Audit 392656

Criteria: 2 CFR 200.320 details various methods of procurement to be followed based on the intended dollar value and nature of the contract. While the specific required documentation may vary based on each of the various methods, all mandate specific documentation concerning procurement decisions. Condition: The Organization did not maintain sufficient documentation of its procurement decisions. During our testing of 25 procurement files, 3 were below the simplified acquisition threshold which require price quotations, the documentation did not evidence price quotations were received for the 3. Cause: The Organization has contracts with vendors that existed prior to the procurement guidelines. As a result, several of these contracts do not have sufficient documentation of procurement evaluations and decisions. Effect: Despite having a written procurement policy, if the Organization does not maintain sufficient documentation of procurement evaluations and decisions, the Organization's procurement practices will not comply with the Uniform Guidance. Questioned Costs: None Recommendation: The Organization should retain formal documentation with regard to its procurement decisions and document how the procurement decisions were made, including how these decisions align with the procurement policy. It is noted that this finding was identified in the prior year and a corrective action plan was put in place by the end of the fiscal year however, this current year finding addresses the period of time prior to the implementation of that corrective action plan. Management's Response: We agree with this finding. See corrective action plan.