Finding Text
Finding 2025-002 Significant deficiency in internal control over compliance with procurement procedures meeting the requirements of 2 CFR Part 200. Identification of the Federal Program Federal Agency: The United States Department of Housing and Urban Development Program Title: Continuum of Care Program Assistance Listing Number: 14.267 Award Numbers: All Award Periods: All Criteria Requirements contained in Title 2 U.S. Code of Federal Regulations Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Subpart D – Post Federal Award Requirements, Sections 200.318 through 200.326, require that a nonfederal entity establish and follow a written procurement policy that conforms to federal standards. The Uniform Guidance further requires that procurement transactions be documented in sufficient detail to provide a complete history of the procurement, including the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price (2 CFR 200.318(i), 200.319, and related sections). The written procurement policy must identify formal and informal procurement actions to be taken based on the size of the procurement, covering both goods and services, and must require documentation to support compliance with those requirements. Condition The Organization did not maintain adequate procurement documentation to support procurement transactions. For four out of nine of the items tested, the Organization could not provide documentation sufficient to evidence the method of procurement and that adequate price quotes were received in accordance with the Organizations documented procurement policy. Cause The Organization’s internal controls were insufficient to ensure that required procurement documentation was prepared, retained, and reviewed in accordance with its written procurement policy and Uniform Guidance requirements. Questioned Costs Not applicable. Effect The Organization did not retain documentation sufficient to comply the procurement standards set out at 2 CFR Part 200 as it related to the selected procurement transactions. Repeat Finding No