Finding 576072 (2024-004)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2025-09-10
Audit: 365974
Organization: Along the Way (PA)
Auditor: Cla

AI Summary

  • Core Issue: There was no written pre-approval for noncompetitive procurement, violating federal requirements.
  • Impacted Requirements: The procurement process did not follow 2 CFR Part 200, lacking necessary documentation and multiple quotes.
  • Recommended Follow-Up: Ensure all noncompetitive procurements receive written approval and obtain multiple quotes as required.

Finding Text

Significant Deficiency in Internal Control over Compliance and Other Matters Criteria: According to 2 CFR Part 200, the procurement method requires that the subrecipient request in writing to use a noncompetitive procurement method, and that the pass-through entity provides written approval, when none of the other noncompetitive procurement circumstances apply. Condition: During our testing, we noted a lack of written pre-approval by the Federal awarding entity for noncompetitive procurement. Additionally, only one quote was obtained for a procurement contract, and the documented process did not indicate any of the other noncompetitive procurement circumstances.

Corrective Action Plan

We recommend that the subrecipient implement procedures to ensure that written preapproval is obtained from the Federal awarding entity for noncompetitive procurement. Additionally, the procurement process should be documented thoroughly to indicate the circumstances under which noncompetitive procurement is justified. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: The Organization is updating its procurement policy to explicitly require written prior approval from the Federal awarding agency for all noncompetitive (sole source) procurements, in accordance with federal guidelines. Name(s) of the contact person(s) responsible for corrective action: Kristina Valdez, Chief Executive Officer Planned completion date for corrective action plan: Planned completion date is June 30, 2025.

Categories

Procurement, Suspension & Debarment Subrecipient Monitoring

Other Findings in this Audit

  • 576070 2024-002
    Material Weakness
  • 576071 2024-003
    Material Weakness
  • 576073 2024-005
    Material Weakness
  • 576074 2024-006
    Material Weakness
  • 1152512 2024-002
    Material Weakness
  • 1152513 2024-003
    Material Weakness
  • 1152514 2024-004
    Significant Deficiency
  • 1152515 2024-005
    Material Weakness
  • 1152516 2024-006
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.46M