Finding Text
Procurement: Implement Procurement Policy Guidelines. Federal Program Information: Sustainable Agriculture Research and Education Program (Assistance Listing 10.215), Food Insecurity Nutrition Incentive Grants Program (Assistance Listing 10.331), and Soil and Water Conservation Program (Assistance Listing 10.902). Condition and Criteria: Federal guidelines require all entities to have written procedures for procurement transactions that ensure clear and accurate description of the technical requirements for material, products, or services. The procurement policy must define the number of quotes to obtain and the manner in which quotes should be obtained. Federal guidelines define three types of procurements: micro-purchases, items less than $10,000 which require no extensive documentation of procurement history; small purchases, items not to exceed $250,000 which require price and rate quotes from multiple qualified sources, and purchases greater than $250,000, for which the Organization must obtain sealed bids or competitive proposals. The Organization?s procurement policy does not require extensive documentation history for any purchases. Prior Year Audit Finding: N/A Cause and Effect: The Organization?s procurement policy does not comply with the applicable Federal requirements to provide open and full competition, nor does it address the requirements of the micro-purchase threshold or small purchase procedures. This has resulted in improper supporting documentation for all purchases greater than the micro-purchase threshold of $10,000. Context: For the year ended December 31, 2022, there was one procurement identified that exceeded the micro-purchase threshold totaling $24,533. The audit finding represents a systemic problem. The sampling was a statistically valid sample. Questioned Costs: None. Recommendation: We recommend the Organization update the procurement policy to be in compliance with the procurement Uniform Guidance guidelines. Management?s Response: Management is in agreement that the Organization?s policy does not properly reflect the Uniform Guidelines standards for procurement. Management will review the Organization?s policies and revise them as soon as possible to be in accordance with federal regulations.