Audit 387959

Program Name: Federal Transit Cluster ALN No.: 20.500/20.507/20.525 Federal Grantor: U.S Department of Transportation Award No. and Year: Various Compliance Requirement: Procurement and Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control, Instance of Non-Compliance Criteria: 2 CFR section Appendix II to Part 200, Contract Provisions for Non-Federal Entity Contracts Under Federal Awards states that in addition to other provisions required by the Federal agency or non-Federal entity, all contracts made by the non-Federal entity under the Federal award must contain certain provisions, as applicable. Condition: During our testing of SCRRA’s provisions for procurement requirements, we noted the following information was not provided at the time of the contract award for one (1) of the seventeen (17) contracts selected for testing:  Legal Remedies for Breach of Contract  Termination for Cause and Convenience  Clean Air Act and Federal Water Pollution Control Act  Suspension and Debarment  Byrd Anti-Lobbying Cause: SCRRA did not consistently ensure that the applicable required provisions were communicated to contractors. Effect: SCRRA did not identify the applicable required provisions of the contract to the contractors at the time of the contract award. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: A nonstatistical sample of 17 out of 86 procurement contracts were selected for procurement and suspension and debarment testing. Repeat Finding from Prior Year(s): No. Recommendation: We recommend the Authority modify and strengthen the current policies and procedures to ensure that all applicable required provisions are communicated to contractors in accordance with 2 CFR Appendix II to Part 200. Views of Responsible Officials: Management agrees. See separate corrective action plan.