Finding Text
2022-003 Condition: The Organization?s procurement policy does not clearly describe and document the details required for adequate financial management of the Organization. For example, the policy does not explicitly state who has authority to execute and approve financial transactions such as payroll and check signing. Inclusion of these elements are essential to an effective procurement policy. Criteria: ? 200.318 requires non-federal entities to have and use documented procurement procedures. ? 200.320 outlines procurement methods required to make purchases in compliance within the federal guidelines. At a minimum, an effective procurement policy should clearly outline who has the authority to execute and approve financial transactions such as payroll and check signing. Further, it should outline the threshold levels for execution and approval of financial transactions. Effect: Failure to implement an adequate procurement policy exposes the assets of the Organization to greater risk of misappropriation and noncompliance with federal, state, and grant contract guidelines. Cause: The Organization?s procurement policy does not clearly outline who has the authority to execute and approve (including threshold levels) financial transactions. Recommendation: We recommend the Organization immediately update its procurement policy to explicitly state who has the authority to execute and approve financial transactions. The policy should include guidance on threshold levels for purchase amounts. Management Response: Management concurs with this finding. Management will implement a more robust procurement policy immediately.