U.S. Department of Housing and Urban Development Emergency Solutions Grant Program - 14.231, Award number E-22-MC-0001 COVID-19 Emergency Solutions Grant Program - 14.231, Award number E-20-MW-20-0001 Criteria or Specific Requirement: Suspension and Debarment and Significant Deficiency In accordance with 2 CFR 200.214, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services awarded under a 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. All non-procurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. Per 2 CFR 200.303, the non-Federal entities receiving federal awards (i.e., auditee management) establish and maintain internal control design to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: Suspension and debarment checks were not completed for the subrecipients that received federal funds. Questioned Costs - None noted. Context: For 14.231, there were seven subrecipients receiving a total of $1,013,942 subject to suspension and debarment requirements. Of those seven, a sample of two subrecipients receiving a total of $469,455 were selected for testing and none of the two were verified by the Unified Government for Suspension and Debarment. A subsequent check was completed and none of the associated two subrecipients selected for testing were suspended or debarred. The sample was not intended to be, and was not, a statistically valid sample. Identification of Prior Year Finding: N/A Effect: Federal funds could be paid to entities that are suspended or debarred. Cause: For the Unified Government, this is typically included in the contracts, but was not included in the subrecipient contracts for this program and the Unified Government did not have another means of validating suspension and debarment. Recommendation: Policies and procedures should be modified to ensure that suspension and debarment checks are performed on vendors and subrecipients alike prior to making purchases with federal funds. When newly established programs include subrecipients, we also recommend the contracts include suspension and debarment language. View of Responsible Official and Planned Corrective Actions: Procurement has begun the process of checking SAM.gov for debarment for potential suppliers. Also, departments have been informed of this required step.
U.S. Department of Housing and Urban Development Emergency Solutions Grant Program - 14.231, Award number E-22-MC-0001 COVID-19 Emergency Solutions Grant Program - 14.231, Award number E-20-MW-20-0001 Criteria or Specific Requirement: Suspension and Debarment and Significant Deficiency In accordance with 2 CFR 200.214, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services awarded under a 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. All non-procurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. Per 2 CFR 200.303, the non-Federal entities receiving federal awards (i.e., auditee management) establish and maintain internal control design to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: Suspension and debarment checks were not completed for the subrecipients that received federal funds. Questioned Costs - None noted. Context: For 14.231, there were seven subrecipients receiving a total of $1,013,942 subject to suspension and debarment requirements. Of those seven, a sample of two subrecipients receiving a total of $469,455 were selected for testing and none of the two were verified by the Unified Government for Suspension and Debarment. A subsequent check was completed and none of the associated two subrecipients selected for testing were suspended or debarred. The sample was not intended to be, and was not, a statistically valid sample. Identification of Prior Year Finding: N/A Effect: Federal funds could be paid to entities that are suspended or debarred. Cause: For the Unified Government, this is typically included in the contracts, but was not included in the subrecipient contracts for this program and the Unified Government did not have another means of validating suspension and debarment. Recommendation: Policies and procedures should be modified to ensure that suspension and debarment checks are performed on vendors and subrecipients alike prior to making purchases with federal funds. When newly established programs include subrecipients, we also recommend the contracts include suspension and debarment language. View of Responsible Official and Planned Corrective Actions: Procurement has begun the process of checking SAM.gov for debarment for potential suppliers. Also, departments have been informed of this required step.
Finding No. 2022-001 Federal Agency: U.S. Department of Commerce ALN and Title: 11.482 Coral Reef Conservation Program Compliance Requirement: Suspension and Debarment Questioned Cost: $0 Criteria In accordance with 2 CFR 200.214, non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing 2 CFR 180. Such regulation restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Under 2 CFR 180.300, when entering into a covered transaction with another person at the next lower tier, verification must be made that the person with whom an intent to do business with is not excluded or disqualified. Such verification can be made by (a) checking SAM Exclusions, (b) collecting a certification from that person; or (c) adding a clause or condition to the covered transaction with that person. Condition The Trust could not provide written evidence showing that, prior to entering into a contract with a vendor, that the Trust concluded the vendor has not been debarred, suspended, or otherwise excluded from participating in the contract. Cause: The Trust does not have a written document proving prior to entering into a contract, that the vendor was deemed not to be debarred or suspended. Effect or potential effect: The Trust is in noncompliance with the applicable requirement. Recommendation: The Trust should revisit and implement procedures to ensure that vendors that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities are restricted from Federal awards, subawards and contracts. Procedures performed should be adequately maintained in the procurement files. Views of Responsible Officials: Management agrees with the finding. See separate Corrective Action Plan.
Finding No. 2022-001 Federal Agency: U.S. Department of Commerce ALN and Title: 11.482 Coral Reef Conservation Program Compliance Requirement: Suspension and Debarment Questioned Cost: $0 Criteria In accordance with 2 CFR 200.214, non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing 2 CFR 180. Such regulation restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Under 2 CFR 180.300, when entering into a covered transaction with another person at the next lower tier, verification must be made that the person with whom an intent to do business with is not excluded or disqualified. Such verification can be made by (a) checking SAM Exclusions, (b) collecting a certification from that person; or (c) adding a clause or condition to the covered transaction with that person. Condition The Trust could not provide written evidence showing that, prior to entering into a contract with a vendor, that the Trust concluded the vendor has not been debarred, suspended, or otherwise excluded from participating in the contract. Cause: The Trust does not have a written document proving prior to entering into a contract, that the vendor was deemed not to be debarred or suspended. Effect or potential effect: The Trust is in noncompliance with the applicable requirement. Recommendation: The Trust should revisit and implement procedures to ensure that vendors that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities are restricted from Federal awards, subawards and contracts. Procedures performed should be adequately maintained in the procurement files. Views of Responsible Officials: Management agrees with the finding. See separate Corrective Action Plan.
Finding No. 2022-001 Federal Agency: U.S. Department of Commerce ALN and Title: 11.482 Coral Reef Conservation Program Compliance Requirement: Suspension and Debarment Questioned Cost: $0 Criteria In accordance with 2 CFR 200.214, non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing 2 CFR 180. Such regulation restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Under 2 CFR 180.300, when entering into a covered transaction with another person at the next lower tier, verification must be made that the person with whom an intent to do business with is not excluded or disqualified. Such verification can be made by (a) checking SAM Exclusions, (b) collecting a certification from that person; or (c) adding a clause or condition to the covered transaction with that person. Condition The Trust could not provide written evidence showing that, prior to entering into a contract with a vendor, that the Trust concluded the vendor has not been debarred, suspended, or otherwise excluded from participating in the contract. Cause: The Trust does not have a written document proving prior to entering into a contract, that the vendor was deemed not to be debarred or suspended. Effect or potential effect: The Trust is in noncompliance with the applicable requirement. Recommendation: The Trust should revisit and implement procedures to ensure that vendors that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities are restricted from Federal awards, subawards and contracts. Procedures performed should be adequately maintained in the procurement files. Views of Responsible Officials: Management agrees with the finding. See separate Corrective Action Plan.
Finding: Procurement, Suspension and Debarment (Significant Deficiency; Other Matter) Federal Assistance Listing Number 14.862 – Indian Community Development Block Grant Award Number – B-18-SR-40-0584 & B-19-SR-40-0584; Award Year 2018 & 2019 Federal Assistance Listing Number 21.027 – Coronavirus State and Local Fiscal Recovery Funds Award Number – 8L-SS-2021-0901-001; Award Year 2021 Suspension and Debarment Criteria or Specific Requirement: According to 2 CFR Part 200, Subpart C, 200.214 - Recipients and subrecipients are subject to the procurement, debarment and suspension regulations implementing Executive Orders 12549 and 12689, as well as 2 CFR part 180. The regulations in 2 CFR Part 180 restrict making Federal awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from receiving or participating in Federal awards. Procurement Criteria or Specific Requirement: According to 2 CFR Part 200, Subpart D, 200.321 - When possible, the recipient or subrecipient should ensure there is open competition for non-micro purchases and an equitable distribution among suppliers for micro purchases. Condition: The Tribe was unable to provide supporting documentation showing that a verification had been performed to ensure vendors were not suspended or debarred. Several large purchases were sole sourced without adequate documentation. A high volume of micro purchases were made from the same vendor rather than being distributed equitably amount a variety of vendors. Questioned Costs: None. Context: 14.862 - Three procurements were tested noting two in which suspension and debarment checks were not performed. A high volume of micro purchases ($148,908) were made from the same vendor rather than an equitable distribution of vendors. 21.027 - 14 procurements were tested. Ten procurements tested were subject to suspension and debarment of which checks were not performed on nine. All 14 procurements tested were subject to non-micro purchase requirements. Six procurements were sole sourced without adequate supporting documentation to support this method of purchase. A non-statistical sampling methodology was used to select the samples. Effect: The Tribe's inability to furnish supporting documentation showing that a check to ensure vendors were not suspended or debarred on SAM.gov could result in the use of ineligible vendors. The Tribe's failure to provide for open competition or provide for an equitable distribution of vendors on purchases could result in the Tribe paying more for services than is reasonable or necessary. Cause: Tribal policies were not followed surrounding the requirement of suspension and debarment checks and documentation of sole source procurements. Due to the Tribal location, there may be some limitation of available vendors for consideration to ensure an equitable distribution. Identification as a Repeat Finding: 2021-005 (same issue in different program) Recommendation: We recommend the Department ensure existing procurement, suspension and debarment policies are understood throughout the Tribe and supporting documentation is adequate and maintained for all procurement decisions. Views of Responsible Officials: The Department agrees with the finding. See separate report for planned corrective actions.
Finding: Procurement, Suspension and Debarment (Significant Deficiency; Other Matter) Federal Assistance Listing Number 14.862 – Indian Community Development Block Grant Award Number – B-18-SR-40-0584 & B-19-SR-40-0584; Award Year 2018 & 2019 Federal Assistance Listing Number 21.027 – Coronavirus State and Local Fiscal Recovery Funds Award Number – 8L-SS-2021-0901-001; Award Year 2021 Suspension and Debarment Criteria or Specific Requirement: According to 2 CFR Part 200, Subpart C, 200.214 - Recipients and subrecipients are subject to the procurement, debarment and suspension regulations implementing Executive Orders 12549 and 12689, as well as 2 CFR part 180. The regulations in 2 CFR Part 180 restrict making Federal awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from receiving or participating in Federal awards. Procurement Criteria or Specific Requirement: According to 2 CFR Part 200, Subpart D, 200.321 - When possible, the recipient or subrecipient should ensure there is open competition for non-micro purchases and an equitable distribution among suppliers for micro purchases. Condition: The Tribe was unable to provide supporting documentation showing that a verification had been performed to ensure vendors were not suspended or debarred. Several large purchases were sole sourced without adequate documentation. A high volume of micro purchases were made from the same vendor rather than being distributed equitably amount a variety of vendors. Questioned Costs: None. Context: 14.862 - Three procurements were tested noting two in which suspension and debarment checks were not performed. A high volume of micro purchases ($148,908) were made from the same vendor rather than an equitable distribution of vendors. 21.027 - 14 procurements were tested. Ten procurements tested were subject to suspension and debarment of which checks were not performed on nine. All 14 procurements tested were subject to non-micro purchase requirements. Six procurements were sole sourced without adequate supporting documentation to support this method of purchase. A non-statistical sampling methodology was used to select the samples. Effect: The Tribe's inability to furnish supporting documentation showing that a check to ensure vendors were not suspended or debarred on SAM.gov could result in the use of ineligible vendors. The Tribe's failure to provide for open competition or provide for an equitable distribution of vendors on purchases could result in the Tribe paying more for services than is reasonable or necessary. Cause: Tribal policies were not followed surrounding the requirement of suspension and debarment checks and documentation of sole source procurements. Due to the Tribal location, there may be some limitation of available vendors for consideration to ensure an equitable distribution. Identification as a Repeat Finding: 2021-005 (same issue in different program) Recommendation: We recommend the Department ensure existing procurement, suspension and debarment policies are understood throughout the Tribe and supporting documentation is adequate and maintained for all procurement decisions. Views of Responsible Officials: The Department agrees with the finding. See separate report for planned corrective actions.
