FIDING NO. 2023-003 PROCUREMENT SUSPENSION AND DEBARMENT
CONDITION
We examined one hundred percent (100%) of the disbursed made and charged to HEERF Institutional Aid for the fiscal year 2022-2023 and noted the following: 1) UPM did not have documentation related Schools are prohibited from contrac...
FIDING NO. 2023-003 PROCUREMENT SUSPENSION AND DEBARMENT
CONDITION
We examined one hundred percent (100%) of the disbursed made and charged to HEERF Institutional Aid for the fiscal year 2022-2023 and noted the following: 1) UPM did not have documentation related Schools are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. 2) UPM made five (5) payments for
$100,406.71 in advance for goods or services not received at the disbursement date.
RECOMMENDATION
The Institution should reinforce the established procedures and adhere to them before any payment is made for goods or services. The amount of $100,406.71 should be reimbursed to the
U.S. Department of Education. In addition, UPM should be included in its procedures steps to adopting regulations, to verify that the vendor entity is not suspended or debarred or otherwise excluded from participating in the transaction.
Corrective Action Plan:
The UPM requested the documents from potential vendors that authorized them to do business in Puerto Rico. The selected company, Vitaltek, provided documents showing that it was established and compliant with the law, precisely the evidence that they were not debarred or suspended.
The UPM has a procurement process titled " Reglamento para la Adquisici6n de Equipos, Materiales y Servicios No
Personales de la Universidad Pentecostal MIZPA" that states the process for verifying debarment and suspension.
Prepayments
The UPM has analyzed each prepayment, and we have evidence that the services, equipment. and materials have been received. In addition to having the purchase orders, contract, and invoices, we have the equipment in our facilities in good condition and inspected per our internal procedures, titled "Reglamento para la Administraci6n de Propiedad Mueble (Equipo) de la Universidad Pentecostal Mizpa." Vitaltek was the only company that provided a quote and was selected due to the COVID-19 emergency. Their purchase condition required a prepayment for ordering and obtaining products.
Regarding the Service Contract for the photocopiers, we recognize that it was paid in advance; however, to date, all services related to this contract that we have required have been offered in compliance with each of the clauses and agreements signed. The acquisition of this type of equipment comes with a multiyear plan and maintenance services included in the package, which is the industry standard and necessary for the institution's administrative and academic operations. Understanding the seriousness of the correct administration of these funds, the Dean of Administration will periodically evaluate compliance with any contract. If it is not complied with, we will proceed through legal action to quickly recover these funds.
The UPM understands that it should not reimburse this money to the United States Department of Education because there is sufficient evidence to demonstrate that the funds have been used within legal parameters, that they have strengthened the University in academic and administrative and that from now on we will observe the following to comply with such an essential and necessary reservation.
Corrective action plan to follow:
All employees. including those in the office of the presidency, have been finally and firmly alerted that advance payments should be avoided or only considered in emergency situations. All employees authorized to reach contractual agreements will be trained on this topic, and the internal procedures will be reviewed and edited to address prepayments and emergency processes.
We will appoint an employee in charge of managing all compliance documentation so that, together with the Dean of Administration and Finance, they can locate and group all the relevant standards and regulatory procedures and have the power to guide so that each of its recommendations is willingly observed. This will be supported by the requirements that always accompany each award. In addition, these officers will have the power to make external consultations with professionals familiar with these matters.