KENTUCKY STATE UNIVERSITY SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) YEAR ENDED JUNE 30, 2023

Section III – Findings and Questioned Costs – Major Federal Programs (Continued)

2023 – 025 – Procurement Policy

Federal Agency: Various

Federal Program Name: Research and Development Cluster

Assistance Listing Number: Various

Federal Award Identification Number and Year: Various

Award Period: July 1, 2022 – June 30, 2023

Type of Finding:

• Significant Deficiency in Internal Control over Compliance
• Other Matters

Criteria or specific requirement: Uniform guidance requires auditees to follow procurement standards set forth. sections of the Uniform Guidance set forth five permissible procurement methods for non-Federal entities expending Federal financial assistance: (1) micro-purchases (S 200.320(a)(1)); (2) small purchases (S 200.320(a)(2)); (3) sealed bids (S 200.320(b)(1)); (4) proposals (S 200.320(b)(2)); and (5) noncompetitive procurement (S 200.320(c)(1)-(5)).

Condition: The University's procurement policy does not currently match requirements of the Uniform Guidance.

Questioned costs: None.

Context: The University's procurement policy does not currently match requirements of the Uniform Guidance related to defining the required levels of procurement and when competitive bids are required.

Cause: The University did not have a process in place to ensure the procurement policy met Uniform Guidance.

Effect: The University is not in compliance with Uniform Guidance for procurement.

Repeat Finding: No.

Recommendation: We recommend the University review its procurement policy to ensure it meets federal regulations.

Views of responsible officials: There is no disagreement with the audit finding.

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