Finding: Procurement, Suspension and Debarment (Significant Deficiency; Other Matter) Federal Assistance Listing Number 14.862 – Indian Community Development Block Grant Award Number – B-18-SR-40-0584 & B-19-SR-40-0584; Award Year 2018 & 2019 Federal Assistance Listing Number 21.027 – Coronavirus State and Local Fiscal Recovery Funds Award Number – 8L-SS-2021-0901-001; Award Year 2021 Suspension and Debarment Criteria or Specific Requirement: According to 2 CFR Part 200, Subpart C, 200.214 - Recipients and subrecipients are subject to the procurement, debarment and suspension regulations implementing Executive Orders 12549 and 12689, as well as 2 CFR part 180. The regulations in 2 CFR Part 180 restrict making Federal awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from receiving or participating in Federal awards. Procurement Criteria or Specific Requirement: According to 2 CFR Part 200, Subpart D, 200.321 - When possible, the recipient or subrecipient should ensure there is open competition for non-micro purchases and an equitable distribution among suppliers for micro purchases. Condition: The Tribe was unable to provide supporting documentation showing that a verification had been performed to ensure vendors were not suspended or debarred. Several large purchases were sole sourced without adequate documentation. A high volume of micro purchases were made from the same vendor rather than being distributed equitably amount a variety of vendors. Questioned Costs: None. Context: 14.862 - Three procurements were tested noting two in which suspension and debarment checks were not performed. A high volume of micro purchases ($148,908) were made from the same vendor rather than an equitable distribution of vendors. 21.027 - 14 procurements were tested. Ten procurements tested were subject to suspension and debarment of which checks were not performed on nine. All 14 procurements tested were subject to non-micro purchase requirements. Six procurements were sole sourced without adequate supporting documentation to support this method of purchase. A non-statistical sampling methodology was used to select the samples. Effect: The Tribe's inability to furnish supporting documentation showing that a check to ensure vendors were not suspended or debarred on SAM.gov could result in the use of ineligible vendors. The Tribe's failure to provide for open competition or provide for an equitable distribution of vendors on purchases could result in the Tribe paying more for services than is reasonable or necessary. Cause: Tribal policies were not followed surrounding the requirement of suspension and debarment checks and documentation of sole source procurements. Due to the Tribal location, there may be some limitation of available vendors for consideration to ensure an equitable distribution. Identification as a Repeat Finding: 2021-005 (same issue in different program) Recommendation: We recommend the Department ensure existing procurement, suspension and debarment policies are understood throughout the Tribe and supporting documentation is adequate and maintained for all procurement decisions. Views of Responsible Officials: The Department agrees with the finding. See separate report for planned corrective actions.
Finding 2022-002 ? Procurement and Suspension & Debarment Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Health Centers Cluster and Health Center Infrastructure Support Assistance Listing Number: 93.224 and 93.527; 93.526 Federal Award Identification Number: H8FCS40647-01; C8ECS44753-01 Award Periods: April 1, 2021 ? March 31, 2023; September 15, 2021 ? September 14, 2024, respectively Type of Finding: Compliance and significant deficiency in internal control over compliance Criteria: ? 200.320 Methods of procurement to be followed: The non-Federal entity must have and use documented procurement procedures, consistent with the standards of this section and ?? 200.317, 200.318, and 200.319 for any of the approved procurement methods used for the acquisition of property or services required under a Federal award or sub-award. ? 200.214 Suspension and debarment. Non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition: The organization did not maintain proper documentation for 1) determining the rationale of the sole-source procurement methodology that it applied and 2) that suspension and debarment was checked quarterly per the Organization's policy for vendors reimbursed by the federal grant. Questioned Costs: None. Context: Two (2) of two (2) procurement transactions; Two (2) of two (2) suspension and debarment transactions Cause: The organization did not document its rationale for choosing the noncompetitive procurement method or its quarterly review of suspension and debarment of vendors. Effect: The Organization may inadvertently select vendors without regard to fair competition and cost analysis or vendors that may be federally suspended and disbarred. Repeat Finding: No. Recommendation: Management should adhere to or revise the Organization?s existing procurement policy and implement a system of processes and internal controls to ensure that the appropriate level of documentation is maintained based on the procurement methodology selected for a transaction of contract. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2022-002 ? Procurement and Suspension & Debarment Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Health Centers Cluster and Health Center Infrastructure Support Assistance Listing Number: 93.224 and 93.527; 93.526 Federal Award Identification Number: H8FCS40647-01; C8ECS44753-01 Award Periods: April 1, 2021 ? March 31, 2023; September 15, 2021 ? September 14, 2024, respectively Type of Finding: Compliance and significant deficiency in internal control over compliance Criteria: ? 200.320 Methods of procurement to be followed: The non-Federal entity must have and use documented procurement procedures, consistent with the standards of this section and ?? 200.317, 200.318, and 200.319 for any of the approved procurement methods used for the acquisition of property or services required under a Federal award or sub-award. ? 200.214 Suspension and debarment. Non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition: The organization did not maintain proper documentation for 1) determining the rationale of the sole-source procurement methodology that it applied and 2) that suspension and debarment was checked quarterly per the Organization's policy for vendors reimbursed by the federal grant. Questioned Costs: None. Context: Two (2) of two (2) procurement transactions; Two (2) of two (2) suspension and debarment transactions Cause: The organization did not document its rationale for choosing the noncompetitive procurement method or its quarterly review of suspension and debarment of vendors. Effect: The Organization may inadvertently select vendors without regard to fair competition and cost analysis or vendors that may be federally suspended and disbarred. Repeat Finding: No. Recommendation: Management should adhere to or revise the Organization?s existing procurement policy and implement a system of processes and internal controls to ensure that the appropriate level of documentation is maintained based on the procurement methodology selected for a transaction of contract. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2022-002 ? Procurement and Suspension & Debarment Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Health Centers Cluster and Health Center Infrastructure Support Assistance Listing Number: 93.224 and 93.527; 93.526 Federal Award Identification Number: H8FCS40647-01; C8ECS44753-01 Award Periods: April 1, 2021 ? March 31, 2023; September 15, 2021 ? September 14, 2024, respectively Type of Finding: Compliance and significant deficiency in internal control over compliance Criteria: ? 200.320 Methods of procurement to be followed: The non-Federal entity must have and use documented procurement procedures, consistent with the standards of this section and ?? 200.317, 200.318, and 200.319 for any of the approved procurement methods used for the acquisition of property or services required under a Federal award or sub-award. ? 200.214 Suspension and debarment. Non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition: The organization did not maintain proper documentation for 1) determining the rationale of the sole-source procurement methodology that it applied and 2) that suspension and debarment was checked quarterly per the Organization's policy for vendors reimbursed by the federal grant. Questioned Costs: None. Context: Two (2) of two (2) procurement transactions; Two (2) of two (2) suspension and debarment transactions Cause: The organization did not document its rationale for choosing the noncompetitive procurement method or its quarterly review of suspension and debarment of vendors. Effect: The Organization may inadvertently select vendors without regard to fair competition and cost analysis or vendors that may be federally suspended and disbarred. Repeat Finding: No. Recommendation: Management should adhere to or revise the Organization?s existing procurement policy and implement a system of processes and internal controls to ensure that the appropriate level of documentation is maintained based on the procurement methodology selected for a transaction of contract. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2022-002 ? Procurement and Suspension & Debarment Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Health Centers Cluster and Health Center Infrastructure Support Assistance Listing Number: 93.224 and 93.527; 93.526 Federal Award Identification Number: H8FCS40647-01; C8ECS44753-01 Award Periods: April 1, 2021 ? March 31, 2023; September 15, 2021 ? September 14, 2024, respectively Type of Finding: Compliance and significant deficiency in internal control over compliance Criteria: ? 200.320 Methods of procurement to be followed: The non-Federal entity must have and use documented procurement procedures, consistent with the standards of this section and ?? 200.317, 200.318, and 200.319 for any of the approved procurement methods used for the acquisition of property or services required under a Federal award or sub-award. ? 200.214 Suspension and debarment. Non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition: The organization did not maintain proper documentation for 1) determining the rationale of the sole-source procurement methodology that it applied and 2) that suspension and debarment was checked quarterly per the Organization's policy for vendors reimbursed by the federal grant. Questioned Costs: None. Context: Two (2) of two (2) procurement transactions; Two (2) of two (2) suspension and debarment transactions Cause: The organization did not document its rationale for choosing the noncompetitive procurement method or its quarterly review of suspension and debarment of vendors. Effect: The Organization may inadvertently select vendors without regard to fair competition and cost analysis or vendors that may be federally suspended and disbarred. Repeat Finding: No. Recommendation: Management should adhere to or revise the Organization?s existing procurement policy and implement a system of processes and internal controls to ensure that the appropriate level of documentation is maintained based on the procurement methodology selected for a transaction of contract. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2022-002 ? Procurement and Suspension & Debarment Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Health Centers Cluster and Health Center Infrastructure Support Assistance Listing Number: 93.224 and 93.527; 93.526 Federal Award Identification Number: H8FCS40647-01; C8ECS44753-01 Award Periods: April 1, 2021 ? March 31, 2023; September 15, 2021 ? September 14, 2024, respectively Type of Finding: Compliance and significant deficiency in internal control over compliance Criteria: ? 200.320 Methods of procurement to be followed: The non-Federal entity must have and use documented procurement procedures, consistent with the standards of this section and ?? 200.317, 200.318, and 200.319 for any of the approved procurement methods used for the acquisition of property or services required under a Federal award or sub-award. ? 200.214 Suspension and debarment. Non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition: The organization did not maintain proper documentation for 1) determining the rationale of the sole-source procurement methodology that it applied and 2) that suspension and debarment was checked quarterly per the Organization's policy for vendors reimbursed by the federal grant. Questioned Costs: None. Context: Two (2) of two (2) procurement transactions; Two (2) of two (2) suspension and debarment transactions Cause: The organization did not document its rationale for choosing the noncompetitive procurement method or its quarterly review of suspension and debarment of vendors. Effect: The Organization may inadvertently select vendors without regard to fair competition and cost analysis or vendors that may be federally suspended and disbarred. Repeat Finding: No. Recommendation: Management should adhere to or revise the Organization?s existing procurement policy and implement a system of processes and internal controls to ensure that the appropriate level of documentation is maintained based on the procurement methodology selected for a transaction of contract. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2022-002 ? Procurement and Suspension & Debarment Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Health Centers Cluster and Health Center Infrastructure Support Assistance Listing Number: 93.224 and 93.527; 93.526 Federal Award Identification Number: H8FCS40647-01; C8ECS44753-01 Award Periods: April 1, 2021 ? March 31, 2023; September 15, 2021 ? September 14, 2024, respectively Type of Finding: Compliance and significant deficiency in internal control over compliance Criteria: ? 200.320 Methods of procurement to be followed: The non-Federal entity must have and use documented procurement procedures, consistent with the standards of this section and ?? 200.317, 200.318, and 200.319 for any of the approved procurement methods used for the acquisition of property or services required under a Federal award or sub-award. ? 200.214 Suspension and debarment. Non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition: The organization did not maintain proper documentation for 1) determining the rationale of the sole-source procurement methodology that it applied and 2) that suspension and debarment was checked quarterly per the Organization's policy for vendors reimbursed by the federal grant. Questioned Costs: None. Context: Two (2) of two (2) procurement transactions; Two (2) of two (2) suspension and debarment transactions Cause: The organization did not document its rationale for choosing the noncompetitive procurement method or its quarterly review of suspension and debarment of vendors. Effect: The Organization may inadvertently select vendors without regard to fair competition and cost analysis or vendors that may be federally suspended and disbarred. Repeat Finding: No. Recommendation: Management should adhere to or revise the Organization?s existing procurement policy and implement a system of processes and internal controls to ensure that the appropriate level of documentation is maintained based on the procurement methodology selected for a transaction of contract. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2022-002 ? Procurement and Suspension & Debarment Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Health Centers Cluster and Health Center Infrastructure Support Assistance Listing Number: 93.224 and 93.527; 93.526 Federal Award Identification Number: H8FCS40647-01; C8ECS44753-01 Award Periods: April 1, 2021 ? March 31, 2023; September 15, 2021 ? September 14, 2024, respectively Type of Finding: Compliance and significant deficiency in internal control over compliance Criteria: ? 200.320 Methods of procurement to be followed: The non-Federal entity must have and use documented procurement procedures, consistent with the standards of this section and ?? 200.317, 200.318, and 200.319 for any of the approved procurement methods used for the acquisition of property or services required under a Federal award or sub-award. ? 200.214 Suspension and debarment. Non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition: The organization did not maintain proper documentation for 1) determining the rationale of the sole-source procurement methodology that it applied and 2) that suspension and debarment was checked quarterly per the Organization's policy for vendors reimbursed by the federal grant. Questioned Costs: None. Context: Two (2) of two (2) procurement transactions; Two (2) of two (2) suspension and debarment transactions Cause: The organization did not document its rationale for choosing the noncompetitive procurement method or its quarterly review of suspension and debarment of vendors. Effect: The Organization may inadvertently select vendors without regard to fair competition and cost analysis or vendors that may be federally suspended and disbarred. Repeat Finding: No. Recommendation: Management should adhere to or revise the Organization?s existing procurement policy and implement a system of processes and internal controls to ensure that the appropriate level of documentation is maintained based on the procurement methodology selected for a transaction of contract. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2022-002 ? Procurement and Suspension & Debarment Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Health Centers Cluster and Health Center Infrastructure Support Assistance Listing Number: 93.224 and 93.527; 93.526 Federal Award Identification Number: H8FCS40647-01; C8ECS44753-01 Award Periods: April 1, 2021 ? March 31, 2023; September 15, 2021 ? September 14, 2024, respectively Type of Finding: Compliance and significant deficiency in internal control over compliance Criteria: ? 200.320 Methods of procurement to be followed: The non-Federal entity must have and use documented procurement procedures, consistent with the standards of this section and ?? 200.317, 200.318, and 200.319 for any of the approved procurement methods used for the acquisition of property or services required under a Federal award or sub-award. ? 200.214 Suspension and debarment. Non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition: The organization did not maintain proper documentation for 1) determining the rationale of the sole-source procurement methodology that it applied and 2) that suspension and debarment was checked quarterly per the Organization's policy for vendors reimbursed by the federal grant. Questioned Costs: None. Context: Two (2) of two (2) procurement transactions; Two (2) of two (2) suspension and debarment transactions Cause: The organization did not document its rationale for choosing the noncompetitive procurement method or its quarterly review of suspension and debarment of vendors. Effect: The Organization may inadvertently select vendors without regard to fair competition and cost analysis or vendors that may be federally suspended and disbarred. Repeat Finding: No. Recommendation: Management should adhere to or revise the Organization?s existing procurement policy and implement a system of processes and internal controls to ensure that the appropriate level of documentation is maintained based on the procurement methodology selected for a transaction of contract. Views of Responsible Officials: There is no disagreement with the audit finding.
