Finding 393770 (2023-001)

Finding 2023-001 Noncompliance and Material Weakness in Internal Control Over Compliance with Procurement, Suspension, & Debarment Standard – Federal Program CFDA 93.647 Social Services Research and Demonstration Criteria – 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, §200.318(a). An entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations, for the acquisition of property and services required under a Federal award or subaward. Condition and Context – Single audit procedures noted the Organization does not have a documented procurement policy or documented procurement procedures. Cause – The Organization has not adopted formal procurement, suspension, and debarment policies and procedures. The Organization previously relied upon the policies and procedures of the Community Action Program that was contracted to perform fiscal management activities. In the current year, the Organization created their own policies and procedures manual. No procurement policy was included. Effect – The Organization was not in compliance with procurement standards. Questioned Costs – None Recommendations – Management should create a procurement policy and strengthen their processes, controls, and review over direct federal award expenditures to ensure compliance with the Uniform Administrative Requirements. Views of Responsible Officials and Planned Corrective Actions – Management has agreed to create a procurement policy and strengthen controls to ensure compliance with Uniform Administrative Requirements.