Finding Text
Condition: The Organization did not maintain sufficient records to detail the history of procurement. The Organization did not ensure that vendors complied with all contract terms, conditions, and specifications. Criteria: Section 200.318(i) of Title 2 of the Code of Federal Regulations states that entities must maintain detailed records showing the history of procurement, including rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Section 200.318(b) of Title 2 of the Code of Federal Regulations states that entities must ensure that suppliers are following the terms, conditions, and specifications of their contracts.
Effect: The Organization is not in compliance with the requirements to have detailed records of the procurement history and to ensure that their vendors and suppliers follow the terms of their contracts.
Cause: Detailed records of procurement history were not kept by the Organization. The Organization did not follow through with ensuring that contract terms, conditions, and specifications were followed by suppliers.
Recommendation: The Organization will ensure that detailed documentation is kept for every procurement and that every product/service is properly procured according to all regulations and requirements. The Organization will monitor vendor compliance with terms, conditions, and specifications of their contracts.
Amount of Questioned Cost: N/A
Auditor’s Summary of Auditee’s Comments: The Organization agrees with the finding and has executed a plan to ensure sufficient record keeping of the procurement process.
Completion Date: August 31, 2022