Finding Text
Criteria An entity must have and use documented procurement policies consistent with Federal, State, and local laws, regulations, and standards for the acquisition of property or services required under a Federal award or subaward. The procedures must conform to the procurement standards identified in CFR 200.317 through 200.327. Condition The Program made two large purchases using grant funds exceeding the micro-purchase threshold without obtaining price or rate quotations from an adequate number of qualified sources. Cause The Program was not fully educated on procurement policies when it came to grant funds, so they were not aware that bids or price comparisons were necessary for the purchases. Effect Failure to follow appropriate procurement procedures could result in excess procurement costs being disallowed or subject the entity to possible claims. It was determined that the items procured were reasonable in cost with other vendors. Recommendation We recommend management adhere to the Federal, State, and local regulations for all procurements using Federally sourced funds. Management's Response Management agrees with our recommendation and finding and will work to adhere to all applicable procurement policies.