Department of the Treasury, Passed through Utah Department of Workforce Services
Federal Assistance Listing 21.027
Coronavirus State and Local Fiscal Recovery Funds
Procurement, Suspension, and Debarment
Material Weakness in Internal Control over Compliance
Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award, including procurement, suspension, and debarment requirements.
Condition: The Organization’s written procurement policies did not include all of the elements required by the Code of Federal Regulations 2 CFR 200.318-200.
Cause: The Organization did not have internal controls in place to review the procurement policy and ensure it complies with federal requirements.
Effect: The risk is increased that a procurement noncompliance could occur.
Questioned Costs: None reported. Context/Sampling: Nonstatistical sampling was used. Sample size was three of seven procurement transactions above the micro-purchase threshold and included contracts totaling $5,707,820 of federal awards.
Repeat Finding from Prior Year(s): Yes, Finding 2022-002
Recommendation: We recommend the Organization implement internal controls to review the procurement policy periodically to ensure it is consistent with federal requirements.
Views of Responsible Officials: Management agrees with this finding.
Department of the Treasury, Passed through Utah Department of Workforce Services
Federal Assistance Listing 21.027
Coronavirus State and Local Fiscal Recovery Funds
Procurement, Suspension, and Debarment
Material Weakness in Internal Control over Compliance
Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award, including procurement, suspension, and debarment requirements.
Condition: The Organization’s written procurement policies did not include all of the elements required by the Code of Federal Regulations 2 CFR 200.318-200.
Cause: The Organization did not have internal controls in place to review the procurement policy and ensure it complies with federal requirements.
Effect: The risk is increased that a procurement noncompliance could occur.
Questioned Costs: None reported Context/Sampling: Nonstatistical sampling was used. Sample size was three of seven procurement transactions above the micro-purchase threshold and included contracts totaling $5,707,820 of federal awards.
Repeat Finding from Prior Year(s): Yes, Finding 2022-002
Recommendation: We recommend the Organization implement internal controls to review the procurement policy periodically to ensure it is consistent with federal requirements.
Views of Responsible Officials: Management agrees with this finding.
Department of the Treasury, Passed through Utah Department of Workforce Services
Federal Assistance Listing 21.027
Coronavirus State and Local Fiscal Recovery Funds
Procurement, Suspension, and Debarment
Significant Deficiency in Internal Control over Compliance
Criteria: Nonfederal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred.
Condition: The Organization’s controls do not include documenting the procedure used to determine that contractors are not suspended, debarred, or otherwise excluded pursuant to 31 CFR 19.300 and retaining documentation thereof.
Cause: The Organization searched SAM.gov to determine whether potential contractors or vendors were excluded; however, the Organization did not have internal controls in place to document the procedure performed to determined contractors or vendors are not suspended or debarred.
Effect: The Organization is not able to demonstrate its compliance to auditors.
Questioned Costs: None reported.
Context/Sampling: Nonstatistical sampling was used. Sample size was three of seven procurement transactions above the micro-purchase threshold and included contract totaling $5,707,820 of federal awards. Repeat Finding from Prior Year(s): Yes, Finding 2022-002
Recommendation: We recommend the Organization implement internal controls to document review of potential contractors and vendors for suspension and debarment
Views of Responsible Officials: Management agrees with this finding.
Department of the Treasury, Passed through Utah Department of Workforce Services
Federal Assistance Listing 21.027
Coronavirus State and Local Fiscal Recovery Funds
Procurement, Suspension, and Debarment
Significant Deficiency in Internal Control over Noncompliance
Criteria: Appendix II of 2 CFR Part 200 defines required contract terms that must be included in contracts with contractors and vendors funded by federal awards.
Condition: The Organization did not include all the required terms in its contracts
Cause: Internal controls and the Organization’s procurement policy did not require the terms to be included in the contracts.
Effect: The contracts funded with federal awards and executed by the Organization did not comply with Appendix II of CFR Part 200 by including all the require terms.
Questioned Costs: None reported.
Context/Sampling: Nonstatistical sampling was used. Sample size was three of seven procurement transactions above the micro-purchase threshold and included contracts totaling $5,707,820 of federal awards.
Repeat Finding: Yes, Finding 2022-002
Views of Responsible Officials: Management agrees with this finding.