2022-002 ? ALN 21.027 ? Coronavirus State and Local Fiscal Recovery Funds ? Procurement, Suspension, and Debarment: Lack of Controls for Suspension and Debarment (New Comment) Criteria: According to the Coronavirus State and Local Recover Funds (CSLRF) Final Rule, Suspension and Debarment is covered under CFR 200.214 in Subpart C, which is fully applicable under the revenue replacement method. As such, suspension and debarment should be evaluated and documented for all non-payroll expenditures under this program. Condition: During our testing, it was noted that 14 of 14 expenditure selections for this program did not have suspension and debarment evaluated or documented, and there was no formal control policy for the City to evaluate and document suspension and debarment for expenditures in this program. Cause: The City was unaware that this requirement applied to CSLRF funding under the revenue replacement method. Effect: By not evaluating suspension and debarment for the expenditures of this program, expenditures could be made that do not comply with the program requirements for suspension and debarment. Recommendation: We recommend that suspension and debarment be evaluated and documented for all expenditures made for this program and that a formal control policy for suspension and debarment be considered for such purchases.
Finding 2022-002 U.S. Department of Health and Human Services, Centers for Disease Control and Prevention - Protecting and Improving Health Globally: Building and Strengthening Public Health Impact, Systems, Capacity and Security, CFDA #?s 93.318, Grant Numbers 21NU2RGH001917, 21NU2RGH001917C6 and Contract Number PO20-00454 Noncompliance Procurement and Suspension and Debarment Condition: During our testing of procurement, suspension, and debarment, we noted that the Organization?s procurement policy was not in compliance with Uniform Guidance Procurement Standards. Our testing also revealed no documentation was provided to verify that the vendor was reviewed within the SAM Exclusion system prior to contracting. Criteria: Since the Organization receives federal funding, it must update its procurement policy to ensure compliance with the Uniform Guidance Procurement Standards, government regulations 2 CFR Part 200 Subpart D ? 200.317-32. Additionally, it must review vendor debarment or suspension status prior to contracting to ensure compliance with the Uniform Guidance Procurement Standards, government regulations 2 CFR Part 200 Subpart C ? 200.214 and 2 CFR Part 180. Cause: Oversight of updating the Organization?s established procurement policies and procedures, and oversight in reviewing vendor suspension and debarment status within the SAM Exclusion website. Effect: Failure to update the Corporation?s policies and procedures may result in procurement and purchases not meeting compliance requirements, and failure to review vendor suspension and debarment status within the SAM Exclusion website may result in payments to ineligible vendors. Accordingly, the Organization will not being in compliance with the requirements per Uniform Guidance Procurement Standards. Questioned Costs: None noted. Recommendation: We recommend that the Organization review and update its established policies, procedures and controls to ensure the procurement policy is in alignment with Uniform Guidance Procurement Standards, and we also recommend that the Organization verify vendor status within the SAM Exclusion website for debarment or suspension status. Management?s Response: See Corrective Action Plan
Finding 2022-002 U.S. Department of Health and Human Services, Centers for Disease Control and Prevention - Protecting and Improving Health Globally: Building and Strengthening Public Health Impact, Systems, Capacity and Security, CFDA #?s 93.318, Grant Numbers 21NU2RGH001917, 21NU2RGH001917C6 and Contract Number PO20-00454 Noncompliance Procurement and Suspension and Debarment Condition: During our testing of procurement, suspension, and debarment, we noted that the Organization?s procurement policy was not in compliance with Uniform Guidance Procurement Standards. Our testing also revealed no documentation was provided to verify that the vendor was reviewed within the SAM Exclusion system prior to contracting. Criteria: Since the Organization receives federal funding, it must update its procurement policy to ensure compliance with the Uniform Guidance Procurement Standards, government regulations 2 CFR Part 200 Subpart D ? 200.317-32. Additionally, it must review vendor debarment or suspension status prior to contracting to ensure compliance with the Uniform Guidance Procurement Standards, government regulations 2 CFR Part 200 Subpart C ? 200.214 and 2 CFR Part 180. Cause: Oversight of updating the Organization?s established procurement policies and procedures, and oversight in reviewing vendor suspension and debarment status within the SAM Exclusion website. Effect: Failure to update the Corporation?s policies and procedures may result in procurement and purchases not meeting compliance requirements, and failure to review vendor suspension and debarment status within the SAM Exclusion website may result in payments to ineligible vendors. Accordingly, the Organization will not being in compliance with the requirements per Uniform Guidance Procurement Standards. Questioned Costs: None noted. Recommendation: We recommend that the Organization review and update its established policies, procedures and controls to ensure the procurement policy is in alignment with Uniform Guidance Procurement Standards, and we also recommend that the Organization verify vendor status within the SAM Exclusion website for debarment or suspension status. Management?s Response: See Corrective Action Plan
Finding 2022-002 U.S. Department of Health and Human Services, Centers for Disease Control and Prevention - Protecting and Improving Health Globally: Building and Strengthening Public Health Impact, Systems, Capacity and Security, CFDA #?s 93.318, Grant Numbers 21NU2RGH001917, 21NU2RGH001917C6 and Contract Number PO20-00454 Noncompliance Procurement and Suspension and Debarment Condition: During our testing of procurement, suspension, and debarment, we noted that the Organization?s procurement policy was not in compliance with Uniform Guidance Procurement Standards. Our testing also revealed no documentation was provided to verify that the vendor was reviewed within the SAM Exclusion system prior to contracting. Criteria: Since the Organization receives federal funding, it must update its procurement policy to ensure compliance with the Uniform Guidance Procurement Standards, government regulations 2 CFR Part 200 Subpart D ? 200.317-32. Additionally, it must review vendor debarment or suspension status prior to contracting to ensure compliance with the Uniform Guidance Procurement Standards, government regulations 2 CFR Part 200 Subpart C ? 200.214 and 2 CFR Part 180. Cause: Oversight of updating the Organization?s established procurement policies and procedures, and oversight in reviewing vendor suspension and debarment status within the SAM Exclusion website. Effect: Failure to update the Corporation?s policies and procedures may result in procurement and purchases not meeting compliance requirements, and failure to review vendor suspension and debarment status within the SAM Exclusion website may result in payments to ineligible vendors. Accordingly, the Organization will not being in compliance with the requirements per Uniform Guidance Procurement Standards. Questioned Costs: None noted. Recommendation: We recommend that the Organization review and update its established policies, procedures and controls to ensure the procurement policy is in alignment with Uniform Guidance Procurement Standards, and we also recommend that the Organization verify vendor status within the SAM Exclusion website for debarment or suspension status. Management?s Response: See Corrective Action Plan
2022-001 PROCUREMENT PROCEDURES COVID-19 Health Center Program (Community Health Centers, Migrant Health Centers, Health Care For Homeless and Public Housing Primary Care) ? American Rescue Plan Act Assistance Listing Number: 93.224, Contract Numbers- H8F41284 Department of Health and Human Services (HHS) 2022 Funding Criteria: Pursuant to 2 CFR ?200.1, Simplified Acquisition Threshold (?SAT?), acquisitions which exceed the SAT of $250,000 must use one of the following procurement methods: the sealed bid method, the competitive proposals method, or the noncompetitive proposal method (sole source). Condition: The Alliance did not utilize the sealed bid method or competitive proposals method for a purchase of computer hardware, which exceeded the $250,000 SAT. The Alliance?s procurement policy was not updated to be in compliance 2 CFR 200.1 until April 2022. This purchase began in fiscal year 2021, but the remaining items under the contract were procured in fiscal year 2022. Cause: The Alliance?s policy only required bids for construction purchases, and not all purchases above the SAT. The expense for computer hardware exceeded the SAT of $250,000. The Controller believed the purchase met the qualification for a sole source purchase; however, the CIO did not document the purchase as a sole source purchase and reached out to another entity after the purchase to verify that no other vendor had the products with the required specifications. Effect: The purchase was not procured through a competitive practice, and therefore the purchase is a questioned cost. Questioned Costs: Known questioned costs is $291,982 for assistance listing 93.224. Perspective: The purchase made at the beginning of the year was procured under the old purchasing policy. The policy was updated in April 2022, and the additional purchase exceeding the bid threshold made subsequent to the new purchasing policy was procured under a competitive process. Recommendation: The Alliance should continue to follow its updated procurement policy. Management?s Response: Management has updated the procurement policy to comply with the provisions of 2 CFR ?200.1, 2 CFR ?200.67, and 2 CFR ?200.214. The updated policy has been implemented since this occurrence and will continue to be followed.
