Finding 43212 (2022-001)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2022-10-27
Audit: 39664
Organization: Phoenix Indian Center (AZ)
Auditor: Redw LLC

AI Summary

  • Core Issue: Phoenix Indian Center lacked adequate documentation for vendor decisions during fiscal year 2022, violating procurement requirements.
  • Impacted Requirements: Non-compliance with 2 CFR 200.318 and 200.323, which mandate proper procurement documentation and competitive bidding for purchases over $15,000.
  • Recommended Follow-Up: Enforce procurement policies by obtaining necessary bids and retaining documentation to demonstrate compliance.

Finding Text

Federal program information: Funding agency: U.S. Department of Education Title: Indian Education ? Special Programs for Indian Children CFDA number: 84.299A Award number: S299A180043 Award period: 10/1/2018 ? 9/30/2022 Condition: Although Phoenix Indian Center has a set process for procurement it was determined through audit procedures that Phoenix Indian Center did not maintain adequate documentation to support the decisions made for a vendor during the fiscal year 2022. Criteria: Requirement for procurements are contained in 2 CRF 200.318 (i) and 200.323 that requires a procurement file to contain the history of the procurement, including rationale for the method of procurement, full and open competition or Indian Preference, selection of contract type, basis for contractor selection and basis for contract price and modifications. Additionally, procurement transactions should be conducted in a manner providing full and open competition in accordance with Phoenix Indian Center?s procurement standards. Per Phoenix Indian Center?s policies and procedures three bids must be obtained for purchases greater than $15,000. Questioned Costs: None noted. Cause: Internal controls to ensure that program expenditures are authorized and made in accordance Phoenix Indian Center?s applicable procurement policies and procedures were not followed. Effect: The federal program above was not in compliance with procurement requirements as sufficient documentation was not maintained and available for review. Auditor?s Recommendation: Ensure Phoenix Indian Center?s procurement policies are enforced by obtaining competitive bids for goods and serves when required, and ensure bid documentation are retained to substantiate compliance with Phoenix Indian Center?s procurement policy. Management?s Response: Management will immediately review the procurement process and ensure that required supporting documentation accompany vendor files.

Corrective Action Plan

Corrective Action Plan: Moving forward, the Phoenix Indian Center will follow and adhere to the organizations procurement policy. The current policy states that if the vendor will complete projects exceeding $15,000 3 bids must be obtained. Moving forward, the Phoenix Indian Center will fully implement the process of obtaining 3 bids for new vendors, especially as it pertains to federal funding. Person Responsible: Jolyana Begay-Kroupa, Chief Executive Officer Date of Completion: Fiscal Year 2023

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 619654 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
17.265 Native American Employment and Training $1.58M
84.299 Indian Education -- Special Programs for Indian Children $818,640
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $236,296
93.276 Drug-Free Communities Support Program Grants $132,714
93.959 Block Grants for Prevention and Treatment of Substance Abuse $125,000
97.024 Emergency Food and Shelter National Board Program $93,925
93.933 Demonstration Projects for Indian Health $90,965