Reference Number: 2022-001 Prior Year Finding: Yes – 2021-001 Federal Agency: U.S. Department of Housing and Urban Development Pass-through Agency: Various Federal Program: Emergency Solutions Grant Program ALN Number: 14.231 Compliance Requirement: Procurement, Suspension and Debarment Type of Finding: Material Weakness, Noncompliance Criteria or specific requirement: As per § 200.318 General procurement standards. (a) The Non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in §§ 200.317 through 200.327. (d) 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. Condition: Based on our review of the Procurement compliance requirements, we noted that the Division has written procurement policies and competitive policies as required by CFR § 200.318 General procurement standards. We selected five (5) vendors for procurement Suspension and Debarment compliance testing of total population of 5 vendors subject to procurement and we were not provided with Procurement comparative bids therefore, we were unable: • To verify that the procurement method used was appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. • To Verify that procurements provide full and open competition (2 CFR section 200.319 and 48 CFR section 52.244-5). Cause: The Division did not ensured that as a non-Federal entity must have and must use documented procurement procedures, consistent with State, and local laws and regulations and the standards of §§ 200.318 through 200.327, for the acquisition of property or services required under a Federal award or subaward. Effect: The funding agency can reject the expenditures incurred by the Division on certain vendors where the Division must use procurement method appropriately based on the dollar amount and conditions specified in 2 CFR section 200.320. Questioned costs: Cannot be determined Recommendation: We recommend that the Division must: • Use documented procurement procedures, consistent with State, and local, laws and regulations and the standards, for the acquisition of property or services required under a federal award or subaward. • The Division must maintain records sufficient to detail the history of procurement. These records should 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. Views of responsible officials: The Division will work with Territorial Headquarters to document procedures as outlined in the Recommendations above. See corrective action plan.
Reference Number: 2022-001 Prior Year Finding: Yes – 2021-001 Federal Agency: U.S. Department of Housing and Urban Development Pass-through Agency: Various Federal Program: Emergency Solutions Grant Program ALN Number: 14.231 Compliance Requirement: Procurement, Suspension and Debarment Type of Finding: Material Weakness, Noncompliance Criteria or specific requirement: As per § 200.318 General procurement standards. (a) The Non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in §§ 200.317 through 200.327. (d) 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. Condition: Based on our review of the Procurement compliance requirements, we noted that the Division has written procurement policies and competitive policies as required by CFR § 200.318 General procurement standards. We selected five (5) vendors for procurement Suspension and Debarment compliance testing of total population of 5 vendors subject to procurement and we were not provided with Procurement comparative bids therefore, we were unable: • To verify that the procurement method used was appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. • To Verify that procurements provide full and open competition (2 CFR section 200.319 and 48 CFR section 52.244-5). Cause: The Division did not ensured that as a non-Federal entity must have and must use documented procurement procedures, consistent with State, and local laws and regulations and the standards of §§ 200.318 through 200.327, for the acquisition of property or services required under a Federal award or subaward. Effect: The funding agency can reject the expenditures incurred by the Division on certain vendors where the Division must use procurement method appropriately based on the dollar amount and conditions specified in 2 CFR section 200.320. Questioned costs: Cannot be determined Recommendation: We recommend that the Division must: • Use documented procurement procedures, consistent with State, and local, laws and regulations and the standards, for the acquisition of property or services required under a federal award or subaward. • The Division must maintain records sufficient to detail the history of procurement. These records should 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. Views of responsible officials: The Division will work with Territorial Headquarters to document procedures as outlined in the Recommendations above. See corrective action plan.
COMPLIANCE WITH LAWS AND REGULATIONS SINGIFICANT DIFFIENCNEY Public and Indian Housing Finding 2022-003 Statement of Condition: During the review of low rent disbursements, it was noted there was no review of contractors to ensure they were not debarred from working on federal projects. Criteria: I. PROCURMENT: 2 CFR section 200.317 requires a PHA to ensure non-federal entities are not prohibited from contracting with parties that are suspended or debarred. Perspective Information: The Commission did not have effective internal controls over procurement, suspension and debarment for the federal program. Questioned Costs: Unknown. Effect: The Commission is not in compliance with the requirements as outlined in the Procurement, Suspension and Debarment section above. Cause: Lack of controls over grant requirements. Recommendation: The Commission should implement policies and procedures to ensure all federal compliances are followed pertaining to Procurement, Suspension and Debarment. Management?s Response: Management will implement policies and procedures to ensure the Commission is in compliance with all grant requirements pertaining to the Public and Indian Housing Grant.
Criteria The non-federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity?s documented procurement procedures must conform to the procurement standards identified in ??200.317 through 200.327. Condition The County did not have a written federal procurement policy and procedures throughout the majority of FY2022. The County adopted a written policy, in agreement with 2CFR200.318(a), on August 9, 2022. As of September 30, 2022, the adopted policy had not been fully implemented. Cause The County was unable to internally reconcile disagreements in the language for inclusion in the federal procurement policy and procedures document, leading to a delay in the approval and implementation of a written procurement policy. Effect The County would be out of compliance with the required procurement activities for purchases. Questioned Costs There are no questioned costs related to finding 2022-001. This is a general finding, rather than a finding related to a specific program. Perspective Information The County began working on a draft version of the written procurement policy in FY2021. The process of researching federal procurement requirements and reconciling the final language took longer than expected. Upon the adoption of the policy on August 9, 2022, the County began the implementation process. Within the language of the adopted policy are provisions which shall be vetted and discussed prior to taking effect. Such policies are noted as taking effect no later than August 4, 2023. This finding represents a systematic problem (as opposed to an isolated event), which is actively being resolved. Identification of Repeat Findings This is not a repeat finding. Recommendation We recommend the County expedite the provisions subject to vetting and begin following the written federal procurement policy and procedures. Views of Responsible Officials We agree with the audit finding and are taking corrective action to fully implement the policy on or before August 4, 2023. The county has officially formed an audit committee composed of the nine elected officials. The audit committee will review the federal procurement policy to ensure complete implementation.
2022-001 Methods of Procurement Federal Agency: United States Department of Treasury Federal Program Name: Coronavirus State and Local Recovery Funds (CSLRF) Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLT-8694, 2021 Award Period: March 3, 2021 to December 31, 2025 Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of federal procurement guidelines. US Code ? 200.320 states that the non-Federal entity must have and use documented procurement procedures, consistent with the standards of ? 200.320 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. Condition: The County entered into a noncompetitive procurement contract with a vendor under specific circumstances for an emergency procurement. The County did not document the justification or approval of the noncompetitive emergency procurement. The County?s internal procurement policies state that deviations from standard purchasing procedures must be authorized and all such deviations will be documented and all emergency purchases shall be in a report to the Board of County Commissioners at its next regular Commission meeting. Context: One of five procurement contracts tested did not contain appropriate documentation supporting federal procurement requirements. Cause: The County did not follow their procurement policies and procedures to properly document the justification and approval of an emergency procurement transaction that was made using federal funding and requirements for noncompetitive emergency procurements. Effect: By not following federal regulations and the County?s procurement policy, the County could improperly enter into a contract that violates the requirements of CFR ? 200.320. Repeat Finding: No Recommendation: We recommend that the County review their policies and procedures to ensure that they are operating in a manner that follows federal procurement requirements and the County?s procurement policy. The creation and use of a standard procurement checklist would assist the County in documenting all requirements for each procurement that is entered into. Views of Responsible Officials: The Finance Department will work with County Management and Board Departments to ensure familiarity and understanding of the County?s procurement policies and procedures. Additionally, the County is working towards the implementation of a financial system which will improve the controls in place to help ensure compliance with procurement requirements. The Finance Department is also working on a financial policies document and will would with County Manager on a review of the County?s procurement policy.
Significant Deficiency 2 CFR ? 2400.101 gives regulatory effect to the Department of Housing and Urban Development for 2 CFR ? 200.302 (b) (6) and (7) which requires the Authority to establish written procedures for determining the allowability of costs in accordance with Subpart E - Cost Principles and the terms and conditions of the Federal award and establish written procedures to implement the requirements of ? 305 Payment. Additionally, 2 C.F.R. ? 2400.101 gives regulatory effect to the Department of Housing and Urban Development for 2 C.F.R. ? 200.318(a) which states the non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in ?? 200.317 through 200.327. Although the Authority did have written standard operating procedures requiring purchase orders, they did not have an approved purchase order or contract on file for 2 of the 50 purchases tested. Failure to have proper controls in place to ensure policies and procedures are being followed could result in unallowable costs and procurement noncompliance. The Authority should follow their written standard operating procedures and implement controls to ensure allowability of costs and procurement in accordance with federal grants.
2022-004 Significant Deficiency in Internal Controls over Compliance for Procurement, Suspension and Debarment Identification data: U.S. Department of Agriculture (USDA) Water and Waste Disposal Systems for Rural Communities ? grants, Assistance Listing No. 10.760 Criteria: Part 2 CFR 300.318 states that the non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in ?? 200.317 through 200.327. Additionally, the non-Federal entity must maintain written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award and administration of contracts. Condition and Context: The Village of Clearwater, Nebraska does not have a formal documented policy regarding procurement, suspension, and debarment transactions. Additionally, the Village does not have a written standards of conduct covering conflicts of interest and governing the performance of its employees engaged in the selection, award, and administration of contracts. Cause: A breakdown in the Village?s internal controls over procurement, suspension and debarment did not allow the Village to comply with the standards. Effect or potential effect: The control deficiency is a significant deficiency that may prevent the Village from complying with the procurement, suspension, and debarment requirements of the award agreements. Recommendation: The Village?s management and Board should develop formal written policies and procedures for procurement, suspension and debarment transactions. Additionally, the Village should adopt written standards of conduct covering conflicts of interest. Views of Responsible Officials: The Village of Clearwater, Nebraska?s management and Board will work on developing formal written procedures for procurement, suspension and debarment transactions. Additionally, the Village will adopt written standards of conduct covering conflicts of interest.
Finding 2022 ? 001: Procurement and Suspension and Debarment for Federal Programs Significant Deficiency, Internal Control Over Compliance Assistance Listing Number: 93.591 ? COVID-19 Family Violence Prevention and Services/State Domestic Violence Coalitions / 16.575 ? Crime Victim Assistance Federal Agency: Department of Health and Human Services / Department of Justice Award Year: 2022 Federal Award Identification: 2101MSSDVC, 2101MSSDC6, 2001MSSDC3 (ALN: 93.671) Pass-Through Entity: Mississippi Department of Health (ALN: 93.671 and 16.575) Criteria: In accordance with 2 CFR 200.303 (a), establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 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). The non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity?s documented procurement procedures must conform to the procurement standards identified in 2 CFR 200.317 through 200.327. In addition procedures should conform to those detailed in 2 CFR 180.300 through 180.325: ?Responsibilities of Participants Regarding Transactions Doing Business With Other Persons?. Condition: Although no instance of non-compliance were identified, MCADV does not have internal controls in place to ensure compliance with this requirement. Cause: MCADV?s internal control system was not properly designed to ensure that contracting with suspended or debarred parties is prevented. Further, documentation was not available to demonstrate that a procurement policy was in place to address cost and price analysis and vendor selections, where applicable, based on the method of procurement used. MCADV historically contracts with the same vendors year-over-year and did not review the list of suspended or debarred entities to ensure current vendors were not on the suspension or debarment list. Effect: Although no instances of noncompliance were identified, MCADV?s lack of internal control process related to procurement and suspension and debarment, could result in violation of the federal requirement. Questioned Costs: N/A. Identification As A Repeat Finding: Yes. Recommendations: We recommend developing a procurement policy to guide the selection of vendors, further this policy should require the periodic review of vendors against the federal list of suspensions and debarments published on the System for Award Management website at https://sam.gov/content/exclusions. Views Of Responsible Officials and Planned Corrective Action: MCADV will make the necessary correction for compliance. As a result of the finding, Wendy Mahoney will be responsible for developing a procurement policy to guide the selection of vendors. MCADV will ensure the policy includes the periodic review of those vendors against the federal list of suspensions and debarments published on the System for Award Management website at https://sam.gov/content/exclusions. Anticipated completion date: September 30, 2023.
