Finding Text
All Funding Sources Significant Deficiency Procurement Criteria An entity must have and use documented procurement policies consistent with Federal, State, and local laws, regulations, and standards for the acquisition of property or services required under a Federal award or subaward. The procedures must conform to the procurement standards identified in CFR § 200.317 through 200.327. Condition The Center maintains specific grant manuals and guidelines as its written policies; however, previous audit identified errors in misapplying grant guidelines among funding sources. A recommendation was made in previous audit to develop a policy that would cover all procurements using Federally sourced funds. A draft policy was developed, but was not approved during the year ended September 30, 2025. Cause The entity has continued to reference specific grant manuals and guidelines as its written procurement policy. Effect Failure to follow appropriate procurement procedures could result in excess procurement costs being disallowed and subject the entity to possible claims. Recommendation We recommend management present the draft to the board, so it can be voted on and put into place. Management's Response Management agrees with our recommendation and the policy was voted on subsequent to year end and put into place.