Finding 596856 (2022-002)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-02-13

AI Summary

  • Core Issue: Vendor files lacked necessary documentation for procurement processes, violating Uniform Guidance section 200.318.
  • Impacted Requirements: Missing records include vendor selection rationale and verification of suspension or debarment status.
  • Recommended Follow-Up: Implement an internal policy to document procurement processes and update procurement policies to align with revised Uniform Guidance.

Finding Text

Criteria and Condition: Uniform Guidance section 200.318 states non-Federal entities must maintain records sufficient to detail the history of procurements. 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. Cause: We selected one vendor, out of the four which were paid an amount over CEF?s micro-purchase threshold for testing. We noted that the vendor file did not contain documentation that the vendor was not suspended or debarred, nor did it contain documentation regarding the selection process. Effect: Procuring vendors without full and open competition. Context: Vendor file selected for testing of procurement and suspension and debarment did not have proper documentation as required by the Uniform Guidance. Questioned costs: This finding did not result in any questioned costs. Recommendation: We recommend that CEF institute an internal policy that the selection process for all procurements over the organization?s micro-purchase threshold be documented and retained in a vendor file. This should also include documentation to support that a search that was performed on the SAM.gov website to verify that the vendor is not suspended or debarred. CEF should also update its procurement policies to be in compliance with the revised Uniform Guidance, which may allow for CEF to increase its micro-purchase threshold from $10,000 to $50,000 if certain criteria is met.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 20414 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
59.046 Microloan Program $8.64M
21.024 Community Development Financial Institutions Rapid Response Program (cdfi Rrp) $1.83M
21.020 Community Development Financial Institutions Program $1.71M
11.307 Economic Adjustment Assistance $1.02M
21.027 Coronavirus State and Local Fiscal Recovery Funds $434,000
14.218 Community Development Block Grants/entitlement Grants $60,210
21.019 Coronavirus Relief Fund $54,408