Core Issue: The Organization lacks a federal procurement policy, including a conflict of interest policy, which is essential for compliance.
Impacted Requirements: This deficiency affects adherence to federal procurement standards and could lead to non-compliance.
Recommended Follow-Up: Approve and implement a federal procurement policy to ensure compliance with all federal requirements.
Finding Text
Federal Agency: U.S. Department of Agriculture
Federal Program Title: Rural Development Multi-Family Housing Revitalization Demonstration Program
Assistance Listing Number: 10.447
Award Period: 2024
Type of Finding: Significant Deficiency in Internal Control over Compliance
Criteria or specific requirement: Procurement standards require a policy in place to be followed to
endure entities are properly procuring goods and services and to ensure vendors and contractors are
not suspended or debarred.
Condition: During procurement and suspension and debarment testing, it was noted that the
Organization does not have federal procurement policy that included a conflict of interest policy and
other federal requirements.
Questioned costs: None
Context: Procurement transactions tested followed Rural Development’s policies
Cause: The Organization does not have an approved federal procurement policy.
Effect: It could cause the Organization to be out of compliance with federal requirements over
procurement.
Repeat finding: No
Recommendation: We recommend that Organization approve a federal procurement policy and
implement controls to ensure it is being followed.
Views of responsible officials and planned corrective actions: There is no disagreement with the
finding.