Finding Text
Federal agency: U.S. Department of Agriculture
Federal program title: Special Supplemental Nutrition Program for Women, Infants, and Children
Assistance Listing Number: 10.557
Pass-Through Agency: Iowa Department of Public Health, Division of Family and Community Health
Pass-Through Numbers: 5883AO31 and 5881AO90E
Award Period: October 1, 2017 through September 30, 2023
Type of Finding:
Significant Deficiency in Internal Control over Compliance
Other Matters
Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award contains various requirements for procurements made under federal awards. §200.318 requires a procurement policy be in place with specific requirements. §200.320 specifies the methods of procurement to be followed, including micropurchases,small purchases, sealed bids, competitive proposals, and noncompetitive proposals. Each procurement method has a threshold where quotes or bids are required to be obtained.
Condition: During our testing, we noted one purchase over the micro-purchase threshold which did not have quotes as required.
Context: During our testing, we noted one vendor tested over the micro purchase threshold did not have quotes obtained as required.
Cause: The Medical Center contracted with the vendor who has previously done projects and remodeling for the facility to ensure the project was completed consistently with the rest of the building. As a result, the Medical Center did not obtain a second quote for the project.
Effect: The Medical Center is not in compliance with the requirements of 2 CFR Part 200 §200.320.
Recommendation: We recommend the Medical Center obtain quotes or bids as necessary for purchases that exceed the micro-purchase threshold. Additionally, we recommend the Medical Center maintain documentation of all quotes and bids to support the vendor chosen. In situations where there is an alternative method utilized, we recommend clearly documenting that process to ensure compliance.