Finding Text
2024-005 Finding – Federal Award Type: Procurement – Material Non-Compliance and Material Weakness in Internal Control over Compliance. (Repeat of finding 2023-005) Identification of Federal Program: AL Number: 81.086 Conservation Research and Development Program Criteria / Requirement: Per 2 CFR sections 200.318 through 200.326 an entity receiving federal funds must follow their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. Condition / Context: During the audit it was noted that Forth Mobility Fund has an established Procurement Policy which incorporates procurement requirements identified in 2 CFF Part 200. However, of the 3 items selected for testing, all 3 did not follow the Procurement Policy. Either a sufficient number of quotes were not obtained or proper documentation was not maintained. Cause: While the Procurement Policy is documented, the procedures and policies were not being followed. Effect: Failure to maintain sufficient internal controls and proper procedures may result in wrongful use of federal funds and non-compliance with federal awards. Questioned Costs: None. Recommendation: The Organization should follow the establish written policies and procedures regarding procurement and properly document the process for each procurement made. Management’s Response: We agree with the auditor's comments and have taken steps to strengthen compliance with procurement policies. We have established additional documentation requirements for all procurements and will update our policies to incorporate explicit internal controls and approval processes. Staff involved in procurement will also receive guidance on these updated requirements.