Finding 560361 (2024-001)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2025-05-14
Audit: 356269
Organization: Distinctive Schools (IL)
Auditor: Aprio LLP

AI Summary

  • Core Issue: The Organization lacks a procurement policy that meets federal regulations.
  • Impacted Requirements: Non-compliance with Uniform Guidance 2 CFR 200.318(a) regarding procurement procedures.
  • Recommended Follow-Up: Update procurement standards to align with federal requirements; management agrees and plans to take corrective action.

Finding Text

Finding Number: 2024‐001 Procurement Finding Repeat Finding: No Questioned Costs: None Funding Agency: Department of Education AL Number: 84.351A Award Year: 10/1/2023 – 9/30/2024 Condition: The Organization does not have a procurement policy that follows the federal regulations. Criteria: The Organization should follow the Uniform Guidance requirement 2 CFR 200.318(a), which requires the Organization to maintain and use documented procedures for procurement transactions under Federal awards that are consistent with the Uniform Guidance procurement standards. Cause: The Organization’s existing procurement standards do not align with federal regulations. This is the first year the Organization has a federal program. Effect: The Organization was not in compliance with Uniform Guidance requirements, resulting in a significant deficiency in internal control over compliance. Recommendations: We recommend that the Organization update their procurement standards to align with what is required by the Uniform Guidance. View of Responsible Officials: Management agrees with the finding and has committed to implementing a corrective action plan.

Corrective Action Plan

Finding Number – 2024-001 Procurement Finding & 2024-002 Payroll Finding Planned Corrective Action 1. Policy Development: Draft a comprehensive procurement policy that aligns with federal standards and addresses all required elements, including conflict of interest provisions and procurement methods. 2. Approval Process: Present the drafted policy to leadership or the governing body for review and approval. 3. Implementation: Roll out the approved procurement policy to all relevant departments and stakeholders. 4. Training: Conduct training sessions to ensure staff understand and comply with the new procurement procedures. 5. Monitoring: Establish a system to regularly review procurement activities for compliance with the policy and federal regulations. 6. Implement a system of internal controls to ensure payroll charges are supported by accurate records reflecting actual work performed. This system should include regular reconciliation of estimated payroll allocations with actual time worked and documented certifications by employees or supervisors. Anticipate Completion Date – May 31, 2025 Responsible Contact Person – Monique Langston, Grant Director

Categories

Procurement, Suspension & Debarment Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 560362 2024-002
    Significant Deficiency
  • 1136803 2024-001
    Significant Deficiency
  • 1136804 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.351 Arts in Education $1.31M