Finding 369085 (2023-001)

Condition: During our audit it was noted that the Organization does not have a formal procurement policy. Criteria: Uniform Guidance imposes strict purchasing requirements on nonprofits receiving federal funding. Cause: The Organization has not previously received significant federal funding and therefore did not need a formal procurement policy. Effect: Purchases made by the Organization in excess of $10,000 are not meeting the Uniform Guidance requirements. Recommendation: We recommend that if the Organization believes they will be receiving significant federal funding in the future, they implement a formal procurement policy that follows Uniform Guidance requirements. Views of Responsible Officials and Corrective Action: See Corrective Action Plan.