Finding 2022 ? 001: Procurement and Suspension and Debarment for Federal Programs Significant Deficiency, Internal Control Over Compliance Assistance Listing Number: 93.591 ? COVID-19 Family Violence Prevention and Services/State Domestic Violence Coalitions / 16.575 ? Crime Victim Assistance Federal Agency: Department of Health and Human Services / Department of Justice Award Year: 2022 Federal Award Identification: 2101MSSDVC, 2101MSSDC6, 2001MSSDC3 (ALN: 93.671) Pass-Through Entity: Mississippi Department of Health (ALN: 93.671 and 16.575) Criteria: In accordance with 2 CFR 200.303 (a), establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 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). The non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity?s documented procurement procedures must conform to the procurement standards identified in 2 CFR 200.317 through 200.327. In addition procedures should conform to those detailed in 2 CFR 180.300 through 180.325: ?Responsibilities of Participants Regarding Transactions Doing Business With Other Persons?. Condition: Although no instance of non-compliance were identified, MCADV does not have internal controls in place to ensure compliance with this requirement. Cause: MCADV?s internal control system was not properly designed to ensure that contracting with suspended or debarred parties is prevented. Further, documentation was not available to demonstrate that a procurement policy was in place to address cost and price analysis and vendor selections, where applicable, based on the method of procurement used. MCADV historically contracts with the same vendors year-over-year and did not review the list of suspended or debarred entities to ensure current vendors were not on the suspension or debarment list. Effect: Although no instances of noncompliance were identified, MCADV?s lack of internal control process related to procurement and suspension and debarment, could result in violation of the federal requirement. Questioned Costs: N/A. Identification As A Repeat Finding: Yes. Recommendations: We recommend developing a procurement policy to guide the selection of vendors, further this policy should require the periodic review of vendors against the federal list of suspensions and debarments published on the System for Award Management website at https://sam.gov/content/exclusions. Views Of Responsible Officials and Planned Corrective Action: MCADV will make the necessary correction for compliance. As a result of the finding, Wendy Mahoney will be responsible for developing a procurement policy to guide the selection of vendors. MCADV will ensure the policy includes the periodic review of those vendors against the federal list of suspensions and debarments published on the System for Award Management website at https://sam.gov/content/exclusions. Anticipated completion date: September 30, 2023.
Finding 2022 ? 001: Procurement and Suspension and Debarment for Federal Programs Significant Deficiency, Internal Control Over Compliance Assistance Listing Number: 93.591 ? COVID-19 Family Violence Prevention and Services/State Domestic Violence Coalitions / 16.575 ? Crime Victim Assistance Federal Agency: Department of Health and Human Services / Department of Justice Award Year: 2022 Federal Award Identification: 2101MSSDVC, 2101MSSDC6, 2001MSSDC3 (ALN: 93.671) Pass-Through Entity: Mississippi Department of Health (ALN: 93.671 and 16.575) Criteria: In accordance with 2 CFR 200.303 (a), establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 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). The non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity?s documented procurement procedures must conform to the procurement standards identified in 2 CFR 200.317 through 200.327. In addition procedures should conform to those detailed in 2 CFR 180.300 through 180.325: ?Responsibilities of Participants Regarding Transactions Doing Business With Other Persons?. Condition: Although no instance of non-compliance were identified, MCADV does not have internal controls in place to ensure compliance with this requirement. Cause: MCADV?s internal control system was not properly designed to ensure that contracting with suspended or debarred parties is prevented. Further, documentation was not available to demonstrate that a procurement policy was in place to address cost and price analysis and vendor selections, where applicable, based on the method of procurement used. MCADV historically contracts with the same vendors year-over-year and did not review the list of suspended or debarred entities to ensure current vendors were not on the suspension or debarment list. Effect: Although no instances of noncompliance were identified, MCADV?s lack of internal control process related to procurement and suspension and debarment, could result in violation of the federal requirement. Questioned Costs: N/A. Identification As A Repeat Finding: Yes. Recommendations: We recommend developing a procurement policy to guide the selection of vendors, further this policy should require the periodic review of vendors against the federal list of suspensions and debarments published on the System for Award Management website at https://sam.gov/content/exclusions. Views Of Responsible Officials and Planned Corrective Action: MCADV will make the necessary correction for compliance. As a result of the finding, Wendy Mahoney will be responsible for developing a procurement policy to guide the selection of vendors. MCADV will ensure the policy includes the periodic review of those vendors against the federal list of suspensions and debarments published on the System for Award Management website at https://sam.gov/content/exclusions. Anticipated completion date: September 30, 2023.
Finding 2022 ? 001: Procurement and Suspension and Debarment for Federal Programs Significant Deficiency, Internal Control Over Compliance Assistance Listing Number: 93.591 ? COVID-19 Family Violence Prevention and Services/State Domestic Violence Coalitions / 16.575 ? Crime Victim Assistance Federal Agency: Department of Health and Human Services / Department of Justice Award Year: 2022 Federal Award Identification: 2101MSSDVC, 2101MSSDC6, 2001MSSDC3 (ALN: 93.671) Pass-Through Entity: Mississippi Department of Health (ALN: 93.671 and 16.575) Criteria: In accordance with 2 CFR 200.303 (a), establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 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). The non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity?s documented procurement procedures must conform to the procurement standards identified in 2 CFR 200.317 through 200.327. In addition procedures should conform to those detailed in 2 CFR 180.300 through 180.325: ?Responsibilities of Participants Regarding Transactions Doing Business With Other Persons?. Condition: Although no instance of non-compliance were identified, MCADV does not have internal controls in place to ensure compliance with this requirement. Cause: MCADV?s internal control system was not properly designed to ensure that contracting with suspended or debarred parties is prevented. Further, documentation was not available to demonstrate that a procurement policy was in place to address cost and price analysis and vendor selections, where applicable, based on the method of procurement used. MCADV historically contracts with the same vendors year-over-year and did not review the list of suspended or debarred entities to ensure current vendors were not on the suspension or debarment list. Effect: Although no instances of noncompliance were identified, MCADV?s lack of internal control process related to procurement and suspension and debarment, could result in violation of the federal requirement. Questioned Costs: N/A. Identification As A Repeat Finding: Yes. Recommendations: We recommend developing a procurement policy to guide the selection of vendors, further this policy should require the periodic review of vendors against the federal list of suspensions and debarments published on the System for Award Management website at https://sam.gov/content/exclusions. Views Of Responsible Officials and Planned Corrective Action: MCADV will make the necessary correction for compliance. As a result of the finding, Wendy Mahoney will be responsible for developing a procurement policy to guide the selection of vendors. MCADV will ensure the policy includes the periodic review of those vendors against the federal list of suspensions and debarments published on the System for Award Management website at https://sam.gov/content/exclusions. Anticipated completion date: September 30, 2023.
Identification of federal program: 21.027 Coronavirus State and Local Fiscal Recovery Funds Department of the Treasury Criteria or specific requirement: 21.027 Part 4 Compliance Supplement: Procurement - Recipients may use award funds to enter into contracts to procure goods and services necessary to implement one or more of the eligible purposes outlined in sections 602(c) and 603(c) of the Act and Treasury?s Interim Final Rule. As such, recipients are expected to have procurement policies and procedures in place that comply with the procurement standards outlined in the Uniform Guidance. All other entities under the program, including subrecipients of a state, must follow the procurement standards in 2 CFR 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR 200.320. Uniform Guidance 2 C.F.R 200.318 through 2 C.F.R. 200.327 200.318(a) The non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity?s documented procurement procedures must conform to the procurement standards identified in 200.317 through 200.327.200.318(i) The non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not 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. Condition: It was noted during the audit of fiscal year 2022 that although Skagway Traditional Council (STC) has documented procurement policies consistent with Uniform Guidance. STC did not maintain evidence that it followed its own documented procurement policy for procurements greater than the micro-purchase threshold. Cause: STC does not have an administrative process to ensure that the procurement documentation supporting purchases greater than the micro-purchase threshold are maintained in accordance with STCs procurement policies. Effect or potential effect: STC is out of compliance with Uniform Guidance procurement standards in fiscal year 2022. Questioned Costs: None. Context: For this program, four procurements were greater than STC?s micro-purchase threshold and all four were tested against STC?s procurement policy, of those four, none of them had documentation supporting STC following STC?s procurement policies. Identification of Repeat Finding: Not applicable. Recommendations: We recommend that as a part of STC?s internal control structure over compliance with Uniform Guidance, that STC prepare a checklist, reflective of STC?s approved procurement policies, that must be completed before procurements can be awarded and all documents supporting that checklist be filled together. Views of Responsible Officials: 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
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 No.: 2022-001 Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Entity: Guam Housing and Urban Renewal Authority AL Program: COVID-19 14.231 Emergency Solutions Grant Program Federal Award No.: E-20-SW-66-0001 Area: Procurement and Suspension and Debarment Questioned Cost: $1,095,000 Criteria: In accordance with applicable procurement and suspension and debarment requirements, the non-Federal entity must have and use documented procurement procedures, consistent with the Procurement Standards in 2 CFR ? 200.318-327, which require formal procurement methods when the procurement of goods or services exceeds the simplified acquisition threshold (i.e., $250,000). Condition: For one (or 20%) of five procurement transactions tested, aggregating $1,512K out of $1,519K in total non-payroll program expenditures, the small purchases method was used to procure rental of 40 rooms to be used as emergency shelters with an annual contract amount of $1,095K. Based on the contract amount, a formal procurement method should have been used in performing the procurement. Cause: Catholic Social Service (CSS) lacks controls over compliance with applicable procurement requirements. The procurement policy of CSS is not prepared in accordance with the Procurement Standards in 2 CFR 200.318-327, as it does not require formal procurement procedures for any transactions. Effect: CSS is in noncompliance with applicable procurement and suspension and debarment requirements. The total questioned cost is $1,095,000. Recommendation: CSS should establish and implement controls over compliance with applicable procurement and suspension and debarment requirements. CSS management should revisit its procurement policy for alignment with the Procurement Standards in 2 CFR 200.318-327. Views of responsible officials: CSS disagrees with the finding that CSS is in noncompliance with applicable procurement requirements cited in 2 CFR 200.318-327, resulting in a questioned cost of $1,095,000. The federal ESG-CV grant awarded to Guam Housing and Urban Renewal Authority (GHURA) to respond to the impact of COVID-19 pandemic provided waivers and alternative requirements, including greater flexibility, to establish expedited response actions to mitigate the spread of the coronavirus. Exhibit D of the sub-recipient agreement (SRA) provides for this reference of waivers and alternative requirements. Specifically, page 18 of Section III.F.8 of Exhibit D of the SRA states the following: ?8. Procurement. As provided by the CARES Act, the recipient may deviate from the applicable procurement standards (e.g., 24 CFR 576.407(c) and (f) and 2 CFR 200.317-200.326) when procuring goods and services to prevent, prepare for, and respond to coronavirus. If the recipient deviates from its procurement standards, then the recipient must establish alternative written procurement standards, and maintain documentation on the alternative procurement standards used to safeguard against fraud, waste, and abuse in the procurement of goods and services to prevent, prepare for, and respond to coronavirus. This alternative requirement is necessary to ensure the funds are used efficiently and effectively to prevent, prepare for, and respond to coronavirus. Notwithstanding this flexibility, the debarment and suspension regulations at 2 CFR part 180 and 2 CFR part 2424 apply as written.? The opening of a temporary emergency shelter for families and individuals who are homeless was deemed an emergency response to the coronavirus. CSS emphasizes that the focus of GHURA was to identify readily available units and obtain price quotations to stand up an emergency homeless shelter, and the ?small purchase method? would provide that information to expedite the procurement process. This process was communicated to GHURA, as well as outcome of surveys of available units, and recommendation for selection of site. CSS agrees on the recommendation to revisit CSS? procurement policy overall that would assure objectivity and cost efficiency in the purchase of goods and services, including aligning and/or adopting verbatim procurement requirements outlined in 2 CFR 200.318-327. Auditor response: The written communications between CSS and GHURA were not provided. Also, the procurement file lacks sufficient documentation to demonstrate that the use of the small purchase method was a deviation from its procurement standards or was used to safeguard against fraud, waste, and abuse. Based on the inspected procurement file, only one out of three suppliers had provided CSS a quotation. Given the high value of the procurement, CSS should have further solicited quotations from other suppliers or documented the rationale for not pursuing additional quotations from available suppliers.