Department of the Treasury, Passed through Utah Department of Workforce Services
Federal Assistance Listing 21.027
Coronavirus State and Local Fiscal Recovery Funds
Procurement, Suspension, and Debarment
Material Weakness in Internal Control over Compliance
Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award, including procurement, suspension, and debarment requirements.
Condition: The Organization’s written procurement policies did not include all of the elements required by the Code of Federal Regulations 2 CFR 200.318-200.
Cause: The Organization did not have internal controls in place to review the procurement policy and ensure it complies with federal requirements.
Effect: The risk is increased that a procurement noncompliance could occur.
Questioned Costs: None reported. Context/Sampling: Nonstatistical sampling was used. Sample size was three of seven procurement transactions above the micro-purchase threshold and included contracts totaling $5,707,820 of federal awards.
Repeat Finding from Prior Year(s): Yes, Finding 2022-002
Recommendation: We recommend the Organization implement internal controls to review the procurement policy periodically to ensure it is consistent with federal requirements.
Views of Responsible Officials: Management agrees with this finding.
Department of the Treasury, Passed through Utah Department of Workforce Services
Federal Assistance Listing 21.027
Coronavirus State and Local Fiscal Recovery Funds
Procurement, Suspension, and Debarment
Material Weakness in Internal Control over Compliance
Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award, including procurement, suspension, and debarment requirements.
Condition: The Organization’s written procurement policies did not include all of the elements required by the Code of Federal Regulations 2 CFR 200.318-200.
Cause: The Organization did not have internal controls in place to review the procurement policy and ensure it complies with federal requirements.
Effect: The risk is increased that a procurement noncompliance could occur.
Questioned Costs: None reported Context/Sampling: Nonstatistical sampling was used. Sample size was three of seven procurement transactions above the micro-purchase threshold and included contracts totaling $5,707,820 of federal awards.
Repeat Finding from Prior Year(s): Yes, Finding 2022-002
Recommendation: We recommend the Organization implement internal controls to review the procurement policy periodically to ensure it is consistent with federal requirements.
Views of Responsible Officials: Management agrees with this finding.
Department of the Treasury, Passed through Utah Department of Workforce Services
Federal Assistance Listing 21.027
Coronavirus State and Local Fiscal Recovery Funds
Procurement, Suspension, and Debarment
Significant Deficiency in Internal Control over Compliance
Criteria: Nonfederal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred.
Condition: The Organization’s controls do not include documenting the procedure used to determine that contractors are not suspended, debarred, or otherwise excluded pursuant to 31 CFR 19.300 and retaining documentation thereof.
Cause: The Organization searched SAM.gov to determine whether potential contractors or vendors were excluded; however, the Organization did not have internal controls in place to document the procedure performed to determined contractors or vendors are not suspended or debarred.
Effect: The Organization is not able to demonstrate its compliance to auditors.
Questioned Costs: None reported.
Context/Sampling: Nonstatistical sampling was used. Sample size was three of seven procurement transactions above the micro-purchase threshold and included contract totaling $5,707,820 of federal awards. Repeat Finding from Prior Year(s): Yes, Finding 2022-002
Recommendation: We recommend the Organization implement internal controls to document review of potential contractors and vendors for suspension and debarment
Views of Responsible Officials: Management agrees with this finding.
Department of the Treasury, Passed through Utah Department of Workforce Services
Federal Assistance Listing 21.027
Coronavirus State and Local Fiscal Recovery Funds
Procurement, Suspension, and Debarment
Significant Deficiency in Internal Control over Noncompliance
Criteria: Appendix II of 2 CFR Part 200 defines required contract terms that must be included in contracts with contractors and vendors funded by federal awards.
Condition: The Organization did not include all the required terms in its contracts
Cause: Internal controls and the Organization’s procurement policy did not require the terms to be included in the contracts.
Effect: The contracts funded with federal awards and executed by the Organization did not comply with Appendix II of CFR Part 200 by including all the require terms.
Questioned Costs: None reported.
Context/Sampling: Nonstatistical sampling was used. Sample size was three of seven procurement transactions above the micro-purchase threshold and included contracts totaling $5,707,820 of federal awards.
Repeat Finding: Yes, Finding 2022-002
Views of Responsible Officials: Management agrees with this finding.