Finding Text
Information on the federal program: United States Airforce, Assistance listing # 12.840 Civil Air Patrol Program Criteria: 2 CFR 200.318(i) states, "The recipient or subrecipient must maintain records sufficient to detail the history of each procurement transaction. These records must include the rationale for the procurement method, contract type selection, contractor selection or rejection, and the basis for the contract price." CAP regulation NHQ OI GC 24-02 section 18.3, states, "CAP/GCC will conduct procurement file reviews for all procurements costing $25,000 or more. The CAPF GCC-06, Procurement File Review Checklist, will be used to document the review." The Procurement File Review Checklist requires General Counsel review of all procurements over $100,000. Condition: Documentation of the procurement procedures of five purchase orders examined in the fourth quarter of the fiscal year were not complete. Cause: Controls and related responsibilities were not updated to address staffing changes in the contract and legal departments. Effect: Several components of the required documentation of five procurements examined from the fourth quarter of the fiscal year were not available upon request. Repeat Finding: No Questioned Costs: None reported. Recommendation: Documentation for each procurement should be maintained in a file by vendor. CAP's procurement file checklist should be completed retrospectively and included in the file for each procurement to ensure the completeness of the documentation. Views of Responsible Officials: Management agrees with the finding. See Corrective Action Plan included at the end of the report.