Finding No.: 2022-001 Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Entity: Guam Housing and Urban Renewal Authority AL Program: COVID-19 14.231 Emergency Solutions Grant Program Federal Award No.: E-20-SW-66-0001 Area: Procurement and Suspension and Debarment Questioned Cost: $1,095,000 Criteria: In accordance with applicable procurement and suspension and debarment requirements, the non-Federal entity must have and use documented procurement procedures, consistent with the Procurement Standards in 2 CFR ? 200.318-327, which require formal procurement methods when the procurement of goods or services exceeds the simplified acquisition threshold (i.e., $250,000). Condition: For one (or 20%) of five procurement transactions tested, aggregating $1,512K out of $1,519K in total non-payroll program expenditures, the small purchases method was used to procure rental of 40 rooms to be used as emergency shelters with an annual contract amount of $1,095K. Based on the contract amount, a formal procurement method should have been used in performing the procurement. Cause: Catholic Social Service (CSS) lacks controls over compliance with applicable procurement requirements. The procurement policy of CSS is not prepared in accordance with the Procurement Standards in 2 CFR 200.318-327, as it does not require formal procurement procedures for any transactions. Effect: CSS is in noncompliance with applicable procurement and suspension and debarment requirements. The total questioned cost is $1,095,000. Recommendation: CSS should establish and implement controls over compliance with applicable procurement and suspension and debarment requirements. CSS management should revisit its procurement policy for alignment with the Procurement Standards in 2 CFR 200.318-327. Views of responsible officials: CSS disagrees with the finding that CSS is in noncompliance with applicable procurement requirements cited in 2 CFR 200.318-327, resulting in a questioned cost of $1,095,000. The federal ESG-CV grant awarded to Guam Housing and Urban Renewal Authority (GHURA) to respond to the impact of COVID-19 pandemic provided waivers and alternative requirements, including greater flexibility, to establish expedited response actions to mitigate the spread of the coronavirus. Exhibit D of the sub-recipient agreement (SRA) provides for this reference of waivers and alternative requirements. Specifically, page 18 of Section III.F.8 of Exhibit D of the SRA states the following: ?8. Procurement. As provided by the CARES Act, the recipient may deviate from the applicable procurement standards (e.g., 24 CFR 576.407(c) and (f) and 2 CFR 200.317-200.326) when procuring goods and services to prevent, prepare for, and respond to coronavirus. If the recipient deviates from its procurement standards, then the recipient must establish alternative written procurement standards, and maintain documentation on the alternative procurement standards used to safeguard against fraud, waste, and abuse in the procurement of goods and services to prevent, prepare for, and respond to coronavirus. This alternative requirement is necessary to ensure the funds are used efficiently and effectively to prevent, prepare for, and respond to coronavirus. Notwithstanding this flexibility, the debarment and suspension regulations at 2 CFR part 180 and 2 CFR part 2424 apply as written.? The opening of a temporary emergency shelter for families and individuals who are homeless was deemed an emergency response to the coronavirus. CSS emphasizes that the focus of GHURA was to identify readily available units and obtain price quotations to stand up an emergency homeless shelter, and the ?small purchase method? would provide that information to expedite the procurement process. This process was communicated to GHURA, as well as outcome of surveys of available units, and recommendation for selection of site. CSS agrees on the recommendation to revisit CSS? procurement policy overall that would assure objectivity and cost efficiency in the purchase of goods and services, including aligning and/or adopting verbatim procurement requirements outlined in 2 CFR 200.318-327. Auditor response: The written communications between CSS and GHURA were not provided. Also, the procurement file lacks sufficient documentation to demonstrate that the use of the small purchase method was a deviation from its procurement standards or was used to safeguard against fraud, waste, and abuse. Based on the inspected procurement file, only one out of three suppliers had provided CSS a quotation. Given the high value of the procurement, CSS should have further solicited quotations from other suppliers or documented the rationale for not pursuing additional quotations from available suppliers.
THE SALVATION ARMY USA, WESTERN TERRITORY, DEL ORO DIVISION SCHEDULE OF FINDINGS AND QUESTIONED COSTS SEPTEMBER 30, 2022 Reference Number: 2022-001 Prior Year Finding: No Federal Agency: U.S. Department of Housing and Urban Development State Agency: State of California- Department of Housing and Community Development Federal Program: Emergency Solutions Grant Program ALN Number: 14.231 Compliance Requirement: Procurement, Suspension and Debarment Type of Finding: Material Weakness, Noncompliance Criteria or specific requirement: As per ? 200.318 General procurement standards. (a) The Non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in ?? 200.317 through 200.327. (b) Non-Federal entities must maintain oversight to ensure that contractors perform in accordance with the terms, conditions, and specifications of their contracts or purchase orders. (d) 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. Condition: Based on our review of the Procurement compliance requirements, we noted that the Division has written procurement policies and competitive policies as required by CFR ? 200.318 General procurement standards. We selected two (2) vendors for procurement Suspension and Debarment compliance testing of total population of 2 vendors subject to procurement and we were not provided with Procurement comparative bids therefore, we were unable: ? To verify that the procurement method used was appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. ? To Verify that procurements provide full and open competition (2 CFR section 200.319 and 48 CFR section 52.244-5). Cause: The Division did not ensured that as a non-Federal entity must have and must use documented procurement procedures, consistent with State, and local laws and regulations and the standards of ?? 200.318 through 200.327, for the acquisition of property or services required under a Federal award or subaward. Effect: The funding agency can reject the expenditures incurred by the Division on certain vendors where the Division must use procurement method appropriately based on the dollar amount and conditions specified in 2 CFR section 200.320. Questioned costs: Cannot be determined Recommendation: We recommend that the Division must: (1) document procurement procedures, consistent with State, and local, laws and regulations and the standards, for the acquisition of property or services required under a federal award or subaward. (2) The Division?s documented procurement procedures must conform to the procurement standards identified in ?? 200.318 through 200.327. Views of responsible officials: The Division will work with Territorial Headquarters to document procedures as outlined in the Recommendations above. See corrective action plan.
THE SALVATION ARMY USA, WESTERN TERRITORY, DEL ORO DIVISION SCHEDULE OF FINDINGS AND QUESTIONED COSTS SEPTEMBER 30, 2022 Reference Number: 2022-001 Prior Year Finding: No Federal Agency: U.S. Department of Housing and Urban Development State Agency: State of California- Department of Housing and Community Development Federal Program: Emergency Solutions Grant Program ALN Number: 14.231 Compliance Requirement: Procurement, Suspension and Debarment Type of Finding: Material Weakness, Noncompliance Criteria or specific requirement: As per ? 200.318 General procurement standards. (a) The Non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in ?? 200.317 through 200.327. (b) Non-Federal entities must maintain oversight to ensure that contractors perform in accordance with the terms, conditions, and specifications of their contracts or purchase orders. (d) 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. Condition: Based on our review of the Procurement compliance requirements, we noted that the Division has written procurement policies and competitive policies as required by CFR ? 200.318 General procurement standards. We selected two (2) vendors for procurement Suspension and Debarment compliance testing of total population of 2 vendors subject to procurement and we were not provided with Procurement comparative bids therefore, we were unable: ? To verify that the procurement method used was appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. ? To Verify that procurements provide full and open competition (2 CFR section 200.319 and 48 CFR section 52.244-5). Cause: The Division did not ensured that as a non-Federal entity must have and must use documented procurement procedures, consistent with State, and local laws and regulations and the standards of ?? 200.318 through 200.327, for the acquisition of property or services required under a Federal award or subaward. Effect: The funding agency can reject the expenditures incurred by the Division on certain vendors where the Division must use procurement method appropriately based on the dollar amount and conditions specified in 2 CFR section 200.320. Questioned costs: Cannot be determined Recommendation: We recommend that the Division must: (1) document procurement procedures, consistent with State, and local, laws and regulations and the standards, for the acquisition of property or services required under a federal award or subaward. (2) The Division?s documented procurement procedures must conform to the procurement standards identified in ?? 200.318 through 200.327. Views of responsible officials: The Division will work with Territorial Headquarters to document procedures as outlined in the Recommendations above. See corrective action plan.
