Finding Text
2023-005 Finding – Federal Award
Type:
Procurement – Material Non-Compliance and Material Weakness in Internal Control over Compliance.
Identification of Federal Program:
Research and Development Cluster:
AL Number: 81.086 Conservation Research and Development Program
Criteria / Requirement:
Per 2 CFR sections 200.318 through 200.326 an entity receiving federal funds must follow 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.
Condition / Context:
During the audit it was noted that Forth had established a Procurement Policy which incorporated procurement requirements identified in 2 CFF Part 200. However, of the 3 items selected for testing did not follow the Procurement Policy. Cause:
While the Procurement Policy is documented, the procedures and policies were not being followed.
Effect:
Failure to maintain sufficient internal controls and proper procedures may result in wrongful use of federal funds and non-compliance with federal awards.
Questioned Costs:
None.
Recommendation:
The Organization should follow establish written policies and procedures regarding procurement and properly document the process for each procurement made.
Management’s response:
We agree with the auditor’s comments and the following actions have been taken to improve the situation. We hired a Contracts & Compliance Manager in 2024 who is now responsible for ensuring the procurement process is properly documented for each procurement made.