2022-002 SUSPENSION AND DEBARMENT U.S. Department of Treasury ALN 21.027 ? COVID-19 Coronavirus State and Local Recovery Funds Contract No. Y5082 (2021) 2022 Funding U.S. Department of Environmental Protection Passed through Florida Department of Economic Opportunity ALN 66.460 ? Nonpoint Source Implementation Grant Contract No. NF068 (2020) 2022 Funding Criteria: 2 CFR 200.303 requires non-federal entities to establish and maintain effective internal controls. 2 CFR 200.214 requires that prior to entering into subawards and contracts with award funds, recipients must verify that such contractors and subrecipients are not suspended or debarred, or otherwise excluded. Condition: There was no documented evidence that City management performed a search for suspension or debarment of its venders receiving federal awards. Cause of condition: The City does not have a procedure or control in place to verify a vendor is suspended or debarred. Effect: A vendor who is suspended or debarred may receive federal funding, which would result in questioned costs. Questioned Costs: None Noted Perspective: None of the vendors that exceeded the threshold were checked to determine if they were suspended or debarred. Recommendation: We recommend the City establish a procedure that requires a search for suspension and debarment for vendors receiving grant funds in excess of $25,000. Management?s Response: Whenever the City has a State or Federal grant, we always ensure that the vendors we do business with are not debarred from receiving State or Federal money. In this instance, we were buying relatively small tracts of land from our local pizza shop owner, a private individual, and we did not realize that the same rules applied. We have since ascertained that this individual is in fact not debarred. Going forward, Finance will ensure all expenditures of this nature document that the vendors are not debarred individuals.
2022-002 SUSPENSION AND DEBARMENT U.S. Department of Treasury ALN 21.027 ? COVID-19 Coronavirus State and Local Recovery Funds Contract No. Y5082 (2021) 2022 Funding U.S. Department of Environmental Protection Passed through Florida Department of Economic Opportunity ALN 66.460 ? Nonpoint Source Implementation Grant Contract No. NF068 (2020) 2022 Funding Criteria: 2 CFR 200.303 requires non-federal entities to establish and maintain effective internal controls. 2 CFR 200.214 requires that prior to entering into subawards and contracts with award funds, recipients must verify that such contractors and subrecipients are not suspended or debarred, or otherwise excluded. Condition: There was no documented evidence that City management performed a search for suspension or debarment of its venders receiving federal awards. Cause of condition: The City does not have a procedure or control in place to verify a vendor is suspended or debarred. Effect: A vendor who is suspended or debarred may receive federal funding, which would result in questioned costs. Questioned Costs: None Noted Perspective: None of the vendors that exceeded the threshold were checked to determine if they were suspended or debarred. Recommendation: We recommend the City establish a procedure that requires a search for suspension and debarment for vendors receiving grant funds in excess of $25,000. Management?s Response: Whenever the City has a State or Federal grant, we always ensure that the vendors we do business with are not debarred from receiving State or Federal money. In this instance, we were buying relatively small tracts of land from our local pizza shop owner, a private individual, and we did not realize that the same rules applied. We have since ascertained that this individual is in fact not debarred. Going forward, Finance will ensure all expenditures of this nature document that the vendors are not debarred individuals.
Federal agency: U.S. Department of Health and Human Services Federal program title: Health Centers Cluster Assistance Listing Number: 93.224/93.527 Award Period: Varying project and budget periods: 2/1/21 – 1/31/22, 2/1/22 – 1/31/23, 4/1/21 – 3/31/23 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: The Code of Federal Regulations section 200.214 requires the Center to follow the nonprocurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. The Organization should have policies and procedures in place to ensure contracts or subaward are not provided to third parties that are suspended or disbarred. Condition: During our testing, we noted the Organization had a proper policy around suspension and debarment, but was not able to provide documentation supporting the policy was followed for all vendors selected. Questioned costs: None. Context: In our testing covering three vendors, the Organization was not able to provide documentation supporting the Organization had followed its suspension and debarment policy. All vendors were checked against the exclusion list at the time of audit testing, and none were found to be suspended/debarred. Cause: Turnover in personnel at the Organization likely played a role, but the Organization was also focused on response to the COVID-19 pandemic at the time of vendor procurement. So timeliness was often most important in procuring vendors and related products/services. Effect: Without retaining documentation to support proper compliance with the Organization's policy, there is greater risk of noncompliance or inappropriate vendor selection. Recommendation: We recommend the Organization follow existing policy, but ensure procedures are in place to retain sufficient documentation to support review of vendors against federal exclusion list. View of responsible officials: No disagreement with the finding. Management will review procedures to ensure proper check of vendors is performed against federal exclusion list, and that documentation is maintained to support that review.
Federal agency: U.S. Department of Health and Human Services Federal program title: Health Centers Cluster Assistance Listing Number: 93.224/93.527 Award Period: Varying project and budget periods: 2/1/21 – 1/31/22, 2/1/22 – 1/31/23, 4/1/21 – 3/31/23 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: The Code of Federal Regulations section 200.214 requires the Center to follow the nonprocurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. The Organization should have policies and procedures in place to ensure contracts or subaward are not provided to third parties that are suspended or disbarred. Condition: During our testing, we noted the Organization had a proper policy around suspension and debarment, but was not able to provide documentation supporting the policy was followed for all vendors selected. Questioned costs: None. Context: In our testing covering three vendors, the Organization was not able to provide documentation supporting the Organization had followed its suspension and debarment policy. All vendors were checked against the exclusion list at the time of audit testing, and none were found to be suspended/debarred. Cause: Turnover in personnel at the Organization likely played a role, but the Organization was also focused on response to the COVID-19 pandemic at the time of vendor procurement. So timeliness was often most important in procuring vendors and related products/services. Effect: Without retaining documentation to support proper compliance with the Organization's policy, there is greater risk of noncompliance or inappropriate vendor selection. Recommendation: We recommend the Organization follow existing policy, but ensure procedures are in place to retain sufficient documentation to support review of vendors against federal exclusion list. View of responsible officials: No disagreement with the finding. Management will review procedures to ensure proper check of vendors is performed against federal exclusion list, and that documentation is maintained to support that review.
Federal agency: U.S. Department of Health and Human Services Federal program title: Health Centers Cluster Assistance Listing Number: 93.224/93.527 Award Period: Varying project and budget periods: 2/1/21 – 1/31/22, 2/1/22 – 1/31/23, 4/1/21 – 3/31/23 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: The Code of Federal Regulations section 200.214 requires the Center to follow the nonprocurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. The Organization should have policies and procedures in place to ensure contracts or subaward are not provided to third parties that are suspended or disbarred. Condition: During our testing, we noted the Organization had a proper policy around suspension and debarment, but was not able to provide documentation supporting the policy was followed for all vendors selected. Questioned costs: None. Context: In our testing covering three vendors, the Organization was not able to provide documentation supporting the Organization had followed its suspension and debarment policy. All vendors were checked against the exclusion list at the time of audit testing, and none were found to be suspended/debarred. Cause: Turnover in personnel at the Organization likely played a role, but the Organization was also focused on response to the COVID-19 pandemic at the time of vendor procurement. So timeliness was often most important in procuring vendors and related products/services. Effect: Without retaining documentation to support proper compliance with the Organization's policy, there is greater risk of noncompliance or inappropriate vendor selection. Recommendation: We recommend the Organization follow existing policy, but ensure procedures are in place to retain sufficient documentation to support review of vendors against federal exclusion list. View of responsible officials: No disagreement with the finding. Management will review procedures to ensure proper check of vendors is performed against federal exclusion list, and that documentation is maintained to support that review.
2022-002 ? ALN 21.027 ? Coronavirus State and Local Fiscal Recovery Funds ? Procurement, Suspension, and Debarment: Lack of Controls for Suspension and Debarment (New Comment) Criteria: According to the Coronavirus State and Local Recover Funds (CSLRF) Final Rule, Suspension and Debarment is covered under CFR 200.214 in Subpart C, which is fully applicable under the revenue replacement method. As such, suspension and debarment should be evaluated and documented for all non-payroll expenditures under this program. Condition: During our testing, it was noted that 14 of 14 expenditure selections for this program did not have suspension and debarment evaluated or documented, and there was no formal control policy for the City to evaluate and document suspension and debarment for expenditures in this program. Cause: The City was unaware that this requirement applied to CSLRF funding under the revenue replacement method. Effect: By not evaluating suspension and debarment for the expenditures of this program, expenditures could be made that do not comply with the program requirements for suspension and debarment. Recommendation: We recommend that suspension and debarment be evaluated and documented for all expenditures made for this program and that a formal control policy for suspension and debarment be considered for such purchases.
Finding 2022-002 U.S. Department of Health and Human Services, Centers for Disease Control and Prevention - Protecting and Improving Health Globally: Building and Strengthening Public Health Impact, Systems, Capacity and Security, CFDA #?s 93.318, Grant Numbers 21NU2RGH001917, 21NU2RGH001917C6 and Contract Number PO20-00454 Noncompliance Procurement and Suspension and Debarment Condition: During our testing of procurement, suspension, and debarment, we noted that the Organization?s procurement policy was not in compliance with Uniform Guidance Procurement Standards. Our testing also revealed no documentation was provided to verify that the vendor was reviewed within the SAM Exclusion system prior to contracting. Criteria: Since the Organization receives federal funding, it must update its procurement policy to ensure compliance with the Uniform Guidance Procurement Standards, government regulations 2 CFR Part 200 Subpart D ? 200.317-32. Additionally, it must review vendor debarment or suspension status prior to contracting to ensure compliance with the Uniform Guidance Procurement Standards, government regulations 2 CFR Part 200 Subpart C ? 200.214 and 2 CFR Part 180. Cause: Oversight of updating the Organization?s established procurement policies and procedures, and oversight in reviewing vendor suspension and debarment status within the SAM Exclusion website. Effect: Failure to update the Corporation?s policies and procedures may result in procurement and purchases not meeting compliance requirements, and failure to review vendor suspension and debarment status within the SAM Exclusion website may result in payments to ineligible vendors. Accordingly, the Organization will not being in compliance with the requirements per Uniform Guidance Procurement Standards. Questioned Costs: None noted. Recommendation: We recommend that the Organization review and update its established policies, procedures and controls to ensure the procurement policy is in alignment with Uniform Guidance Procurement Standards, and we also recommend that the Organization verify vendor status within the SAM Exclusion website for debarment or suspension status. Management?s Response: See Corrective Action Plan
Finding 2022-002 U.S. Department of Health and Human Services, Centers for Disease Control and Prevention - Protecting and Improving Health Globally: Building and Strengthening Public Health Impact, Systems, Capacity and Security, CFDA #?s 93.318, Grant Numbers 21NU2RGH001917, 21NU2RGH001917C6 and Contract Number PO20-00454 Noncompliance Procurement and Suspension and Debarment Condition: During our testing of procurement, suspension, and debarment, we noted that the Organization?s procurement policy was not in compliance with Uniform Guidance Procurement Standards. Our testing also revealed no documentation was provided to verify that the vendor was reviewed within the SAM Exclusion system prior to contracting. Criteria: Since the Organization receives federal funding, it must update its procurement policy to ensure compliance with the Uniform Guidance Procurement Standards, government regulations 2 CFR Part 200 Subpart D ? 200.317-32. Additionally, it must review vendor debarment or suspension status prior to contracting to ensure compliance with the Uniform Guidance Procurement Standards, government regulations 2 CFR Part 200 Subpart C ? 200.214 and 2 CFR Part 180. Cause: Oversight of updating the Organization?s established procurement policies and procedures, and oversight in reviewing vendor suspension and debarment status within the SAM Exclusion website. Effect: Failure to update the Corporation?s policies and procedures may result in procurement and purchases not meeting compliance requirements, and failure to review vendor suspension and debarment status within the SAM Exclusion website may result in payments to ineligible vendors. Accordingly, the Organization will not being in compliance with the requirements per Uniform Guidance Procurement Standards. Questioned Costs: None noted. Recommendation: We recommend that the Organization review and update its established policies, procedures and controls to ensure the procurement policy is in alignment with Uniform Guidance Procurement Standards, and we also recommend that the Organization verify vendor status within the SAM Exclusion website for debarment or suspension status. Management?s Response: See Corrective Action Plan
