Finding 517875 (2024-001)

Finding 2024-001 Material weakness in internal control over compliance with procurement procedures meeting the requirements of 2 CFR Part 200. Federal Agency: United States Department of State Program Titles: Office of Global Women’s Issues Assistance Listing Number: 19.801 Pass-Through Entity: N/A Award Numbers: SLMAQM21CA3275 Award Periods: September 30, 2021 through September 30, 2025 Criteria Procurement standards contained in Title 2 U.S. Code of Federal Regulations Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (the Uniform Guidance) , Subpart D ‐ Post Federal Award Requirements, Section 200.320 through 200.321 require that procurements of goods and services charges to Federal awards be conducted to provide full and open competition including the meeting of criteria for the use of the noncompetitive procurement method. Condition/Context During our testing of 1 of 2 material procurement transactions, we identified the Organization lacked written justification for the use of the noncompetitive procurement method as required by 2 CFR Part 200.320(c). Section II - Federal Award Findings and Questioned Costs (Continued) Finding 2024-001 Cause The Organization's internal controls over procurement were not sufficient to ensure that appropriate justification be determined and documented when the noncompetitive procurement method is used. Effect The Organization did not comply the procurement standards set out at 2 CFR Part 200 as it related to the selected procurement transaction. Questioned Costs None Repeat Finding No. Recommendation Subsequent to June 30, 2024, we noted the Organization requested and received explicit approval from the United States Department of State to use the noncompetitive procurement method for the procurement transaction tested. We recommend the Organization implement measures to ensure that proper justification be determined and documented when utilizing the noncompetitive procurement method. Views of Responsible Individual and Corrective Action Plan Management agrees with the finding and has provided the accompanying corrective action plan.