Audit 46719

Funding Agency: United States Department of Agriculture Federal Award Agreement Number: 20-DG-11030000-004 & 21-DG-11030000-020 Award Year: All Title: Southwest Forest Health and Wildfire Prevention Assistance Listing Number: 10.694 Pass-through Agency: Not Applicable Pass-through Identification Number: Not Applicable Questioned Costs: $43,747 Condition - The University did not apply the correct small purchase threshold for identifying purchases that need to obtain quotes in their policy. The population between $10,000 and $20,000 not included in policy included 3 transactions totaling $43,747. Criteria ? 2 CFR 200.303(a) requires non-Federal entities to establish and maintain effective internal controls over compliance with Federal statutes, regulations, and the terms and conditions of grant agreements. 2 CFR 200.320(a) sets the micro-purchase threshold at $10,000 and requires purchases over the micro-purchase threshold to use small purchase procedures, whereby price or rate quotations must be obtained. Cause ? The University was unaware that the policy amount had changed to a threshold of $10,000. Effect ? The University may unintentionally use a higher-cost vendor when failing to obtain price or rate quotations for items over the micro-purchase threshold. Auditors? Recommendation ? The procurement policy should be updated to comply with all relevant state and local procurement requirements and reviewed for necessary revisions regularly.

Funding Agency: United States Department of Agriculture Federal Award Agreement Number: 20-DG-11030000-004 & 21-DG-11030000-020 Award Year: All Title: Southwest Forest Health and Wildfire Prevention Assistance Listing Number: 10.694 Pass-through Agency: Not Applicable Pass-through Identification Number: Not Applicable Questioned Costs: $43,747 Condition - The University did not apply the correct small purchase threshold for identifying purchases that need to obtain quotes in their policy. The population between $10,000 and $20,000 not included in policy included 3 transactions totaling $43,747. Criteria ? 2 CFR 200.303(a) requires non-Federal entities to establish and maintain effective internal controls over compliance with Federal statutes, regulations, and the terms and conditions of grant agreements. 2 CFR 200.320(a) sets the micro-purchase threshold at $10,000 and requires purchases over the micro-purchase threshold to use small purchase procedures, whereby price or rate quotations must be obtained. Cause ? The University was unaware that the policy amount had changed to a threshold of $10,000. Effect ? The University may unintentionally use a higher-cost vendor when failing to obtain price or rate quotations for items over the micro-purchase threshold. Auditors? Recommendation ? The procurement policy should be updated to comply with all relevant state and local procurement requirements and reviewed for necessary revisions regularly.

Funding Agency: United States Department of Agriculture Federal Award Agreement Number: 20-DG-11030000-004 & 21-DG-11030000-020 Award Year: All Title: Southwest Forest Health and Wildfire Prevention Assistance Listing Number: 10.694 Pass-through Agency: Not Applicable Pass-through Identification Number: Not Applicable Questioned Costs: $43,747 Condition - The University did not apply the correct small purchase threshold for identifying purchases that need to obtain quotes in their policy. The population between $10,000 and $20,000 not included in policy included 3 transactions totaling $43,747. Criteria ? 2 CFR 200.303(a) requires non-Federal entities to establish and maintain effective internal controls over compliance with Federal statutes, regulations, and the terms and conditions of grant agreements. 2 CFR 200.320(a) sets the micro-purchase threshold at $10,000 and requires purchases over the micro-purchase threshold to use small purchase procedures, whereby price or rate quotations must be obtained. Cause ? The University was unaware that the policy amount had changed to a threshold of $10,000. Effect ? The University may unintentionally use a higher-cost vendor when failing to obtain price or rate quotations for items over the micro-purchase threshold. Auditors? Recommendation ? The procurement policy should be updated to comply with all relevant state and local procurement requirements and reviewed for necessary revisions regularly.

Funding Agency: United States Department of Agriculture Federal Award Agreement Number: 20-DG-11030000-004 & 21-DG-11030000-020 Award Year: All Title: Southwest Forest Health and Wildfire Prevention Assistance Listing Number: 10.694 Pass-through Agency: Not Applicable Pass-through Identification Number: Not Applicable Questioned Costs: $43,747 Condition - The University did not apply the correct small purchase threshold for identifying purchases that need to obtain quotes in their policy. The population between $10,000 and $20,000 not included in policy included 3 transactions totaling $43,747. Criteria ? 2 CFR 200.303(a) requires non-Federal entities to establish and maintain effective internal controls over compliance with Federal statutes, regulations, and the terms and conditions of grant agreements. 2 CFR 200.320(a) sets the micro-purchase threshold at $10,000 and requires purchases over the micro-purchase threshold to use small purchase procedures, whereby price or rate quotations must be obtained. Cause ? The University was unaware that the policy amount had changed to a threshold of $10,000. Effect ? The University may unintentionally use a higher-cost vendor when failing to obtain price or rate quotations for items over the micro-purchase threshold. Auditors? Recommendation ? The procurement policy should be updated to comply with all relevant state and local procurement requirements and reviewed for necessary revisions regularly.