Finding 2022-002 U.S. Department of Health and Human Services, Centers for Disease Control and Prevention - Protecting and Improving Health Globally: Building and Strengthening Public Health Impact, Systems, Capacity and Security, CFDA #?s 93.318, Grant Numbers 21NU2RGH001917, 21NU2RGH001917C6 and Contract Number PO20-00454 Noncompliance Procurement and Suspension and Debarment Condition: During our testing of procurement, suspension, and debarment, we noted that the Organization?s procurement policy was not in compliance with Uniform Guidance Procurement Standards. Our testing also revealed no documentation was provided to verify that the vendor was reviewed within the SAM Exclusion system prior to contracting. Criteria: Since the Organization receives federal funding, it must update its procurement policy to ensure compliance with the Uniform Guidance Procurement Standards, government regulations 2 CFR Part 200 Subpart D ? 200.317-32. Additionally, it must review vendor debarment or suspension status prior to contracting to ensure compliance with the Uniform Guidance Procurement Standards, government regulations 2 CFR Part 200 Subpart C ? 200.214 and 2 CFR Part 180. Cause: Oversight of updating the Organization?s established procurement policies and procedures, and oversight in reviewing vendor suspension and debarment status within the SAM Exclusion website. Effect: Failure to update the Corporation?s policies and procedures may result in procurement and purchases not meeting compliance requirements, and failure to review vendor suspension and debarment status within the SAM Exclusion website may result in payments to ineligible vendors. Accordingly, the Organization will not being in compliance with the requirements per Uniform Guidance Procurement Standards. Questioned Costs: None noted. Recommendation: We recommend that the Organization review and update its established policies, procedures and controls to ensure the procurement policy is in alignment with Uniform Guidance Procurement Standards, and we also recommend that the Organization verify vendor status within the SAM Exclusion website for debarment or suspension status. Management?s Response: See Corrective Action Plan
2022-001 PROCUREMENT PROCEDURES COVID-19 Health Center Program (Community Health Centers, Migrant Health Centers, Health Care For Homeless and Public Housing Primary Care) ? American Rescue Plan Act Assistance Listing Number: 93.224, Contract Numbers- H8F41284 Department of Health and Human Services (HHS) 2022 Funding Criteria: Pursuant to 2 CFR ?200.1, Simplified Acquisition Threshold (?SAT?), acquisitions which exceed the SAT of $250,000 must use one of the following procurement methods: the sealed bid method, the competitive proposals method, or the noncompetitive proposal method (sole source). Condition: The Alliance did not utilize the sealed bid method or competitive proposals method for a purchase of computer hardware, which exceeded the $250,000 SAT. The Alliance?s procurement policy was not updated to be in compliance 2 CFR 200.1 until April 2022. This purchase began in fiscal year 2021, but the remaining items under the contract were procured in fiscal year 2022. Cause: The Alliance?s policy only required bids for construction purchases, and not all purchases above the SAT. The expense for computer hardware exceeded the SAT of $250,000. The Controller believed the purchase met the qualification for a sole source purchase; however, the CIO did not document the purchase as a sole source purchase and reached out to another entity after the purchase to verify that no other vendor had the products with the required specifications. Effect: The purchase was not procured through a competitive practice, and therefore the purchase is a questioned cost. Questioned Costs: Known questioned costs is $291,982 for assistance listing 93.224. Perspective: The purchase made at the beginning of the year was procured under the old purchasing policy. The policy was updated in April 2022, and the additional purchase exceeding the bid threshold made subsequent to the new purchasing policy was procured under a competitive process. Recommendation: The Alliance should continue to follow its updated procurement policy. Management?s Response: Management has updated the procurement policy to comply with the provisions of 2 CFR ?200.1, 2 CFR ?200.67, and 2 CFR ?200.214. The updated policy has been implemented since this occurrence and will continue to be followed.
2022-002 SUSPENSION AND DEBARMENT U.S. Department of Treasury ALN 21.027 ? COVID-19 Coronavirus State and Local Recovery Funds Contract No. Y5082 (2021) 2022 Funding U.S. Department of Environmental Protection Passed through Florida Department of Economic Opportunity ALN 66.460 ? Nonpoint Source Implementation Grant Contract No. NF068 (2020) 2022 Funding Criteria: 2 CFR 200.303 requires non-federal entities to establish and maintain effective internal controls. 2 CFR 200.214 requires that prior to entering into subawards and contracts with award funds, recipients must verify that such contractors and subrecipients are not suspended or debarred, or otherwise excluded. Condition: There was no documented evidence that City management performed a search for suspension or debarment of its venders receiving federal awards. Cause of condition: The City does not have a procedure or control in place to verify a vendor is suspended or debarred. Effect: A vendor who is suspended or debarred may receive federal funding, which would result in questioned costs. Questioned Costs: None Noted Perspective: None of the vendors that exceeded the threshold were checked to determine if they were suspended or debarred. Recommendation: We recommend the City establish a procedure that requires a search for suspension and debarment for vendors receiving grant funds in excess of $25,000. Management?s Response: Whenever the City has a State or Federal grant, we always ensure that the vendors we do business with are not debarred from receiving State or Federal money. In this instance, we were buying relatively small tracts of land from our local pizza shop owner, a private individual, and we did not realize that the same rules applied. We have since ascertained that this individual is in fact not debarred. Going forward, Finance will ensure all expenditures of this nature document that the vendors are not debarred individuals.
2022-002 SUSPENSION AND DEBARMENT U.S. Department of Treasury ALN 21.027 ? COVID-19 Coronavirus State and Local Recovery Funds Contract No. Y5082 (2021) 2022 Funding U.S. Department of Environmental Protection Passed through Florida Department of Economic Opportunity ALN 66.460 ? Nonpoint Source Implementation Grant Contract No. NF068 (2020) 2022 Funding Criteria: 2 CFR 200.303 requires non-federal entities to establish and maintain effective internal controls. 2 CFR 200.214 requires that prior to entering into subawards and contracts with award funds, recipients must verify that such contractors and subrecipients are not suspended or debarred, or otherwise excluded. Condition: There was no documented evidence that City management performed a search for suspension or debarment of its venders receiving federal awards. Cause of condition: The City does not have a procedure or control in place to verify a vendor is suspended or debarred. Effect: A vendor who is suspended or debarred may receive federal funding, which would result in questioned costs. Questioned Costs: None Noted Perspective: None of the vendors that exceeded the threshold were checked to determine if they were suspended or debarred. Recommendation: We recommend the City establish a procedure that requires a search for suspension and debarment for vendors receiving grant funds in excess of $25,000. Management?s Response: Whenever the City has a State or Federal grant, we always ensure that the vendors we do business with are not debarred from receiving State or Federal money. In this instance, we were buying relatively small tracts of land from our local pizza shop owner, a private individual, and we did not realize that the same rules applied. We have since ascertained that this individual is in fact not debarred. Going forward, Finance will ensure all expenditures of this nature document that the vendors are not debarred individuals.
Federal agency: U.S. Department of Health and Human Services Federal program title: Health Centers Cluster Assistance Listing Number: 93.224/93.527 Award Period: Varying project and budget periods: 2/1/21 – 1/31/22, 2/1/22 – 1/31/23, 4/1/21 – 3/31/23 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: The Code of Federal Regulations section 200.214 requires the Center to follow the nonprocurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. The Organization should have policies and procedures in place to ensure contracts or subaward are not provided to third parties that are suspended or disbarred. Condition: During our testing, we noted the Organization had a proper policy around suspension and debarment, but was not able to provide documentation supporting the policy was followed for all vendors selected. Questioned costs: None. Context: In our testing covering three vendors, the Organization was not able to provide documentation supporting the Organization had followed its suspension and debarment policy. All vendors were checked against the exclusion list at the time of audit testing, and none were found to be suspended/debarred. Cause: Turnover in personnel at the Organization likely played a role, but the Organization was also focused on response to the COVID-19 pandemic at the time of vendor procurement. So timeliness was often most important in procuring vendors and related products/services. Effect: Without retaining documentation to support proper compliance with the Organization's policy, there is greater risk of noncompliance or inappropriate vendor selection. Recommendation: We recommend the Organization follow existing policy, but ensure procedures are in place to retain sufficient documentation to support review of vendors against federal exclusion list. View of responsible officials: No disagreement with the finding. Management will review procedures to ensure proper check of vendors is performed against federal exclusion list, and that documentation is maintained to support that review.
Federal agency: U.S. Department of Health and Human Services Federal program title: Health Centers Cluster Assistance Listing Number: 93.224/93.527 Award Period: Varying project and budget periods: 2/1/21 – 1/31/22, 2/1/22 – 1/31/23, 4/1/21 – 3/31/23 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: The Code of Federal Regulations section 200.214 requires the Center to follow the nonprocurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. The Organization should have policies and procedures in place to ensure contracts or subaward are not provided to third parties that are suspended or disbarred. Condition: During our testing, we noted the Organization had a proper policy around suspension and debarment, but was not able to provide documentation supporting the policy was followed for all vendors selected. Questioned costs: None. Context: In our testing covering three vendors, the Organization was not able to provide documentation supporting the Organization had followed its suspension and debarment policy. All vendors were checked against the exclusion list at the time of audit testing, and none were found to be suspended/debarred. Cause: Turnover in personnel at the Organization likely played a role, but the Organization was also focused on response to the COVID-19 pandemic at the time of vendor procurement. So timeliness was often most important in procuring vendors and related products/services. Effect: Without retaining documentation to support proper compliance with the Organization's policy, there is greater risk of noncompliance or inappropriate vendor selection. Recommendation: We recommend the Organization follow existing policy, but ensure procedures are in place to retain sufficient documentation to support review of vendors against federal exclusion list. View of responsible officials: No disagreement with the finding. Management will review procedures to ensure proper check of vendors is performed against federal exclusion list, and that documentation is maintained to support that review.
Federal agency: U.S. Department of Health and Human Services Federal program title: Health Centers Cluster Assistance Listing Number: 93.224/93.527 Award Period: Varying project and budget periods: 2/1/21 – 1/31/22, 2/1/22 – 1/31/23, 4/1/21 – 3/31/23 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: The Code of Federal Regulations section 200.214 requires the Center to follow the nonprocurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. The Organization should have policies and procedures in place to ensure contracts or subaward are not provided to third parties that are suspended or disbarred. Condition: During our testing, we noted the Organization had a proper policy around suspension and debarment, but was not able to provide documentation supporting the policy was followed for all vendors selected. Questioned costs: None. Context: In our testing covering three vendors, the Organization was not able to provide documentation supporting the Organization had followed its suspension and debarment policy. All vendors were checked against the exclusion list at the time of audit testing, and none were found to be suspended/debarred. Cause: Turnover in personnel at the Organization likely played a role, but the Organization was also focused on response to the COVID-19 pandemic at the time of vendor procurement. So timeliness was often most important in procuring vendors and related products/services. Effect: Without retaining documentation to support proper compliance with the Organization's policy, there is greater risk of noncompliance or inappropriate vendor selection. Recommendation: We recommend the Organization follow existing policy, but ensure procedures are in place to retain sufficient documentation to support review of vendors against federal exclusion list. View of responsible officials: No disagreement with the finding. Management will review procedures to ensure proper check of vendors is performed against federal exclusion list, and that documentation is maintained to support that review.
