Finding Text
2024-002: Procurement over Small Purchase Transactions (Research and Development Grants)
Material Weakness / Material Noncompliance
Federal Program(s): Research and Development Cluster
Assistance Listing Number(s):
• 11.417
• 12.420
• 12.905
• 84.116Z
• 84.019A
• 47.076
• 47.050
Criteria: Procurement methods established under 2 CFR 200.320, requires price or rate quotations to be obtained from an adequate number of qualified sources when the aggregate dollar amount of the procurement transaction is higher than the micro-purchase threshold of $10,000, but less than the simplified acquisition threshold of $250,000.
Condition: The College did not obtain price or rate quotations obtained from different qualified transactions for all small purchase transactions sampled under the Research and Development Cluster Grants.
Cause: The College did not have a procurement policy in place during the year ended June 30, 2024 that required price or rate quotations for small purchases.
Effect or Potential Effect: Noncompliance with procurement requirements could result in unethical purchasing practices or overspending.
Questioned Costs: Undeterminable
Context: We tested 3 small purchase vendor transactions from the Research and Development Cluster totaling approximately $152,000 where no price or rate quotations were obtained prior to payment. The total population of small vendor purchases within this federal program was $422,246.
Repeat Finding: No
Recommendation: We recommend the College review its procurement policy to ensure it is in compliance with 2 CFR 200 Uniform Guidance and implement controls to ensure an audit trail is maintained surrounding the procurement of vendors using federal funds.
Views of Responsible Officials: Management agrees with the finding. See corrective action plan.