Finding Text
Type of Finding: Material Weakness in Internal Control over Compliance and Other Matters Criteria: ?200.318 - ?200.321 requires that all procurement transactions be conducted in a manner providing full and open competition consistent with the standards of the section. Procurement by noncompetitive proposals may be utilized if the item is available only from a single source, however efforts must be made and the process fully documented in order to conclude that the use of a sole source procurement is appropriate. Condition: It was noted during procurement testing that the district did not document its process for concluding that procurements met the requirements of being a sole source situation. Questioned Costs: $136,059.94 Context: Of the 12 procurement transactions tested, 3 of them were considered sole source by the District but did not have the proper documentation to support the process used to determine that. Cause: The District procedures do not contain sufficient guidelines for ensuring all sole source procurements are properly documented. Effect: The lack of proper documentation could lead to using vendors for small purchase acquisitions without ensuring comparable pricing from other vendors and justifying costs. Repeat Finding: This is not a repeat finding from the prior year. Recommendation: CLA recommends the District puts in place the proper procedures for sufficiently documenting all procurements and methodology used. View of Responsible Official: There is no disagreement with the audit finding.