Finding No.: 2022-012 Pass-Through Entity: Republic of the Marshall Islands Federal Agency: U.S. Department of the Interior AL Program: 15.875 Economic, Social and Political Development of the Territories Federal Award No.: Compact of Free Association Program, As Amended Area: Procurement and Suspension and Debarment Questioned Costs: $112,538 Criteria: Under the terms of the sub-awards administered by RepMar under the Compact of Free Association grant awards, RepMar authorizes the College to use its own procedures for procurement provided they meet the RepMar Procurement Code. RepMar’s Procurement Code states the following: (a) Section 126.7 - Award shall be made to the responsible offeror whose proposal is determined in writing to be the most advantageous to the Government taking into consideration price and the evaluation factors set forth in the Request for Proposals. No other factors or criteria shall be used in the evaluation. The contract file shall contain the basis on which the award is made. (b) Section 127 - Procurement of goods and services not exceeding $25,000 may be made in accordance with small purchase procedures promulgated by RepMar’s Policy Office. Small purchase procedures are those relatively simple and informal methods for securing services, supplies, or other property that do not cost more than $25,000. RepMar’s Ministry of Finance has previously declared that if small purchase procedures are used, price or rate quotations shall be obtained from an adequate number of qualified sources. (c) Section 128 - a contract may be awarded for supply, service, or construction item without competition when it is determined in writing that there is only one source for the required supply, service, or construction item. (d) Section 129 - Notwithstanding any other provision of this Chapter, the Chief Procurement Officer, the head of a Purchasing Agency, or a designee of either officer may make or authorize others to make emergency procurement when there exists a threat to public health, welfare, or safety under emergency conditions as defined in regulations promulgated by the Policy Office; provided, that such emergency procurement shall be made with such competition as is practicable under the circumstances. 2 CFR 200.318(h) states that the recipient or subrecipient must award contracts only to responsible contractors that possess the ability to perform successfully under the terms and conditions of a proposed contract. The recipient or subrecipient must consider contractor integrity, public policy compliance, proper classification of employees, past performance record, and financial and technical resources when conducting a procurement transaction. 2 CFR 200.214 states that recipients and subrecipients are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, as well as 2 CFR part 180. The regulations in 2 CFR part 180 restrict making Federal awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from receiving or participating in Federal awards. 2 CFR 180.300 states that when an entity enters into a covered transaction with another person at the next lower tier, the entity must verify that the person with whom the entity intends to do business is not excluded or disqualified by doing the following: (a) Checking SAM.gov Exclusions; or (b) Collecting a certification from that person; or (c) Adding a clause or condition to the covered transaction with that person. 2 CFR 200.320 states that for micro-purchases, to the extent practicable, the recipient or subrecipient should distribute micro-purchases equitably among qualified suppliers. Per OMB Compliance Supplement April 2022, a non-federal entity must perform a cost or price analysis in connection with every procurement action more than the simplified acquisition threshold, including contract modifications, and that analysis supported the procurement action (2 CFR section 200.323 and 48 CFR section 15.404-3). 48 CFR section 15.404-3 states that: (a) The contracting officer is responsible for the determination of a fair and reasonable price for the prime contract, including subcontracting costs. The contracting officer should consider whether a contractor or subcontractor has an approved purchasing system, has performed cost or price analysis of proposed subcontractor prices, or has negotiated the subcontract prices before negotiation of the prime contract, in determining the reasonableness of the prime contract price. This does not relieve the contracting officer from the responsibility to analyze the contractor's submission, including subcontractor's certified cost or pricing data. (b) The prime contractor or subcontractor shall: (1) conduct appropriate cost or price analyses to establish the reasonableness of proposed subcontract prices; (2) include the results of these analyses in the price proposal; and (3) when required by paragraph (c) of this subsection, submit subcontractor certified cost or pricing data to the Government as part of its own certified cost or pricing data. 2 CFR 200.303(a) states that the subrecipient must establish, document, and maintain effective internal control over the Federal award that provides reasonable assurance that the subrecipient is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should align with the guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control-Integrated Framework” issued by the COSO. Condition: For six (or 75%) of eight items, aggregating $121,524 in total non-payroll expenditures, supporting procurement documentation was not sufficient to substantiate compliance with the procurement method, as follows: Item # PO # PO Amount Description FY 2022 Expenditures Questioned Costs 1 21-PO-1165 $6,781 Materials and supplies $ 6,781 $ 6,781 2 22-PO-2494 $3,717 Representation and entertainment 3,717 3,717 3 , 4 22-PO-2949/ 22-PO-3402 $73,063 Minor repairs and maintenance 73,063 73,063 5 22-PO-3458 $24,750 Repair – vehicles or equipment 24,750 24,750 6 22-PO-2166 $10,000 Repair – vehicles or equipment 4,227 4,227 $112,538 $112,538 For item # 1, there was no vendor quotations on file. For item #s 2, 5 and 6, there were no adequate vendor quotations on file. were no documentation on file to support compliance with 48 CFR section 15.404-3. Moreover, the College has no internal control policies and procedures over verification that an entity with which the College plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded. Cause: The College did not follow internal control policies and procedures over documentation of the procurement process to satisfy compliance with the applicable procurement requirements. Furthermore, the College lacks internal control policies and procedures over 1) verification that an entity with which the College plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded; 2) distribution of micro-purchases equitably among qualified suppliers; 3) compliance with 48 CFR section 15.404-3. Effect: The College is not in compliance with the applicable procurement requirements. The total questioned cost is $112,538. Identified as a Repeat Finding: 2021-009 Recommendation: Responsible personnel should ensure that documentation is adequate to comply with the applicable procurement requirements. Specifically, documentation should indicate the history of procurement, including the solicitation process and rationale for contractors or vendor selection. Furthermore, the College should establish internal control policies and procedures over 1) verification that an entity with which the College plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded; 2) distribution of micro-purchases equitably among qualified suppliers; 3) compliance with 48 CFR section 15.404-3. Views of Auditee and Planned Corrective Actions: The College agrees with the finding and provides details in its Corrective Action Plan.
Finding No.: 2022-022 Federal Agency: U.S. Department of Education Federal Award No.: COVID-19 P425E204126 AL Sub-Program: 84.425F HEERF - Institutional Portion Federal Award No.: COVID-19 P425F202732 AL Sub-Program: 84.425L HEERF - Minority Serving Institution Federal Award No.: COVID-19 P425L200219 Area: Procurement and Suspension and Debarment Questioned Costs: $3,318,665 Criteria: Under the terms of the sub-awards administered by RepMar under the Compact of Free Association grant awards, RepMar authorizes the College to use its own procedures for procurement provided they meet the RepMar Procurement Code. RepMar’s Procurement Code states the following: (a) Section 126.7 - Award shall be made to the responsible offeror whose proposal is determined in writing to be the most advantageous to the Government taking into consideration price and the evaluation factors set forth in the Request for Proposals. No other factors or criteria shall be used in the evaluation. The contract file shall contain the basis on which the award is made. (b) Section 127 - Procurement of goods and services not exceeding $25,000 may be made in accordance with small purchase procedures promulgated by RepMar’s Policy Office. Small purchase procedures are those relatively simple and informal methods for securing services, supplies, or other property that do not cost more than $25,000. RepMar’s Ministry of Finance has previously declared that if small purchase procedures are used, price or rate quotations shall be obtained from an adequate number of qualified sources. (c) Section 128 - a contract may be awarded for supply, service, or construction item without competition when it is determined in writing that there is only one source for the required supply, service, or construction item. (d) Section 129 - Notwithstanding any other provision of this Chapter, the Chief Procurement Officer, the head of a Purchasing Agency, or a designee of either officer may make or authorize others to make emergency procurement when there exists a threat to public health, welfare, or safety under emergency conditions as defined in regulations promulgated by the Policy Office; provided, that such emergency procurement shall be made with such competition as is practicable under the circumstances. 2 CFR 200.318(h) states that the recipient or subrecipient must award contracts only to responsible contractors that possess the ability to perform successfully under the terms and conditions of a proposed contract. The recipient or subrecipient must consider contractor integrity, public policy compliance, proper classification of employees, past performance record, and financial and technical resources when conducting a procurement transaction. 2 CFR 200.214 states that recipients and subrecipients are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, as well as 2 CFR part 180. The regulations in 2 CFR part 180 restrict making Federal awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from receiving or participating in Federal awards. 2 CFR 180.300 states that when an entity enters into a covered transaction with another person at the next lower tier, the entity must verify that the person with whom the entity intends to do business is not excluded or disqualified by doing the following: (a) Checking SAM.gov Exclusions; or (b) Collecting a certification from that person; or (c) Adding a clause or condition to the covered transaction with that person. 2 CFR 200.319 states that: (a) All procurement transactions under the Federal award must be conducted in a manner that provides full and open competition and is consistent with the standards of this section and § 200.320. (c) (6) Examples of situations that may restrict competition include specifying only a “brand name” product instead of allowing “an equal” product to be offered and describing the performance or other relevant requirements of the procurement. (d) (2) The recipient or subrecipient must have written procedures for procurement transactions. These procedures must ensure that all solicitations incorporate a clear and accurate description of the technical requirements for the property, equipment, or service being procured. The description may include a statement of the qualitative nature of the property, equipment, or service to be procured. When necessary, the description must provide minimum essential characteristics and standards to which the property, equipment, or service must conform. Detailed product specifications should be avoided if at all possible. When it is impractical or uneconomical to clearly and accurately describe the technical requirements, a “brand name or equivalent” description of features may be used to provide procurement requirements. The specific features of the named brand must be clearly stated. 2 CFR 200.320 states that there are specific circumstances in which the recipient or subrecipient may use a noncompetitive procurement method. The noncompetitive procurement method may only be used if one of the following circumstances applies: (1) The aggregate amount of the procurement transaction does not exceed the micro-purchase threshold (see paragraph (a)(1) of this section); (2) The procurement transaction can only be fulfilled by a single source; (3) The public exigency or emergency for the requirement will not permit a delay resulting from providing public notice of a competitive solicitation; (4) The recipient or subrecipient requests in writing to use a noncompetitive procurement method, and the Federal agency or pass-through entity provides written approval; or (5) After soliciting several sources, competition is determined inadequate. 2 CFR 200.320 states that for micro-purchases, to the extent practicable, the recipient or subrecipient should distribute micro-purchases equitably among qualified suppliers. Per OMB Compliance Supplement April 2022, a non-federal entity must perform a cost or price analysis in connection with every procurement action in excess of the simplified acquisition threshold, including contract modifications, and that analysis supported the procurement action (2 CFR section 200.323 and 48 CFR section 15.404-3). 48 CFR section 15.404-3 states that: (a) The contracting officer is responsible for the determination of a fair and reasonable price for the prime contract, including subcontracting costs. The contracting officer should consider whether a contractor or subcontractor has an approved purchasing system, has performed cost or price analysis of proposed subcontractor prices, or has negotiated the subcontract prices before negotiation of the prime contract, in determining the reasonableness of the prime contract price. This does not relieve the contracting officer from the responsibility to analyze the contractor's submission, including subcontractor's certified cost or pricing data. (b) The prime contractor or subcontractor shall: (1) conduct appropriate cost or price analyses to establish the reasonableness of proposed subcontract prices; (2) include the results of these analyses in the price proposal; and (3) when required by paragraph (c) of this subsection, submit subcontractor certified cost or pricing data to the Government as part of its own certified cost or pricing data. 2 CFR 200.303(a) states that the subrecipient must establish, document, and maintain effective internal control over the Federal award that provides reasonable assurance that the subrecipient is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should align with the guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control-Integrated Framework” issued by the COSO. Conditions: Of twenty-one items, aggregating $3,218,880 of $10,113,117 in total non-payroll expenditures, deficiencies were noted, as follows: 1. For 1 item (or 5%), procurement did not provide full and open competition in the solicitation process. The invitation to bid (ITB) specified particular models, including a requirement for a specific “brand name” product instead of allowing “an equal” product to be offered. Furthermore, for solicitation with brand name indicated, solicitation did not include “brand name or equivalent” description in the ITB. Furthermore, there was no documentation on file to support compliance with 48 CFR section 15.404-3. Item # PO # Contract Amount Description FY 2022 Expenditures Questioned Cost 1 No PO $1,593,397 Small tools $1,115,378 $1,115,378 2. For 1 item (or 5%), procurement was sole sourced with written justification but does not appear to be justified. Furthermore, there was no documentation on file to support compliance with 48 CFR section 15.404-3. Item # PO # PO Amount Description FY 2022 Expenditures Questioned Cost 2 21-PO-2102 $622,423 Small tools $622,423 $622,423 3. For 13 items (or 62%), supporting procurement documentation was not sufficient to substantiate compliance with procurement method: Item # PO # PO Amount Description FY 2022 Expenditures Questioned Cost 3 No PO No PO Charter $ 14,174 $ 14,174 4 21-PO-1866 $19,422 Small Tools 19,422 19,422 5 22-PO-3676 $22,984 Subscriptions/Periodicals 22,984 22,984 6 22-PO-3677 $22,440 Subscriptions/Periodicals 22,440 22,440 7 22-PO-3366 $7,390 Subscriptions/Periodicals 7,390 7,390 8 22-PO-3321 $46,179 Subscriptions/Periodicals 46,179 46,179 9 21-PO-897 $101,663 Subscriptions/Periodicals 13,175 13,175 10 22-PO-3309 $4,225 Subscriptions/Periodicals 4,225 4,225 11 22-PO-3241 $14,000 Subscriptions/Periodicals 14,000 14,000 12 22-PO-3488 $7,631 Subscriptions/Periodicals 7,631 7,631 13 22-PO-3549 $12,200 Subscriptions/Periodicals 12,200 12,200 14 22-PO-3777 $4,550 Subscriptions/Periodicals 4,550 4,550 15 22-PO-2461 $3,779 Small Tools 3,779 3,779 $192,149 $192,149 For item #s 3, 5 through 6, and 8 through 14, there were no vendor quotations on file. For item #s 7 and 15, vendor solicitation is inadequate. For item #4, selected vendor is not the lowest bidder, and no justification of vendor selection was on file. For item #8, there was no documentation on file to support compliance with 48 CFR section 15.404-3. 4. For an additional 3 items (or 14%), there was no documentation on file to support compliance with 48 CFR section 15.404-3: Item # Contract Amount Description FY 2022 Expenditures Questioned Cost 17 $958,368 Room and board $958,368 $958,368 18 $474,870 Room and board 430,347 430,347 19 $337,500 Vehicles 337,500 337,500 $1,726,215 $1,726,215 For item # 19, no questioned cost is reported at this finding as questioned cost is reported and included at finding # 2022-019. Moreover, the College has no internal control policies and procedures over verification that an entity with which the College plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded. Cause: The College did not follow internal control policies and procedures over documentation of the procurement process to satisfy compliance with the applicable procurement requirements. Furthermore, the College lacks internal control policies and procedures over 1) verification that an entity with which the College plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded; 2) distribution of micro-purchases equitably among qualified suppliers; 3) compliance with 48 CFR section 15.404-3. Effect: The College is not in compliance with the applicable procurement requirements. The total questioned cost is $3,318,665. Identified as a Repeat Finding: 2021-016 Recommendation: Responsible personnel should ensure that documentation is adequate to comply with the applicable procurement requirements. Specifically, documentation should indicate the history of procurement, including the solicitation process and rationale for contractors or vendor selection. Furthermore, the College should establish internal control policies and procedures over 1) verification that an entity with which the College plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded; 2) distribution of micro-purchases equitably among qualified suppliers; 3) compliance with 48 CFR section 15.404-3. Views of Auditee and Planned Corrective Actions: The College agrees with the finding and provides details in its Corrective Action Plan.
