Finding Text
Finding 2024-001 Procurement, Suspension, and Debarment
Agency and Award: Federal Agency: U.S. Department of Housing and Urban Development
Program: Economic Development Imitative, Community Project Funding, and Miscellaneous Grants
Assistance Listing Number: 14.251
Federal Award Identification Number: B-23-CP-CA-0141
Criteria: 2 CFR 200.318 states non-federal entities must have and use documented procurement procedures that conform to 2 CFR 200.317 through 200.327. They must use their own documented procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and procurement requirements identified in 2 CFR Part 200. These standards require non-federal entities to maintain written procedures for procurement transactions to ensure full and open competition, proper cost analysis, and avoidance of conflicts of interest.
Condition and context: ASMYCA does not have an internal procurement policy established. Without a formal procurement policy, ASYMCA lacks a consistent framework for vendor selection, contract negotiation, and cost justification.
Cause: ASYMCA’s management did not retain evidence in compliance with the above criteria regarding
procurement.
Effect: ASYMCA’s documentation was lacking evidence of an internal procurement policy. This may lead to inconsistent procurement practices, potential favoritism, increased risk of unallowable costs, or overpayment for goods and services.
Questioned costs: None
Repeat finding: No
Recommendation: ASYMCA develop and implement a formal procurement policy as soon as possible.
Views of Responsible Officials: Management concurs with this finding and a response is included in the corrective action plan.