Finding Text
Criteria - The Society is responsible to have documented procurement procedures and policies that complies with federal procurement standards. Condition - We noted the Society does not have a formal documented procurement policy. Cause - Management received a large amount of federal funding during because of the COVID-19 pandemic. While Management verbally requests two or more quotes, there was no formal documented policy to ensure the procurement method used was appropriate. Effect - If the Society does not maintain documented procurement procedures as required, it may result in the Society charging unallowable expenditures to the program or having expenditures being disallowed, both of which will create a liability to the granting agencies. Questioned Costs - No costs were questioned. Context - This finding was systematic amongst the major program audited. Recommendations - We recommend that management develop and document a procurement policy that complies with federal procurement standards. Repeat Finding - This is a repeat finding from prior year’s audit. Finding No. 2022-002