Assistance listing program: Education Stabilization Fund - Higher Education Emergency Relief Fund (HEERF) Assistance Listing Number: 84.425F Award identification number: P425F204999 Award period: September 29, 2020 to June 30, 2023 Federal agency: U.S. Department of Education Pass-through entity: N/A Category: Internal Control / Compliance Finding Type: Material Weakness Compliance requirement: Procurement, and suspension and debarment Condition and context In testing compliance and internal controls over the procurement, and suspension and debarment requirement, we tested the procurement documentation related to the expenditures selected for the allowable cost / cost principles test (see Finding No. 2022-006). Of the ten (10) transactions selected, nine (9) transactions required compliance with this requirement. We noted that those nine (9) transactions, which amounted to $164,592, were related to seven (7) procurement transactions. Our sample was not a statistically valid sample. During our test, we noted the following deficiencies: a) In one of seven (7) procurement transactions tested (14%), no quotes were available for examination. The Institution indicated that they followed the micro purchase threshold of $10,000 as defined in 48CFR Part 2, subpart 2.1. However, this determination was not properly documented. b) In one of seven (7) procurement transactions tested (14%), only two quotes were available for examination. As per inquiry to the Institution?s management no other quotes were requested. c) In five of seven (7) procurement transactions tested (72%), only one quote was available for examination. As per inquiry to the Institution?s management no other quotes were requested. Condition and context d) For five (5) of the seven (7) procurement transactions tested (71%), a suspension and debarred verification requirement was applicable. For 100% of those five (5) transactions no evidence was provided that the Institution verified the contractors were not debarred, suspended, or otherwise excluded (2 CFR sections 200.212 and 200.318(h); 2 CFR section 180.300; 48 CFR section 52.209-6). However, on March 20, 2023 we performed an inquiry in the Sam system and no records of exclusion were found for those contractors. Criteria 2 CFR 200.303 (a) to (d) establish that the non-Federal entity must: (a) Establish and maintain effective internal control over the Federal awards that provides reasonable assurance that the non-Federal entity is managing the Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework,? issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). (b) Comply with the U.S. Constitution, Federal statutes, regulations, and the terms and conditions of the Federal awards. (c) Evaluate and monitor the non-Federal entity's compliance with statutes, regulations and the terms and conditions of Federal awards. (d) Take prompt action when instances of noncompliance are identified including noncompliance identified in audit findings. 2 CFR 200.318 (i) establishes that the non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. 2 CFR 200.319 (a) establishes that all procurement transactions for the acquisition of property or services required under a Federal award must be conducted in a manner providing full and open competition consistent with the standards of this section and ? 200.320. 2 CFR 200.319 (d) establishes that the non-Federal entity must have written procedures for procurement transactions. These procedures must ensure that all solicitations: incorporate a clear and accurate description of the technical requirements for the material, product, or service to be procured. Such description must not, in competitive procurements, contain features which unduly restrict competition. The description may include a statement of the qualitative nature of the material, product, or service to be procured and, when necessary, must set forth those minimum essential characteristics and standards to which it must conform if it is to satisfy its intended use. Detailed product specifications should be avoided if at all possible. When it is impractical or uneconomical to make a clear and accurate description of the technical requirements, a ?brand name or equivalent? description may be used as a means to define the performance or other salient requirements of procurement. The specific features of the named brand which must be met by offers must be clearly stated; and identify all requirements which the offerors must fulfill and all other factors to be used in evaluating bids or proposals. 2 CFR 200.319 (f) establishes that noncompetitive procurements can only be awarded in accordance with ? 200.320(c). 2 CFR 200.320 establishes that the non-Federal entity must have and use documented procurement procedures, consistent with the standards of this section and ?? 200.317, 200.318, and 200.319 for any of the methods of procurement used for the acquisition of property or services required under a Federal award or sub-award. 2 CFR 200.320 (a) (1) (ii) and (a) (2) (i) establish that micro-purchases may be awarded without soliciting competitive price or rate quotations if the non-Federal entity considers the price to be reasonable based on research, experience, purchase history or other information and documents it files accordingly. The acquisition of property or services, the aggregate dollar amount of which is higher than the micro-purchase threshold but does not exceed the simplified acquisition threshold. If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources as determined appropriate by the non-Federal entity. 2 CFR 200.320 (c) establishes that there are specific circumstances in which noncompetitive procurement can be used. Noncompetitive procurement can only be awarded if one or more of the following circumstances apply: (1) the acquisition of property or services, the aggregate dollar amount of which does not exceed the micro-purchase threshold (see paragraph (a)(1) of this section); (2) the item is available only from a single source; (3) the public exigency or emergency for the requirement will not permit a delay resulting from publicizing a competitive solicitation; (4) the Federal awarding agency or pass-through entity expressly authorizes a noncompetitive procurement in response to a written request from the non-Federal entity; or (5) after solicitation of a number of sources, competition is determined inadequate. 2 CFR 200.334 establishes that financial records, supporting documents, statistical records, and all other non-Federal entity records pertinent to a Federal award must be retained for a period of three years from the date of submission of the final expenditure report or, for Federal awards that are renewed quarterly or annually, from the date of the submission of the quarterly or annual financial report, respectively, as reported to the Federal awarding agency or pass-through entity in the case of a subrecipient. 2 CFR 200.318 (h) establishes that the non-Federal entity must award contracts only to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement. Consideration will be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources. 2 CFR 200.214 establishes that non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Cause Lack of written policies and procedures did not provide the Institution?s personnel responsible for the procurement process a guidance on how to perform and document the procurement transactions under this federal program. Also, the failure to implement adequate internal control procedures, such as thorough management review, which should detect and correct, on a timely basis, instances where controls are not being followed. Effect Noncompliance with the above-mentioned requirements could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. Also, above conditions could result in the reimbursement of federal funds to the grantors for those transactions not properly supported and/or in compliance with regulations. Questioned costs $158,693 Identification as a Repeat Finding No repeated finding. Recommendations The Institution should verify that its policies and procedures are in accordance with federal regulations requirements. In addition, the Institution should develop written procedures before entering into new federal programs or before incurring transactions subject to compliance with federal regulations to prevent and reduce the risk of non-compliance. Also, all procurement transactions must be properly documented to provide the appropriate audit trail of the transactions and allow proper review of the transactions. Adequate documentation should be sufficient to explain the Institution?s analysis and determination. The Institution?s personnel responsible for the management and processing of procurement transactions subject to federal regulations must be provided adequate training and supervision. Views of Responsible Officials Refer to the Institutional comments included in the Corrective Action Plan.
