Finding 8214 (2022-002)

Federal agency: U.S Department of Defense Federal program title: Conservation and Rehabilitation of Natural Resources on Military Installations ALN Number: 12.005 Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters Criteria or specific requirement: 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. Condition: For the one purchase selected for testing, we noted written documentation on the selection method was not retained in the procurement file. We also noted that one item selected for suspension and debarment did not have proper documentation. Context: One out of two items selected for testing of procurement and one out of one item selected for testing of suspension and debarment did not have proper documentation. Cause: Written support was not retained in the procurement file at the time of the procurement. Effect: Procuring vendors without full and open competition. Repeat Finding: See prior year finding 2021-002 Recommendation: Auditor recommends the Institute review the various procurement requirements with the individuals involved in this process to ensure they understand the requirements. It is also recommended to review the policies and procedures around procurement to ensure key individuals are following them. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding. The Institute has recently updated the purchasing policies and is reviewing process changes in order to ensure appropriate documentation is maintained for purchasing related to Federal programs.