Finding Text
2022-011 ? Procurement ? Small Purchases ? Significant Deficiency Federal Program Information Funding Agency: Department of Defense, National Science Foundation, Department of Education, Department of Health and Human Services ? National Institute of Health Federal Award Agreement Number: Not Applicable Award Year: Fiscal year 2022 Title: Research and Development Cluster Assistance Listing Number: 12.598, 47.050, 47.076, 84.031, and 93.859 Pass-through Agency: Not Applicable, Direct Program Pass-through Identification Number: Not Applicable, Direct Program Condition - The College did not apply the correct micro purchase threshold and were not obtaining quotes for purchases that should have been subjected to the small purchase threshold. The population between $10k and $20k that were improperly treated as micro purchases consisted of four transactions totaling $50,373. Criteria - 2 CFR 200.303(a) requires non-Federal entities to establish and maintain effective internal controls over compliance with Federal statutes, regulations, and the terms and conditions of grant agreements. 2 CFR 200.320(a) sets the micro-purchase threshold at $10,000 and requires purchases over the micro-purchase threshold to use small purchase procedures, whereby price or rate quotations must be obtained. Questioned Costs - Not applicable. Effect - The College may unintentionally use a higher-cost vendor when failing to obtain price or rate quotations for items over the micro-purchase threshold. Cause - The College adopted to follow the NM Procurement Policy in 2018 but failed to update its policy employees still followed with incorrect threshold for micro purchases.