finding Text

2022-004 U.S. Department of Justice Pass-Through Program from Illinois Coalition Against Domestic Violence, Illinois Coalition Against Sexual Assault, Iowa Department of Justice CFDA 16.575, 2015-VA-GX-0049 Year Ended June 30, 2022 Crime Victim Assistance Procurement and Suspension and Debarment Significant Deficiency in Internal Control over Compliance Criteria: The Uniform Guidance, Section 200.303 Internal Controls, requires the non-federal entity must establish and maintain effective internal controls over federal awards that provide reasonable assurance that awards are being managed in compliance with federal statutes, regulations and the terms and conditions of the federal award. The non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in ?? 200.318 through 200.327. The Organization?s procurement policy states that all purchases in excess of $3,000 will be selected on the basis of competitive prices. Condition: We tested compliance and internal controls over procurement and noted two vendors in which there was no documentation to support the Organization obtained competitive bids. Cause: The Organization did not follow their procurement policy in place which requires management to obtain competitive bids for purchases in excess of $3,000. Effect: Purchases may be entered into by the Organization that may not be the most advantageous purchase. In addition, it is hard to demonstrate that the program complies with laws, regulations, and other compliance requirements when documentation is not obtained. Questioned Costs: None reported. Context/Sampling: Only six vendors met the threshold noted above. All were selected for testing. Repeat Finding from Prior Years: No. Recommendation: We recommend that management review and improve the approval and documentation process for purchases over $3,000 to ensure procurement procedures are performed. Views of Responsible Officials: Management agrees with the finding.

Corrective Action Plan

Finding 2022-004 ? Procurement and Suspension and Debarment Federal Agency Name: U.S. Department of Justice Program Name: Crime Victim Assistance CFDA#: 16.575 Responsible Individuals: Gwen Bramlet-Hecker, Executive Director Stacy Kennedy, Fiscal Director Corrective Action Plan: Going forward, the new Executive Director and Fiscal Director will get quotes when purchases are above the $3000 threshold. Anticipated Completion Date: June 30, 2023

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 33857 2022-004
    Significant Deficiency
  • 33858 2022-004
    Significant Deficiency
  • 610298 2022-004
    Significant Deficiency
  • 610299 2022-004
    Significant Deficiency
  • 610300 2022-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
16.575 Crime Victim Assistance $649,534
16.588 Violence Against Women Formula Grants $129,113
93.667 Social Services Block Grant $116,332
16.736 Transitional Housing Assistance for Victims of Domestic Violence, Dating Violence, Stalking, Or Sexual Assault $52,643
93.136 Injury Prevention and Control Research and State and Community Based Programs $42,676
93.497 Family Violence Prevention and Services/ Sexual Assault/rape Crisis Services and Supports $42,336
93.671 Family Violence Prevention and Services/domestic Violence Shelter and Supportive Services $23,353
16.034 Coronavirus Emergency Supplemental Funding Program $12,630
14.218 Community Development Block Grants/entitlement Grants $7,481