Prohibition on certain telecommunications and video surveillance equipment or services.
2024-007: Federal Transit Cluster – AL# 20.507, Procurement – Finding, Non-material Non-compliance Condition As award recipients of Federal Transit Administration (FTA) funds, the Company is required to include certain clauses in contracts funded by FTA funds. We noted that the Company did not include the required “prohibition on certain telecommunications and video surveillance services or equipment” clause and the “notification of legal matters” clause as required clauses in their procurement manual and did not contain these clauses in one contract tested. Criteria The FTA mandates that contracts funded with FTA awards must contain certain clauses related to prohibited vendors under the Code of Federal Regulations section 200.216 and requires contractors to notify the Company and the FTA of any current legal matters. Cause Lack of compliance with FTA contract regulations. Effect Contracts do not meet FTA contract regulations and are non-compliant. Recommendation We recommend that the Company incorporate these required FTA clauses in their procurement manual and their standard contracts to properly incorporate in any future FTA funded contracts. View of Responsible Officials Missing FTA clauses will be addressed via revisions/updates to all of GRTC’s solicitation and contract templates. As templates can often be edited by mistake, another tool to proof contracts is the “FTA Clause Matrix 2023 Applicability of Third Party Contract Provisions”. The current version of this matrix includes provision from 2 CFR 200, Master Agreement 30 (FY 23) and Circular 4220.1F. Procurement received this matrix during an NTI Procurement 101 training course December 2023. Referencing this matrix has been added as a step in project checklists.
2024-007: Federal Transit Cluster – AL# 20.507, Procurement – Finding, Non-material Non-compliance Condition As award recipients of Federal Transit Administration (FTA) funds, the Company is required to include certain clauses in contracts funded by FTA funds. We noted that the Company did not include the required “prohibition on certain telecommunications and video surveillance services or equipment” clause and the “notification of legal matters” clause as required clauses in their procurement manual and did not contain these clauses in one contract tested. Criteria The FTA mandates that contracts funded with FTA awards must contain certain clauses related to prohibited vendors under the Code of Federal Regulations section 200.216 and requires contractors to notify the Company and the FTA of any current legal matters. Cause Lack of compliance with FTA contract regulations. Effect Contracts do not meet FTA contract regulations and are non-compliant. Recommendation We recommend that the Company incorporate these required FTA clauses in their procurement manual and their standard contracts to properly incorporate in any future FTA funded contracts. View of Responsible Officials Missing FTA clauses will be addressed via revisions/updates to all of GRTC’s solicitation and contract templates. As templates can often be edited by mistake, another tool to proof contracts is the “FTA Clause Matrix 2023 Applicability of Third Party Contract Provisions”. The current version of this matrix includes provision from 2 CFR 200, Master Agreement 30 (FY 23) and Circular 4220.1F. Procurement received this matrix during an NTI Procurement 101 training course December 2023. Referencing this matrix has been added as a step in project checklists.
K-12 Emergency Relief Funds Assistance Listing Number 84.425D. Pass-through: N.C. Department of Public Instruction. Program Report Code 171 and 181. Grant Period - Year Ended June 30, 2023. Criteria: In accordance with 2 CFR Appendix II, certain provisions are required to be included with all construction contracts which are funded with federal awards, to include Equal Employment Opportunity (Part 200(C)) Davis-Bacon Act, (Part 200 (D)); Contract Work Hours and Safety Standards Act, (Part 200(F)); Prohibition on Certain Telecommunications and Video Surveillance Services or Equipment, (2 CFR 200.16; and Domestic Preferences for Procurements (2 CFR 200.322). Condition: Per review of the contract for the renovations to C.M. Eppes Middle School, the required provisions were not included in the contract. Cause: Internal controls over compliance with all direct and material compliance requirements were not adequately implemented to ensure that all construction contracts funded with federal awards include the provisions required by 2 CFR Appendix II. Effect: The grantor agency could disallow expenditures related to the construction contract. Questioned Costs: None. Recommendation: Internal controls over compliance with federal contstruction contract provisions should be designed and implemented so that a member of senior management monitors construction contracts to ensure that those contracts funded by federal awards contain the provisions required by 2 CFR Appendix II, 2 CFR 200.216, and 2 CFR 200.322. Views of responsible officials: Per discussion with Michael Hardy, Chief Finance Officer, on December 19, 2023, management agrees with the finding and will implement corrective action immediately.
