Victoria Theatre Association

Condition: During our audit it was noted that the Association does not have a formal procurement policy. Criteria: Uniform Guidance imposes strict purchasing requirements on nonprofits receiving federal funding. Cause: The Association has not previously received federal funding and therefore did not need a formal procurement policy. Effect: Purchases made by the Association in excess of $10,000 are not meeting the Uniform Guidance requirements. Recommendation: We recommend that if the Association believes they will be receiving federal funding in the future, they implement a formal procurement policy that follows Uniform Guidance requirements. Views of Responsible Officials and Corrective Action: See Corrective Action Plan.

The Association does not have a formal procurement policy as defined under non-profit federal funding guideline. As such, Management will writing and implementing a procedure requiring research, review and approval of all federal-funded project purchases over $10,000 and internally-funded projects aggregating to $50,000 or more. This procedure will be incorporated in our written company policy handbook. Processes will be documented under these procurement procedures to reflect any applicable local, state and federal requirements, and to meet uniform federal guidance. This policy will be fully implemented and effective as of January 1, 2023 to meet future federal funding qualifications for non-profit entities.