Core Issue: The Organization failed to follow federal procurement rules by not issuing a request for proposal for a contract over $250,000.
Impacted Requirements: This non-compliance violates Section 200.320 of the Code of Federal Regulations regarding procurement principles.
Recommended Follow-Up: Implement a checklist for large purchases to ensure adherence to federal procurement policies.
Finding Text
Procurement – Material weakness in internal control over compliance and compliance finding.
Criteria: Organization is required to comply with procurement principles as detailed in Section 200.320 of the Code of Federal Regulations.
Condition: During procurement testing it was noted that the Organization did not issue a request for proposal or obtain multiple proposals for a contract in excess of the $250,000 formal procurement requirement threshold.
Effect: The Organization was not in compliance with federal procurement principles.
Recommendation: The Organization should implement controls to ensure compliance with federal procurement policies including a checklist for large purchases that mirrors federal procurement requirements.
Management’s Response: See corrective action plan.