Finding 565506 (2024-001)

Significant Deficiency Repeat Finding
Requirement
I
Questioned Costs
$1
Year
2024
Accepted
2025-06-20
Audit: 359297
Organization: Boulder Crest Foundation (VA)

AI Summary

  • Core Issue: The Foundation's manual process for tracking federal funds and reimbursements lacks formal policies, impacting compliance with federal regulations.
  • Impacted Requirements: Failure to implement necessary internal controls and competitive bidding procedures as required by 2 CFR 180.300 and 200.318-200.326.
  • Recommended Follow-Up: Enhance training on federal grant compliance and continue to formalize processes for managing federal funds and reviewing reimbursement requests.

Finding Text

Criteria: The Foundation is responsible for implementing policies, including internal controls, that are designed to provide reasonable assurance regarding the achievement of the following objectives: effectiveness and efficiency of operations, reliability of reporting for internal and external use; and compliance with applicable laws and regulations. Per 2 CFR 180.300 and 200.318-200.326, the Foundation is responsible for implementing policies and procedures before entering into covered transactions with vendors as well as performing competitive bidding procedures for vendors used in federal award spending. Condition: The overall process for tracking federal funds spent and the reimbursement process is a manual process performed by one department. For majority of the year the Foundation lacked formal policies for reimbursement, procurement and timely review of calculations throughout the year. Cause: The Foundation saw increased levels of federal funding during the previous year and did not have the process in place to ensure compliance until majority of the way through the year. Effect: The lack of process documentation and review process limited the Foundation’s ability to design and implement the necessary internal controls over compliance with federal awards. Questioned Costs: Indeterminable. Context: The finding represents a systematic deficiency in the Foundation’s process surrounding federal funds. This finding cannot be quantified in terms of dollar value. Repeat Finding: This is partially a repeat finding as the Foundation implemented the required policies during the year ended December 31, 2024. Recommendation: We recommend increased training in federal grant compliance and specific grant requirements. Additionally, the Foundation should continue to review and implement formal processes surrounding federal funds and the review of reimbursement requests. Views of Responsible Officials: Management concurs with the finding and implemented a comprehensive procurement policy in October 2024 compliant with federal regulations under the Uniform Guidance (2 CFR Part 200), with full staff training completed and internal monitoring controls established.

Corrective Action Plan

Finding: The Foundation is responsible for implementing policies, including internal controls, that are designed to provide reasonable assurance regarding the achievement of the following objectives: effectiveness and efficiency of operations, reliability of reporting for internal and external use; and compliance with applicable laws and regulations. During the audit, it was identified that the federal procurement and other policies surrounding federal funds, as required under the Uniform Guidance (2 CFR Part 200), were not fully implemented until the latter part of the year. Consequently, certain procedures conducted prior to the implementation of the new policies did not incorporate all required federal standards. Corrective Action Taken: Management, under the leadership of the Chief Executive Officer, Josh Goldberg, has developed and fully implemented a comprehensive procurement policy compliant with federal regulations under the Uniform Guidance (2 CFR Part 200) starting October 2024. This policy ensures adherence to all required federal standards, including competitive bidding, vendor selection, conflict of interest, and documentation requirements. Staff have been thoroughly trained on the new procedures to ensure consistent application across the organization. Internal monitoring controls are in place to ensure ongoing compliance for all federally funded procurements. Management also maintains active communication with awarding agencies to ensure a clear understanding and proper implementation of all compliance requirements related to federal funds. Completion Date: January 1, 2025

Categories

Questioned Costs Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1141948 2024-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
64.055 Staff Sergeant Parker Gordon Fox Suicide Prevention Grant Program $746,543
21.027 Coronavirus State and Local Fiscal Recovery Funds $261,359