Finding 538204 (2022-002)

Material Weakness
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2025-03-27

AI Summary

  • Core Issue: Disbursements over $1,500 lacked required quotes, violating procurement policy.
  • Impacted Requirements: The Organization did not ensure competitive pricing and proper internal controls for $19,999 in total disbursements.
  • Recommended Follow-Up: Management should familiarize themselves with procurement policies and ensure compliance moving forward.

Finding Text

We found that disbursements over $1,500 did not have quotes. The Organization has not complied with its procurement policy, and it is not known whether the Organization has paid a reasonable and competitive rate for the services provided on the various contracts. The amounts totaled $9,565 for HIV Prevention and $9,434 for the CDC Grant. There was a lack of appropriate internal control policies and procedures implemented at the Organization during the fiscal year to ensure procurement policies and procedures were performed before disbursement of funds occurred. There is also a lack of understanding of minimum requirements to ensure the Organization’s policy meets the standards as noted above. We recommend that management be familiar with procurement policies and ensure they are being adhered to. The Organization agrees with the finding and management will take necessary steps to adhere to the procurement policy.

Corrective Action Plan

PALSS currently has a procurement policy that was updated in 2024. In our updated policy, purchases below $10,000 only need one quote. Purchases above $10,000 will need three quotes. This policy also follows our state procurement guidelines.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 538205 2022-002
    Material Weakness
  • 538206 2022-003
    Significant Deficiency
  • 538207 2022-003
    Significant Deficiency
  • 1114646 2022-002
    Material Weakness
  • 1114647 2022-002
    Material Weakness
  • 1114648 2022-003
    Significant Deficiency
  • 1114649 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.241 Housing Opportunities for Persons with Aids $344,607
93.940 Hiv Prevention Activities Health Department Based $263,654
93.939 Hiv Prevention Activities Non-Governmental Organization Based $191,909
93.917 Hiv Care Formula Grants $188,177
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $132,794
93.686 Ending the Hiv Epidemic: A Plan for America — Ryan White Hiv/aids Program Parts A and B $115,445
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $96,062
93.977 Sexually Transmitted Diseases (std) Prevention and Control Grants $14,000