Finding Text
Criteria: The Uniform Guidance requires that District have written procurement policies in place that comply with 2 CFR Sections 200.318 – 300.327 when Procurement is applicable to a federal program. According to the compliance requirements matrix, Procurement is applicable to ALN #10.760.
Condition: While testing the Procurement compliance requirement, we found that management had not adopted the required policies contained in 2 CFR Sections 200.318 – 300.327. We did not however find any evidence of material non compliance related to this requirement.
Cause: Management has outsourced the procurement process to an engineering firm. While the firm has knowledge and experience regarding Uniform Guidance procurement, they do not develop policies for their clients.
Effect: Internal controls surrounding Uniform Guidance are incomplete.
Recommendation: Management should review 2 CFR Sections 200.138 – 300.327 and develop written policies that comply with the compliance requirements.
Questioned Costs: None
Management’s Response: Management will review their current procurement policies and make any necessary changes to update the policies to be compliant with 2 CFR Sections 200.138 – 300.327.