Finding 8739 (2023-002)

Federal agency: U.S. Department of Education Federal program title: Parent Training and Information Technical Assistance Centers Assistance Listing Number: 84.328M and 84.328R Award Period: various Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria or specific requirement: FACETS should have a formal procurement policy to guide it when entering into covered transactions, including all components identified in 2 CFR 200.318. Condition: FACETS had three expenses applied to the grant in excess of the micro-purchase threshold but did not have a procurement policy that included all the components identified in 2 CFR 200.318. Questioned costs: None Context: FACETS entered into three transactions in excess of the micro purchase threshold for which price or rate quotations were not obtained from multiple vendors. Management indicated that multiple bids were not received because the desired services were only available from a single source, but this was not documented. Cause: Management Oversight Effect: The effect of not having a formal procurement policy would be noncompliance with 2 CFR 200.318. Repeat finding: No Recommendation: It is recommended that FACETS supplement its procurement policy to address requirements specific to federal awards. Views of responsible officials: There is no disagreement with the audit finding. Management will update its formal procurement policy to fully comply with 2 CFR 200.318 and is working with their outside accounting firm to adopt the relevant policies.