Finding 499737 (2023-002)

Criteria: According to 2 CFR 200.320(a)(2) price quotations must be obtained from an adequate number of qualified sources for the acquisition of property or services for which the aggregate dollar amount is higher than the micro-purchase threshold but does not exceed the simplified acquisition threshold. Condition: During our testing of vendor procurement compliance, we noted price quotations were not obtained for one of the three selected vendors with aggregate purchases exceeding the micro-purchase threshold. Cause: Per discussion with Management, they have been working with this vendor for years and when originally contracted, the amount was below the micropurchase threshold. Staff were not aware that they needed to monitor expenditures after the initial contract to ensure that once expenditures exceed this threshold, proper procurement policies are then followed. Effect: The auditee did not obtain price quotations for purchases from one vendor exceeding the micro-purchase threshold as required by 2 CFR 200.320(a)(2). Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the Organization revisit its procurement policy and ensure all staff involved in the acquisition of property or services charged to federal grants are aware of relevant procurement requirements. Staff should monitor vendors that start off as small purchases to ensure proper policies are followed once procurement thresholds are met.