Finding No. 2022-012 Federal Agency: U.S. Department of Agriculture Assistance Listing No. and Title: 10.555 National School Lunch Program Area: Procurement and Suspension and Debarment Questioned Costs: $261,889 Criteria: § 2 CFR 200.317 provides that when procuring property and services, states must use the same policies and procedures they use for procurements from their non-federal funds. PSS Procurement Rules and Regulations Part § T60-40-210(b) provides that purchases not exceeding $500 may be made without securing bids or price quotations if the Chief of Procurement and Supply considers the price reasonable. Such determination shall be made in writing and shall indicate: (1) the reason why price quotations were not sought; (2) the utility of the purchase; (3) an explanation of why the price is reasonable under the circumstances. § T60-40-210(d) also provides that price quotations from at least three vendors must be obtained and the selection must be based on competitive price and quality for procurement valued at under $10,000. Any price quotations obtained must be written, documented, and submitted to the Chief of Procurement and Supply for approval. PSS Procurement Rules and Regulations Part § T60-40-225(a) Competitive Sealed Proposals provides that when the Commissioner of Education determines in writing upon the advice of legal counsel that the use of a competitive sealed bidding is either not practical or not advantageous to the Public School System, a contract may be entered into by competitive sealed proposals. § T60-40-225(c) further provides that adequate public notice of the request for proposals shall be given in the same manner as provided for in competitive sealed bids. Condition: Of 60 non-payroll transactions tested aggregating $263,083 of $14,119,504 in total program non-payroll expenditures, we noted the following: 1. For 2 (or 3%), Doc. Nos. 333590 and 28221, totaling $26, pertained to small purchases not exceeding $500 and for which no price quotations were made. No written determination of the reasonableness of price was provided in accordance with § T60-40-210(b). 2. For 2 (or 3%), Doc. Nos. 332318 and 333718, totaling $739 pertained to small purchases not exceeding $10,000 and for which no price quotations were obtained in accordance with § T60-40-210(d). Condition, continued: 3. For 1 (or 2%), Doc. No. 27345, amounting to $575, pertained to a small purchase not exceeding $10,000 and for which only 2 price quotations were obtained, instead of the 3 quotations required by § T60-40-210(d). 4. For 49 (or 82%), transactions totaling $260,549 were procured through competitive sealed proposals. Evidence was not provided showing that the Commissioner of Education has determined in writing that the procurement satisfies the condition for use of competitive sealed proposals in accordance with § T60-40-225(a). See Schedule of Findings and Questioned Costs for chart/table. Cause: PSS failed to effectively implement its procurement rules and regulations. Effect: PSS is in noncompliance with applicable procurement and suspension and debarment requirements. The reported questioned cost is $261,889. Recommendation: PSS should ensure compliance with its procurement rules and regulations. The Procurement and Supply office should implement additional controls to ensure that procurement documentation is complete in accordance with PSS Procurement Rules and Regulations § T60-40. PSS should also perform a regular review of its procurement rules and regulations to align with federal requirements on procurement. Views of responsible officials: The PSS Corrective Action Plan provides a detailed rationale for disagreement with the finding. Auditor response: Condition 1 – PSS’ procurement regulations in T60-40-210(b) specifically provides the information required to be made in writing by the Chief of Procurement and Supply, namely: (1) the reason why price quotations are sought, (2) the utility of the purchase; and (3) an explanation of why the price is reasonable under the circumstances. The supporting documents signed by the Chief of Procurement and Supply and the Commissioner of Education do not provide these representations. The condition remains. Condition 2 – Upon review of the supporting documents provided, only one vendor provided a supporting quotation. Evidence of effort to obtain the remaining two vendor quotations or justification of not being able to obtain additional quotations were not provided. The condition remains. Condition 3 – Upon review of the supporting documents provided, only two vendor quotations were sought. Evidence of effort to obtain the third vendor quotation or justification of not being able to obtain the additional quotation was not provided. The condition remains. Condition 4 – Ultimately, written communication from the Commissioner of Education for the condition for use of competitive sealed proposals is required in T60-40-225(a). The condition remains.
Finding No. 2022-013 Federal Agency: U.S. Department of Education Assistance Listing No. and Title: 84.027 Special Education – Grants to States (IDEA, Part B) Area: Procurement and Suspension and Debarment Questioned Costs: $105,959 Criteria: § 2 CFR 200.317 provides that when procuring property and services, states must use the same policies and procedures they use for procurements from their non-federal funds. PSS Procurement Rules and Regulations Part § T60-40-210(b) provides that purchases not exceeding $500 may be made without securing bids or price quotations if the Chief of Procurement and Supply considers the price reasonable. Such determination shall be made in writing and shall indicate: (1) the reason why price quotations were not sought; (2) the utility of the purchase; (3) an explanation of why the price is reasonable under the circumstances. § T60-40-210(d) also provides that price quotations from at least three vendors must be obtained and the selection must based on competitive price and quality for procurement valued at under $10,000. Any price quotations obtained must be written, documented, and submitted to the Chief of Procurement and Supply for approval. PSS Procurement Rules and Regulations Part § T60-40-225(a) Competitive Sealed Proposals provides that when the Commissioner of Education determines in writing upon the advice of legal counsel that the use of a competitive sealed bidding is either not practical or not advantageous to the Public School System, a contract may be entered into by competitive sealed proposals. Also, § T60-40-225(g) provides that after proposal evaluation, a notice of intent to award the contract to the responsible offeror whose proposal is determined in writing to be the most advantageous to PSS, taking into consideration price and the evaluation factors set forth in the request for proposals, shall be issued to all offerors. Condition: Of 60 non-payroll transactions tested aggregating $120,642 of $1,895,080 in total program non-payroll expenditures, we noted the following: 1. For 7 (or 12%), transactions totaling $1,356 pertained to small purchases not exceeding $500 and for which no price quotations were made. Evidence was not provided showing that a written determination of the reasonableness of price was performed in accordance with § T60-40-210(b). See Schedule of Findings and Questioned Costs for chart/table. 2. For 18 (or 30%) transactions totaling $104,603 pertained to procurements entered into by competitive sealed proposals. Evidence was not provided showing that the Commissioner of Education has determined in writing that the procurement satisfies the condition for use of competitive sealed proposals in accordance with § T60-40-225(a). Further, Notices of Intent to Award were not provided for the reason that there was only one proposer. § T60-40-225(g) does not discuss exemptions for instances where there is only one proposer. See Schedule of Findings and Questioned Costs for chart/table. Cause: PSS failed to effectively implement its procurement rules and regulations. Effect: PSS is in noncompliance with applicable procurement and suspension and debarment requirements. The reported questioned cost is $105,959. Recommendation: PSS should ensure compliance with its procurement rules and regulations. The Procurement and Supply office should implement additional controls to ensure that procurement documentation is complete in accordance with PSS Procurement Rules and Regulations § T60-40. PSS should also perform a regular review of its procurement rules and regulations to align with federal requirements on procurement. Views of responsible officials: The PSS Corrective Action Plan provides a detailed rationale for disagreement with the finding. Auditor response: Condition 1 – PSS’ procurement regulations in T60-40-210(b) specifically provides the information required to be made in writing by the Chief of Procurement and Supply, namely: (1) the reason why price quotations are sought, (2) the utility of the purchase; and (3) an explanation of why the price is reasonable under the circumstances. The supporting documents signed by the Chief of Procurement and Supply and the Commissioner of Education do not provide these representations. The condition remains. Condition 2 – Ultimately, written communication from the Commissioner of Education for the condition for use of competitive sealed proposals is required in T60-40-225(a). The condition remains.
Finding No. 2022-013 Federal Agency: U.S. Department of Education Assistance Listing No. and Title: 84.027 Special Education – Grants to States (IDEA, Part B) Area: Procurement and Suspension and Debarment Questioned Costs: $105,959 Criteria: § 2 CFR 200.317 provides that when procuring property and services, states must use the same policies and procedures they use for procurements from their non-federal funds. PSS Procurement Rules and Regulations Part § T60-40-210(b) provides that purchases not exceeding $500 may be made without securing bids or price quotations if the Chief of Procurement and Supply considers the price reasonable. Such determination shall be made in writing and shall indicate: (1) the reason why price quotations were not sought; (2) the utility of the purchase; (3) an explanation of why the price is reasonable under the circumstances. § T60-40-210(d) also provides that price quotations from at least three vendors must be obtained and the selection must based on competitive price and quality for procurement valued at under $10,000. Any price quotations obtained must be written, documented, and submitted to the Chief of Procurement and Supply for approval. PSS Procurement Rules and Regulations Part § T60-40-225(a) Competitive Sealed Proposals provides that when the Commissioner of Education determines in writing upon the advice of legal counsel that the use of a competitive sealed bidding is either not practical or not advantageous to the Public School System, a contract may be entered into by competitive sealed proposals. Also, § T60-40-225(g) provides that after proposal evaluation, a notice of intent to award the contract to the responsible offeror whose proposal is determined in writing to be the most advantageous to PSS, taking into consideration price and the evaluation factors set forth in the request for proposals, shall be issued to all offerors. Condition: Of 60 non-payroll transactions tested aggregating $120,642 of $1,895,080 in total program non-payroll expenditures, we noted the following: 1. For 7 (or 12%), transactions totaling $1,356 pertained to small purchases not exceeding $500 and for which no price quotations were made. Evidence was not provided showing that a written determination of the reasonableness of price was performed in accordance with § T60-40-210(b). See Schedule of Findings and Questioned Costs for chart/table. 2. For 18 (or 30%) transactions totaling $104,603 pertained to procurements entered into by competitive sealed proposals. Evidence was not provided showing that the Commissioner of Education has determined in writing that the procurement satisfies the condition for use of competitive sealed proposals in accordance with § T60-40-225(a). Further, Notices of Intent to Award were not provided for the reason that there was only one proposer. § T60-40-225(g) does not discuss exemptions for instances where there is only one proposer. See Schedule of Findings and Questioned Costs for chart/table. Cause: PSS failed to effectively implement its procurement rules and regulations. Effect: PSS is in noncompliance with applicable procurement and suspension and debarment requirements. The reported questioned cost is $105,959. Recommendation: PSS should ensure compliance with its procurement rules and regulations. The Procurement and Supply office should implement additional controls to ensure that procurement documentation is complete in accordance with PSS Procurement Rules and Regulations § T60-40. PSS should also perform a regular review of its procurement rules and regulations to align with federal requirements on procurement. Views of responsible officials: The PSS Corrective Action Plan provides a detailed rationale for disagreement with the finding. Auditor response: Condition 1 – PSS’ procurement regulations in T60-40-210(b) specifically provides the information required to be made in writing by the Chief of Procurement and Supply, namely: (1) the reason why price quotations are sought, (2) the utility of the purchase; and (3) an explanation of why the price is reasonable under the circumstances. The supporting documents signed by the Chief of Procurement and Supply and the Commissioner of Education do not provide these representations. The condition remains. Condition 2 – Ultimately, written communication from the Commissioner of Education for the condition for use of competitive sealed proposals is required in T60-40-225(a). The condition remains.
