Finding Text
Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement and suspension and debarment. The Organization should have internal controls designed to ensure compliance with these provisions.
Condition and context: During our testing over Procurement and Suspension and Debarment noted the following findings: The Organization’s procurement policy is not in compliance with requirements defined by 2 CFR 200.
There were three instances in which the Organization was unable to locate documentation to support that bids were obtained for a procurement transaction.
There were three instances where the Organization did not perform the suspension and debarment check prior to entering into a transaction with a vendor.Effect: The auditor noted instances of noncompliance. Noncompliance results in federal funds possibly being paid to an ineligible vendor.
Questioned costs: None identified.
Cause: The Organization does not have internal controls in place to ensure compliance with Federal regulations or the terms and conditions of the Federal award.
Recommendation: We recommend the Organization review and update its procurement policy to ensure the policy meets the federal requirements and implement a process to ensure that procurement and suspension and debarment documentation is retained.
Views of responsible officials: The Organization will update its procurement policy to be in line with federal requirements. The Organization will also review its controls to make sure that procurement and suspension and debarment documentation is retained.