Finding Text
Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Blood Diseases and Resources Research Assistance Listing Number: 93.839 Award Period: 3/1/2022 – 12/31/2028 Type of Finding: - Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or specific requirement: 2 CFR Section 200.320(a)(2) states that when simplified acquisition procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources. Condition: During our testing of procurement, we noted that the organization has a process to review quotes from more than one vendor before entering into a transaction with a vendor. However, we noted one instance of the simplified acquisition procurement method being used with no price or rate quotations obtained from qualified sources retained on file prior to the transaction being entered. Questioned costs: $11,868.60 Context: We noted 1 of the 5 tested purchases was acquired using the simplified acquisition procurement method being used with no price or rate quotations obtained from qualified sources. Cause: Per discussion with management, The Organization did obtain price or rate quotations from more than one qualified source for a purchase made using the simplified acquisition procurement method. However, the documentation was not retained to provide evidence that this took place before entering into a transaction with that vendor. Effect: $11,868.60 purchase with no justification for procurement method chosen. Repeat finding: No Recommendation: We recommend that the Organization follows all procurement method requirements for purchases over the $10,000 micro-purchase threshold. Views of responsible officials: There is no disagreement with the audit finding.