Audit 378056

Finding Number: 2025-001 Procurement Policy Federal Program: 20.205 Highway Planning and Construction Criteria: Per 2 CFR 200.317–200.327, non-Federal entities are required to follow procurement standards that ensure full and open competition, proper documentation and compliance with the Uniform Guidance. Entities must update their written procurement policies to align with the most current Uniform Guidance requirements. Condition: During the audit procedures, it was identified the entity’s written procurement policy has not been updated to reflect the current requirements under 2 CFR 200. Cause: Management has not updated the written procurement policy since 2011 and was not aware of recent revisions to 2 CFR 200 procurement standards. Effect: An outdated policy increases the risk of noncompliance with federal procurement regulations. While our sample testing of procurement transactions did not identify instances of noncompliance, the absence of an updated policy could result in future procurement actions that do not comply with federal requirements. Questioned Costs: None. Recommendation: We recommend that management update its procurement policy to include all current requirements under 2 CFR 200 and implement a process to periodically review and revise the policy to remain compliant with future federal regulation changes. Views of Responsible Officials and Corrective Action Plan: Please see the Corrective Action Plan issued by the entity