Audit 311455

Criteria: In accordance with 2 CFR 200 Uniform Guidance (UG), General Procurement Standards require a non-Federal entity to maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. WIYN’s policy for cost and price analysis of procurements under $150,000 is as follows: In the case where there is adequate competition (at least two quotes, and ideally three or more quotes, for procurements under $150,000), documentation of the different proposed prices received and the basis for vendor selection shall be deemed to be an adequate price analysis. Condition/Context: For 1 of the 5 procurement files selected, WIYN did not have the complete procurement file documentation available for review. Documentation was provided of the process and results related to the vendor selected, however, evidence of the cost and price analysis required under WIYN’s policy for a procurement under $150,000 was not provided. It seemed likely that these steps were performed but not documented. Questioned costs: $50,615 Cause: WIYN worked with an insurance broker during the selection and renewal process and documentation shows the timing and elements of the process as well as the results but did not include documentation of the cost and price analysis required under WIYN’s policy. Repeat Finding: No Recommendation: We recommend management review the process in place to identify any gaps and inconsistencies with procurement files in comparison to WIYN’s policies and UG requirements and ensure relevant controls are properly designed and operating effectively. In addition, management should ensure all active procurement files are in compliance with WIYN’s policies. Views of responsible officials: See corrective action plan.

Criteria: In accordance with 2 CFR 200 Uniform Guidance (UG), General Procurement Standards require a non-Federal entity to maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. WIYN’s policy for cost and price analysis of procurements under $150,000 is as follows: In the case where there is adequate competition (at least two quotes, and ideally three or more quotes, for procurements under $150,000), documentation of the different proposed prices received and the basis for vendor selection shall be deemed to be an adequate price analysis. Condition/Context: For 1 of the 5 procurement files selected, WIYN did not have the complete procurement file documentation available for review. Documentation was provided of the process and results related to the vendor selected, however, evidence of the cost and price analysis required under WIYN’s policy for a procurement under $150,000 was not provided. It seemed likely that these steps were performed but not documented. Questioned costs: $50,615 Cause: WIYN worked with an insurance broker during the selection and renewal process and documentation shows the timing and elements of the process as well as the results but did not include documentation of the cost and price analysis required under WIYN’s policy. Repeat Finding: No Recommendation: We recommend management review the process in place to identify any gaps and inconsistencies with procurement files in comparison to WIYN’s policies and UG requirements and ensure relevant controls are properly designed and operating effectively. In addition, management should ensure all active procurement files are in compliance with WIYN’s policies. Views of responsible officials: See corrective action plan.