Finding 528197 (2023-006)

Lack of Written Procurement Policy Federal Program Name and Year: All federal awards Project Number: All federal awards Assistance Listing No: All Passed Through: N/A Federal Agency: All federal agencies Criteria/Specific Requirements Title 2 US Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) Section 200.318 general procurement standards provide: (a) The non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in Section 200.317 through 200.327. Condition The Regional Office of Education #56 does not have documented procurement policies in accordance with Federal requirements. Questioned Costs None Context While procurement, suspension and debarment was not tested as part of the major program testing, in obtaining an understanding of internal controls, the auditors determined that the procurement policy required by all federal programs does not exist. Effect The Regional Office of Education #56’s failure to have documented procurement policies represents a lack of compliance with Federal procurement requirements and could result in loss of federal funding. Cause Regional Office of Education #56 management indicated that they never prioritized completing a procurement policy. Recommendation We recommend that the Regional Office of Education #56 establish documented procurement policies in accordance with Uniform Guidance. Management Response We agree with the finding. A documented procurement policy will be established in accordance with Uniform Guidance.