Finding 563573 (2024-001)

Material Weakness

Requirement

Questioned Costs

Year

2024

Accepted

2025-06-02

Audit: 357840

Organization: Teton Youth and Family Services, Inc. (WY)

Auditor: Carver Florek & James Cpa's

AI Summary

Core Issue: The Organization failed to follow federal procurement requirements due to a lack of written policies.
Impacted Requirements: Non-compliance with federal procurement procedures increases the risk of overpaying for goods and services.
Recommended Follow-up: Create and implement written procurement policies that align with federal compliance standards.

Finding Text

2024-001 Procurement of Capital Projects - Material Weakess Criteria: The Organization should follow federal compliance requirements for procurement procedures. Condition: During our testing, we found that the Organization did not follow the procurement requirements set out in the compliance supplement, nor was there a written policy for enforcing the action. Cause: The Organization received incorrect guidance from the State of Wyoming. Effect: The Organization did not follow procurement requirements which then allows for the possibility of overpaying for the goods and services provided. Recommendation: We recommend that the Organization establish and follow written procurement policies which are aligned with the requirements established in the compliance supplement.

Corrective Action Plan

Corrective Action Plan: 2024-001 Procurement of Capital Projects - Material Weakness Issue Summary A material weakness has been identified in the procurement process for capital projects, specifically regarding non-compliance with established procurement policies, insufficient documentation, and inadequate oversight and segregation of duties. Root Cause Analysis - Lack of formalized and consistently enforced procurement procedures. - Insufficient internal controls and monitoring mechanisms. Corrective Actions Expected Outcome - Strengthened internal control environment. - Improved compliance with procurement policies. - Reduction in risk of misappropriation, waste, or fraud. - Enhanced transparency and accountability in contracted project spending. Monitoring and Reporting The Finance Committee, the Executive Director, and the Director of Finance will monitor progress on the corrective actions and report monthly updates to the Executive Leadership Team and Audit Committee until full resolution is achieved.

Other Findings in this Audit

563574 2024-002

Significant Deficiency
1140015 2024-001

Material Weakness
1140016 2024-002

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
21.027	Coronavirus State and Local Fiscal Recovery Funds	$3.00M
16.575	Crime Victim Assistance	$69,292
10.555	National School Lunch Program	$11,854
10.553	School Breakfast Program	$5,741
10.559	Summer Food Service Program for Children	$10