Finding Text
Finding 2023-102 — Procurement – Significant Deficiency in Internal Controls over
Compliance (Procurement)
Federal program information:
Funding agencies: U.S. Department of Treasury
Titles: Coronavirus State and Local Fiscal Recovery
Funds
Assistance Listing Number: 21.027
Award numbers: GR-ARPA-CASS-010123-01
Pass-Through grantors: Arizona Governor’s Office
Compliance Requirements: Procurement
Questioned Costs: N/A
Criteria: The Coronavirus State and Local Fiscal Recovery grant requires that
the organization obtain and maintain procurement documentation to
ensure price quotes are obtained or document the need for a sole
source vendor.
Condition: For 1 of 3 vendors selected for testwork documentation could not be
provided to support the methods and evaluation of the vendor selection
process. The purchase was a large purchase requiring bids to be
obtained.
Cause and Effect: Due to the turnover in the department the documentation could not be
located. The lack of a strong centralized procurement process, and the
failure to adhere to established controls, subjects the Organization to the
risk that inappropriate vendor contracts will be approved.
Auditors’
Recommendations: The organization should establish policies and procedures to ensure
that documentation is obtained and maintained regarding the
procurement process and vendor selection.