Finding Text
Condition:
The Organization purchased property and services without implementing procedures that comply with procurement standards set out at 2 CFR sections 200.318 through 200.326.
Criteria:
Non-Federal entities other than States, including those operating Federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable State and local laws and regulations, provided that the procurements conform to applicable Federal statutes and the procurement requirements identified in 2 CFR part 200.
Cause:
The Organization did not use their own documented procurement procedures, which reflect applicable State and local laws and regulations, provided that the procurements conform to applicable Federal statutes and the procurement requirements identified in 2 CFR part 200.
Effect:
The Organization did not comply with procurement requirements identified in 2 CFR part 200.
Context:
A sample of 5 purchases totaling $37,971 was selected for audit from a population of 21 purchases totaling $284,550. The test found that five purchases did not adhere to the Organization's documented procurement procedures and 1 purchase that also did not include competitive bidding.
Recommendation:
We recommend that the Organization use their own documented procurement procedures that comply with procurement standards set out at 2 CFR sections 200.318 through 200.326.
Views of Responsible Officials:
Management agrees with the finding.