2022-002?Procurement Federal program information: Funding agency: All Title: All ALN: All Award year and number: All Pass-through entity (if applicable): All Criteria: Non-federal entities other than states must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. According to BRINM?s Purchasing SOP?s, project purchase requests exceeding a value of $25,000 require obtaining three bids. Purchase orders are created for approved project purchase requests and reviewed and signed by the Executive Director or Assistant Director before it can be issued to a vendor. Condition: During fiscal year 2022, BRINM paid a vendor $93,808 for services related to a project. There is no evidence that three bids were obtained for selection of this vendor. Additionally, there was not an approved purchase order for one of the three invoices paid to this vendor. Questioned Costs: None Context: One of 25 nonpayroll transactions tested. Additionally, one of four vendors/subawards tested that were paid over $25,000 during fiscal year 2022. Cause: BRINM?s Grants Manager, who was responsible for all records related to purchasing, accounts payable, and credit cards, resigned in November 2021 without filing many documents. Evidence of bids obtained for use of this vendor could not be located. Effect: Procurement of vendors does not comply with BRINM SOP?s and the procurement requirements identified in 2 CFR Part 200. Auditor?s Recommendations: BRINM should implement its approved SOP?s as referenced above to ensure that purchasing SOP?s are implemented and selection of vendors is adequately documented. Management?s Response: Current Management is not able to confirm nor deny that appropriate documentation was not collected prior to payment but highly doubts that it was not collected based on the reliability of the previous Grants Manager. Management notes that the vendor was specifically mentioned in the Grant submission. Management will ensure that purchasing SOP are implemented and selection of vendors is adequately documented. Management has secured a project management software that will retain project documentation. This should ensure appropriate documentation is collected and available to all Management for the life of the project, until date of destruction.
2022-003 Internal Controls over Compliance and Compliance with Procurement, Suspension and Debarment Requirement Information on the Federal Program: United States Agency for International Development Assistance Listing Number: 98.001 Assistance Listing Name: USAID Foreign Assistance for Programs Overseas Grant Award Number(s): Direct Award Number Award Period 720BHA21GR00063 March 29, 2021 through April 27, 2023 7200AA18CA00060 September 28, 2018 through September 27, 2025 72061318CA00001 January 9, 2018 through December 31, 2022 Criteria or Specific Requirement: In accordance with 2 CFR ?200.318(a), General Procurement Standards, the non-federal entity must use its own documented procurement procedures which reflect applicable State, local, and tribal laws and regulations, provided that the procurements conform to applicable federal law and the standards identified in General Procurement Standards. Additionally, ?200.318(i) states that the non-federal entity must maintain records sufficient to detail the history of the procurement. These records are required to 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. In accordance with ?200.213 and ?180.300, Suspension and Debarment, non-federal entities cannot enter into awards, subawards, or contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in federal assistance programs or activities. Non-federal entities must either check for exclusions in the System for Award Management (SAM); collect a certification from the entity, or add a clause or condition to the covered transaction with the entity prior to entering into a covered transaction with a non-federal entity. In addition, in accordance with ?180.415(b), non-federal entities cannot renew or extend covered transactions (other than no-cost time extension) with any excluded person, or under which an excluded person is a principal, unless the non-federal entity obtains an exception under ?180.135. Condition: During our testing of the procurement, suspension and debarment compliance requirements, we identified four procurement samples out of a total of forty procurement samples tested wherein management was unable to provide supporting documentation whether the suspension and debarment checks were performed prior to entering into contracts with the vendors. For two of the four procurement samples, CRS had previously contracted with the vendor and performed the suspension and debarment checks prior to those contracts. However, management was not able to provide evidence that they performed an updated suspension or debarment check when entering the new covered transaction, as required. Management subsequently checked that none of the vendors were suspended or debarred. However, the internal controls in place were not functioning as intended to ensure that procurement files are maintained, and suspension and debarment checks are performed prior to entering a new covered transaction. Questioned Costs: There are no known or likely questioned costs. Context: This is a condition based on testing of CRS?s compliance with specified requirements. The prevalence of these findings is detailed in the condition section above. The samples were selected using a non-statistical method. Cause: CRS personnel did not adhere to CRS?s documented policies and procedures for ensuring proper suspension and debarment validations were performed prior to entering a new covered transaction. Effect: Failure to timely verify that a vendor is not suspended or debarred could result in transactions involving unreasonable costs or result in unintentionally entering into a contract with an entity that is barred from performing work for the Federal government. