Finding Text
Information on Federal Programs
U.S. Department of Energy - Weatherization Assistance for Low-Income Persons (passed
through the North Dakota Division of Community Services, Award # 5073-DOE22-30)
AL# 81.042
Criteria – Section 2 CFR sections 200.320(a) and (b) of the Uniform Guidance requires that the
auditee following specific guidelines for selection of vendors in excess of the micro-purchase
threshold which includes maintaining documentation related to their rationale for selections and
agreement for goods and services to be provided.
Condition – For the year ended June 30, 2023, we requested the entities documentation
supporting rationale for a selection of vendors and signed contracts for expenditures in excess
of the micro-purchase threshold. In a sample of 11 vendors selected for testing, one vendor did
not have proper documentation rationale for selection and a signed contract.
Cause – Internal controls are not designed to allow for the appropriate retention of
documentation to support that appropriate procurement standards have been met.
Effect or Potential Effect – Federal expenditures may be paid to vendors that are not in
compliance with procurement standards under Uniform Guidance.
Questioned Costs – Undeterminable
Context – The vendor selected for testing was a long-standing relationship and while
appropriate documentation may have been obtained at the start of the agreement, it was not
maintained for the year under audit.
Repeat Finding – This is a new finding.
Recommendation – The entity should review their list of vendors to determine which fall under
the Procurement, Suspension and Debarment standards and obtain any additional missing
support or contracts to establish compliance.