Finding Text
Compliance Requirement I. Procurement Finding Type Significant Deficiency in Internal Control Over Compliance and Compliance Finding Federal Agency U.S. Department of Treasury Federal Program Title Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number 21.027 Criteria: I. 2 CFR sections 200.318 - 200.326 of the Uniform Guidance require that non-federal entities follow documented procurement procedures that ensure full and open competition. All purchases using federal funds must comply with applicable thresholds, documentation, and approval requirements. Condition: The Organization did not follow required procurement procedures for certain program transactions. Cause: Though a procurement policy exists for the Organization, there was no enforcement of this policy for the federal program. Effect: Failure to follow a formal procurement policy causes the Organization to be out of compliance with Uniform Guidance and/or grant requirements and increases the likelihood of disallowance of costs. Questioned Costs: None Identification as a Repeat Finding: N/A - this was not reported as a finding in the prior audit report. Context: The Organization did not follow required procurement procedures under the major program as no competitive bidding or documented justification for sole sourcing was provided. Recommendations: We recommend that the Organization revisit their existing procurement policy and implement a formal process/policy to identify any new transactions to ensure the policy is followed. A review of each project file should be implemented to ensure that procurement activities tied to federal award are taking place. View of Responsible Officials: The Organization disagrees with this audit finding.