Finding Text
Condition:
During our audit procedures, we noted that 1 out of 4 vendors files did not have the completely required documentation in the vendor’s permanent file.
Criteria:
2.CFR 200.318 (General Procurement Standards), outlines the requirements for procurement processes, including the need for proper vendor documentation.
Cause:
The primary cause attributed to the missing documentation finding can be identified as a deficiency in verification process within FUNDACION DE DESARROLLO COMUNAL DE PUERTO RICO, INC. (FUNDESCO) The Corporation has experienced challenges in adequately training its accounting department, thereby impeding its ability to fulfill documentation requirements.
Effect:
Missing the required documentation can result in heightened scrutiny from Federal awarding agencies. The Corporation could face delays in receiving future funding until compliance issues are resolved, impacting on its financial stability and mission delivery.
Recommendation:
FUNDACION DE DESARROLLO COMUNAL DE PUERTO RICO, INC. (FUNDESCO) should establish clear protocols in the review of required documentations to ensure compliance with Federal awarding agency requirements. This includes training and defining roles and responsibilities within the finance and accounting team.