Finding No. 2022-014 Federal Agency: U.S. Department of Education Assistance Listing No. and Title: 84.403 Consolidated Grants to the Outlying Areas Area: Procurement and Suspension and Debarment Questioned Costs: $24,595 Criteria: § 2 CFR 200.317 provides that when procuring property and services, states must use the same policies and procedures they use for procurements from their non-federal funds. PSS Procurement Rules and Regulations Part § T60-40-210(b) provides that purchases not exceeding $500 may be made without securing bids or price quotations if the Chief of Procurement and Supply considers the price reasonable. Such determination shall be made in writing and shall indicate: (1) the reason why price quotations were not sought; (2) the utility of the purchase; (3) an explanation of why the price is reasonable under the circumstances. § T60-40-210(d) also provides that price quotations from at least three vendors must be obtained and the selection must based on competitive price and quality for procurement valued at under $10,000. Any price quotations obtained must be written, documented, and submitted to the Chief of Procurement and Supply for approval. PSS Procurement Rules and Regulations Part § T60-40-225 Competitive Sealed Proposals provides that when the Commissioner of Education determines in writing upon the advice of legal counsel that the use of a competitive sealed bidding is either not practical or not advantageous to PSS, a contract may be entered into by competitive sealed proposals. Condition: Of 60 non-payroll transactions tested aggregating $57,035 of $13,545,658 total program non-payroll expenditures: 1. For 18 (or 30%), transactions totaling $5,747 pertained to small purchases not exceeding $500 and for which no price quotations were made. No written determination of the reasonableness of price was provided in accordance with § T60-40-210(b). See Schedule of Findings and Questioned Costs for chart/table. 2. For 4 (or 7%), transactions totaling $18,848 pertained to procurements entered into by competitive sealed proposals. Evidence was not provided showing that the Commissioner of Education has determined in writing that the procurement satisfies the condition for use of competitive sealed proposals in accordance with § T60-40-225(a). See Schedule of Findings and Questioned Costs for chart/table. Cause: PSS failed to effectively implement its procurement rules and regulations. Effect: PSS is in noncompliance with applicable procurement and suspension and debarment requirements. The reportable questioned cost is $24,595 because the projected questioned cost exceeds the threshold. Recommendation: PSS should ensure compliance with its procurement rules and regulations. The Procurement and Supply office should implement additional controls to ensure that procurement documentation is complete in accordance with PSS Procurement Rules and Regulations § T60-40. PSS should also perform a regular review of its procurement rules and regulations to align with federal requirements on procurement. Views of responsible officials: The PSS Corrective Action Plan provides a detailed rationale for disagreement with the finding. Auditor response: Condition 1 – PSS’ procurement regulations in T60-40-210(b) specifically provides the information required to be made in writing by the Chief of Procurement and Supply, namely: (1) the reason why price quotations are sought, (2) the utility of the purchase; and (3) an explanation of why the price is reasonable under the circumstances. The supporting documents signed by the Chief of Procurement and Supply and the Commissioner of Education do not provide these representations. The condition remains. Condition 2 – Ultimately, written communication from the Commissioner of Education for the condition for use of competitive sealed proposals is required in T60-40-225(a). The condition remains.
2022-009 – Procurement Documentation Finding Type: Significant Deficiency in Internal Controls and Noncompliance (Procurement, Suspension & Debarment) Federal Program: U.S. Department of Treasury – Coronavirus State and Local Fiscal Recovery Funds (AL #21.027) Criteria: The Code of Federal Regulations (CFR) Section 200.318(a) requires non-Federal entities to establish and use documented procurement procedures that conform to the procurement standards identified in Sections 200.317 through 200.327. Condition: While the County does have a written procurement policy that meets the requirements, the policy was not being followed. The County did not maintain records sufficient to detail the history of procurement including the rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. The County did not maintain documentation to sufficiently support noncompetitive procurement on one contract tested. The County did not maintain written documentation of a cost analysis. County management indicated that many of the items procured were processed through the Michigan MiDeal website, but a contract file was not maintained. Cause: The County does not have controls in place to ensure that its procurement policy is being followed. Effect: As a result of this condition, the County did not fully comply with the Uniform Guidance. Questioned Costs: No costs have been questioned as a result of this finding. Recommendation: We recommend that the County implement controls to ensure the procurement policy is followed. Views of Responsible Officials: The County will work to implement controls to ensure the procurement policy is followed.
2022-003—Procurement, Suspension and Debarment Federal program information: Funding agency: All Title: All Assistance Listing Number (ALN): All Award year and number: All Pass-through entity (if applicable): All Criteria: According to 2 CFR Part 200.318, a non-federal entity must have and use documented procurement procedures for the acquisition of property or services required under a Federal award or subaward. The entity's documented procurement procedures must conform to the procurement standards identified in Parts 200.317 through 200.327, including written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award and administration of contracts. Condition: The Institute has not developed and approved policies and procedures over procurement, suspension and debarment as required by the Uniform Guidance. Questioned Costs: None. Context: N/A Cause: The Institute had never been subject to an external audit prior to 2021 and had not developed formal policies and procedures over procurement, among others. Effect: The Institute is not in compliance with the Uniform Guidance general procurement standards at 2 CFR Part 200.318. Auditor’s Recommendations: The Institute should development written policies and procedures over procurement, suspension and debarment that meets the requirements of 2 CFR Parts 200.317 through 200.327. Management’s Response: Management of the Institute did not provide any comments in response to this finding.
2022-003—Procurement, Suspension and Debarment Federal program information: Funding agency: All Title: All Assistance Listing Number (ALN): All Award year and number: All Pass-through entity (if applicable): All Criteria: According to 2 CFR Part 200.318, a non-federal entity must have and use documented procurement procedures for the acquisition of property or services required under a Federal award or subaward. The entity's documented procurement procedures must conform to the procurement standards identified in Parts 200.317 through 200.327, including written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award and administration of contracts. Condition: The Institute has not developed and approved policies and procedures over procurement, suspension and debarment as required by the Uniform Guidance. Questioned Costs: None. Context: N/A Cause: The Institute had never been subject to an external audit prior to 2021 and had not developed formal policies and procedures over procurement, among others. Effect: The Institute is not in compliance with the Uniform Guidance general procurement standards at 2 CFR Part 200.318. Auditor’s Recommendations: The Institute should development written policies and procedures over procurement, suspension and debarment that meets the requirements of 2 CFR Parts 200.317 through 200.327. Management’s Response: Management of the Institute did not provide any comments in response to this finding.
2022-003—Procurement, Suspension and Debarment Federal program information: Funding agency: All Title: All Assistance Listing Number (ALN): All Award year and number: All Pass-through entity (if applicable): All Criteria: According to 2 CFR Part 200.318, a non-federal entity must have and use documented procurement procedures for the acquisition of property or services required under a Federal award or subaward. The entity's documented procurement procedures must conform to the procurement standards identified in Parts 200.317 through 200.327, including written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award and administration of contracts. Condition: The Institute has not developed and approved policies and procedures over procurement, suspension and debarment as required by the Uniform Guidance. Questioned Costs: None. Context: N/A Cause: The Institute had never been subject to an external audit prior to 2021 and had not developed formal policies and procedures over procurement, among others. Effect: The Institute is not in compliance with the Uniform Guidance general procurement standards at 2 CFR Part 200.318. Auditor’s Recommendations: The Institute should development written policies and procedures over procurement, suspension and debarment that meets the requirements of 2 CFR Parts 200.317 through 200.327. Management’s Response: Management of the Institute did not provide any comments in response to this finding.
2022-003—Procurement, Suspension and Debarment Federal program information: Funding agency: All Title: All Assistance Listing Number (ALN): All Award year and number: All Pass-through entity (if applicable): All Criteria: According to 2 CFR Part 200.318, a non-federal entity must have and use documented procurement procedures for the acquisition of property or services required under a Federal award or subaward. The entity's documented procurement procedures must conform to the procurement standards identified in Parts 200.317 through 200.327, including written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award and administration of contracts. Condition: The Institute has not developed and approved policies and procedures over procurement, suspension and debarment as required by the Uniform Guidance. Questioned Costs: None. Context: N/A Cause: The Institute had never been subject to an external audit prior to 2021 and had not developed formal policies and procedures over procurement, among others. Effect: The Institute is not in compliance with the Uniform Guidance general procurement standards at 2 CFR Part 200.318. Auditor’s Recommendations: The Institute should development written policies and procedures over procurement, suspension and debarment that meets the requirements of 2 CFR Parts 200.317 through 200.327. Management’s Response: Management of the Institute did not provide any comments in response to this finding.
2022-003—Procurement, Suspension and Debarment Federal program information: Funding agency: All Title: All Assistance Listing Number (ALN): All Award year and number: All Pass-through entity (if applicable): All Criteria: According to 2 CFR Part 200.318, a non-federal entity must have and use documented procurement procedures for the acquisition of property or services required under a Federal award or subaward. The entity's documented procurement procedures must conform to the procurement standards identified in Parts 200.317 through 200.327, including written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award and administration of contracts. Condition: The Institute has not developed and approved policies and procedures over procurement, suspension and debarment as required by the Uniform Guidance. Questioned Costs: None. Context: N/A Cause: The Institute had never been subject to an external audit prior to 2021 and had not developed formal policies and procedures over procurement, among others. Effect: The Institute is not in compliance with the Uniform Guidance general procurement standards at 2 CFR Part 200.318. Auditor’s Recommendations: The Institute should development written policies and procedures over procurement, suspension and debarment that meets the requirements of 2 CFR Parts 200.317 through 200.327. Management’s Response: Management of the Institute did not provide any comments in response to this finding.
2022-003—Procurement, Suspension and Debarment Federal program information: Funding agency: All Title: All Assistance Listing Number (ALN): All Award year and number: All Pass-through entity (if applicable): All Criteria: According to 2 CFR Part 200.318, a non-federal entity must have and use documented procurement procedures for the acquisition of property or services required under a Federal award or subaward. The entity's documented procurement procedures must conform to the procurement standards identified in Parts 200.317 through 200.327, including written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award and administration of contracts. Condition: The Institute has not developed and approved policies and procedures over procurement, suspension and debarment as required by the Uniform Guidance. Questioned Costs: None. Context: N/A Cause: The Institute had never been subject to an external audit prior to 2021 and had not developed formal policies and procedures over procurement, among others. Effect: The Institute is not in compliance with the Uniform Guidance general procurement standards at 2 CFR Part 200.318. Auditor’s Recommendations: The Institute should development written policies and procedures over procurement, suspension and debarment that meets the requirements of 2 CFR Parts 200.317 through 200.327. Management’s Response: Management of the Institute did not provide any comments in response to this finding.
Criteria: A non-federal entity is required to have certain written policies and procedure in compliance with Uniform Guidance and must comply with the procurement standards as described in 2 CFR 200.318 through 2 CFR 200.327. Specifically, the non-federal entity must comply with the following: • The non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in §§ 200.317 through 200.327. • If the non-Federal entity has a parent, affiliate, or subsidiary organization that is not a State, local government, or Indian tribe, the non-Federal entity must also maintain written standards of conduct covering organizational conflicts of interest. Organizational conflicts of interest means that because of relationships with a parent company, affiliate, or subsidiary organization, the non-Federal entity is unable or appears to be unable to be impartial in conducting a procurement action involving a related organization. Condition: AIRS does not appear to have created written purchasing or procurement policies and procedures as required by 2 CFR 200.318(a). Since AIRS is an affiliate organization of the Ethiopian Community Development Council (ECDC), it appears that the relationship between AIRS and ECDC meets the “affiliate” requirement under 2 CFR 200.318 (c) (2). It does appear that AIRS has created written standards of conduct covering organizational conflicts of interest. Cause: Management has not created or maintained certain written policies and procedures as required under 2 CFR 200.318. Effect: AIRS is not in compliance with certain written policies and procedures as required under 2 CFR 200.318. Questioned Costs: None reported Repeat Finding from Prior Year: Yes Recommendation: In response to Finding 2021-006 during the audit for the year ended September 30, 2021, management has started the process of creating, updating and revising its written policies and procedures. I commend management for their efforts. However, I strongly recommend that management and board complete the written procurement policies and procedures and written standards of conduct covering organizational conflicts of interest prior to start of the 2023 audit. Views of Responsible Officials: Management concurs with this audit finding.
