Finding 521106 (2024-001)

Material Weakness
Requirement
A
Questioned Costs
-
Year
2024
Accepted
2025-02-03
Audit: 341036
Organization: Ravalli Head Start, Inc. (UT)

AI Summary

  • Issue: The Organization split the HVAC project into two phases, avoiding the need for sealed bids, which violates procurement policies.
  • Impact: Not adhering to these policies increases the risk of overpaying for goods and services.
  • Next Steps: Ensure compliance with procurement policies to prevent similar issues in the future.

Finding Text

Criteria: The Organization should follow their policies related to procurement. Condition: During our testing, we found that the Organization did not follow established policies by splitting a project into two phases to refrain from obtaining sealed bids for the Organization’s HVAC project. Cause: Undetermined. Effect: The Organization did not follow their policy for procurement which then allows for the possibility of overpaying for the goods and services provided. Recommendation: We recommend that the Organization follows their policies related to procurement.

Corrective Action Plan

The senior management team including the Executive Director, interim CFO Jill Hansen, and the Finance Committee of the Governing Board have reviewed and agree with the findings. Regarding the 2024-001 Procurement of Capital Projects, Jill Hansen and I are proposing the corrective action of adding additional communication requirements to the existing procedures, starting with a pre-bid internal meeting including the ED, CFO, and other appropriate mangers. We will also be creating a timeline of meetings to prepare and manage our capital budget for facilities, technology, and other needs where all participants will be educated on the appropriate bid procedures and policies. I will be the point person regarding these corrective actions and these changes to our Accounting and Financial Policies and Procedure Manual, which will be effective 3/1/25, pending Policy Council and Board approval. We have updated all Senior and Fiscal Staff. Project Management Staff will be updated on 1/28/25,

Categories

Procurement, Suspension & Debarment HUD Housing Programs

Other Findings in this Audit

  • 521107 2024-002
    Significant Deficiency
  • 1097548 2024-001
    Material Weakness
  • 1097549 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.558 Child and Adult Care Food Program $107,968
93.600 Head Start $50,580