MaineGeneral Medical CenterNon-Profit

Procurement Documentation - Criteria: Purchases above the Simplified Acquisition Threshold must follow formal procurement methods. For any of these methods, the recipient or subrecipient must maintain and use documented procurement procedures, consistent with the standards. Condition: For certain equipment purchases, the Company did not follow formal procurement methods. While various estimates were obtained for the budget process required by the grant, there were no formal quotes or bids obtained and no documentation to support the estimates were retained. Context: For one purchase in the amount of $271,597, there was no documentation to support price comparisons and estimates used in the budget process. Cause: Management transition and uncertainty regarding the application of the procurement standard for this particular grant. Effect: Documentation was not maintained to support compliance with the standards. Questioned Costs: $271,597. Recommendation: Documentation should be maintained to support all purchases in accordance with procurement policies. Views of Responsible Parties: We concur with the finding. The absence of required procurement documentation resulted primarily from turnover within key leadership positions during the period of the purchase. The leaders responsible for procurement review, approval, and record retention transitioned out of their roles, which led to gaps in procedural continuity and oversight. As a result, standard documentation that would typically accompany procurement—such as quotes, and price comparisons—was not properly retained. Corrective Actions Taken or Planned: The Supply Chain team will receive targeted training on procurement standards, including requirements for price or rate quotations for purchases over the simplified acquisition threshold and internal expectations for retention of quotes, price comparisons, and justification memos. Training will be completed by March 31, 2026, with attendance documented. Responsible Parties: Jeremy Storer, Controller. Anticipated Completion Date: March 31, 2026.