Audit 40493

Department of Energy, passed through Colorado Governor's Energy Office, Weatherization Assistance for Low-Income Persons/CFDA Number 81.042 for year ended June 30, 2022 Procurement Suspension & Debarment Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR section 200.320(c), Noncompetitive Procurement, establishes there are specific circumstances in which noncompetitive procurement can be used. Noncompetitive procurement can be awarded if the item/service is available only from a single source. Condition: The Organization has a written procurement policy for the year ended June 30, 2022 which established all the requirements of 2 CFR section 200.318 through 200.326 of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), including 2 CFR section 200.320(c), Noncompetitive Procurement; however, documentation of compliance with the policy was not retained for one instance of a single-source vendor for services provided. Cause: In discussing the condition with the Organization?s personnel, the vendor was considered a single source, but proper documentation to this consideration was not maintained. Effect: Noncompliance with the Uniform Guidance could jeopardize future federal funding. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of 40 transactions out of 684 total transactions were selected for procurement testing. Repeat Finding from Prior Years: No. Recommendation: The Organization should ensure documentation of compliance with all the requirements of Uniform Guidance, including 2 CFR section 200.320(c), Noncompetitive Procurement. We recommend that the Organization review, approve, and document process for any vendors which would qualify for noncompetitive procurement in the future. Views of Responsible Officials: Management agrees with the finding and will implement changes through a corrective action plan to ensure proper review, approval, and documentation of procurement policy.

Department of Energy, passed through Colorado Governor's Energy Office, Weatherization Assistance for Low-Income Persons/CFDA Number 81.042 for year ended June 30, 2022 Procurement Suspension & Debarment Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR section 200.320(c), Noncompetitive Procurement, establishes there are specific circumstances in which noncompetitive procurement can be used. Noncompetitive procurement can be awarded if the item/service is available only from a single source. Condition: The Organization has a written procurement policy for the year ended June 30, 2022 which established all the requirements of 2 CFR section 200.318 through 200.326 of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), including 2 CFR section 200.320(c), Noncompetitive Procurement; however, documentation of compliance with the policy was not retained for one instance of a single-source vendor for services provided. Cause: In discussing the condition with the Organization?s personnel, the vendor was considered a single source, but proper documentation to this consideration was not maintained. Effect: Noncompliance with the Uniform Guidance could jeopardize future federal funding. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of 40 transactions out of 684 total transactions were selected for procurement testing. Repeat Finding from Prior Years: No. Recommendation: The Organization should ensure documentation of compliance with all the requirements of Uniform Guidance, including 2 CFR section 200.320(c), Noncompetitive Procurement. We recommend that the Organization review, approve, and document process for any vendors which would qualify for noncompetitive procurement in the future. Views of Responsible Officials: Management agrees with the finding and will implement changes through a corrective action plan to ensure proper review, approval, and documentation of procurement policy.