Finding 620874 (2022-004)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-03-27

AI Summary

  • Core Issue: The Organization lacks a complete procurement policy that meets federal guidelines under 2 CFR 200.318-.327.
  • Impacted Requirements: Noncompliance with procurement standards may lead to improper purchases under federal funding.
  • Recommended Follow-up: Management should develop and adopt a comprehensive procurement policy that aligns with federal requirements.

Finding Text

United States Department of Health and Human Services Pass-through from North Carolina Department of Health and Human Services Program Name: Block Grants for Prevention and Treatment of Substance Abuse Federal Assistance Listing Number - 93.959 Finding 2022-004 Significant Deficiency and Noncompliance - Procurement Criteria: All grantees that expend federal funds must comply with the procurement guidelines found in 2 CFR 200.318- .327 and use documented procurement procedures that are consistent with the applicable laws and regulations for the acquisition of property or services required under a Federal award or subaward. Condition and Context: The Organization has developed a basic purchasing policy that includes appropriate control activities; however, the policy does not include complete procurement procedures that fully align with the requirements of section 2 CFR 200.318-.327. The Organization's program expenditures for the year ended June 30, 2022 did not include purchases in excess of the Simplified Acquisition Threshold and thus informal procurement procedures were acceptable. Cause: As the Organization has only recently started receiving federal awards, they were not aware of these requirements and did not have the necesssary policies and procedures in place to comply with the procurement guidelines. Effect: Without a documented procurement policy that aligns with the requirements of 2 CFR 200.318-.327, purchases may be made under the federal program that do not comply with the relevant procurement standards established by 2 CFR 200. Recommendation: Management should formulate and adopt a procurement policy that includes the required elements of 2 CFR 200.318-.327. Views of Management: Management agrees with the finding and is implementing procedures that are further discussed in the corrective action plan. See Corrective Action Plan.

Categories

Procurement, Suspension & Debarment Subrecipient Monitoring Significant Deficiency

Other Findings in this Audit

  • 44431 2022-003
    Significant Deficiency
  • 44432 2022-004
    Significant Deficiency
  • 44433 2022-005
    Significant Deficiency
  • 620873 2022-003
    Significant Deficiency
  • 620875 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.959 Block Grants for Prevention and Treatment of Substance Abuse $1.03M