Material Weakness in Internal Control Over Compliance
Mercer Street Friends Center understands and acknowledges the findings outlined in the audit report. We acknowledge that all the necessary procurement procedures were performed, with the exception that MSF did not maintain the documentation for small purchases between $10,000 and $250,000. We recognize the importance of adhering to established procedures to maintain transparency, accountability, and compliance with applicable regulations.
To address this finding, we have developed the following corrective action plan:
1. Immediate Action: MSF will ensure that all current and future procurement files for purchases within the specified range include proper documentation of the required three quotations by phone or internet, as outlined in our procurement policy.
2. Policy Reinforcement and Training: MSF will conduct training sessions for all staff involved in procurement to reinforce the importance of maintaining complete and accurate documentation. These sessions will ensure staff are well-informed and equipped to comply with the policy requirements.
3. Documentation Tools: To standardize the documentation process, we are
introducing a quotation log template to ensure consistent recording of rate, price, and vendor details.
4. Enhanced Oversight and Prevention of Recurrence: MSF will implement a periodic review process to ensure compliance with documentation requirements. At least four random audits of procurement files will be conducted annually.
MSF is committed to resolving this issue promptly, taking the necessary steps to strengthen our internal controls, and implementing measures to prevent recurrence.
Anticipated Completion Date: Started January 1, 2025, and completed June 30,2025
Responsible Person: Xiumei Chen, Director of Finance