Finding 12090 (2022-001)

Condition: During our audit it was noted that the Association does not have a formal procurement policy. Criteria: Uniform Guidance imposes strict purchasing requirements on nonprofits receiving federal funding. Cause: The Association has not previously received federal funding and therefore did not need a formal procurement policy. Effect: Purchases made by the Association in excess of $10,000 are not meeting the Uniform Guidance requirements. Recommendation: We recommend that if the Association believes they will be receiving federal funding in the future, they implement a formal procurement policy that follows Uniform Guidance requirements. Views of Responsible Officials and Corrective Action: See Corrective Action Plan.