Audit 46339

Finding 2022-001 Non-Compliance/Significant Deficiency in Internal Control Over Compliance ? U.S. Department of Treasury ? Coronavirus State and Local Fiscal Recovery Funds ? (Federal Assistance Listing Number 21.027) ? Procurement Criteria: Non-Federal entities must have and use documented procedures, consistent with State laws and regulations and the standards of the Uniform Guidance, for the acquisition of property or services required under a Federal award or subaward. Chapter 30B of the Massachusetts General Laws requires that for purchases of goods or services estimated to cost over $50,000, competitive sealed bids must be solicited. Condition: The Town of South Hadley used Coronavirus State and Local Fiscal Recovery Funds, as allowed under the revenue loss provision, to pay for emergency costs for remediation of mold at South Hadley High School. The majority of the costs were $747,655 for services from a vendor for cleaning. South Hadley Public Schools used a state bid contract from a list from the Commonwealth of Massachusetts Operational Services Division. However, the provisions stated that services provided were limited to $50,000 or less per engagement and that if costs will be greater than $50,000 the entity must go out to public bid. Cause: The project was a public emergency, due to the time of discovery of the mold and the time for school to reopen for the school year, potentially affecting the health of the users of the building, which would not permit a delay resulting from publicizing a competitive solicitation. The Town of South Hadley and South Hadley Public Schools did not seek an emergency waiver that could have been requested from the Commonwealth of Massachusetts Division of Capital Asset Management and Maintenance. Effect: The Town did not comply with Massachusetts municipal procurement laws under Chapter 30B. Questioned Costs: None reported. Recommendation: The Town should have followed Chapter 30B for procurement of labor services over $50,000 to solicit competitive sealed bids or requested a waiver in an emergency situation involving public health and safety. Views of Responsible Officials and Planned Corrective Action: The School Department personnel will review all state contracts used in the future to ensure that it is complying with the 30B procurement requirements of issuing an RFP for any projects that are more than the $100,000 procurement threshold.

Finding 2022-001 Non-Compliance/Significant Deficiency in Internal Control Over Compliance ? U.S. Department of Treasury ? Coronavirus State and Local Fiscal Recovery Funds ? (Federal Assistance Listing Number 21.027) ? Procurement Criteria: Non-Federal entities must have and use documented procedures, consistent with State laws and regulations and the standards of the Uniform Guidance, for the acquisition of property or services required under a Federal award or subaward. Chapter 30B of the Massachusetts General Laws requires that for purchases of goods or services estimated to cost over $50,000, competitive sealed bids must be solicited. Condition: The Town of South Hadley used Coronavirus State and Local Fiscal Recovery Funds, as allowed under the revenue loss provision, to pay for emergency costs for remediation of mold at South Hadley High School. The majority of the costs were $747,655 for services from a vendor for cleaning. South Hadley Public Schools used a state bid contract from a list from the Commonwealth of Massachusetts Operational Services Division. However, the provisions stated that services provided were limited to $50,000 or less per engagement and that if costs will be greater than $50,000 the entity must go out to public bid. Cause: The project was a public emergency, due to the time of discovery of the mold and the time for school to reopen for the school year, potentially affecting the health of the users of the building, which would not permit a delay resulting from publicizing a competitive solicitation. The Town of South Hadley and South Hadley Public Schools did not seek an emergency waiver that could have been requested from the Commonwealth of Massachusetts Division of Capital Asset Management and Maintenance. Effect: The Town did not comply with Massachusetts municipal procurement laws under Chapter 30B. Questioned Costs: None reported. Recommendation: The Town should have followed Chapter 30B for procurement of labor services over $50,000 to solicit competitive sealed bids or requested a waiver in an emergency situation involving public health and safety. Views of Responsible Officials and Planned Corrective Action: The School Department personnel will review all state contracts used in the future to ensure that it is complying with the 30B procurement requirements of issuing an RFP for any projects that are more than the $100,000 procurement threshold.