Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Continuum of Care Program
Assistance Listing Number: 14.267
Federal Award Identification Number: MN0045L5K012114, MN0073L5K032114, MN001L5K002109, MN0450L5K002102, MN0045L5K012215, MN0073L5K032215, MN0001L5K002210, and MN0450L5K002203
Pass-Through Agency: Hearth Connection
Pass-Through Numbers: MN0045L5K012114, MN0073L5K032114, MN001L5K002109, MN0450L5K002102, MN0045L5K012215, MN0073L5K032215, MN0001L5K002210, and MN0450L5K002203
Award Periods: August 1, 2023 through July 31, 2024 and October 1, 2023 through September 30, 2024
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The Foundation should have internal controls designed to ensure compliance with those provisions.
Condition: During our testing, we noted the Foundation did not have a procurement policy in place in compliance with Uniform Guidance standards nor was there supporting documentation for single source procurement from service provider for the Foundation.
Questioned costs: None
Context: During our testing, it was noted the Foundation did not have a procurement policy in place in accordance with Uniform Guidance requirements.
Cause: The Foundation was unaware of this compliance requirement under Uniform Guidance for a procurement policy.
Effect: The auditor noted one vendor relationship greater than micro-purchase threshold from service provider of the Foundation that would have been subject to procurement requirements however, the lack of internal controls over these compliance requirements provides an opportunity for noncompliance.
Recommendation: We recommend the Foundation adopt a procurement policy in accordance with Uniform Guidance compliance requirements and design controls to ensure an adequate review process is in place over general procurement standards.
Views of responsible officials: There is no disagreement with the audit finding.