Finding No.: 2022-008 Federal Agency: U.S. Department of Health and Human Services AL Program: 93.323 Epidemiology and Laboratory Capacity for Infectious Diseases Federal Award No.: NU50CK000558 Questioned Costs: $660,990 Area: Procurement and Suspension and Debarment Criteria: Section 200.317 of 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards states that, when procuring property and services under a Federal award, a state must follow the same policies and procedures it uses for procurements from its non-Federal funds. Procurement Code states the following: (a) Section 124 - unless otherwise authorized by law, all Government contracts shall be awarded by competitive sealed bidding. (b) Section 127 - procurement of goods and services not exceeding $25,000 may be made in purchase procedures are those relatively simple and informal methods for securing services, Banking and Postal Services has previously declared that if small purchase procedures are used, price or rate quotations shall be obtained from three qualified sources. (c) Section 128 - a contract may be awarded for a 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. Condition: For 4 (or 33%) of 12 procurement transactions tested, aggregating $1,041,946 of $1,858,109 in total transactions subject to procurement requirements, no procurement file was provided. Item # Encumbrance # Ref # Amount QC reported at this Finding 1 C15761 767993 $ 135,186 $ - 2 C15945 785944 600,370 600,370 3 C16477 009097 50,620 50,620 4 F01223 793869 10,000 10,000 $ 796,176 $ 660,990 Cause: RepMar did not enforce adequate internal control policies and procedures over documentation of the procurement process to satisfy compliance with applicable procurement requirements. Effect: RepMar is in noncompliance with applicable procurement requirements. The reportable questioned cost is $650,990 (COVID) and $10,000 (non-COVID). Recommendation: Responsible personnel should require that documentation be adequate to comply with applicable procurement requirements. Specifically, documentation should indicate the history of procurement, including the rationale for contractor or vendor selection. Views of Responsible Officials: We partially agree with the finding and provide details in our Corrective Action Plan.
Finding No.: 2022-008 Federal Agency: U.S. Department of Health and Human Services AL Program: 93.323 Epidemiology and Laboratory Capacity for Infectious Diseases Federal Award No.: NU50CK000558 Questioned Costs: $660,990 Area: Procurement and Suspension and Debarment Criteria: Section 200.317 of 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards states that, when procuring property and services under a Federal award, a state must follow the same policies and procedures it uses for procurements from its non-Federal funds. Procurement Code states the following: (a) Section 124 - unless otherwise authorized by law, all Government contracts shall be awarded by competitive sealed bidding. (b) Section 127 - procurement of goods and services not exceeding $25,000 may be made in purchase procedures are those relatively simple and informal methods for securing services, Banking and Postal Services has previously declared that if small purchase procedures are used, price or rate quotations shall be obtained from three qualified sources. (c) Section 128 - a contract may be awarded for a 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. Condition: For 4 (or 33%) of 12 procurement transactions tested, aggregating $1,041,946 of $1,858,109 in total transactions subject to procurement requirements, no procurement file was provided. Item # Encumbrance # Ref # Amount QC reported at this Finding 1 C15761 767993 $ 135,186 $ - 2 C15945 785944 600,370 600,370 3 C16477 009097 50,620 50,620 4 F01223 793869 10,000 10,000 $ 796,176 $ 660,990 Cause: RepMar did not enforce adequate internal control policies and procedures over documentation of the procurement process to satisfy compliance with applicable procurement requirements. Effect: RepMar is in noncompliance with applicable procurement requirements. The reportable questioned cost is $650,990 (COVID) and $10,000 (non-COVID). Recommendation: Responsible personnel should require that documentation be adequate to comply with applicable procurement requirements. Specifically, documentation should indicate the history of procurement, including the rationale for contractor or vendor selection. Views of Responsible Officials: We partially agree with the finding and provide details in our Corrective Action Plan.
Reference Number: 2022-001 Prior Year Finding: Yes – 2021-001 Federal Agency: U.S. Department of Housing and Urban Development Pass-through Agency: Various Federal Program: Emergency Solutions Grant Program ALN Number: 14.231 Compliance Requirement: Procurement, Suspension and Debarment Type of Finding: Material Weakness, Noncompliance Criteria or specific requirement: As per § 200.318 General procurement standards. (a) The Non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in §§ 200.317 through 200.327. (d) 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. Condition: Based on our review of the Procurement compliance requirements, we noted that the Division has written procurement policies and competitive policies as required by CFR § 200.318 General procurement standards. We selected five (5) vendors for procurement Suspension and Debarment compliance testing of total population of 5 vendors subject to procurement and we were not provided with Procurement comparative bids therefore, we were unable: • To verify that the procurement method used was appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. • To Verify that procurements provide full and open competition (2 CFR section 200.319 and 48 CFR section 52.244-5). Cause: The Division did not ensured that as a non-Federal entity must have and must use documented procurement procedures, consistent with State, and local laws and regulations and the standards of §§ 200.318 through 200.327, for the acquisition of property or services required under a Federal award or subaward. Effect: The funding agency can reject the expenditures incurred by the Division on certain vendors where the Division must use procurement method appropriately based on the dollar amount and conditions specified in 2 CFR section 200.320. Questioned costs: Cannot be determined Recommendation: We recommend that the Division must: • Use documented procurement procedures, consistent with State, and local, laws and regulations and the standards, for the acquisition of property or services required under a federal award or subaward. • The Division must maintain records sufficient to detail the history of procurement. These records should 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. Views of responsible officials: The Division will work with Territorial Headquarters to document procedures as outlined in the Recommendations above. See corrective action plan.
Reference Number: 2022-001 Prior Year Finding: Yes – 2021-001 Federal Agency: U.S. Department of Housing and Urban Development Pass-through Agency: Various Federal Program: Emergency Solutions Grant Program ALN Number: 14.231 Compliance Requirement: Procurement, Suspension and Debarment Type of Finding: Material Weakness, Noncompliance Criteria or specific requirement: As per § 200.318 General procurement standards. (a) The Non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in §§ 200.317 through 200.327. (d) 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. Condition: Based on our review of the Procurement compliance requirements, we noted that the Division has written procurement policies and competitive policies as required by CFR § 200.318 General procurement standards. We selected five (5) vendors for procurement Suspension and Debarment compliance testing of total population of 5 vendors subject to procurement and we were not provided with Procurement comparative bids therefore, we were unable: • To verify that the procurement method used was appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. • To Verify that procurements provide full and open competition (2 CFR section 200.319 and 48 CFR section 52.244-5). Cause: The Division did not ensured that as a non-Federal entity must have and must use documented procurement procedures, consistent with State, and local laws and regulations and the standards of §§ 200.318 through 200.327, for the acquisition of property or services required under a Federal award or subaward. Effect: The funding agency can reject the expenditures incurred by the Division on certain vendors where the Division must use procurement method appropriately based on the dollar amount and conditions specified in 2 CFR section 200.320. Questioned costs: Cannot be determined Recommendation: We recommend that the Division must: • Use documented procurement procedures, consistent with State, and local, laws and regulations and the standards, for the acquisition of property or services required under a federal award or subaward. • The Division must maintain records sufficient to detail the history of procurement. These records should 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. Views of responsible officials: The Division will work with Territorial Headquarters to document procedures as outlined in the Recommendations above. See corrective action plan.
Reference Number: 2022-001 Prior Year Finding: Yes – 2021-001 Federal Agency: U.S. Department of Housing and Urban Development Pass-through Agency: Various Federal Program: Emergency Solutions Grant Program ALN Number: 14.231 Compliance Requirement: Procurement, Suspension and Debarment Type of Finding: Material Weakness, Noncompliance Criteria or specific requirement: As per § 200.318 General procurement standards. (a) The Non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in §§ 200.317 through 200.327. (d) 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. Condition: Based on our review of the Procurement compliance requirements, we noted that the Division has written procurement policies and competitive policies as required by CFR § 200.318 General procurement standards. We selected five (5) vendors for procurement Suspension and Debarment compliance testing of total population of 5 vendors subject to procurement and we were not provided with Procurement comparative bids therefore, we were unable: • To verify that the procurement method used was appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. • To Verify that procurements provide full and open competition (2 CFR section 200.319 and 48 CFR section 52.244-5). Cause: The Division did not ensured that as a non-Federal entity must have and must use documented procurement procedures, consistent with State, and local laws and regulations and the standards of §§ 200.318 through 200.327, for the acquisition of property or services required under a Federal award or subaward. Effect: The funding agency can reject the expenditures incurred by the Division on certain vendors where the Division must use procurement method appropriately based on the dollar amount and conditions specified in 2 CFR section 200.320. Questioned costs: Cannot be determined Recommendation: We recommend that the Division must: • Use documented procurement procedures, consistent with State, and local, laws and regulations and the standards, for the acquisition of property or services required under a federal award or subaward. • The Division must maintain records sufficient to detail the history of procurement. These records should 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. Views of responsible officials: The Division will work with Territorial Headquarters to document procedures as outlined in the Recommendations above. See corrective action plan.
Reference Number: 2022-001 Prior Year Finding: Yes – 2021-001 Federal Agency: U.S. Department of Housing and Urban Development Pass-through Agency: Various Federal Program: Emergency Solutions Grant Program ALN Number: 14.231 Compliance Requirement: Procurement, Suspension and Debarment Type of Finding: Material Weakness, Noncompliance Criteria or specific requirement: As per § 200.318 General procurement standards. (a) The Non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in §§ 200.317 through 200.327. (d) 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. Condition: Based on our review of the Procurement compliance requirements, we noted that the Division has written procurement policies and competitive policies as required by CFR § 200.318 General procurement standards. We selected five (5) vendors for procurement Suspension and Debarment compliance testing of total population of 5 vendors subject to procurement and we were not provided with Procurement comparative bids therefore, we were unable: • To verify that the procurement method used was appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. • To Verify that procurements provide full and open competition (2 CFR section 200.319 and 48 CFR section 52.244-5). Cause: The Division did not ensured that as a non-Federal entity must have and must use documented procurement procedures, consistent with State, and local laws and regulations and the standards of §§ 200.318 through 200.327, for the acquisition of property or services required under a Federal award or subaward. Effect: The funding agency can reject the expenditures incurred by the Division on certain vendors where the Division must use procurement method appropriately based on the dollar amount and conditions specified in 2 CFR section 200.320. Questioned costs: Cannot be determined Recommendation: We recommend that the Division must: • Use documented procurement procedures, consistent with State, and local, laws and regulations and the standards, for the acquisition of property or services required under a federal award or subaward. • The Division must maintain records sufficient to detail the history of procurement. These records should 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. Views of responsible officials: The Division will work with Territorial Headquarters to document procedures as outlined in the Recommendations above. See corrective action plan.
