Brother Bill's Helping Hand

Finding 2023‐001: Procurement – material weakness in internal controls over compliance and compliance finding. 21.027: Coronavirus State and Local Fiscal Recovery Funds Criteria: Section 200.320 of the Code of Federal Regulations requires non‐federal entities to obtain an adequate number of price quotes from qualified sources for acquisitions of property or services when the aggregate dollar amount exceeds the micro‐purchase threshold but does not exceed the simplified acquisition threshold. Condition: During testing of procurement, the auditors noted that the Organization did not have a process to obtain price quotes for vendors that exceeded the micro‐purchase threshold. The Organization had two material procurement transactions charged to the grant. Cause: Organization was unaware of federal procurement requirements. Effect: Internal controls were not properly implemented to reduce the risk of noncompliance and the Organization was not in compliance with federal procurement requirements. Recommendation: Procedures should be implemented to obtain price quote documentation for covered transactions that exceed the micro‐purchase threshold. This documentation should be kept on file for all covered transactions. Management’s response: See corrective action plan.

Finding 2023‐002: Allowable costs – Material weakness in internal control over compliance. 21.027: Coronavirus State and Local Fiscal Recovery Funds Criteria: Section 200 of the Code of Federal Regulations requires recipients to implement robust internal controls to ensure compliance with cost principles for all transactions charged to the grant. Condition: During allowable cost testing for federal grants, 6 out of the 24 invoices tested did not have documented approval from management. Cause: The Organization did not have a standard procedure in place to document management’s approval for credit card transactions prior to payment. Effect: The Organization’s reporting of allowable cost is not fully documented in accordance with internal control procedures over compliance. Questioned Costs: None Recommendation: Management should implement controls related to documentation of approval for all credit card transactions prior to payment. Management’s Response: See corrective action plan.