Finding 1057389 (2023-001)

Criteria: The Organization is required to have documented procurement policies and procedures which comply with the compliance requirement: UG §200.318 general procurement standards, UG §200.319 competition, and §200.320 methods of procurement to be followed. Condition: The Organization’s policies and procedures over procurement did not include verifying the vendor was not debarred or suspended. Cause: Lack of a formal policy and procedure over procurement that included verifying the vendor was not debarred or suspended. Effect: Possible payment of federal funds to vendors that did not properly go through the required procurement steps in accordance with Uniform Guidance. Questioned Costs: None. Context: The Organization had one purchase of equipment that fell under the procurement guidelines, while the Organization did have written procurement policies that were applied to the transactions, they did not have a procedure or control to ensure the vendor was not debarred or suspended. The vendor was not debarred or suspended. Recommendation: The Organization should review their procurement policy and procedures to ensure it includes a step to verify the vendor is not suspended or debarred, or require a certification from each vendor that may be subject to the Organization’s procurement policies. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with this finding. The Organization agrees with the recommendations of the auditors. See additional details on management’s views in the Corrective Action Plan.