Reference Number: 2022-001 Prior Year Finding: Yes – 2021-001 Federal Agency: U.S. Department of Housing and Urban Development Pass-through Agency: Various Federal Program: Emergency Solutions Grant Program ALN Number: 14.231 Compliance Requirement: Procurement, Suspension and Debarment Type of Finding: Material Weakness, Noncompliance Criteria or specific requirement: As per § 200.318 General procurement standards. (a) The Non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in §§ 200.317 through 200.327. (d) 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. Condition: Based on our review of the Procurement compliance requirements, we noted that the Division has written procurement policies and competitive policies as required by CFR § 200.318 General procurement standards. We selected five (5) vendors for procurement Suspension and Debarment compliance testing of total population of 5 vendors subject to procurement and we were not provided with Procurement comparative bids therefore, we were unable: • To verify that the procurement method used was appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. • To Verify that procurements provide full and open competition (2 CFR section 200.319 and 48 CFR section 52.244-5). Cause: The Division did not ensured that as a non-Federal entity must have and must use documented procurement procedures, consistent with State, and local laws and regulations and the standards of §§ 200.318 through 200.327, for the acquisition of property or services required under a Federal award or subaward. Effect: The funding agency can reject the expenditures incurred by the Division on certain vendors where the Division must use procurement method appropriately based on the dollar amount and conditions specified in 2 CFR section 200.320. Questioned costs: Cannot be determined Recommendation: We recommend that the Division must: • Use documented procurement procedures, consistent with State, and local, laws and regulations and the standards, for the acquisition of property or services required under a federal award or subaward. • The Division must maintain records sufficient to detail the history of procurement. These records should 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. Views of responsible officials: The Division will work with Territorial Headquarters to document procedures as outlined in the Recommendations above. See corrective action plan.
Reference Number: 2022-001 Prior Year Finding: Yes – 2021-001 Federal Agency: U.S. Department of Housing and Urban Development Pass-through Agency: Various Federal Program: Emergency Solutions Grant Program ALN Number: 14.231 Compliance Requirement: Procurement, Suspension and Debarment Type of Finding: Material Weakness, Noncompliance Criteria or specific requirement: As per § 200.318 General procurement standards. (a) The Non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in §§ 200.317 through 200.327. (d) 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. Condition: Based on our review of the Procurement compliance requirements, we noted that the Division has written procurement policies and competitive policies as required by CFR § 200.318 General procurement standards. We selected five (5) vendors for procurement Suspension and Debarment compliance testing of total population of 5 vendors subject to procurement and we were not provided with Procurement comparative bids therefore, we were unable: • To verify that the procurement method used was appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. • To Verify that procurements provide full and open competition (2 CFR section 200.319 and 48 CFR section 52.244-5). Cause: The Division did not ensured that as a non-Federal entity must have and must use documented procurement procedures, consistent with State, and local laws and regulations and the standards of §§ 200.318 through 200.327, for the acquisition of property or services required under a Federal award or subaward. Effect: The funding agency can reject the expenditures incurred by the Division on certain vendors where the Division must use procurement method appropriately based on the dollar amount and conditions specified in 2 CFR section 200.320. Questioned costs: Cannot be determined Recommendation: We recommend that the Division must: • Use documented procurement procedures, consistent with State, and local, laws and regulations and the standards, for the acquisition of property or services required under a federal award or subaward. • The Division must maintain records sufficient to detail the history of procurement. These records should 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. Views of responsible officials: The Division will work with Territorial Headquarters to document procedures as outlined in the Recommendations above. See corrective action plan.
Reference Number: 2022-001 Prior Year Finding: Yes – 2021-001 Federal Agency: U.S. Department of Housing and Urban Development Pass-through Agency: Various Federal Program: Emergency Solutions Grant Program ALN Number: 14.231 Compliance Requirement: Procurement, Suspension and Debarment Type of Finding: Material Weakness, Noncompliance Criteria or specific requirement: As per § 200.318 General procurement standards. (a) The Non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in §§ 200.317 through 200.327. (d) 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. Condition: Based on our review of the Procurement compliance requirements, we noted that the Division has written procurement policies and competitive policies as required by CFR § 200.318 General procurement standards. We selected five (5) vendors for procurement Suspension and Debarment compliance testing of total population of 5 vendors subject to procurement and we were not provided with Procurement comparative bids therefore, we were unable: • To verify that the procurement method used was appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. • To Verify that procurements provide full and open competition (2 CFR section 200.319 and 48 CFR section 52.244-5). Cause: The Division did not ensured that as a non-Federal entity must have and must use documented procurement procedures, consistent with State, and local laws and regulations and the standards of §§ 200.318 through 200.327, for the acquisition of property or services required under a Federal award or subaward. Effect: The funding agency can reject the expenditures incurred by the Division on certain vendors where the Division must use procurement method appropriately based on the dollar amount and conditions specified in 2 CFR section 200.320. Questioned costs: Cannot be determined Recommendation: We recommend that the Division must: • Use documented procurement procedures, consistent with State, and local, laws and regulations and the standards, for the acquisition of property or services required under a federal award or subaward. • The Division must maintain records sufficient to detail the history of procurement. These records should 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. Views of responsible officials: The Division will work with Territorial Headquarters to document procedures as outlined in the Recommendations above. See corrective action plan.
COMPLIANCE WITH LAWS AND REGULATIONS SINGIFICANT DIFFIENCNEY Public and Indian Housing Finding 2022-003 Statement of Condition: During the review of low rent disbursements, it was noted there was no review of contractors to ensure they were not debarred from working on federal projects. Criteria: I. PROCURMENT: 2 CFR section 200.317 requires a PHA to ensure non-federal entities are not prohibited from contracting with parties that are suspended or debarred. Perspective Information: The Commission did not have effective internal controls over procurement, suspension and debarment for the federal program. Questioned Costs: Unknown. Effect: The Commission is not in compliance with the requirements as outlined in the Procurement, Suspension and Debarment section above. Cause: Lack of controls over grant requirements. Recommendation: The Commission should implement policies and procedures to ensure all federal compliances are followed pertaining to Procurement, Suspension and Debarment. Management?s Response: Management will implement policies and procedures to ensure the Commission is in compliance with all grant requirements pertaining to the Public and Indian Housing Grant.
Criteria The non-federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity?s documented procurement procedures must conform to the procurement standards identified in ??200.317 through 200.327. Condition The County did not have a written federal procurement policy and procedures throughout the majority of FY2022. The County adopted a written policy, in agreement with 2CFR200.318(a), on August 9, 2022. As of September 30, 2022, the adopted policy had not been fully implemented. Cause The County was unable to internally reconcile disagreements in the language for inclusion in the federal procurement policy and procedures document, leading to a delay in the approval and implementation of a written procurement policy. Effect The County would be out of compliance with the required procurement activities for purchases. Questioned Costs There are no questioned costs related to finding 2022-001. This is a general finding, rather than a finding related to a specific program. Perspective Information The County began working on a draft version of the written procurement policy in FY2021. The process of researching federal procurement requirements and reconciling the final language took longer than expected. Upon the adoption of the policy on August 9, 2022, the County began the implementation process. Within the language of the adopted policy are provisions which shall be vetted and discussed prior to taking effect. Such policies are noted as taking effect no later than August 4, 2023. This finding represents a systematic problem (as opposed to an isolated event), which is actively being resolved. Identification of Repeat Findings This is not a repeat finding. Recommendation We recommend the County expedite the provisions subject to vetting and begin following the written federal procurement policy and procedures. Views of Responsible Officials We agree with the audit finding and are taking corrective action to fully implement the policy on or before August 4, 2023. The county has officially formed an audit committee composed of the nine elected officials. The audit committee will review the federal procurement policy to ensure complete implementation.
2022-001 Methods of Procurement Federal Agency: United States Department of Treasury Federal Program Name: Coronavirus State and Local Recovery Funds (CSLRF) Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLT-8694, 2021 Award Period: March 3, 2021 to December 31, 2025 Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of federal procurement guidelines. US Code ? 200.320 states that the non-Federal entity must have and use documented procurement procedures, consistent with the standards of ? 200.320 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. Condition: The County entered into a noncompetitive procurement contract with a vendor under specific circumstances for an emergency procurement. The County did not document the justification or approval of the noncompetitive emergency procurement. The County?s internal procurement policies state that deviations from standard purchasing procedures must be authorized and all such deviations will be documented and all emergency purchases shall be in a report to the Board of County Commissioners at its next regular Commission meeting. Context: One of five procurement contracts tested did not contain appropriate documentation supporting federal procurement requirements. Cause: The County did not follow their procurement policies and procedures to properly document the justification and approval of an emergency procurement transaction that was made using federal funding and requirements for noncompetitive emergency procurements. Effect: By not following federal regulations and the County?s procurement policy, the County could improperly enter into a contract that violates the requirements of CFR ? 200.320. Repeat Finding: No Recommendation: We recommend that the County review their policies and procedures to ensure that they are operating in a manner that follows federal procurement requirements and the County?s procurement policy. The creation and use of a standard procurement checklist would assist the County in documenting all requirements for each procurement that is entered into. Views of Responsible Officials: The Finance Department will work with County Management and Board Departments to ensure familiarity and understanding of the County?s procurement policies and procedures. Additionally, the County is working towards the implementation of a financial system which will improve the controls in place to help ensure compliance with procurement requirements. The Finance Department is also working on a financial policies document and will would with County Manager on a review of the County?s procurement policy.
Significant Deficiency 2 CFR ? 2400.101 gives regulatory effect to the Department of Housing and Urban Development for 2 CFR ? 200.302 (b) (6) and (7) which requires the Authority to establish written procedures for determining the allowability of costs in accordance with Subpart E - Cost Principles and the terms and conditions of the Federal award and establish written procedures to implement the requirements of ? 305 Payment. Additionally, 2 C.F.R. ? 2400.101 gives regulatory effect to the Department of Housing and Urban Development for 2 C.F.R. ? 200.318(a) which states the non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in ?? 200.317 through 200.327. Although the Authority did have written standard operating procedures requiring purchase orders, they did not have an approved purchase order or contract on file for 2 of the 50 purchases tested. Failure to have proper controls in place to ensure policies and procedures are being followed could result in unallowable costs and procurement noncompliance. The Authority should follow their written standard operating procedures and implement controls to ensure allowability of costs and procurement in accordance with federal grants.
2022-004 Significant Deficiency in Internal Controls over Compliance for Procurement, Suspension and Debarment Identification data: U.S. Department of Agriculture (USDA) Water and Waste Disposal Systems for Rural Communities ? grants, Assistance Listing No. 10.760 Criteria: Part 2 CFR 300.318 states that the non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in ?? 200.317 through 200.327. Additionally, the non-Federal entity must maintain written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award and administration of contracts. Condition and Context: The Village of Clearwater, Nebraska does not have a formal documented policy regarding procurement, suspension, and debarment transactions. Additionally, the Village does not have a written standards of conduct covering conflicts of interest and governing the performance of its employees engaged in the selection, award, and administration of contracts. Cause: A breakdown in the Village?s internal controls over procurement, suspension and debarment did not allow the Village to comply with the standards. Effect or potential effect: The control deficiency is a significant deficiency that may prevent the Village from complying with the procurement, suspension, and debarment requirements of the award agreements. Recommendation: The Village?s management and Board should develop formal written policies and procedures for procurement, suspension and debarment transactions. Additionally, the Village should adopt written standards of conduct covering conflicts of interest. Views of Responsible Officials: The Village of Clearwater, Nebraska?s management and Board will work on developing formal written procedures for procurement, suspension and debarment transactions. Additionally, the Village will adopt written standards of conduct covering conflicts of interest.
