Finding 577950 (2022-003)

Criteria or specific requirement: The Council should have a formal procurement policy to guide the Council when entering into covered transactions, including all components identified in 2 CFR 200.318. Condition: The Council had five expenses applied to the grant in excess of the micro-purchase threshold but did not have a procurement policy that identified what the micro-purchase threshold was, as well as other acceptable procurement methods and thresholds. Questioned costs: None Context: Policies were not in place for procurement a, and the Organization entered into five transactions in excess of the micro purchase threshold for which price or rate quotations were not obtained from multiple vendors. Management indicated that multiple bids were not received because the desired services were only available from a single source, but this was not documented. Cause: Management Oversight Effect: The effect of not having a formal procurement policy would be noncompliance with 2 CFR 200.318. Repeat finding: Yes Recommendation: It is recommended that the Council supplement its procurement policy to address requirements specific to federal awards. Views of responsible officials: There is no disagreement with the audit finding.