Finding Text
Identification of the federal program: 97.047 – Building Resilient Infrastructure and Communities (BRIC)
Noncompliance with procurement, suspension, debarment, and significant deficiency in internal controls.
Criteria:
2 CFR Part 200.320(a)(2)(i) indicates “If small purchase procedures are used, price or rate quotations must be
obtained from an adequate number of qualified sources as determined appropriate by the non-federal entity.”
Condition:
The Cooperative did not retain documentation for price quotes obtained for small purchases for two of the three
vendors tested.
Cause:
The Cooperative did not retain documentation of quote gathering as the conversations happened verbally.
Effect:
By not obtaining price or rate quotations, the Cooperative may pay more for goods and services than is necessary.
Questioned Costs:
$149,630
Recommendations:
The Cooperative should establish and follow procurement policies and procedures to ensure the Cooperative
adheres to requirements established by the federal government.
Views of responsible officials:
We did not obtain multiple price quotes for small purchases for two of the three vendors. We did, however, use the
vendors we use in daily operations and the amount of the questioned costs is greater than the amount paid on the
small purchases that did not follow proper procurement.