Finding 398381 (2023-001)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-05-23
Audit: 307054
Organization: Illinois Humanities Council (IL)
Auditor: Porte Brown LLC

AI Summary

  • Core Issue: The Organization lacks adequate documentation for its procurement decisions.
  • Impacted Requirements: Compliance with OMB Uniform Guidance §200.320, which outlines necessary documentation for various procurement methods.
  • Recommended Follow-Up: Implement procedures to ensure formal documentation of procurement evaluations and decisions is maintained consistently.

Finding Text

Condition: The Organization did not maintain sufficient documentation of its procurement decisions. Criteria: OMB Uniform Guidance §200.320 details various methods of procurement to be followed based on the intended dollar value and nature of the contract. While the specific required documentation may vary based on each of the five methods, all mandate specific documentation concerning procurement decisions. Cause: The Organization has contracts with vendors that existed prior to the procurement guidelines. As a result, several of these contracts, including those involving teacher positions, do not have sufficient documentation of procurement evaluations and decisions.Effect: Despite having a written procurement policy, if the Organization does not maintain sufficient documentation of procurement evaluations and decisions, the Organization's procurement practices will not comply with the Uniform Guidance. Recommendation: The Organization should retain formal documentation with regard to its procurement decisions and document how the procurement decisions were made, including how these decisions align with the procurement policy. Views of Responsible Officials and Planned Corrective Actions: We agree with the finding and are implementing procedures to maintain this documentation on an ongoing process.

Corrective Action Plan

Corrective Action Plan The Illinois Humanities Council is addressing this finding by putting together a comprehensive corrective account plan to ensure compliance with procurement guidelines and proper documentation. Below is our plan: 1. Review and Identify Contracts Affected: • Conduct a thorough review of all contracts with vendors that existed prior to procurement guidelines. • Identify contracts lacking sufficient documentation of procurement evaluations and decisions. 2. Review Standard Operating Procedures (SOP’s): • Review current SOPs to ensure they are clear in outlining the procurement process, including evaluation criteria, decision-making procedures, and documentation requirements. • Ensure SOPs are in line with procurement guidelines and regulatory requirements. 3. Training and Awareness: • Conduct training sessions for relevant staff members involved in the procurement process. • Regularly review procurement processes and documentation to ensure ongoing compliance. 4. Implementation Monitoring: • Senior Director of Finance and Operations will take responsibility for monitoring the implementation of corrective actions. • A regular review of the procurement processes and documentation will be done to ensure compliance. 5. External Audit Preparations: • Prepare documentation and evidence of corrective actions taken for future audits. • Ensure transparency and accessibility of procurement records for auditor. By implementing this corrective action plan, Illinois Humanities Council can ensure compliance with procurement guidelines, enhance transparency and accountability in the procurement process, and mitigate the risk of similar findings in future audits. Planned Completion Date 6/30/2024 Individual Responsible for Executing Corrective Action Vicki Garza, Senior Director of Finance and Operations

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 974823 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
45.129 Promotion of the Humanities_federal/state Partnership $2.35M
45.024 Promotion of the Arts_grants to Organizations and Individuals $11,511