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that management ensure that suspension and debarment regulations are followed. We also recommend management ensure all required procurement documentation is maintained in conjunction with its document retention policy. Views of Responsible Officials: As noted by BDO in its description above, CRS had previously contracted three (3) of the four (4) identified vendors on previous covered transactions. Only one (1) of the vendors had not been subject to review via System for Award Management (SAM) prior to contracting/engagement. Management notes that the total comprehensive checks executed against major watchlists (including SAM.gov) in CRS totaled 23,212 (unaudited) in FY 2022 alone. While management agrees with BDO?s assessment of the samples, it should be noted CRS is strongly committed to compliance with applicable suspension and debarment regulations.
2022-003 Internal Controls over Compliance and Compliance with Procurement, Suspension and Debarment Requirement Information on the Federal Program: United States Agency for International Development Assistance Listing Number: 98.001 Assistance Listing Name: USAID Foreign Assistance for Programs Overseas Grant Award Number(s): Direct Award Number Award Period 720BHA21GR00063 March 29, 2021 through April 27, 2023 7200AA18CA00060 September 28, 2018 through September 27, 2025 72061318CA00001 January 9, 2018 through December 31, 2022 Criteria or Specific Requirement: In accordance with 2 CFR ?200.318(a), General Procurement Standards, the non-federal entity must use its own documented procurement procedures which reflect applicable State, local, and tribal laws and regulations, provided that the procurements conform to applicable federal law and the standards identified in General Procurement Standards. Additionally, ?200.318(i) states that the non-federal entity must maintain records sufficient to detail the history of the procurement. These records are required to 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. In accordance with ?200.213 and ?180.300, Suspension and Debarment, non-federal entities cannot enter into awards, subawards, or contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in federal assistance programs or activities. Non-federal entities must either check for exclusions in the System for Award Management (SAM); collect a certification from the entity, or add a clause or condition to the covered transaction with the entity prior to entering into a covered transaction with a non-federal entity. In addition, in accordance with ?180.415(b), non-federal entities cannot renew or extend covered transactions (other than no-cost time extension) with any excluded person, or under which an excluded person is a principal, unless the non-federal entity obtains an exception under ?180.135. Condition: During our testing of the procurement, suspension and debarment compliance requirements, we identified four procurement samples out of a total of forty procurement samples tested wherein management was unable to provide supporting documentation whether the suspension and debarment checks were performed prior to entering into contracts with the vendors. For two of the four procurement samples, CRS had previously contracted with the vendor and performed the suspension and debarment checks prior to those contracts. However, management was not able to provide evidence that they performed an updated suspension or debarment check when entering the new covered transaction, as required. Management subsequently checked that none of the vendors were suspended or debarred. However, the internal controls in place were not functioning as intended to ensure that procurement files are maintained, and suspension and debarment checks are performed prior to entering a new covered transaction. Questioned Costs: There are no known or likely questioned costs. Context: This is a condition based on testing of CRS?s compliance with specified requirements. The prevalence of these findings is detailed in the condition section above. The samples were selected using a non-statistical method. Cause: CRS personnel did not adhere to CRS?s documented policies and procedures for ensuring proper suspension and debarment validations were performed prior to entering a new covered transaction. Effect: Failure to timely verify that a vendor is not suspended or debarred could result in transactions involving unreasonable costs or result in unintentionally entering into a contract with an entity that is barred from performing work for the Federal government. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that management ensure that suspension and debarment regulations are followed. We also recommend management ensure all required procurement documentation is maintained in conjunction with its document retention policy. Views of Responsible Officials: As noted by BDO in its description above, CRS had previously contracted three (3) of the four (4) identified vendors on previous covered transactions. Only one (1) of the vendors had not been subject to review via System for Award Management (SAM) prior to contracting/engagement. Management notes that the total comprehensive checks executed against major watchlists (including SAM.gov) in CRS totaled 23,212 (unaudited) in FY 2022 alone. While management agrees with BDO?s assessment of the samples, it should be noted CRS is strongly committed to compliance with applicable suspension and debarment regulations.
