Finding Text
2025-002 – Internal Control Over Compliance, Material Noncompliance - Procurement and Suspension and Debarment (Material Weakness) Condition: During our compliance testing, we observed that RRHC was unable to provide documentation confirming that the selected vendors were not suspended or debarred, and that proper bidding procedures were followed for federal expenditures. Criteria: Procurement 45 CFR 75.329 and 45 CFR 75.213. Context: During testing of two selected procurement samples, RRHC did not provide required supporting documents, including the solicitation like RFP, bid evaluation records, suspension/debarment verification, and evidence of public advertisement. Cause: Procedures were not in place or not effectively followed to ensure required procurement documentation was retained and available for audit. Effect: RRHC was unable to demonstrate compliance with federal procurement and suspension and debarment requirements. Auditor's Recommendation: Implement procedures to ensure that complete procurement documentation, including solicitation documents, bid evaluations, debarment checks, and advertisement evidence, is obtained, retained, and readily available for audit.