Finding Text
Criteria or Specific Requirement – Management is required to ensure that there are sufficient internal controls in place over SLFRF program purchasing. This includes internal controls that ensure that approved vendors are used for purchases in excess of $25,000.
Conditions – Verification of SAMS.gov vendors was not performed.
Context – During our testing of procurement, we sampled three expenditures totaling $595,584. The total population of procurement expenditures charged to the program was $725,854. We noted that all three selections of expenditures did not have SAMS.gov verification documentation.
Cause – Procurement policy was not sufficient to ensure full compliance.
Effect – Use of non-approved vendors could have occurred. However, as part our audit procedures, we determined that the expenditures were made with contractors which were not suspended or disbarred and were approved on the SAMS.gov website.