2022-003 Internal Controls over Compliance and Compliance with Procurement, Suspension and Debarment Requirement Information on the Federal Program: United States Agency for International Development Assistance Listing Number: 98.001 Assistance Listing Name: USAID Foreign Assistance for Programs Overseas Grant Award Number(s): Direct Award Number Award Period 720BHA21GR00063 March 29, 2021 through April 27, 2023 7200AA18CA00060 September 28, 2018 through September 27, 2025 72061318CA00001 January 9, 2018 through December 31, 2022 Criteria or Specific Requirement: In accordance with 2 CFR ?200.318(a), General Procurement Standards, the non-federal entity must use its own documented procurement procedures which reflect applicable State, local, and tribal laws and regulations, provided that the procurements conform to applicable federal law and the standards identified in General Procurement Standards. Additionally, ?200.318(i) states that the non-federal entity must maintain records sufficient to detail the history of the procurement. These records are required to 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. In accordance with ?200.213 and ?180.300, Suspension and Debarment, non-federal entities cannot enter into awards, subawards, or contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in federal assistance programs or activities. Non-federal entities must either check for exclusions in the System for Award Management (SAM); collect a certification from the entity, or add a clause or condition to the covered transaction with the entity prior to entering into a covered transaction with a non-federal entity. In addition, in accordance with ?180.415(b), non-federal entities cannot renew or extend covered transactions (other than no-cost time extension) with any excluded person, or under which an excluded person is a principal, unless the non-federal entity obtains an exception under ?180.135. Condition: During our testing of the procurement, suspension and debarment compliance requirements, we identified four procurement samples out of a total of forty procurement samples tested wherein management was unable to provide supporting documentation whether the suspension and debarment checks were performed prior to entering into contracts with the vendors. For two of the four procurement samples, CRS had previously contracted with the vendor and performed the suspension and debarment checks prior to those contracts. However, management was not able to provide evidence that they performed an updated suspension or debarment check when entering the new covered transaction, as required. Management subsequently checked that none of the vendors were suspended or debarred. However, the internal controls in place were not functioning as intended to ensure that procurement files are maintained, and suspension and debarment checks are performed prior to entering a new covered transaction. Questioned Costs: There are no known or likely questioned costs. Context: This is a condition based on testing of CRS?s compliance with specified requirements. The prevalence of these findings is detailed in the condition section above. The samples were selected using a non-statistical method. Cause: CRS personnel did not adhere to CRS?s documented policies and procedures for ensuring proper suspension and debarment validations were performed prior to entering a new covered transaction. Effect: Failure to timely verify that a vendor is not suspended or debarred could result in transactions involving unreasonable costs or result in unintentionally entering into a contract with an entity that is barred from performing work for the Federal government. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that management ensure that suspension and debarment regulations are followed. We also recommend management ensure all required procurement documentation is maintained in conjunction with its document retention policy. Views of Responsible Officials: As noted by BDO in its description above, CRS had previously contracted three (3) of the four (4) identified vendors on previous covered transactions. Only one (1) of the vendors had not been subject to review via System for Award Management (SAM) prior to contracting/engagement. Management notes that the total comprehensive checks executed against major watchlists (including SAM.gov) in CRS totaled 23,212 (unaudited) in FY 2022 alone. While management agrees with BDO?s assessment of the samples, it should be noted CRS is strongly committed to compliance with applicable suspension and debarment regulations.
