Audit 369320

U.S. Department of Agriculture Passed through Alabama Department of Public Health Program: Water and Waste Grants and Loans and Loan Guarantees Assistance Listing Number: 10.770 Noncompliance / Significant Deficiency Procurement Criteria An entity must have and use documented procurement policies consistent with Federal, State, and local laws, regulations, and standards for the acquisition of property or services required under a Federal award or subaward. The procedures must conform to the procurement standards identified in CFR § 200.317 through 200.327. Condition The Program made three large purchase using grants funds exceeding the micro-purchase threshold without obtaining price or rate quotations from an adequate number of qualified sources. Cause The Program was not fully educated on procurement policies when it came to grant funds, so they were not aware that bids or price comparisons were necessary for the purchases. Effect Failure to follow appropriate procurement procedures could result in excess procurement costs being disallowed or subject the entity to possible claims. Recommendation We recommend management adhere to the Federal, State, and local regulations for all procurements using Federally sourced funds by ensuring policies and procedures are documented and followed in accordance with Uniform Guidance requirements. Management's Response Management agrees with our recommendation and finding and will work to adhere to all applicable procurement policies.