Finding Text
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Economic Development Initiative, Community Project Funding, and Miscellaneous Grants Assistance Listing Number: 14.251 Pass-Through Agency: N/A Pass-Through Numbers: N/A Award Period: 8/13/2024 – 8/31/2032 Type of Finding: Material Weakness in Internal Control over Compliance. Condition: The Organization did not maintain a written procurement policy that incorporated the procurement standards required by Uniform Guidance during the fiscal year. As a result, procurement activities were not governed by a formally documented policy designed to ensure compliance with federal requirements. Criteria or specific requirement: 2 CFR §200.318 through §200.327 requires non-federal entities expending federal awards to maintain and follow documented procurement policies and procedures that comply with the procurement standards established under Uniform Guidance. Cause: Management had not established or updated procurement policies and procedures to address the specific requirements of Uniform Guidance. Effect: The absence of a compliant procurement policy increases the risk that procurements funded by federal awards may not be conducted in accordance with applicable federal requirements, including competition, documentation, and vendor selection standards. Repeat Finding: No Recommendation: We recommend that management develop, adopt, and implement a written procurement policy that complies with the requirements of 2 CFR §200.318 through §200.327 and ensure personnel involved in procurement activities are trained on the policy and applicable federal requirements. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.