Finding 1097257 (2024-002)

Criteria: The Code of Federal Regulations (2 CFR 200.318(I)) requires that each non-Federal entity must maintain records sufficient to detail the history of each procurement transaction. These records must include the rationale for the procurement method, contract type selection, contractor selection or rejection, and the basis for the contract price. Condition: The Organization did not maintain sufficient documentation of its procurement decisions. Cause: The exception noted above was due a lack of documentation of the process followed by the Organization to ensure that all procurements of goods and services are in accordance with the Uniform Guidance and it’s procurement policy. Context: The population subject procurement requirements was one vendor under the small purchase threshold. The Organization did not maintain documentation of quotes from other qualified sources and document the selection of the vendor. Effect: Improper procurement procedures can result in actions taken by oversight agencies which could impact future funding. Recommendation: The Organization should ensure its procedures specifically include maintaining documentation of procurement decisions. Views of Responsible Officials: Management agrees with the finding and recommendation.