SPRINGS RESCUE MISSION AND AFFILIATES

Procurement Other Matter U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Pass through from Colorado Department of Local Affairs ALN #: 14.231 Federal Award Identification #: Pass through identifying #CO10375 Condition: SRM does not have written procurement procedures that meet the minimum federal requirements for purchasing goods and services. SRM did not document the procurement process for goods and services paid for with federal funds. Criteria: 2 CFR 200.317-326 Questioned Costs: $0 Context: Majority of grant expenditures were for salary and benefits so only 6 vendors used were subject to federal procurement rules. Cause: Turnover in staffing, urgency of needs brought on by COVID-19. Effect: Non-compliance with federal procurement rules Identification as repeat finding, if applicable: not applicable Recommendation: We recommend SRM develop written procurement policies that meet the minimum federal standards. We also recommend that SRM document the procurement decision process for vendors used, specifically for expenditures charged to grants. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Finding Number: 2021-003 Procurement Planned Corrective Action: Agree. Policy and Procedures will be created that will include a Procurement policy that governs purchasing and operational practices for finance staff to monitor and to provide assurance that resources are being used and accounted for properly. The establishment of the Procurement policy is to contribute to the efficiency of the overall operations of Springs Rescue Mission by establishing parameters by which the organization governs purchases and capital acquisitions. Person Responsible for Corrective Action Plan: Keith Schumacher Anticipated Date of Completion: April 30, 2022