Finding Text
Criteria or Specific Requirement – Under 2 CFR §200.320(a), micro-purchase
procedures may be used for procurements up to the micro-purchase threshold
(currently $10,000). Purchases must be distributed equitably among qualified
suppliers when practical, and the price must be reasonable. Entities must follow
their internal controls and maintain documentation supporting the rationale for the
purchase and vendor selection.
Conditions – Bids for some vendors was not performed.
Context – During our testing of procurement, we sampled nine expenditures. Of the
nine selections three selections did not have required bids.
Cause – The Association lacks formal procedures to ensure micro-purchase
requirements are met, and staff were not aware of the requirement to document
price reasonableness or distribute purchases equitably among vendors.
Effect – Higher than necessary costs may be have expensed.Recommendation – We recommend that management revise policies to ensure
proper vendor compliance in the future.
Views of Responsible Officials and Planned Corrective Actions – Procurement Policy
was updated and documentation will be maintained to support vendor verification
in the future.