Finding 621556 (2022-005)

Significant Deficiency
Requirement
I
Questioned Costs
$1
Year
2022
Accepted
2023-02-10

AI Summary

  • Core Issue: The University did not follow the correct small purchase threshold, missing quotes for purchases between $10,000 and $20,000.
  • Impacted Requirements: Non-compliance with 2 CFR 200.303(a) and 2 CFR 200.320(a) regarding internal controls and procurement procedures.
  • Recommended Follow-up: Update the procurement policy to align with current thresholds and ensure regular reviews for compliance.

Finding Text

Funding Agency: United States Department of Agriculture Federal Award Agreement Number: 20-DG-11030000-004 & 21-DG-11030000-020 Award Year: All Title: Southwest Forest Health and Wildfire Prevention Assistance Listing Number: 10.694 Pass-through Agency: Not Applicable Pass-through Identification Number: Not Applicable Questioned Costs: $43,747 Condition - The University did not apply the correct small purchase threshold for identifying purchases that need to obtain quotes in their policy. The population between $10,000 and $20,000 not included in policy included 3 transactions totaling $43,747. 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. Cause ? The University was unaware that the policy amount had changed to a threshold of $10,000. Effect ? The University may unintentionally use a higher-cost vendor when failing to obtain price or rate quotations for items over the micro-purchase threshold. Auditors? Recommendation ? The procurement policy should be updated to comply with all relevant state and local procurement requirements and reviewed for necessary revisions regularly.

Categories

Questioned Costs Procurement, Suspension & Debarment

Other Findings in this Audit

  • 45113 2022-005
    Significant Deficiency
  • 45114 2022-005
    Significant Deficiency
  • 621555 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $8.17M
84.063 Federal Pell Grant Program $3.78M
84.425 Covid-19: Education Stabilization Fund - Heerf: Student Aid Portion $3.03M
93.658 Foster Care_title IV-E $1.44M
10.694 Southwest Forest Health and Wildfire Prevention $728,023
47.049 Mathematical and Physical Sciences $334,750
84.031 Higher Education_institutional Aid $327,605
84.033 Federal Work-Study Program $276,049
84.425 Covid-19: Education Stabilization Fund - Heerf: Institutional Aid Portion $269,264
47.076 Education and Human Resources $237,537
84.365 English Language Acquisition State Grants $228,309
84.007 Federal Supplemental Educational Opportunity Grants $129,863
93.959 Block Grants for Prevention and Treatment of Substance Abuse $114,055
10.223 Hispanic Serving Institutions Education Grants $54,710
47.083 Integrative Activities $49,670
84.425 Covid-19: Education Stabilization Fund - Geer $45,623
47.079 Office of International Science and Engineering $40,003
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $36,809
47.074 Biological Sciences $36,554
10.202 Cooperative Forestry Research $34,777
47.076 Trans-Nsf Recovery Act Research Support $24,899
93.859 Biomedical Research and Research Training $16,582
10.751 Rural Energy Savings Program (resp) $14,231
45.129 Promotion of the Humanities_federal/state Partnership $8,280
10.326 Capacity Building for Non-Land Grant Colleges of Agriculture (nlgca) $6,905
12.598 Centers for Academic Excellence $6,255
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $5,659
15.945 Cooperative Research and Training Programs ? Resources of the National Park System $3,550
10.699 Partnership Agreements $2,545
10.707 Research Joint Venture and Cost Reimbursable Agreements $124