Finding Text
Finding 2022-006: Procurement Method Requirements Federal Agency: U.S. Department of the Treasury Assistance Listing Number: 21.027 Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Pass-through Entity: Snohomish County Human Services Pass-through Award Number: EL-22-AR-11-394 Criteria: In accordance with 2 CFR 200.320, federal award recipients are required to use informal procurement methods for procurement transactions between $10,000 and $250,000 that are charged to federal award programs. Condition: Records of the procurement method used, such as price or rate quotations or justification for noncompetitive procurement, could not be located for procurement transactions. Cause: The Organization had limited management and administrative staff during the year ended December 31, 2022. Further, as described in finding 2022-001, there were no written procedures in place to assign specific tasks to separate individuals. Effect: The Organization was not in compliance with procurement requirements for the major federal award program during the year ended December 31, 2022, noncompliance with which could lead to waste of federal award funds through purchases of overpriced goods or services. Questioned Costs: Procurement documents could not be located for any of the procurement transactions or covered transactions tested, which totaled $176,381. Recommendation: We recommend that management implements and follows a formal procurement policy with requirements to obtains price or rate quotations for all purchases over $10,000 and to obtain sealed bids or competitive proposals for purchases over $250,000. Views of Responsible Officials: There is no disagreement with the finding.