Finding Text
Condition: During testing of procurement transactions, it was noted that while the Organization has a documented procurement policy that aligns with Uniform Guidance requirements, several procurement files lacked sufficient documentation to support compliance with federal procurement standards. Specifically, records were missing for vendor selection rationale, bid evaluations, and contract approvals. Criteria: Entities must maintain records sufficient to detail the history of procurement. These records must include, but are not limited to, the rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Cause: The lack of documentation was primarily attributed to staff turnover and insufficient training of personnel on federal documentation requirements. Staff were unaware of the specific recordkeeping obligations under Uniform Guidance, resulting in inconsistent application of the procurement policy. Effect: Without adequate documentation, the Organization cannot demonstrate that procurements were conducted in accordance with federal regulations. This creates a risk of noncompliance, including potential questioned costs and reputational harm during federal audits. Recommendation: Management should implement a training program for procurement staff to ensure awareness of documentation requirements. Additionally, a standardized procurement checklist should be used for each transaction to ensure all required documentation is collected and retained. Periodic internal reviews should be conducted to monitor compliance and reinforce accountability.