Finding Text
Department of Homeland Security, Iowa Department of Homeland Security and Emergency Management, Federal Financial Assistance Listing 97.039, DR-4457-IA-0040
Hazard Mitigation Grant Program
Procurement, Suspension & Debarment
Significant Deficiency in Internal Control over Compliance and Noncompliance
Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective
internal control over the federal awards that provides assurance that the entity is managing the
federal award in compliance with federal statutes, regulations, and the terms and conditions of
the federal award. 2 CFR 200.318 maintains that recipients must have and use documented
procurement policies and must conform procurement standards in sections 200.317 through
200.327.
Condition: The cooperative’s procurement policy had not identified the dollar thresholds of procurement within the methods of procurement. In addition, one contract selected for testing was missing one of the required contract provisions.
Cause: The cooperative’s procurement policy is very thorough and identifies the methods of procurement, however, management had not identified the thresholds of procurement included within the policy.
Effect: The Cooperative’s policy was missing required information
Questioned Costs: None reported.
Context/Sampling: A nonstatistical sample of 7 transactions out of 29 transactions were selected for testing, which accounted for $1,134,758 of $3,548,469 federal program expenditures.
Repeat Finding form Prior Year: No
Recommendation: We recommend the Cooperative review their procurement policy to ensure it includes the dollar thresholds for each of the procurement methods. In addition, we suggest the Cooperative review their contracts to ensure it includes all the required contract provisions.
Views of Responsible Officials: Management agrees with the finding.