Core Issue: The Organization lacks a formal procurement policy, which is a significant deficiency.
Impacted Requirements: Purchases over $10,000 do not comply with Uniform Guidance for nonprofits receiving federal funding.
Recommended Follow-Up: If federal funding is anticipated, establish a formal procurement policy aligned with Uniform Guidance.
Finding Text
Finding 2022-002 - No Formal Procurement Policy (Significant Deficiency and Compliance)
Condition: During our audit it was noted that the Organization does not have a formal
procurement policy.
Criteria: Uniform Guidance imposes strict purchasing requirements on nonprofits receiving
federal funding.
Cause: The Organization has not previously received federal funding and therefore did not need
a formal procurement policy.
Effect: Purchases made by the Organization in excess of $10,000 are not meeting the Uniform
Guidance requirements.
Recommendation: We recommend that if the Organization believes they will be receiving federal
funding in the future, they implement a formal procurement policy that follows Uniform Guidance
requirements.
Views of Responsible Officials and Corrective Action: See Corrective Action Plan.