Finding Text
Criteria: Section D.20 of the grant contract between the State of Tennessee and Volunteer Energy Cooperative requires the grantee to comply with 2 C.F.R. Sections 200.317 - 200.236 when procuring property and services. These regulations require, in part, the methods of procurement to be followed. Cause, Condition and Effect: The Cooperative’s procurement procedures do not provide for the formal procurement methods required by the regulations. The result is that certain costs were submitted for reimbursement without following the formal procurement methods required by the regulations which generally provide for public notice of requests for proposals. Recommendation: Procurement procedures related to costs reimbursable under federal grants should be developed in accordance with the regulations and followed. Management Response – Management’s response is included in Management’s Corrective Action Plan located on page 63.