Finding 962721 (2022-008)

Material Weakness
Requirement
I
Questioned Costs
$1
Year
2022
Accepted
2024-03-27
Audit: 298678
Auditor: Eide Bailly

AI Summary

  • Core Issue: The Organization failed to follow proper procurement procedures for two contracts, violating federal guidelines.
  • Impacted Requirements: Non-compliance with Title 2 U.S. Code of Federal Regulations Part 200, which mandates adherence to procurement standards.
  • Recommended Follow-up: Ensure future contracts comply with Uniform Guidance procurement policies to avoid similar issues.

Finding Text

Department of Treasury Federal Financial Assistance Listing/ALN 21.027 COVID‐19 Coronavirus State and Local Fiscal Recovery Funds Procurement, Suspension, and Debarment Material Noncompliance and Material Weakness in Internal Control over Compliance Criteria ‐ Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires that a non‐Federal entity must follow procurement procedures which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal law and standards. Condition ‐ Procurement policies under Uniform Guidance were not followed when obtaining bids for two contracts. Cause ‐ Due to grant timing restraints, the Organization did not follow proper procurement procedures for obtaining bids for two contracts under Uniform Guidance. Effect ‐ The Organization did not have proper procedures to ensure procurement compliance requirements under Uniform Guidance were followed when obtaining bids for contracts. Questioned Costs ‐ $424,081. Context/Sampling ‐ A nonstatistical sample of 3 contracts were selected for testing. 2 out of the 3 contracts did not follow procurement compliance requirements. These transactions totaled $424,081 of $429,181 costs tested. Repeat Finding from Prior Year(s) ‐ No. Recommendation ‐ We recommend the Organization follow applicable procurement policies under the requirements identified in Uniform Guidance. Views of Responsible Officials ‐ There is no disagreement with the finding.

Categories

Questioned Costs Procurement, Suspension & Debarment

Other Findings in this Audit

  • 386268 2022-005
    Material Weakness Repeat
  • 386269 2022-006
    Significant Deficiency
  • 386270 2022-007
    Significant Deficiency Repeat
  • 386271 2022-008
    Material Weakness
  • 386272 2022-005
    Material Weakness Repeat
  • 386273 2022-006
    Significant Deficiency
  • 386274 2022-007
    Significant Deficiency Repeat
  • 386275 2022-008
    Material Weakness
  • 386276 2022-005
    Material Weakness Repeat
  • 386277 2022-006
    Significant Deficiency
  • 386278 2022-007
    Significant Deficiency Repeat
  • 386279 2022-008
    Material Weakness
  • 386280 2022-005
    Material Weakness Repeat
  • 386281 2022-006
    Significant Deficiency
  • 386282 2022-007
    Significant Deficiency Repeat
  • 386283 2022-008
    Material Weakness
  • 962710 2022-005
    Material Weakness Repeat
  • 962711 2022-006
    Significant Deficiency
  • 962712 2022-007
    Significant Deficiency Repeat
  • 962713 2022-008
    Material Weakness
  • 962714 2022-005
    Material Weakness Repeat
  • 962715 2022-006
    Significant Deficiency
  • 962716 2022-007
    Significant Deficiency Repeat
  • 962717 2022-008
    Material Weakness
  • 962718 2022-005
    Material Weakness Repeat
  • 962719 2022-006
    Significant Deficiency
  • 962720 2022-007
    Significant Deficiency Repeat
  • 962722 2022-005
    Material Weakness Repeat
  • 962723 2022-006
    Significant Deficiency
  • 962724 2022-007
    Significant Deficiency Repeat
  • 962725 2022-008
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.231 Emergency Solutions Grant Program $220,246
97.024 Emergency Food and Shelter National Board Program $22,130
21.027 Coronavirus State and Local Fiscal Recovery Funds $19,931
14.218 Community Development Block Grants/entitlement Grants $6,295