Corrective Action Plans

Management’s Corrective Action Plan PFC Management Corrective Action Plan: Debarment Strict adherence to procurement regulations and compliance with required suspension and debarment checks are already represented within PFC’s compliance policies and procedures. Power Forward Communities will strengthen its internal controls around debarment checks for vendors in both its procurement and contracting processes to address the finding as follows: Procurement • PFC will use a process checklist for its procurements, similar to the checklist PFC developed for its coalition members. • The checklist will include an additional step for a debarment search on SAM.gov and require internal confirmation and documentation that this debarment check is valid. • This process checklist will be reviewed and signed off when complete by PFC management for each procurement. • PFC will include completed checklists to accompany each procurement memo. Contracting • PFC will continue including debarment language in each of its vendor contracts to ensure adherence to 2 CFR Section 180.300. • For vendors with contracts above $25,000, PFC will implement quality control by running a debarment search twice annually, once in June and once in December every year. This documentation will be saved to the vendor file.

Finding: The Washington State Department of Transportation did not have adequate controls over and did not comply with procurement and suspension and debarment requirements for the Coronavirus State and Local Fiscal Recovery Funds. Questioned Costs: Assistance Listing # 21.027 COVID-19 Amount $0 Status: Corrective action complete Corrective Action: The Washington State Department of Transportation (WSDOT) is committed to ensuring our grant programs comply with federal regulations related to procurement, suspension, and debarment. WSDOT received the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) from the U.S. Department of the Treasury (Treasury) through the Office of Financial Management (OFM). At the time the funds were received, WSDOT was not able to obtain clear guidance or clarification from the Federal Highway Administration (FHWA) or Treasury on how these funds were to be administered. Nonetheless, WSDOT developed procedures for awarding contracts using the SLFRF funds, including contract provisions requiring adherence to the WSDOT Standard Specifications Manual for Road, Bridge, and Municipal Construction. WSDOT believed it was in compliance with all federal requirements, including procurement and suspension and debarment, and all applicable contract provisions. However, the auditors determined that these projects should be treated as other WSDOT projects and should follow FHWA contracting requirements. The SLFRF funds awarded were used for a limited program. If any future awards utilizing SLFRF funds are made, the Department will: • Utilize the internal controls currently in place for the FHWA contracting. • Continue to communicate with OFM to ensure that funds awarded are in compliance with federal regulations. • Communicate any required changes to the appropriate WSDOT staff, as needed. Completion Date: February 2025 Agency Contact: Jesse Daniels External Audit Liaison PO Box 47320 Olympia, WA 98504-7320 (360) 705-7035 danielje@wsdot.wa.gov