Finding Text
Criteria: Procurement and Suspension & Debarment - In accordance with 2 CFR 200, non-Federalentities must have and use documented procurement procedures, consistent with State and localregulations and the standards of this section, for the acquisition of property or services requiredunder a Federal award or subaward. The non-Federal entity’s documented procurement proceduresmust conform to the procurement standards identified in 2 CFR 200. Condition: During procurement testing, it was noted that Mission Edge did not follow 2 CFR 200required methods of procurement or its internal procurement policy for the purchase of goods orservices using federal funds. Mission Edge did not obtain quotes or bids for certain expenditures asrequired by its procurement policy. In addition, Mission Edge did not verify that vendors were notsuspended, debarred, or otherwise excluded from participation in the program. Cause: Mission Edge does not have procurement policies and procedures in place that allow it tocomply with procurement standards outlined in the Uniform Guidance. Effect: Purchases were made that did not comply with the procurement policy or federalregulations which resulted in non-compliance with program terms and conditions. Questioned costs: It was calculated based on the four contracts tested that $121,614 in expensesdid not have debarment checks on the vendors. This accounted for both reimbursed costs andservices under the contract. Context: This appears to be a systemic issue. Repeat finding: No Recommendation: Management should develop procedures that will provide reasonable assurancethat procurement of goods and services are made in compliance with applicable federal regulationsand other procurement requirements specific to a federal award or subaward, and that nosubaward, contract, or agreement for purchase of goods or services is made with any suspended or debarred party. In addition, the policy should be consistent between Mission Edge and the fiscally sponsored projects. Views of responsible official and planned corrective action: Management’s response is reported in “Management’s View and Corrective Action Plan” included at the end of this report.