Finding Text
Finding 2025-003: Inadequate Procurement Documentation Criteria: 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, §§200.317-200.327, requires non-federal entities receiving federal awards to maintain and use documented procedures for procurement transactions under a federal award or subaward. In addition, Oregon Revised Statute 279A generally requires Oregon corporations to comply with the procurement guidance set forth in 2 CFR 200 §§200.317-200.327. Condition and Context: Management was unable to provide documentation in support of proper procurement procedures, to include a bid process and checks for vendor suspension or debarment. Questioned Costs: None noted. Cause: Ineffective design and implementation of an Organization procurement policy. Effect or Potential Effect: An effective procurement policy prevents or detects and corrects potential conflicts of interest and lack of competition in the bidding process. An ineffective procurement policy can potentially result in misuse or misappropriation of federal and state funds. Repeat Finding: Repeat of finding 2024-007. Recommendations: The Organization should continue to design and implement a procurement policy that is effective for the Organization and its structure. The Organization should document the policy, have it reviewed and approved by the Board of Directors, and disseminate the policy to employees with responsibility for finding and overseeing contractors. Views of Responsible Officials and Planned Corrective Actions: See Corrective Action Plan.