Audit 33635

Finding ? Procurement Standards Information on the Federal Program: Federal Program: AL: 21.027 ? Coronavirus State and Local Fiscal Recovery Funds Program Pass-Through Entity: City of Virginia Beach & Virginia Department of Criminal Justice Services Award Number: N/A Compliance Requirement. Procurement, Suspension, and Debarment Type of Finding: Material Noncompliance Criteria: Program requirements state that recipients and subrecipients must perform the following: 1) Non-federal entities must maintain written standards of conduct governing actions of employee engagement in procurement activities 2) non-federal entities must maintain written procedures for procurement transactions 3) when value of procurement for property or services is over the simplified acquisitions threshold ($10,000) formal procurement methods are required under sealed bid or proposal procurement methods. Condition: For the year ended June 30, 2022, we noted that the Organization obtained services requiring the use of procurement standards related to the construction of property but did not have any standards of conduct, written procedures, or obtain multiple bids before receiving the services. Cause: Management did not follow its written policies and procedures as the construction contract price was deemed suitable to not require additional solicitations or proposals. Effect or Potential Effect: As a result, the Organization did not meet the required standards related to procurement. Recommendation: We recommend that management follow their written guidance for all expenditures that require procurement standards to be followed to ensure there are no issues in compliance with the standard. Views of Responsible Official: Management concurs with the audit finding however, management notes that the contract price was determined reasonable to not require further solicitations. Management notes that the contract price includes the price of materials only and labor hours related to construction will not be charged to the Organization. Management further notes that the contractor is also receiving donated materials from other organizations for use in construction and will not charge the Organization for all donated materials. Management will ensure that procurement procedures are followed for all future expenditures as required.

Finding ? Procurement Standards Information on the Federal Program: Federal Program: AL: 21.027 ? Coronavirus State and Local Fiscal Recovery Funds Program Pass-Through Entity: City of Virginia Beach & Virginia Department of Criminal Justice Services Award Number: N/A Compliance Requirement. Procurement, Suspension, and Debarment Type of Finding: Material Noncompliance Criteria: Program requirements state that recipients and subrecipients must perform the following: 1) Non-federal entities must maintain written standards of conduct governing actions of employee engagement in procurement activities 2) non-federal entities must maintain written procedures for procurement transactions 3) when value of procurement for property or services is over the simplified acquisitions threshold ($10,000) formal procurement methods are required under sealed bid or proposal procurement methods. Condition: For the year ended June 30, 2022, we noted that the Organization obtained services requiring the use of procurement standards related to the construction of property but did not have any standards of conduct, written procedures, or obtain multiple bids before receiving the services. Cause: Management did not follow its written policies and procedures as the construction contract price was deemed suitable to not require additional solicitations or proposals. Effect or Potential Effect: As a result, the Organization did not meet the required standards related to procurement. Recommendation: We recommend that management follow their written guidance for all expenditures that require procurement standards to be followed to ensure there are no issues in compliance with the standard. Views of Responsible Official: Management concurs with the audit finding however, management notes that the contract price was determined reasonable to not require further solicitations. Management notes that the contract price includes the price of materials only and labor hours related to construction will not be charged to the Organization. Management further notes that the contractor is also receiving donated materials from other organizations for use in construction and will not charge the Organization for all donated materials. Management will ensure that procurement procedures are followed for all future expenditures as required.

Finding ? Procurement Standards Information on the Federal Program: Federal Program: AL: 21.027 ? Coronavirus State and Local Fiscal Recovery Funds Program Pass-Through Entity: City of Virginia Beach & Virginia Department of Criminal Justice Services Award Number: N/A Compliance Requirement. Procurement, Suspension, and Debarment Type of Finding: Material Noncompliance Criteria: Program requirements state that recipients and subrecipients must perform the following: 1) Non-federal entities must maintain written standards of conduct governing actions of employee engagement in procurement activities 2) non-federal entities must maintain written procedures for procurement transactions 3) when value of procurement for property or services is over the simplified acquisitions threshold ($10,000) formal procurement methods are required under sealed bid or proposal procurement methods. Condition: For the year ended June 30, 2022, we noted that the Organization obtained services requiring the use of procurement standards related to the construction of property but did not have any standards of conduct, written procedures, or obtain multiple bids before receiving the services. Cause: Management did not follow its written policies and procedures as the construction contract price was deemed suitable to not require additional solicitations or proposals. Effect or Potential Effect: As a result, the Organization did not meet the required standards related to procurement. Recommendation: We recommend that management follow their written guidance for all expenditures that require procurement standards to be followed to ensure there are no issues in compliance with the standard. Views of Responsible Official: Management concurs with the audit finding however, management notes that the contract price was determined reasonable to not require further solicitations. Management notes that the contract price includes the price of materials only and labor hours related to construction will not be charged to the Organization. Management further notes that the contractor is also receiving donated materials from other organizations for use in construction and will not charge the Organization for all donated materials. Management will ensure that procurement procedures are followed for all future expenditures as required.

Finding ? Procurement Standards Information on the Federal Program: Federal Program: AL: 21.027 ? Coronavirus State and Local Fiscal Recovery Funds Program Pass-Through Entity: City of Virginia Beach & Virginia Department of Criminal Justice Services Award Number: N/A Compliance Requirement. Procurement, Suspension, and Debarment Type of Finding: Material Noncompliance Criteria: Program requirements state that recipients and subrecipients must perform the following: 1) Non-federal entities must maintain written standards of conduct governing actions of employee engagement in procurement activities 2) non-federal entities must maintain written procedures for procurement transactions 3) when value of procurement for property or services is over the simplified acquisitions threshold ($10,000) formal procurement methods are required under sealed bid or proposal procurement methods. Condition: For the year ended June 30, 2022, we noted that the Organization obtained services requiring the use of procurement standards related to the construction of property but did not have any standards of conduct, written procedures, or obtain multiple bids before receiving the services. Cause: Management did not follow its written policies and procedures as the construction contract price was deemed suitable to not require additional solicitations or proposals. Effect or Potential Effect: As a result, the Organization did not meet the required standards related to procurement. Recommendation: We recommend that management follow their written guidance for all expenditures that require procurement standards to be followed to ensure there are no issues in compliance with the standard. Views of Responsible Official: Management concurs with the audit finding however, management notes that the contract price was determined reasonable to not require further solicitations. Management notes that the contract price includes the price of materials only and labor hours related to construction will not be charged to the Organization. Management further notes that the contractor is also receiving donated materials from other organizations for use in construction and will not charge the Organization for all donated materials. Management will ensure that procurement procedures are followed for all future expenditures as required.