Finding Text
Criteria: Nonprofit organizations will use procurement procedures that conform to applicable Federal law and regulations and standards identified in 2 CFR §200.318. Condition: The Organization does not have written policies and procedures regarding procurement, suspension and debarment as required by the Uniform Guidance. Cause: The Organization has not established written policies and procedures for procurement that require the retention of documentary evidence of competitive solicitations of quotes or bids. Effect: The Organization was not in compliance with the Uniform Guidance procurement, suspension, and debarment requirements. Questioned Costs: None Context: The Organization could not provide documentary evidence to corroborate its compliance with the procurement requirements for a sample of expenditures charged to the Federal program. Recommendation: We recommend that management establish written formal policies and procedures that require purchasing staff to retain supporting evidence of the required solicitation methods (i.e., bids, quotes, sole source), documentation of management approval, and resulting outcomes. Such procedures should be implemented in conjunction with control activities for purchasing and cash disbursements. Views of Responsible Officials: See management’s view and corrective action plan at the end of this report.