Finding 504700 (2023-004)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-11-05
Audit: 327314
Organization: Special Olympics Arizona, Inc. (AZ)
Auditor: Cbiz CPAS PC

AI Summary

  • Core Issue: The entity's procurement policy does not comply with 2 CFR § 200.318, leading to potential violations.
  • Impacted Requirements: Non-compliance with procurement standards may result in material weaknesses in internal controls.
  • Recommended Follow-Up: Develop and implement compliant procurement policies and controls to ensure adherence to 2 CFR § 200.318.

Finding Text

Item: 2023-004 Assistance Listing Number: 21.027 Programs: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Federal Agency: U.S. Department of the Treasury Pass-Through Agencies: Arizona State Office of the Governor; Maricopa County Pass-Through Grantor Identifying Number: Unknown Award Year: January 1, 2022 to December 31, 2024; January 28, 2022 to June 30, 2023 Compliance Requirement: Procurement, suspension and debarment Criteria: In accordance with 2 CFR § 200.318 - General procurement standards - the entity must use its own documented procurement procedures which reflect applicable. State and local laws and regulations, provided that the procurements conform to applicable Federal law and the standards identified in 2 CFR § 200.318. Condition: The entity’s procurement policy and related procedures do not address the provisions of 2 CFR § 200.318 Questioned Costs: n/a Context: In a population of over 250 procurements for program costs, we conducted a non-statistical sample of 40 transactions. In our sample of 40 transactions, it was noted that 39 procurements were below the micro-purchase threshold, and 1 procurement was above the micro-purchase threshold but below the small purchase threshold. We noted there was a procurement policy in place however, it was not written in compliance with 2 CFR § 200.318. Additionally, there was a lack of documentation retained by the organization to support procurement transactions. As such, this is deemed to be a material weakness in internal control over compliance. Effect: Undocumented procurement decisions could violate the requirements of 2 CFR § 200.318 Cause: Special Olympics Arizona, Inc. did have a written procurement policy however, it did not conform to 2 CFR § 200.318. Additionally, Special Olympics Arizona, Inc. did not implement controls to ensure adherence to policies that conform to 2 CFR § 200.318. Identification as a Repeat Finding: Repeat finding of 2022-04 Recommendation: The entity should prepare written procurement policies and implement controls to ensure adherence to the policies that conform to 2 CFR § 200.318. Views of Responsible Officials: Management of the Organization concurs with the finding. See Corrective Action Plan.

Corrective Action Plan

Item: 2023-004 Assistance Listing Number: 21.027 Programs: Coronavirus State and Local Fiscal Recovery Funds Federal Agency: U.S. Department of the Treasury Pass-Through Agencies: Arizona State Office of the Governor; Maricopa County Pass-Through Grantor Identifying Number: Unknown Award Year: January 1, 2022 to December 31, 2024; January 28, 2022 to June 30, 2023 Criteria: In accordance with 2 CFR § 200.318 - General procurement standards - the entity must use its own documented procurement procedures which reflect applicable. State and local laws and regulations, provided that the procurements conform to applicable Federal law and the standards identified in 2 CFR § 200.318. Condition: The entity’s procurement policy and related procedures do not address the provisions of 2 CFR § 200.318 Name of Contact Person: Doug Taylor, CFO Phone Number: (602) 230-1116 Anticipated Completion Date: Completed Views of Responsible Officials and Corrective Actions: Special Olympics Arizona, Inc. will revise its procurement policies and procedures to ensure adherence to the procurement policies that conform to 2 CFR § 200.318.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 504697 2023-002
    Material Weakness Repeat
  • 504698 2023-002
    Material Weakness Repeat
  • 504699 2023-003
    Material Weakness Repeat
  • 504701 2023-004
    Material Weakness Repeat
  • 1081139 2023-002
    Material Weakness Repeat
  • 1081140 2023-002
    Material Weakness Repeat
  • 1081141 2023-003
    Material Weakness Repeat
  • 1081142 2023-004
    Material Weakness Repeat
  • 1081143 2023-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $411,851
84.380 Special Education - Special Olympics Education Programs $160,802
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $114,450
21.027 Coronavirus State and Local Fiscal Recovery Funds $71,194
93.217 Family Planning Services $49,789
93.184 Disabilities Prevention $1,946
93.630 Developmental Disabilities Basic Support and Advocacy Grants $0