Finding 1092234 (2024-001)

Criteria: Under 2 CFR 200.320(c) vendors above a micro-purchase threshold require a competitive process that includes soliciting multiple bids/quotes to justify best value. The Uniform Guidance requires purchasing decisions to be documented, including sole source justification, as applicable. Condition: For two out of five procurement selections totaling $158,000, evidence of the procurement process (signed competitive bid or sole source documentation and the related approvals), was not retained in the procurement file. As such, we were unable to obtain the required documentation to support vendor selection and price justification. Cause: The buyers executing these transactions did not obtain and maintain the required documentation evidencing that these transactions were conducted in accordance with federal requirements. Effect: Failure to obtain and maintain complete procurement files may lead to non-compliance with required regulations. Questioned Costs: There are no questioned costs associated with this finding as procurements were made for allowable transactions. Recommendation: We recommend Management enhance their existing policies and procedures to ensure documentation is retained to justify the rationale for purchasing decisions consistent with the Uniform Guidance. This could include additional training in this area and providing readily available guidance as to what documentation is required prior to executing federal purchasing transactions. Additionally, we recommend that Management retroactively document vendor and price rationale for the two selections and retain this documentation within the procurement file.