Finding Text
Procurement, Suspension and Debarment Formula Grants for Rural Areas Criteria: The Organization is required to have documented procurement policies and procedures which comply with the compliance requirements: UG §200.318 general procurement standards, UG §200.319 competition, and UG §200.320 methods of procurement to be followed. Condition and Context: The Organization has a formally documented purchasing and procurement policy. However, the Organization does not keep formal records demonstrating its adherence to the procurement policy for contractors. Cause: The Organization was not aware that it needed to retain proof of the contractors going through the procurement process. Effect or Potential Effect: Without sufficient documentation, the Organization may have selected a vendor outside the parameters of the procurement policy. If not documented, the Organization may not detect errors in the procurement process. Recommendation: We recommend the Organization update their policies and procedures manual to ensure that prior to a vendor being selected, there must be a formally documented file for each vendor noting how the vendor qualifies to work for the Organization and that the policies and procedures manual was adhered to. Identification of Repeat Audit Finding: No Responsible Official’s Response: Management agrees with the recommendation to establish and follow a documented internal control process over the review of the procurement process. Staff will work with management to ensure that all contractors going through the bidding process will be evaluated using the policies and procedures manual. Additionally, staff members working in areas concerning this process will be trained to ensure process adherence.