Finding 2022 ? 001: Procurement and Suspension and Debarment for Federal Programs Significant Deficiency, Internal Control Over Compliance Assistance Listing Number: 93.591 ? COVID-19 Family Violence Prevention and Services/State Domestic Violence Coalitions / 16.575 ? Crime Victim Assistance Federal Agency: Department of Health and Human Services / Department of Justice Award Year: 2022 Federal Award Identification: 2101MSSDVC, 2101MSSDC6, 2001MSSDC3 (ALN: 93.671) Pass-Through Entity: Mississippi Department of Health (ALN: 93.671 and 16.575) Criteria: In accordance with 2 CFR 200.303 (a), establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 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). The non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity?s documented procurement procedures must conform to the procurement standards identified in 2 CFR 200.317 through 200.327. In addition procedures should conform to those detailed in 2 CFR 180.300 through 180.325: ?Responsibilities of Participants Regarding Transactions Doing Business With Other Persons?. Condition: Although no instance of non-compliance were identified, MCADV does not have internal controls in place to ensure compliance with this requirement. Cause: MCADV?s internal control system was not properly designed to ensure that contracting with suspended or debarred parties is prevented. Further, documentation was not available to demonstrate that a procurement policy was in place to address cost and price analysis and vendor selections, where applicable, based on the method of procurement used. MCADV historically contracts with the same vendors year-over-year and did not review the list of suspended or debarred entities to ensure current vendors were not on the suspension or debarment list. Effect: Although no instances of noncompliance were identified, MCADV?s lack of internal control process related to procurement and suspension and debarment, could result in violation of the federal requirement. Questioned Costs: N/A. Identification As A Repeat Finding: Yes. Recommendations: We recommend developing a procurement policy to guide the selection of vendors, further this policy should require the periodic review of vendors against the federal list of suspensions and debarments published on the System for Award Management website at https://sam.gov/content/exclusions. Views Of Responsible Officials and Planned Corrective Action: MCADV will make the necessary correction for compliance. As a result of the finding, Wendy Mahoney will be responsible for developing a procurement policy to guide the selection of vendors. MCADV will ensure the policy includes the periodic review of those vendors against the federal list of suspensions and debarments published on the System for Award Management website at https://sam.gov/content/exclusions. Anticipated completion date: September 30, 2023.
Finding 2022 ? 001: Procurement and Suspension and Debarment for Federal Programs Significant Deficiency, Internal Control Over Compliance Assistance Listing Number: 93.591 ? COVID-19 Family Violence Prevention and Services/State Domestic Violence Coalitions / 16.575 ? Crime Victim Assistance Federal Agency: Department of Health and Human Services / Department of Justice Award Year: 2022 Federal Award Identification: 2101MSSDVC, 2101MSSDC6, 2001MSSDC3 (ALN: 93.671) Pass-Through Entity: Mississippi Department of Health (ALN: 93.671 and 16.575) Criteria: In accordance with 2 CFR 200.303 (a), establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 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). The non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity?s documented procurement procedures must conform to the procurement standards identified in 2 CFR 200.317 through 200.327. In addition procedures should conform to those detailed in 2 CFR 180.300 through 180.325: ?Responsibilities of Participants Regarding Transactions Doing Business With Other Persons?. Condition: Although no instance of non-compliance were identified, MCADV does not have internal controls in place to ensure compliance with this requirement. Cause: MCADV?s internal control system was not properly designed to ensure that contracting with suspended or debarred parties is prevented. Further, documentation was not available to demonstrate that a procurement policy was in place to address cost and price analysis and vendor selections, where applicable, based on the method of procurement used. MCADV historically contracts with the same vendors year-over-year and did not review the list of suspended or debarred entities to ensure current vendors were not on the suspension or debarment list. Effect: Although no instances of noncompliance were identified, MCADV?s lack of internal control process related to procurement and suspension and debarment, could result in violation of the federal requirement. Questioned Costs: N/A. Identification As A Repeat Finding: Yes. Recommendations: We recommend developing a procurement policy to guide the selection of vendors, further this policy should require the periodic review of vendors against the federal list of suspensions and debarments published on the System for Award Management website at https://sam.gov/content/exclusions. Views Of Responsible Officials and Planned Corrective Action: MCADV will make the necessary correction for compliance. As a result of the finding, Wendy Mahoney will be responsible for developing a procurement policy to guide the selection of vendors. MCADV will ensure the policy includes the periodic review of those vendors against the federal list of suspensions and debarments published on the System for Award Management website at https://sam.gov/content/exclusions. Anticipated completion date: September 30, 2023.
Finding 2022 ? 001: Procurement and Suspension and Debarment for Federal Programs Significant Deficiency, Internal Control Over Compliance Assistance Listing Number: 93.591 ? COVID-19 Family Violence Prevention and Services/State Domestic Violence Coalitions / 16.575 ? Crime Victim Assistance Federal Agency: Department of Health and Human Services / Department of Justice Award Year: 2022 Federal Award Identification: 2101MSSDVC, 2101MSSDC6, 2001MSSDC3 (ALN: 93.671) Pass-Through Entity: Mississippi Department of Health (ALN: 93.671 and 16.575) Criteria: In accordance with 2 CFR 200.303 (a), establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 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). The non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity?s documented procurement procedures must conform to the procurement standards identified in 2 CFR 200.317 through 200.327. In addition procedures should conform to those detailed in 2 CFR 180.300 through 180.325: ?Responsibilities of Participants Regarding Transactions Doing Business With Other Persons?. Condition: Although no instance of non-compliance were identified, MCADV does not have internal controls in place to ensure compliance with this requirement. Cause: MCADV?s internal control system was not properly designed to ensure that contracting with suspended or debarred parties is prevented. Further, documentation was not available to demonstrate that a procurement policy was in place to address cost and price analysis and vendor selections, where applicable, based on the method of procurement used. MCADV historically contracts with the same vendors year-over-year and did not review the list of suspended or debarred entities to ensure current vendors were not on the suspension or debarment list. Effect: Although no instances of noncompliance were identified, MCADV?s lack of internal control process related to procurement and suspension and debarment, could result in violation of the federal requirement. Questioned Costs: N/A. Identification As A Repeat Finding: Yes. Recommendations: We recommend developing a procurement policy to guide the selection of vendors, further this policy should require the periodic review of vendors against the federal list of suspensions and debarments published on the System for Award Management website at https://sam.gov/content/exclusions. Views Of Responsible Officials and Planned Corrective Action: MCADV will make the necessary correction for compliance. As a result of the finding, Wendy Mahoney will be responsible for developing a procurement policy to guide the selection of vendors. MCADV will ensure the policy includes the periodic review of those vendors against the federal list of suspensions and debarments published on the System for Award Management website at https://sam.gov/content/exclusions. Anticipated completion date: September 30, 2023.
Finding 2022 ? 001: Procurement and Suspension and Debarment for Federal Programs Significant Deficiency, Internal Control Over Compliance Assistance Listing Number: 93.591 ? COVID-19 Family Violence Prevention and Services/State Domestic Violence Coalitions / 16.575 ? Crime Victim Assistance Federal Agency: Department of Health and Human Services / Department of Justice Award Year: 2022 Federal Award Identification: 2101MSSDVC, 2101MSSDC6, 2001MSSDC3 (ALN: 93.671) Pass-Through Entity: Mississippi Department of Health (ALN: 93.671 and 16.575) Criteria: In accordance with 2 CFR 200.303 (a), establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 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). The non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity?s documented procurement procedures must conform to the procurement standards identified in 2 CFR 200.317 through 200.327. In addition procedures should conform to those detailed in 2 CFR 180.300 through 180.325: ?Responsibilities of Participants Regarding Transactions Doing Business With Other Persons?. Condition: Although no instance of non-compliance were identified, MCADV does not have internal controls in place to ensure compliance with this requirement. Cause: MCADV?s internal control system was not properly designed to ensure that contracting with suspended or debarred parties is prevented. Further, documentation was not available to demonstrate that a procurement policy was in place to address cost and price analysis and vendor selections, where applicable, based on the method of procurement used. MCADV historically contracts with the same vendors year-over-year and did not review the list of suspended or debarred entities to ensure current vendors were not on the suspension or debarment list. Effect: Although no instances of noncompliance were identified, MCADV?s lack of internal control process related to procurement and suspension and debarment, could result in violation of the federal requirement. Questioned Costs: N/A. Identification As A Repeat Finding: Yes. Recommendations: We recommend developing a procurement policy to guide the selection of vendors, further this policy should require the periodic review of vendors against the federal list of suspensions and debarments published on the System for Award Management website at https://sam.gov/content/exclusions. Views Of Responsible Officials and Planned Corrective Action: MCADV will make the necessary correction for compliance. As a result of the finding, Wendy Mahoney will be responsible for developing a procurement policy to guide the selection of vendors. MCADV will ensure the policy includes the periodic review of those vendors against the federal list of suspensions and debarments published on the System for Award Management website at https://sam.gov/content/exclusions. Anticipated completion date: September 30, 2023.
Identification of federal program: 21.027 Coronavirus State and Local Fiscal Recovery Funds Department of the Treasury Criteria or specific requirement: 21.027 Part 4 Compliance Supplement: Procurement - Recipients may use award funds to enter into contracts to procure goods and services necessary to implement one or more of the eligible purposes outlined in sections 602(c) and 603(c) of the Act and Treasury?s Interim Final Rule. As such, recipients are expected to have procurement policies and procedures in place that comply with the procurement standards outlined in the Uniform Guidance. All other entities under the program, including subrecipients of a state, must follow the procurement standards in 2 CFR 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR 200.320. Uniform Guidance 2 C.F.R 200.318 through 2 C.F.R. 200.327 200.318(a) The non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity?s documented procurement procedures must conform to the procurement standards identified in 200.317 through 200.327.200.318(i) The non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not 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. Condition: It was noted during the audit of fiscal year 2022 that although Skagway Traditional Council (STC) has documented procurement policies consistent with Uniform Guidance. STC did not maintain evidence that it followed its own documented procurement policy for procurements greater than the micro-purchase threshold. Cause: STC does not have an administrative process to ensure that the procurement documentation supporting purchases greater than the micro-purchase threshold are maintained in accordance with STCs procurement policies. Effect or potential effect: STC is out of compliance with Uniform Guidance procurement standards in fiscal year 2022. Questioned Costs: None. Context: For this program, four procurements were greater than STC?s micro-purchase threshold and all four were tested against STC?s procurement policy, of those four, none of them had documentation supporting STC following STC?s procurement policies. Identification of Repeat Finding: Not applicable. Recommendations: We recommend that as a part of STC?s internal control structure over compliance with Uniform Guidance, that STC prepare a checklist, reflective of STC?s approved procurement policies, that must be completed before procurements can be awarded and all documents supporting that checklist be filled together. Views of Responsible Officials: See Corrective Action Plan