Finding Text
Finding 2022-003 ? Procurement Information on the Federal Program: Assistance Listing Number 21.027 - COVID-19: American Rescue Plan Act of 2021 - Coronavirus State and Local Fiscal Recovery Funds, Pass through Entity ? Arapahoe County. Compliance requirements: Procurement Type of Finding: Significant deficiency in Internal Control over Compliance, Non compliance Criteria: The Organization is required to have documented procurement policies and procedures which comply with the compliance requirement: UG ?200.318 general procurement standards, UG ?200.319 competition, and ?200.320 methods of procurement to be followed. Condition: The Organization does not have formal policies and procedures over procurement to ensure controls and oversight are in place to ensure procurement compliance requirements are met. Cause: Lack of a formal policy and procedure over procurement. Effect: Possible payment of federal funds to vendors that did not properly go through the required procurement steps in accordance with Uniform Guidance. Questioned Costs: $25,000 Context: The Organization had one purchase of equipment that fell under the procurement guidelines, this purchase did not comply with procurement requirements. Recommendation: The Organization should implement a procurement policy and procedure that includes the selection and documentation of procurement rationale and controls and oversight. This policy should be followed for all procurement transactions. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with this finding. The Organization agrees with the recommendations of the auditors and has already prepared a draft procurement policy.