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
2022-001 - Procurement Federal Program Information: Department of Transportation ALN ? 20.507 ? Federal Transit Cluster Criteria: The following CFR(s) apply to this finding: 2 CFR section 200.318 through 200.326. Condition: During audit procedures, it was identified that the District?s procurement policy did not include some of the elements required by the above federal regulations. Cause: The District does not have the necessary language over the procurement policy in regard to federal regulations. Effect: Procurements might not conform to applicable Federal regulations. Identification of Questioned Costs: Based upon procurement items sampled, no noncompliance matters were noted. Context: A review was conducted of the District?s procurement policy and the policy was not in compliance with federal regulations. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the District adopt a procurement policy that is in compliance with federal regulations and that the District implement internal control processes and procedures to ensure that procurement policies are always in compliance with federal regulations. Views of Responsible Officials: Client agrees with finding.
2022-001 - Procurement Federal Program Information: Department of Transportation ALN ? 20.507 ? Federal Transit Cluster Criteria: The following CFR(s) apply to this finding: 2 CFR section 200.318 through 200.326. Condition: During audit procedures, it was identified that the District?s procurement policy did not include some of the elements required by the above federal regulations. Cause: The District does not have the necessary language over the procurement policy in regard to federal regulations. Effect: Procurements might not conform to applicable Federal regulations. Identification of Questioned Costs: Based upon procurement items sampled, no noncompliance matters were noted. Context: A review was conducted of the District?s procurement policy and the policy was not in compliance with federal regulations. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the District adopt a procurement policy that is in compliance with federal regulations and that the District implement internal control processes and procedures to ensure that procurement policies are always in compliance with federal regulations. Views of Responsible Officials: Client agrees with finding.
2022-001 - Procurement Federal Program Information: Department of Transportation ALN ? 20.507 ? Federal Transit Cluster Criteria: The following CFR(s) apply to this finding: 2 CFR section 200.318 through 200.326. Condition: During audit procedures, it was identified that the District?s procurement policy did not include some of the elements required by the above federal regulations. Cause: The District does not have the necessary language over the procurement policy in regard to federal regulations. Effect: Procurements might not conform to applicable Federal regulations. Identification of Questioned Costs: Based upon procurement items sampled, no noncompliance matters were noted. Context: A review was conducted of the District?s procurement policy and the policy was not in compliance with federal regulations. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the District adopt a procurement policy that is in compliance with federal regulations and that the District implement internal control processes and procedures to ensure that procurement policies are always in compliance with federal regulations. Views of Responsible Officials: Client agrees with finding.
2022-001 - Procurement Federal Program Information: Department of Transportation ALN ? 20.507 ? Federal Transit Cluster Criteria: The following CFR(s) apply to this finding: 2 CFR section 200.318 through 200.326. Condition: During audit procedures, it was identified that the District?s procurement policy did not include some of the elements required by the above federal regulations. Cause: The District does not have the necessary language over the procurement policy in regard to federal regulations. Effect: Procurements might not conform to applicable Federal regulations. Identification of Questioned Costs: Based upon procurement items sampled, no noncompliance matters were noted. Context: A review was conducted of the District?s procurement policy and the policy was not in compliance with federal regulations. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the District adopt a procurement policy that is in compliance with federal regulations and that the District implement internal control processes and procedures to ensure that procurement policies are always in compliance with federal regulations. Views of Responsible Officials: Client agrees with finding.
