Finding 538803 (2024-003)

Material Weakness
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2025-03-28
Audit: 349517
Organization: Second Chance Center Inc. (CO)
Auditor: Eide Bailly

AI Summary

  • Core Issue: The organization lacks a written procurement policy that meets federal standards outlined in 2 CFR sections 200.318 through 200.326.
  • Impacted Requirements: Compliance with Uniform Guidance is compromised, increasing the risk of non-compliance in contracting processes.
  • Recommended Follow-Up: Management should create a comprehensive written procurement policy and ensure proper documentation to meet federal requirements.

Finding Text

U.S. Department of Treasury Federal Financial Assistance Listing 21.027 All Awards State and Local Fiscal Recovery Funds Procurement, Suspension, and Debarment Material Weakness in Internal Control over Compliance Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities other than states must follow when operating federal programs and the procurement procedures required. Condition: In our testing of procurement, suspension and debarment it was identified that the Organization did not have a written policy on procurement that satisfied the requirements of 2 CFR sections 200.318 through 200.326 Cause: Lack of oversight, awareness, or understanding of all of the specific requirements under the Uniform Guidance and applicable CFR sections and controls were not adequately designed to ensure compliance with all of these requirements. Effect: A lack of documented policies increase the overall risk that employees are not aware of the specific requirements with contracting and awarding contracts to lower tier entities. Questioned Costs: None reported. Context/Sampling: Overall procurement policy. Repeat Finding from Prior Year: No. Recommendation: We recommend that management establish a written policy that addresses all of the procurement requirements for federal programs as identified in 2 CFR sections 200.318 through 200.326 and maintain adequate supporting documentation and records to document history and methods of procurement and the procedures performed to comply with these CFR sections. Views of Responsible Officials: Management agrees with the finding.

Categories

Procurement, Suspension & Debarment Internal Control / Segregation of Duties

Other Findings in this Audit

  • 538801 2024-003
    Material Weakness
  • 538802 2024-004
    Material Weakness
  • 538804 2024-004
    Material Weakness
  • 538805 2024-003
    Material Weakness
  • 538806 2024-004
    Material Weakness
  • 538807 2024-003
    Material Weakness
  • 538808 2024-004
    Material Weakness
  • 1115243 2024-003
    Material Weakness
  • 1115244 2024-004
    Material Weakness
  • 1115245 2024-003
    Material Weakness
  • 1115246 2024-004
    Material Weakness
  • 1115247 2024-003
    Material Weakness
  • 1115248 2024-004
    Material Weakness
  • 1115249 2024-003
    Material Weakness
  • 1115250 2024-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $274,854
93.958 Block Grants for Community Mental Health Services $143,125
16.812 Second Chance Act Reentry Initiative $100,000
14.267 Continuum of Care Program $75,873
14.252 Section 4 Capacity Building for Community Development and Affordable Housing $50,700