Procurement
Recommendation: We recommend that the Organization develop a written procurement policy that meets the requirements noted in Section 200.318 of the Code of Federal Regulations.
Explanation of disagreement with audit finding: There is no disagreement with the audit finding.
Action taken in response to finding: While the Organization has a procurement policy in place, it is noncompliant with the requirements of Title 2, Subtitle A, Chapter 2 Part 200, Subpart D, section 200.318 of the Code of Federal Regulations. The Organization has experienced substantial growth in recent years and in support of this expansion, hired an experienced CFO in early 2022. The new CFO identified the need for a compliant procurement policy that includes certain requirements as it relates to procuring goods and services using federal dollars. To facilitate the adherence to the new procurement policy, the Organization purchased new ERP software and both contracted with an outside organization and hired new internal staff to oversee the implementation of this software during 2023. The implementation of this software was completed at the end of 2023 and placed into service January 2024. The new procurement policy was reviewed by the auditors during the 2022 audit and a determination was made that had the new policy been in effect and followed, the Organization’s practices would have met the requirements of Title 2, Subtitle A, Chapter 2 Part 200, Subpart D, section 200.318 of the Code of Federal Regulations. With the new software now in place, this policy will become effective during 2024. A staff member had been selected and fully trained to oversee the procurement function, but then retired at the end of 2023. A new staff member is currently being hired and will be specifically trained on the federal procurement requirements.
Name(s) of the contact person(s) responsible for corrective action: Erica Vogt, CFO Planned completion date for corrective action plan: January 1, 2024