K-12 Emergency Relief Funds Assistance Listing Number 84.425D. Pass-through: N.C. Department of Public Instruction. Program Report Code 171 and 181. Grant Period - Year Ended June 30, 2023. Criteria: In accordance with 2 CFR Appendix II, certain provisions are required to be included with all construction contracts which are funded with federal awards, to include Equal Employment Opportunity (Part 200(C)) Davis-Bacon Act, (Part 200 (D)); Contract Work Hours and Safety Standards Act, (Part 200(F)); Prohibition on Certain Telecommunications and Video Surveillance Services or Equipment, (2 CFR 200.16; and Domestic Preferences for Procurements (2 CFR 200.322). Condition: Per review of the contract for the renovations to C.M. Eppes Middle School, the required provisions were not included in the contract. Cause: Internal controls over compliance with all direct and material compliance requirements were not adequately implemented to ensure that all construction contracts funded with federal awards include the provisions required by 2 CFR Appendix II. Effect: The grantor agency could disallow expenditures related to the construction contract. Questioned Costs: None. Recommendation: Internal controls over compliance with federal contstruction contract provisions should be designed and implemented so that a member of senior management monitors construction contracts to ensure that those contracts funded by federal awards contain the provisions required by 2 CFR Appendix II, 2 CFR 200.216, and 2 CFR 200.322. Views of responsible officials: Per discussion with Michael Hardy, Chief Finance Officer, on December 19, 2023, management agrees with the finding and will implement corrective action immediately.
K-12 Emergency Relief Funds Assistance Listing Number 84.425D. Pass-through: N.C. Department of Public Instruction. Program Report Code 171 and 181. Grant Period - Year Ended June 30, 2023. Criteria: In accordance with 2 CFR Appendix II, certain provisions are required to be included with all construction contracts which are funded with federal awards, to include Equal Employment Opportunity (Part 200(C)) Davis-Bacon Act, (Part 200 (D)); Contract Work Hours and Safety Standards Act, (Part 200(F)); Prohibition on Certain Telecommunications and Video Surveillance Services or Equipment, (2 CFR 200.16; and Domestic Preferences for Procurements (2 CFR 200.322). Condition: Per review of the contract for the renovations to C.M. Eppes Middle School, the required provisions were not included in the contract. Cause: Internal controls over compliance with all direct and material compliance requirements were not adequately implemented to ensure that all construction contracts funded with federal awards include the provisions required by 2 CFR Appendix II. Effect: The grantor agency could disallow expenditures related to the construction contract. Questioned Costs: None. Recommendation: Internal controls over compliance with federal contstruction contract provisions should be designed and implemented so that a member of senior management monitors construction contracts to ensure that those contracts funded by federal awards contain the provisions required by 2 CFR Appendix II, 2 CFR 200.216, and 2 CFR 200.322. Views of responsible officials: Per discussion with Michael Hardy, Chief Finance Officer, on December 19, 2023, management agrees with the finding and will implement corrective action immediately.
K-12 Emergency Relief Funds Assistance Listing Number 84.425D. Pass-through: N.C. Department of Public Instruction. Program Report Code 171 and 181. Grant Period - Year Ended June 30, 2023. Criteria: In accordance with 2 CFR Appendix II, certain provisions are required to be included with all construction contracts which are funded with federal awards, to include Equal Employment Opportunity (Part 200(C)) Davis-Bacon Act, (Part 200 (D)); Contract Work Hours and Safety Standards Act, (Part 200(F)); Prohibition on Certain Telecommunications and Video Surveillance Services or Equipment, (2 CFR 200.16; and Domestic Preferences for Procurements (2 CFR 200.322). Condition: Per review of the contract for the renovations to C.M. Eppes Middle School, the required provisions were not included in the contract. Cause: Internal controls over compliance with all direct and material compliance requirements were not adequately implemented to ensure that all construction contracts funded with federal awards include the provisions required by 2 CFR Appendix II. Effect: The grantor agency could disallow expenditures related to the construction contract. Questioned Costs: None. Recommendation: Internal controls over compliance with federal contstruction contract provisions should be designed and implemented so that a member of senior management monitors construction contracts to ensure that those contracts funded by federal awards contain the provisions required by 2 CFR Appendix II, 2 CFR 200.216, and 2 CFR 200.322. Views of responsible officials: Per discussion with Michael Hardy, Chief Finance Officer, on December 19, 2023, management agrees with the finding and will implement corrective action immediately.