Finding Text
2022-002 Procurement Prior Year Finding Number: N/A Repeat Finding Since: N/A Type of Finding: Internal Control Over Compliance and Compliance Severity of Deficiency: Significant Deficiency and Other Matter Federal Agency: U.S. Department of Agriculture Program: 10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program Award Number and Year: 222MN101S2514; 2022 Pass-Through Agency: Minnesota Department of Human Services Criteria: Title 2 U.S. Code of Federal Regulations ? 200.318(i) states that the non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Condition: Of the five procurement transactions tested for compliance with federal regulations, three instances were noted where the history of the procurement was not documented. Additionally, for two procurements tested, there was no documentation of full and open competition. Questioned Costs: None. Context: Five of 30 small purchase procurements were tested for compliance with applicable federal regulations. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Effect: MNPrairie is not in compliance with federal regulations. Cause: Processes have not been implemented to ensure that required procurement documentation is prepared in accordance with federal regulations and the procurement policy. Recommendation: We recommend MNPrairie document the history of procurement transactions including full and open competition in accordance with federal regulations. View of Responsible Official: Acknowledge.