Finding 401453 (2023-102)

Significant Deficiency Repeat Finding
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-06-21

AI Summary

  • Core Issue: There is a significant deficiency in internal controls over compliance in the procurement process, specifically related to documentation for vendor selection.
  • Impacted Requirements: The organization failed to obtain necessary procurement documentation for a large purchase, violating grant compliance requirements.
  • Recommended Follow-Up: Establish clear policies and procedures to ensure proper documentation is obtained and maintained for all procurement activities.

Finding Text

Finding 2023-102 — Procurement – Significant Deficiency in Internal Controls over Compliance (Procurement) Federal program information: Funding agencies: U.S. Department of Treasury Titles: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award numbers: GR-ARPA-CASS-010123-01 Pass-Through grantors: Arizona Governor’s Office Compliance Requirements: Procurement Questioned Costs: N/A Criteria: The Coronavirus State and Local Fiscal Recovery grant requires that the organization obtain and maintain procurement documentation to ensure price quotes are obtained or document the need for a sole source vendor. Condition: For 1 of 3 vendors selected for testwork documentation could not be provided to support the methods and evaluation of the vendor selection process. The purchase was a large purchase requiring bids to be obtained. Cause and Effect: Due to the turnover in the department the documentation could not be located. The lack of a strong centralized procurement process, and the failure to adhere to established controls, subjects the Organization to the risk that inappropriate vendor contracts will be approved. Auditors’ Recommendations: The organization should establish policies and procedures to ensure that documentation is obtained and maintained regarding the procurement process and vendor selection.

Corrective Action Plan

Management agrees with this finding. CASS has incorporated the Federal guidelines for procurement requirements in the CASS Accounting Manual and will follow these guidelines to ensure vendor procurement documentation is retained per Federal guidelines.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 401449 2023-101
    Significant Deficiency Repeat
  • 401450 2023-101
    Significant Deficiency Repeat
  • 401451 2023-101
    Significant Deficiency Repeat
  • 401452 2023-101
    Significant Deficiency Repeat
  • 401454 2023-103
    Significant Deficiency
  • 401455 2023-103
    Significant Deficiency
  • 401456 2023-103
    Significant Deficiency
  • 401457 2023-103
    Significant Deficiency
  • 401458 2023-103
    Significant Deficiency
  • 401459 2023-103
    Significant Deficiency
  • 401460 2023-103
    Significant Deficiency
  • 401461 2023-103
    Significant Deficiency
  • 401462 2023-103
    Significant Deficiency
  • 977891 2023-101
    Significant Deficiency Repeat
  • 977892 2023-101
    Significant Deficiency Repeat
  • 977893 2023-101
    Significant Deficiency Repeat
  • 977894 2023-101
    Significant Deficiency Repeat
  • 977895 2023-102
    Significant Deficiency Repeat
  • 977896 2023-103
    Significant Deficiency
  • 977897 2023-103
    Significant Deficiency
  • 977898 2023-103
    Significant Deficiency
  • 977899 2023-103
    Significant Deficiency
  • 977900 2023-103
    Significant Deficiency
  • 977901 2023-103
    Significant Deficiency
  • 977902 2023-103
    Significant Deficiency
  • 977903 2023-103
    Significant Deficiency
  • 977904 2023-103
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.218 Community Development Block Grants/entitlement Grants $2.00M
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.63M
93.667 Social Services Block Grant $677,635
97.024 Emergency Food and Shelter National Board Program $661,233
14.231 Emergency Solutions Grant Program $285,908
93.558 Temporary Assistance for Needy Families $129,632
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $88,878