Finding Text
Criteria: The Uniform Guidance regulations (§200.320) require that procurement for purchases of goods and services follow certain procedures related to obtaining and awarding of contracts based on sealed bid, competitive, and non-competitive proposals. In addition to other provisions required by the Federal agency or non-Federal entity, all contracts made by the non-Federal entity under the Federal award must contain provisions covering items identified in Appendix II of Part 200 of the Uniform Guidance, as applicable. Additionally, §200.318(d) provides that written policies and procedures must document the avoidance of the acquisition of unnecessary or duplicative items. Condition: During our testing of purchases under the procurement regulations, for 4 out of 5 vendors (paid approximately $2.12 million from the amount tested of $2.22 million) selected for testing, the Parish was unable to provide supporting documentation that these vendor services or supplies were procured in accordance with the standards in §200.320. The universe (population) from which the items were selected included all vendor payments in 2023 over the scope amount of $133,000, consisting of 7 vendors paid approximately $2.3 million. Questioned Costs: Approximately $2.12 million. Cause: A material weakness exists in the internal controls over procurement. The Parish does not have adequate controls in place to ensure that appropriate supporting documentation is maintained for purchases made under the procurement standards to support the Parish’s consideration and/or conclusion for obtaining and awarding contracts based on sealed bid, competitive, and non-competitive proposals. Additionally, written policies and procedures for procurement were not followed to ensure all requirements under these regulations were addressed.
Effect: The Parish may not be selecting vendors with the lowest overall cost for services and supplies procured or paid with federal grant funds. Recommendation: We recommend the Parish implement internal controls to ensure that supporting documentation is maintained for the procurement of goods and services in accordance with Uniform Guidance §200.320. Additionally, we recommend the Parish enhance its written policies and procedures to ensure compliance with federal procurement requirements. View of Responsible Official: See the corrective action plan provided by the Parish.