Assistance listing program: Education Stabilization Fund - Higher Education Emergency Relief Fund (HEERF) Assistance Listing Number: 84.425F Award identification number: P425F204999 Award period: September 29, 2020 to June 30, 2023 Federal agency: U.S. Department of Education Pass-through entity: N/A Category: Internal Control / Compliance Finding Type: Material Weakness Compliance requirement: Procurement, and suspension and debarment Condition and context In testing compliance and internal controls over the procurement, and suspension and debarment requirement, we tested the procurement documentation related to the expenditures selected for the allowable cost / cost principles test (see Finding No. 2022-006). Of the ten (10) transactions selected, nine (9) transactions required compliance with this requirement. We noted that those nine (9) transactions, which amounted to $164,592, were related to seven (7) procurement transactions. Our sample was not a statistically valid sample. During our test, we noted the following deficiencies: a) In one of seven (7) procurement transactions tested (14%), no quotes were available for examination. The Institution indicated that they followed the micro purchase threshold of $10,000 as defined in 48CFR Part 2, subpart 2.1. However, this determination was not properly documented. b) In one of seven (7) procurement transactions tested (14%), only two quotes were available for examination. As per inquiry to the Institution?s management no other quotes were requested. c) In five of seven (7) procurement transactions tested (72%), only one quote was available for examination. As per inquiry to the Institution?s management no other quotes were requested. Condition and context d) For five (5) of the seven (7) procurement transactions tested (71%), a suspension and debarred verification requirement was applicable. For 100% of those five (5) transactions no evidence was provided that the Institution verified the contractors were not debarred, suspended, or otherwise excluded (2 CFR sections 200.212 and 200.318(h); 2 CFR section 180.300; 48 CFR section 52.209-6). However, on March 20, 2023 we performed an inquiry in the Sam system and no records of exclusion were found for those contractors. Criteria 2 CFR 200.303 (a) to (d) establish that the non-Federal entity must: (a) Establish and maintain effective internal control over the Federal awards that provides reasonable assurance that the non-Federal entity is managing the Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework,? issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). (b) Comply with the U.S. Constitution, Federal statutes, regulations, and the terms and conditions of the Federal awards. (c) Evaluate and monitor the non-Federal entity's compliance with statutes, regulations and the terms and conditions of Federal awards. (d) Take prompt action when instances of noncompliance are identified including noncompliance identified in audit findings. 2 CFR 200.318 (i) establishes that the non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. 2 CFR 200.319 (a) establishes that all procurement transactions for the acquisition of property or services required under a Federal award must be conducted in a manner providing full and open competition consistent with the standards of this section and ? 200.320. 2 CFR 200.319 (d) establishes that the non-Federal entity must have written procedures for procurement transactions. These procedures must ensure that all solicitations: incorporate a clear and accurate description of the technical requirements for the material, product, or service to be procured. Such description must not, in competitive procurements, contain features which unduly restrict competition. The description may include a statement of the qualitative nature of the material, product, or service to be procured and, when necessary, must set forth those minimum essential characteristics and standards to which it must conform if it is to satisfy its intended use. Detailed product specifications should be avoided if at all possible. When it is impractical or uneconomical to make a clear and accurate description of the technical requirements, a ?brand name or equivalent? description may be used as a means to define the performance or other salient requirements of procurement. The specific features of the named brand which must be met by offers must be clearly stated; and identify all requirements which the offerors must fulfill and all other factors to be used in evaluating bids or proposals. 2 CFR 200.319 (f) establishes that noncompetitive procurements can only be awarded in accordance with ? 200.320(c). 2 CFR 200.320 establishes that the non-Federal entity must have and use documented procurement procedures, consistent with the standards of this section and ?? 200.317, 200.318, and 200.319 for any of the methods of procurement used for the acquisition of property or services required under a Federal award or sub-award. 2 CFR 200.320 (a) (1) (ii) and (a) (2) (i) establish that micro-purchases may be awarded without soliciting competitive price or rate quotations if the non-Federal entity considers the price to be reasonable based on research, experience, purchase history or other information and documents it files accordingly. The acquisition of property or services, the aggregate dollar amount of which is higher than the micro-purchase threshold but does not exceed the simplified acquisition threshold. If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources as determined appropriate by the non-Federal entity. 2 CFR 200.320 (c) establishes that there are specific circumstances in which noncompetitive procurement can be used. Noncompetitive procurement can only be awarded if one or more of the following circumstances apply: (1) the acquisition of property or services, the aggregate dollar amount of which does not exceed the micro-purchase threshold (see paragraph (a)(1) of this section); (2) the item is available only from a single source; (3) the public exigency or emergency for the requirement will not permit a delay resulting from publicizing a competitive solicitation; (4) the Federal awarding agency or pass-through entity expressly authorizes a noncompetitive procurement in response to a written request from the non-Federal entity; or (5) after solicitation of a number of sources, competition is determined inadequate. 2 CFR 200.334 establishes that financial records, supporting documents, statistical records, and all other non-Federal entity records pertinent to a Federal award must be retained for a period of three years from the date of submission of the final expenditure report or, for Federal awards that are renewed quarterly or annually, from the date of the submission of the quarterly or annual financial report, respectively, as reported to the Federal awarding agency or pass-through entity in the case of a subrecipient. 2 CFR 200.318 (h) establishes that the non-Federal entity must award contracts only to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement. Consideration will be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources. 2 CFR 200.214 establishes that non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Cause Lack of written policies and procedures did not provide the Institution?s personnel responsible for the procurement process a guidance on how to perform and document the procurement transactions under this federal program. Also, the failure to implement adequate internal control procedures, such as thorough management review, which should detect and correct, on a timely basis, instances where controls are not being followed. Effect Noncompliance with the above-mentioned requirements could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. Also, above conditions could result in the reimbursement of federal funds to the grantors for those transactions not properly supported and/or in compliance with regulations. Questioned costs $158,693 Identification as a Repeat Finding No repeated finding. Recommendations The Institution should verify that its policies and procedures are in accordance with federal regulations requirements. In addition, the Institution should develop written procedures before entering into new federal programs or before incurring transactions subject to compliance with federal regulations to prevent and reduce the risk of non-compliance. Also, all procurement transactions must be properly documented to provide the appropriate audit trail of the transactions and allow proper review of the transactions. Adequate documentation should be sufficient to explain the Institution?s analysis and determination. The Institution?s personnel responsible for the management and processing of procurement transactions subject to federal regulations must be provided adequate training and supervision. Views of Responsible Officials Refer to the Institutional comments included in the Corrective Action Plan.
U.S. Department of Agriculture Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education Child Nutrition Cluster – CFDA 10.555 & 10.559 Significant Deficiency in Internal Controls Over Compliance Criteria: Per 2 CFR section 200.214, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: Suspension and debarment compliance is not verified for all covered transactions. Cause: Lack of appropriate oversight resulted in required debarment checks not being performed or the appropriate certifications signed by the vendors. Effect: Grant transactions are not supported adequately, and the School is at risk of awarding contracts to vendors not eligible to participate in federal awards programs. Questioned Costs: None Repeat Finding from Prior Year: Yes; Finding 2021-003. Recommendation: The School should implement procedures to document that all contractors under covered transactions that are performing services for the grant are not suspended or debarred. Views of Responsible Official: Management agrees with the finding.
U.S. Department of Agriculture Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education Child Nutrition Cluster – CFDA 10.555 & 10.559 Significant Deficiency in Internal Controls Over Compliance Criteria: Per 2 CFR section 200.214, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: Suspension and debarment compliance is not verified for all covered transactions. Cause: Lack of appropriate oversight resulted in required debarment checks not being performed or the appropriate certifications signed by the vendors. Effect: Grant transactions are not supported adequately, and the School is at risk of awarding contracts to vendors not eligible to participate in federal awards programs. Questioned Costs: None Repeat Finding from Prior Year: Yes; Finding 2021-003. Recommendation: The School should implement procedures to document that all contractors under covered transactions that are performing services for the grant are not suspended or debarred. Views of Responsible Official: Management agrees with the finding.
U.S. Department of Agriculture Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education Child Nutrition Cluster – CFDA 10.555 & 10.559 Significant Deficiency in Internal Controls Over Compliance Criteria: Per 2 CFR section 200.214, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: Suspension and debarment compliance is not verified for all covered transactions. Cause: Lack of appropriate oversight resulted in required debarment checks not being performed or the appropriate certifications signed by the vendors. Effect: Grant transactions are not supported adequately, and the School is at risk of awarding contracts to vendors not eligible to participate in federal awards programs. Questioned Costs: None Repeat Finding from Prior Year: Yes; Finding 2021-003. Recommendation: The School should implement procedures to document that all contractors under covered transactions that are performing services for the grant are not suspended or debarred. Views of Responsible Official: Management agrees with the finding.
U.S. Department of Agriculture Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education Child Nutrition Cluster – CFDA 10.555 & 10.559 Significant Deficiency in Internal Controls Over Compliance Criteria: Per 2 CFR section 200.214, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: Suspension and debarment compliance is not verified for all covered transactions. Cause: Lack of appropriate oversight resulted in required debarment checks not being performed or the appropriate certifications signed by the vendors. Effect: Grant transactions are not supported adequately, and the School is at risk of awarding contracts to vendors not eligible to participate in federal awards programs. Questioned Costs: None Repeat Finding from Prior Year: Yes; Finding 2021-003. Recommendation: The School should implement procedures to document that all contractors under covered transactions that are performing services for the grant are not suspended or debarred. Views of Responsible Official: Management agrees with the finding.
U.S. Department of Agriculture Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education Child Nutrition Cluster – ALN 10.553, 10.555 & 10.559 Significant Deficiency in Internal Controls and Compliance Finding Criteria: Per 2 CFR section 200.319, procurements must provide for full and open competition. Per 2 CFR section 200.214, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: A competitive procurement process, which includes suspension and debarment certifications, was not properly performed by the Town for the purchase of school lunch food products. Cause: The Town utilized vendors that were previously contracted in prior years without performing a current procurement and suspension and debarment verification. Effect: The Town is not in compliance with Federal procurement or suspension and debarment requirements. Questioned Costs: $342,999 Repeat Finding from Prior Year: No Recommendation: The Town should implement procedures to perform competitive procurements, which include suspension and debarment certification, for all applicable purchases of goods and services. Views of Responsible Official: Management agrees with the finding.
U.S. Department of Agriculture Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education Child Nutrition Cluster – ALN 10.553, 10.555 & 10.559 Significant Deficiency in Internal Controls and Compliance Finding Criteria: Per 2 CFR section 200.319, procurements must provide for full and open competition. Per 2 CFR section 200.214, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: A competitive procurement process, which includes suspension and debarment certifications, was not properly performed by the Town for the purchase of school lunch food products. Cause: The Town utilized vendors that were previously contracted in prior years without performing a current procurement and suspension and debarment verification. Effect: The Town is not in compliance with Federal procurement or suspension and debarment requirements. Questioned Costs: $342,999 Repeat Finding from Prior Year: No Recommendation: The Town should implement procedures to perform competitive procurements, which include suspension and debarment certification, for all applicable purchases of goods and services. Views of Responsible Official: Management agrees with the finding.
U.S. Department of Agriculture Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education Child Nutrition Cluster – ALN 10.553, 10.555 & 10.559 Significant Deficiency in Internal Controls and Compliance Finding Criteria: Per 2 CFR section 200.319, procurements must provide for full and open competition. Per 2 CFR section 200.214, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: A competitive procurement process, which includes suspension and debarment certifications, was not properly performed by the Town for the purchase of school lunch food products. Cause: The Town utilized vendors that were previously contracted in prior years without performing a current procurement and suspension and debarment verification. Effect: The Town is not in compliance with Federal procurement or suspension and debarment requirements. Questioned Costs: $342,999 Repeat Finding from Prior Year: No Recommendation: The Town should implement procedures to perform competitive procurements, which include suspension and debarment certification, for all applicable purchases of goods and services. Views of Responsible Official: Management agrees with the finding.
U.S. Department of Agriculture Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education Child Nutrition Cluster – ALN 10.553, 10.555 & 10.559 Significant Deficiency in Internal Controls and Compliance Finding Criteria: Per 2 CFR section 200.319, procurements must provide for full and open competition. Per 2 CFR section 200.214, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: A competitive procurement process, which includes suspension and debarment certifications, was not properly performed by the Town for the purchase of school lunch food products. Cause: The Town utilized vendors that were previously contracted in prior years without performing a current procurement and suspension and debarment verification. Effect: The Town is not in compliance with Federal procurement or suspension and debarment requirements. Questioned Costs: $342,999 Repeat Finding from Prior Year: No Recommendation: The Town should implement procedures to perform competitive procurements, which include suspension and debarment certification, for all applicable purchases of goods and services. Views of Responsible Official: Management agrees with the finding.
2022-001 U.S. Department of Agriculture Passed-through the Commonwealth of Massachusetts? Department of Elementary and Secondary Education Child Nutrition Cluster ? CFDA 10.553 & 10.555 COVID-19 ? Child Nutrition Cluster ? CFDA 10.555 Significant Deficiency in Internal Controls Criteria: Per 2 CFR section 200.319, procurements must provide for full and open competition. Per 2 CFR section 200.214, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: Procurement documentation could not be found in Department files related to purchases of pizza making supplies from a vendor. Cause: The School experienced turnover during the year and could not located the appropriate files. Effect: The District is not in compliance with Federal procurement, suspension and debarment requirements. Questioned Costs: None Repeat Finding from Prior Year: No Recommendation: The School should implement procedures to maintain documentation of all procurement procedures including bidding and suspension and debarment compliance. Views of Responsible Official: Management agrees with the finding.
2022-001 U.S. Department of Agriculture Passed-through the Commonwealth of Massachusetts? Department of Elementary and Secondary Education Child Nutrition Cluster ? CFDA 10.553 & 10.555 COVID-19 ? Child Nutrition Cluster ? CFDA 10.555 Significant Deficiency in Internal Controls Criteria: Per 2 CFR section 200.319, procurements must provide for full and open competition. Per 2 CFR section 200.214, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: Procurement documentation could not be found in Department files related to purchases of pizza making supplies from a vendor. Cause: The School experienced turnover during the year and could not located the appropriate files. Effect: The District is not in compliance with Federal procurement, suspension and debarment requirements. Questioned Costs: None Repeat Finding from Prior Year: No Recommendation: The School should implement procedures to maintain documentation of all procurement procedures including bidding and suspension and debarment compliance. Views of Responsible Official: Management agrees with the finding.