Finding 389460 (2023-001)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-03-29

AI Summary

  • Core Issue: The Organization lacks written procurement policies that meet the requirements of the Uniform Guidance.
  • Impacted Requirements: Compliance with documented procurement procedures, including standards for conflicts of interest and contract management.
  • Recommended Follow-Up: Update procurement policies to align with Uniform Guidance standards and ensure proper documentation of procurement activities.

Finding Text

PROCUREMENT POLICY - CONTROL FINDING: The Organization does not have written procurement policies in accordance with procurement requirements contained within the Uniform Guidance. 0MB Uniform Guidance §200.318 required that entities must have and use documented procurement procedures that conform to the procurement standards identified in §200.317 through §200.327. These procedures must include written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award and administration of contracts. The Organization's federal funding significantly increased in the year ended June 30, 2022 and was the first year that the Organization was required to undergo an audit in accordance with the Uniform Guidance. The Organization has existing purchasing and conflict of interest policies in place; however, it was not aware that its existing purchasing policies were required to be updated to explicity comply with the standards in the Uniform Guidance. In the absence of a written policy, it is more likely that the Organization's procurement practices will not comply with the Uniform Guidance. The Organization did not comply with the procurement standards concerning suspension and debarment (see finding 2023-002) and documentation of procurement activities (see finding 2023-003).

Corrective Action Plan

Written procurement and conflict of interest policies, in accordance with the Uniform Guidance, were established and implemented during the year ended June 30, 2023.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.10M