Finding Text
Finding 2023-001: Procurement – significant deficiency in internal controls over compliance and compliance finding. Criteria: The 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 formal request for proposal or obtain sealed bids for a contract in excess of the $250,000 formal procurement requirement threshold. Cause: The proposals and bids obtained did not follow the formal procurement process. 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