Finding Text
Criteria:
Procurement - Non-profit entities must follow the procurement standards set out at 2 CFR part 200.
Condition:
There was no documentation of the history of procurement including the rationale for the method of procurement and the Organization's procedures for verifying that an entity with which it plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded.
Cause:
Due to employee turnover, the policies established by the Organization were not followed.
Effect:
The Organization does not have adequate documentation to support rational for procurement method.
Context:
A sample of one disbursement totaling $32,868 was selected from a population of two transactions over the micro purchase threshold totaling $94,052 for the period July 1, 2023 - June 30, 2024. The disbursement selected for testing did not have documentation of the rationale for the method of procurement.
Questioned costs:
No known or likely questioned cost in excess of $25,000.
Repeat Finding:
No
Recommendation:
We recommend the Organization adhere to its policies and procedures for documenting procurement.
Views of responsible officials of the auditee:
The Organization concurs with the finding and will implement the following:
Develop additional policies and procedures that require documentation for the method of procurement and the Organization's procedures for verifying its chosen vendor
Distribute policies and procedures to all applicable finance and programmatic staff
Train staff on the new policies and procedures