Finding Text
Finding 2024-004
Federal assistance listing number and name: 10.415 Rural Rent Housing Loans
Awards numbers and years: 2024
Federal agency: United States Department of Agriculture
Compliance Requirement: Procurement
Questioned Costs: None
Criteria:
2 CFR 200.318(a) requires nonfederal entities to have and use documented procurement procedures,
consistent with federal, state, and local requirements, for the acquisition of property or services under a
federal award. These procedures must ensure full and open competition and address conflicts of interest
Condition and Context:
The entity has not established or documented a formal procurement policy or procedures to guide the
acquisition of goods and services. No written guidelines were provided during the review period.
Cause:
The absence of an established procurement policy appears to be due to a lack of prioritization or
awareness of regulatory requirements regarding procurement governance.
Effect:
The lack of a procurement policy increases the risk of non-compliance with applicable procurement
laws and guidelines, and reduced accountability and transparency in financial operations.
Recommendation:
The management should develop, approve, and implement a comprehensive procurement policy in
accordance with applicable laws and best practices.