Finding 1148947 (2024-001)

Reference Number: 2024-001 Program Name: 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Description: Procurement Criteria: 2 CFR 200.320 Methods of Procurement state that if the small purchases method is used, price or rate quotations must be obtained from an adequate number of qualified sources (at least 2). The Organization’s procurement policy also states that contracts or purchases ranging from $7,501-$20,000 require the Organization contact at least three bids from qualified sources. Condition: During our testing of procurement transactions, we sampled two purchases over $7,501 and neither of them had price quotes as required by the Organization’s procurement policy. Questioned Costs: 13,863. Cause: The Organization did not follow their Procurement policy dated April 2022 related to the appropriate methods of procurement. Effect: Obtaining price quotes or proposals from an adequate number of vendors allows the Organization to use federal funds in the most fiscally responsible way. The lack of quotes and proposals may cause the Organization to overpay for supplies or services. Identification of a Repeat Finding: This is not repeat finding. Auditors’ Recommendation: We recommend the Organization review their procurement policy and either amend it to coincide with increased thresholds or adhere to current policy. Views of Responsible Officials: See attachment for the Organization’s corrective action plan.