Marjaree Mason Center, Inc

Finding 2023-001: Department of Housing and Urban Development - Continuum of Care Program - Assistance Listing No. 14.267; Grant period: Year Ended December 31, 2023. Criteria – In accordance with 2 CFR 200.320(a)(2)(i), participants are required to perform an appropriate form of competition in their procurement process if purchases are within the small purchase threshold. Condition – Management did not perform an appropriate form of competition for two purchases made within the small purchase threshold. Questioned costs – There are known questioned costs of $36,666 representing the reimbursements claimed for the vendors during the audit period. No likely questioned costs are noted. Context – Inspection of procurement documentation showed two out of two vendors subjected to sampling required an adequate number of price or rate quotations from qualified sources to be obtained and assessment to be performed in accordance with the small purchase threshold in the Code of Federal Regulations; 2 CFR 200.320(a)(2)(i). Price or rate quotations were not obtained timely, nor formally documented and a formal assessment was not performed. Of the $1,758,584 of total Continuum of Care reimbursements claimed during the year, $60,956 of reimbursements are subject to this procurement requirement, including the known questioned costs of $36,666. Effect – By not obtaining price or rate quotations from qualified sources, this could result in the utilization of an unqualified vendor, an overspending of grant funding, and questioned costs. Cause – Management did not obtain rate quotations from an adequate number of vendors, and did not retain sufficient documentation nor perform a formal assessment to proceed with the contracted services. Repeat finding – This is a repeat finding as there was a procurement finding in the prior year. Recommendation – We recommend management implement a control to ensure sufficient quotes are obtained and documentation is retained during the procurement of all vendors being reimbursed by federal awards and ensure compliance with the Uniform Guidance and other applicable procurement standards. Management's response – Management has implemented a new procurement policy effective January 2024 for all vendors where the vendors will have their own procurement documents. The chosen vendors can be the Organizaton's selected vendor from 1 to 3 years depending on type of service. All quotes and bids will be maintained on the Organization's server.

To Whom It May Concern, As required by the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), we have provided below our response and corrective action plan addressing the finding in the Report of Independent Auditors on Compliance for the Major Federal Program and Report on Internal Control Over Compliance Required by the Uniform Guidance for the year ended September 30, 2023. Response and Corrective Action Plan Finding 2023-001: Department of Housing and Urban Development - Continuum of Care Program -Assistance Listing No. 14.267; Grant period: Year Ended December 31, 2023. Cause: Management did not obtain rate quotations from an adequate number of vendors, and did not retain sufficient documentation nor perform a formal assessment to proceed with the contracted services. Management Response: The Marjaree Mason Center (MMC) did not maintain proper records of the procurement process for two vendors associated with janitorial services and the client statistical database. MMC has formally started a new procurement policy for all vendors where the vendors will have their own procurement documents. The chosen vendors can be MMC's selected vendor from 1 - 3 years depending on the type of service. All quotes and bids will be maintained on MMC's server.

2022-001

Finding 2022-001: Department of Housing and Urban Development - Continuum of Care Program - Assistance Listing No. 14.267; Grant period: Year Ended December 31, 2022. Criteria ? In accordance with 2 CFR 200.320(a)(2)(i), participants are required to perform an appropriate form of competition in their procurement process if purchases are within the small purchase threshold. Condition ? Management did not perform an appropriate form of competition for a purchase made within the small purchase threshold. Questioned costs ? There are known questioned costs of $36,990 representing the reimbursements claimed for the vendor during the audit period. No likely questioned costs are noted. Context ? Inspection of procurement documentation showed one out of two vendors subjected to sampling required an adequate number of price or rate quotations from qualified sources to be obtained and assessment to be performed in accordance with the small purchase threshold of 2 CFR 200.320(a)(2)(i). Price or rate quotations were obtained, but not formally documented and a formal assessment was not performed. Of the $1,625,075 of total Continuum of Care reimbursements claimed during the year, $96,702 of reimbursements are subject to this procurement requirement, including the known questioned costs of $36,990. Effect ? By not obtaining price or rate quotations from qualified sources, this could result in the utilization of an unqualified vendor, an overspending of grant funding, and questioned costs. Cause ? Management obtained rate quotations from an adequate number of vendors, but did not retain sufficient documentation and did not perform a formal assessment to proceed with the purchase. Repeat finding ? N/A Recommendation ? We recommend management implement a control to ensure sufficient documentation is retained during the procurement of all vendors being reimbursed by federal awards and ensure compliance with the Uniform Guidance and other applicable procurement standards. Management's response ? Management will ensure to retain sufficient documentation when obtaining quotes from similar vendors and performing a documented analysis of services and corresponding costs for the fiscal year 2022?23 and every year going forward.

To Whom It May Concern, As required by the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), we have provided below our response and corrective action plan addressing the finding in the Report of Independent Auditors on Compliance for the Major Federal Program and Report on Internal Control Over Compliance Required by the Uniform Guidance for the year ended September 30, 2022. Response and Corrective Action Plan Finding 2022-001: Department of Housing and Urban Development - Continuum of Care Program - Assistance Listing No. 14.267; Grant period: Year Ended December 31, 2022. Cause: Management obtained rate quotations from an adequate number of vendors, but did not retain sufficient documentation and did not perform a formal assessment to proceed with the purchase. Contact Person: Marcus Martin, Director of Finance Management Response: The Marjaree Mason Center (MMC) did not correctly document the purchase of a new vehicle including having justification on the selection of the vendor. When researching the purchase of the vehicle, MMC researched different options for the vehicle, but did not keep the documentation of the research. Effective immediately, MMC has implemented new procedures when it comes to procedures for any contracts/invoices over $10,000. The Manager submitting the request much attach at least three quotes and written justification approved by the Director of Finance and/or Executive Director before the contract is signed or payments are released. Sincerely, Marcus Martin Director of Finance Marjaree Mason Center marcus@mmcenter.org

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