Audit 41676

Agency: U.S. Department of the Treasury Program: Coronavirus State and Local Fiscal Recovery Funds Federal Assistance Listing Number: 21.027 SUSPENSION AND DEBARMENT Criteria - When a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR Section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. ?Covered transactions? include those procurement contracts for goods and services awarded under non-procurement transaction (e.g. grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR Section 180.220. This requirement applies to contracts entered into to procure goods and services with Coronavirus State and Local Fiscal Recovery Funds. Condition - The Town of Foster does not have a specific procedure in place for verifying that an entity with which it plans to enter into a covered transaction is not suspended, debarred or otherwise excluded. Cause - The Town has not established suspension and debarment policies and procedures for federal awards. Effect ? Contracts for goods and service that were ?covered transactions? were entered into prior to verifying that an entity was not suspended, debarred or otherwise excluded. Questioned Costs ? None Recommendation- We recommend that the Town implement verfication procedures to ensure that an entity with which it plans to enter into a covered transaction is not suspended, debarred or otherwise excluded.

Finding: 2022-002-Significant Deficiency Agency: U.S. Department of the Treasury Program: Coronavirus State and Local Fiscal Recovery Funds Federal Assistance Listing Number: 21.027 Criteria ? All non-federal entities, other than States, must have and use documented procurement procedures, consistent with State, local and tribal laws and regulations for the acquisition of property or services under a federal award or subaward and must follow the procurement standards in 2 CFR sections 200.318 through 200.327. CFR Section 200.318 (i) states that the non-federal entity must maintain records sufficient to detail the history of the procurement. These records will include, but are not necessarily limited to, the following: rationale for the method of procurement, selection of the contract type, contractor selection or rejection, and the basis for the contract price. The Town of Foster has written procurement procedures that include sole source procurement. The procedure requires a determination in writing that there is only one source of the required supply, service or construction item as permitted by the RIGL 45-55-8. Condition- During our test controls of the internal control over compliance with procurement requirements per the Uniform Guidance, we selected a purchase that was not competitively bid as it was determined to be a sole source purchase. The Town did not document in writing the rationale for the method of procurement in compliance with CFR Section 200.318 (i) and the Town?s written procurement procedures. Cause ? The Town did not follow established procurement procedures for purchases identified as sole source. Effect ? The Town did not adhere to established procurement procedures for sole sources purchases and had no documentation to support the procurement method as sole source. Questioned Costs ? None Recommendation ? We recommend that the Town adhere to its established procurement procedures for all sole source purchases to ensure the proper documentation is maintained to support the procurement method as sole source.

Agency: U.S. Department of the Treasury Program: Coronavirus State and Local Fiscal Recovery Funds Federal Assistance Listing Number: 21.027 SUSPENSION AND DEBARMENT Criteria - When a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR Section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. ?Covered transactions? include those procurement contracts for goods and services awarded under non-procurement transaction (e.g. grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR Section 180.220. This requirement applies to contracts entered into to procure goods and services with Coronavirus State and Local Fiscal Recovery Funds. Condition - The Town of Foster does not have a specific procedure in place for verifying that an entity with which it plans to enter into a covered transaction is not suspended, debarred or otherwise excluded. Cause - The Town has not established suspension and debarment policies and procedures for federal awards. Effect ? Contracts for goods and service that were ?covered transactions? were entered into prior to verifying that an entity was not suspended, debarred or otherwise excluded. Questioned Costs ? None Recommendation- We recommend that the Town implement verfication procedures to ensure that an entity with which it plans to enter into a covered transaction is not suspended, debarred or otherwise excluded.

Finding: 2022-002-Significant Deficiency Agency: U.S. Department of the Treasury Program: Coronavirus State and Local Fiscal Recovery Funds Federal Assistance Listing Number: 21.027 Criteria ? All non-federal entities, other than States, must have and use documented procurement procedures, consistent with State, local and tribal laws and regulations for the acquisition of property or services under a federal award or subaward and must follow the procurement standards in 2 CFR sections 200.318 through 200.327. CFR Section 200.318 (i) states that the non-federal entity must maintain records sufficient to detail the history of the procurement. These records will include, but are not necessarily limited to, the following: rationale for the method of procurement, selection of the contract type, contractor selection or rejection, and the basis for the contract price. The Town of Foster has written procurement procedures that include sole source procurement. The procedure requires a determination in writing that there is only one source of the required supply, service or construction item as permitted by the RIGL 45-55-8. Condition- During our test controls of the internal control over compliance with procurement requirements per the Uniform Guidance, we selected a purchase that was not competitively bid as it was determined to be a sole source purchase. The Town did not document in writing the rationale for the method of procurement in compliance with CFR Section 200.318 (i) and the Town?s written procurement procedures. Cause ? The Town did not follow established procurement procedures for purchases identified as sole source. Effect ? The Town did not adhere to established procurement procedures for sole sources purchases and had no documentation to support the procurement method as sole source. Questioned Costs ? None Recommendation ? We recommend that the Town adhere to its established procurement procedures for all sole source purchases to ensure the proper documentation is maintained to support the procurement method as sole source.