Audit 290658

Procurement and Suspension and Debarment Award Information: Grantor: U.S. Department of Transportation Assistance Listing Number: 20.509, Formula Grants for Rural Areas and Tribal Transit Program. Criteria Non-federal entities other than states, including those operating federal programs as sub-recipients of states, must follow procurement standards set out at 2 CFR sections 200.318 through 200.326. They must use their own documented procedures which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. This includes meeting the general procurement standards in 2 CFR section 200.318, which include oversight of contractors’ performance, maintaining written standards of conduct for employees involved in contracting, awarding contracts only to responsible contractors and maintaining records to document history of procurements. This also includes conducting procurement transactions in a manner providing full and open competition in accordance with 2 CFR section 200.319 including the use of micro-purchases and small purchase methods for procurements that meet the applicable criteria under 2 CFR section 200.320. Condition The District does not have documented procurement procedures in accordance with the procurement standards set out at 2 CFR sections 200.318 through 200.326. Cause Previous management did not implement and previous District policies did not include documentation of procurement procedures in accordance with federal standards. New management is in place and have commenced an ongoing project to summarize accounting related activities into an accounting procedures manual, this includes the required procurement procedures. Effect The District does not have documented procurement procedures as required by federal standards. Not having the required procurement procedures in place could lead to awarding contracts and making purchases without adequate competition. Questioned Costs No questioned costs. Recommendation We recommend that the District formally document a procurement policy in accordance with federal standards to include all general requirements such as oversight of contractors’ performance, maintaining written standards of conduct for employees involved in contracting, awarding contracts only to responsible contractors, maintaining records to document history of procurements and conducting procurement transactions in a manner providing full and open competition. Management Response and Planned Corrective Action Following these findings are management’s view and corrective action plan.

Procurement and Suspension and Debarment Award Information: Grantor: U.S. Department of Transportation Assistance Listing Number: 20.509, Formula Grants for Rural Areas and Tribal Transit Program. Criteria Non-federal entities other than states, including those operating federal programs as sub-recipients of states, must follow procurement standards set out at 2 CFR sections 200.318 through 200.326. They must use their own documented procedures which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. This includes meeting the general procurement standards in 2 CFR section 200.318, which include oversight of contractors’ performance, maintaining written standards of conduct for employees involved in contracting, awarding contracts only to responsible contractors and maintaining records to document history of procurements. This also includes conducting procurement transactions in a manner providing full and open competition in accordance with 2 CFR section 200.319 including the use of micro-purchases and small purchase methods for procurements that meet the applicable criteria under 2 CFR section 200.320. Condition The District does not have documented procurement procedures in accordance with the procurement standards set out at 2 CFR sections 200.318 through 200.326. Cause Previous management did not implement and previous District policies did not include documentation of procurement procedures in accordance with federal standards. New management is in place and have commenced an ongoing project to summarize accounting related activities into an accounting procedures manual, this includes the required procurement procedures. Effect The District does not have documented procurement procedures as required by federal standards. Not having the required procurement procedures in place could lead to awarding contracts and making purchases without adequate competition. Questioned Costs No questioned costs. Recommendation We recommend that the District formally document a procurement policy in accordance with federal standards to include all general requirements such as oversight of contractors’ performance, maintaining written standards of conduct for employees involved in contracting, awarding contracts only to responsible contractors, maintaining records to document history of procurements and conducting procurement transactions in a manner providing full and open competition. Management Response and Planned Corrective Action Following these findings are management’s view and corrective action plan.

Procurement and Suspension and Debarment Award Information: Grantor: U.S. Department of Transportation Assistance Listing Number: 20.509, Formula Grants for Rural Areas and Tribal Transit Program. Criteria Non-federal entities other than states, including those operating federal programs as sub-recipients of states, must follow procurement standards set out at 2 CFR sections 200.318 through 200.326. They must use their own documented procedures which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. This includes meeting the general procurement standards in 2 CFR section 200.318, which include oversight of contractors’ performance, maintaining written standards of conduct for employees involved in contracting, awarding contracts only to responsible contractors and maintaining records to document history of procurements. This also includes conducting procurement transactions in a manner providing full and open competition in accordance with 2 CFR section 200.319 including the use of micro-purchases and small purchase methods for procurements that meet the applicable criteria under 2 CFR section 200.320. Condition The District does not have documented procurement procedures in accordance with the procurement standards set out at 2 CFR sections 200.318 through 200.326. Cause Previous management did not implement and previous District policies did not include documentation of procurement procedures in accordance with federal standards. New management is in place and have commenced an ongoing project to summarize accounting related activities into an accounting procedures manual, this includes the required procurement procedures. Effect The District does not have documented procurement procedures as required by federal standards. Not having the required procurement procedures in place could lead to awarding contracts and making purchases without adequate competition. Questioned Costs No questioned costs. Recommendation We recommend that the District formally document a procurement policy in accordance with federal standards to include all general requirements such as oversight of contractors’ performance, maintaining written standards of conduct for employees involved in contracting, awarding contracts only to responsible contractors, maintaining records to document history of procurements and conducting procurement transactions in a manner providing full and open competition. Management Response and Planned Corrective Action Following these findings are management’s view and corrective action plan.

Procurement and Suspension and Debarment Award Information: Grantor: U.S. Department of Transportation Assistance Listing Number: 20.509, Formula Grants for Rural Areas and Tribal Transit Program. Criteria Non-federal entities other than states, including those operating federal programs as sub-recipients of states, must follow procurement standards set out at 2 CFR sections 200.318 through 200.326. They must use their own documented procedures which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. This includes meeting the general procurement standards in 2 CFR section 200.318, which include oversight of contractors’ performance, maintaining written standards of conduct for employees involved in contracting, awarding contracts only to responsible contractors and maintaining records to document history of procurements. This also includes conducting procurement transactions in a manner providing full and open competition in accordance with 2 CFR section 200.319 including the use of micro-purchases and small purchase methods for procurements that meet the applicable criteria under 2 CFR section 200.320. Condition The District does not have documented procurement procedures in accordance with the procurement standards set out at 2 CFR sections 200.318 through 200.326. Cause Previous management did not implement and previous District policies did not include documentation of procurement procedures in accordance with federal standards. New management is in place and have commenced an ongoing project to summarize accounting related activities into an accounting procedures manual, this includes the required procurement procedures. Effect The District does not have documented procurement procedures as required by federal standards. Not having the required procurement procedures in place could lead to awarding contracts and making purchases without adequate competition. Questioned Costs No questioned costs. Recommendation We recommend that the District formally document a procurement policy in accordance with federal standards to include all general requirements such as oversight of contractors’ performance, maintaining written standards of conduct for employees involved in contracting, awarding contracts only to responsible contractors, maintaining records to document history of procurements and conducting procurement transactions in a manner providing full and open competition. Management Response and Planned Corrective Action Following these findings are management’s view and corrective action plan.