Finding 1090756 (2023-003)

Procurement – Written Rate Quotes Federal Agency: Department of the Treasury Federal Program: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Period: 01/01/2023 – 12/31/2023 Type: Significant Deficiency in Internal Controls over Compliance Questioned Costs: None Condition: At the start of a new project, no written rate quotes were obtained as required by the procurement policy. One of the vendors selected had worked on a previous project and proper procurement procedures were followed at that time, however, no new quotes were obtained for the new project. Criteria: The procurement policy states that for expected small purchases between $10,000 and $250,000 rate quotes must be obtained from an adequate number of qualified sources in writing and documentation should be maintained on file. Cause: The Clinic has a procurement policy, however, at the start of the new project quoted rates were not obtained for the existing vendor. Effect: Possible overpayment for the project. Repeat Finding: No. Recommendation: CLA recommends the procurement policy is consistently followed. View of Responsible Officials and Planned Corrective Actions: The Clinic agrees with the finding. All small purchases between $10,000 and $250,000 will have rate quotes obtained from an adequate number of qualified sources in writing and documentation will be maintained in the vendor file. Anytime there is a new project that is utilizing federal-sourced funds, and the expected expenditure for that service/good is over $10,000 (but under $250,000), the Clinic will follow the simplified acquisition procedures as noted in 2 CFR Part 200 and the Clinic’s policy for small purchases.