Finding Text
Condition: The School did not document the procurement process
according to the procurement standards as codified
under OMB Circular 2 CFR 200. Criteria:
The School is required to follow certain procurement
procedures including maintaining records of its
procurement history and following the requirements of
each procurement method being used.
Cause:
The School did not have clear communication with its
employees about the division of responsibility relating
to procurement and, although procurement was in fact
done, the School failed to document it properly.
Effect of Finding:
After discussions with management, the auditor has
determined that although the School failed to
document the procurement process properly, they were
in fact following the required procurement process as
codified under OMB Circular 2 CFR. As such, the effects
of this deficiency are minimal.
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Recommendation:
To ensure that each employee involved in the
procurement process has a clear understanding of their
responsibilities to ensure that the procurement process
is documented properly.
View of Responsible Party and Planned Corrective
Action:
Since being made aware of the issue, the school’s
administrator has begun to routinely monitor the net
cash resources to ensure it does not exceed three
months of average expenditures. As such, the required
correction actions have been implemented.