Finding 946130 (2023-002)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-02-20

AI Summary

  • Core Issue: The Center has not consistently followed its own procurement policies, leading to non-compliance with federal guidelines.
  • Impacted Requirements: Purchases exceeded micro-purchase thresholds without proper price quotations, violating CFR procurement standards.
  • Recommended Follow-Up: Management should review and strictly apply its procurement policies for all purchases using federal funds.

Finding Text

Criteria: an entity must have and use documented procurement policies consistent with Federal, State, and local laws, regulations, and standards for the acquisition of property or services required under a Federal award or subaward. The procedures must confirm to the procurement standards identified in CFR § 200.317 through 200.327. Condition: The Center maintans specific grant manuals and guidelines as its written policies; however, they have inconsistently or inadequately been using those manuals and guidelines. The Center made two large purchases under the Head Start grant exceeding micro-purchase thresholds without obtaining price or rate quotations from an adequate number of qualified sources. Cause: Thresholds are often considered based on unit price instead of the aggregate purchase amount based on certain grantor requirements to obtain written approval for purchases based on unit price. In addition, procedures are considered unnecessary by management for purchases falling within the grantor approved budget amounts. Effect: Failure to follow appropriate procurement procedures could result in excess procurement costs being disallowed or subject the entity to possible claims. It was determined that the items procured were reasonable in costs with other vendors. Recommendation: We recommend management assess and adhere to the internally developed policy for all procurements using Federally sourced funds.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 369685 2023-001
    Significant Deficiency Repeat
  • 369686 2023-002
    Significant Deficiency
  • 369687 2023-001
    Significant Deficiency Repeat
  • 369688 2023-002
    Significant Deficiency
  • 369689 2023-002
    Significant Deficiency
  • 946127 2023-001
    Significant Deficiency Repeat
  • 946128 2023-002
    Significant Deficiency
  • 946129 2023-001
    Significant Deficiency Repeat
  • 946131 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.558 Temporary Assistance for Needy Families $384,000
17.259 Wia Youth Activities $348,241
10.558 Child and Adult Care Food Program $293,884
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $228,948
93.086 Healthy Marriage Promotion and Responsible Fatherhood Grants $169,819
93.600 Head Start $147,637
17.258 Wia Adult Program $11,125
93.U01 Grant Management for Covid Relief Funds $398