Finding Text
Criteria or specific requirement: Per Uniform Guidance 2 CFR sections 200.320 and 200.318(i); a non-federal entity must have procedures that document the rationale for the method of procurement, selection of the contract type, basis for contractor selection, and the basis for the contract price. In addition, Uniform Grant Guidance (2 CFR 20.303) requires nonfederal entities receiving Federal awards establish and maintain controls designed to reasonable ensure compliance with Federal laws, regulations, and program compliance requirements.
Condition: During our testing of the procurement process, we noted that college was not in compliance with the federal procurement regulations.
Questioned costs: None
Context: In our sample of three procurement transactions, one transaction did not have the required procurement documentation.
Cause: The College had an existing contract with a vendor and thought the transaction was covered under the original procurement.
Effect: The College is not in compliance with procurement requirements to properly document the procurement rationale for the method of procurement.
Repeat Finding: No
Recommendation: We recommend the College revise their processes to establish procedures that will ensure procurement policies are properly followed and documented for all general disbursements paid for by federal funds.
Views of responsible officials: There is no disagreement with the audit finding.