Finding Text
Item 2024-004: Procurement Identification of federal programs: Food Distribution Cluster, Assistance Listing Number 10.565, 10.568 and 10.569 Federal award grant number: 204645, 244603 and 244590 Federal agency: U.S. Department of Agriculture Pass-through entity: Minnesota Department of Health and Minnesota Department of Human Services Criteria: The Uniform Guidance (2 CFR 200.320) and SHN’s procurement policy require that micropurchases may be awarded without soliciting competitive quotations if SHN considers the price to be reasonable and small purchases require price or rate quotations to be obtained from an adequate number of qualified sources. Condition: During our testing of procurement requirements, we noted that for two of the small purchase disbursements selected for testing, there was no vendor selection form. The vendor selection form identifies the price and the method selected as well as requires review and approval. Without the form, the procurement documentation does not exist for small purchase disbursements. Cause: The exceptions noted above were due to a breakdown in SHN’s procedures to ensure that all procurements of goods and services are in accordance with the Uniform Guidance and its procurement policy. Effect: Improper procurement procedures can result in actions taken by oversight agencies which could impact future funding. Questioned costs: $37,043 Context: The population subject to procurement requirements included 66 micro-purchase vendors and ten small purchase vendors. The sample size of seven micro-purchase procurements and two small purchase procurements was determined using the guidance in the AICPA Audit and Accounting Guide— Government Auditing Standards and Single Audits. Repeat finding: No Recommendation: SHN should continue to improve its procedures to ensure that all procurements of goods and services are in accordance with the Uniform Guidance and its procurement policy. It is also recommended that support documenting the procurements be maintained. Views of responsible officials of the auditee: SHN concurs with this finding and a response is included in the corrective action plan.