Finding Text
Criteria Institutions of higher education, hospitals and other non-profit organizations will use procurement procedures that conform to applicable Federal law and regulations and standards identified in OMB Circular A-110 (2 CFR part 215). Condition The Organization does not have formal policies and procedures over procurement, suspension and debarment to ensure compliance with these requirements. Cause The Organization does not have formal policies and procedures over procurement which requires the retention of evidence of quotes and bids. Effect The Organization is not in compliance with the procurement, suspension or debarment requirements. Questioned Costs None Context The Organization could not provide evidence to support compliance with the procurement requirements for a sample of expenditures charged to the program. Recommendation The Organization should create formal policies and procedures that require employees overseeing the purchasing of items to retain evidence of the necessary bids, quotes and/or sole source documentation. Such documentation should be required for approval of the related disbursements. Views of Responsible Officials See the accompanying Corrective Action Plan.