2022-001 - Procurement Federal Program Information: Department of Transportation ALN ? 20.507 ? Federal Transit Cluster Criteria: The following CFR(s) apply to this finding: 2 CFR section 200.318 through 200.326. Condition: During audit procedures, it was identified that the District?s procurement policy did not include some of the elements required by the above federal regulations. Cause: The District does not have the necessary language over the procurement policy in regard to federal regulations. Effect: Procurements might not conform to applicable Federal regulations. Identification of Questioned Costs: Based upon procurement items sampled, no noncompliance matters were noted. Context: A review was conducted of the District?s procurement policy and the policy was not in compliance with federal regulations. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the District adopt a procurement policy that is in compliance with federal regulations and that the District implement internal control processes and procedures to ensure that procurement policies are always in compliance with federal regulations. Views of Responsible Officials: Client agrees with finding.
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.
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.
Information on the Federal Program: Assistance Listing Number 21.027-Coronavirus State and Local Fiscal Recovery Funds, U.S. Department of the Treasury. Compliance Requirements: Procurement. Type of Finding: Noncompliance. Criteria: 2 CFR § 200.318(c)(1) requires that 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: We noted that the County did not have written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award and administration of contracts in fiscal year 2022. Cause: The County was not aware of the requirement to have written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award and administration of contracts. Effect: Failure to have written standards of conduct could result in noncompliance with Uniform Guidance requirements. Questioned Costs: There are no questioned costs. Recommendation: We recommend that the County develop written standards of conduct that include the requirements of 2 CFR § 200.318(c)(1). Views of Responsible Officials and Planned Corrective Action: The County will develop written standards of conduct in that satisfy the requirements of 2 CFR § 200.318(c)(1).
Information on the Federal Program: Assistance Listing Number 21.027-Coronavirus State and Local Fiscal Recovery Funds, U.S. Department of the Treasury. Compliance Requirements: Procurement. Type of Finding: Noncompliance. Criteria: 2 CFR § 200.319(d) requires that the non-Federal entity must maintain written procedures for procurement transactions. Condition: We noted that the County did not have written procedures for procurement transactions that include the provisions required by the Procurement Standards 2 CFR § 200.318 through 2 CFR § 200.327 in fiscal year 2022. Cause: The County was not aware of the requirement to have written procedures for procurement transactions. Effect: Failure to have adequate written procedures for procurement transactions could result in the acquisition of goods or services in violation with administrative requirements, federal regulations, other procurement requirements, and Uniform Guidance requirements. Questioned Costs: There are no questioned costs. Recommendation: We recommend that the County identify grants that are subject to Uniform Guidance on a timely basis to ensure all compliance requirements are met and develop adequate written policies and procedures for procurement transactions. Views of Responsible Officials and Planned Corrective Action: The County has identified federal grants subject to the Uniform Guidance and will develop written policies and procedures which include the relevant provisions required by 2 CFR § 200.318 through 2 CFR § 200.326 Contract provisions.
Information on the Federal Program: Assistance Listing Number 21.027-Coronavirus State and Local Fiscal Recovery Funds, U.S. Department of the Treasury. Compliance Requirements: Procurement. Type of Finding: Material Weakness in Internal Control Over Compliance. Criteria: Internal controls should be in place to provide reasonable assurance that procurement of goods and services are made in compliance with federal regulations and other procurement requirements, as applicable. Condition: The County lacks sufficient controls over procurement to ensure compliance with federal regulations and other procurement requirements, as applicable. Cause: The County did not design and implement controls over compliance with procurement. Effect or Potential Effect: Failure to have adequate internal controls over compliance with procurement could result in the acquisition of goods or services in violation with administrative requirements, federal regulations, and other procurement requirements. Questioned Costs: There are no questioned costs. Recommendation: We recommend that the County create and adopt an official written policy for procurement and contracts establishing contract files that document significant procurement history; methods of procurement authorized including selection of contract type, contractor selection or rejection, and the basis of contract price; verification that procurements provide full and open competition; requirements for cost or price analysis, including for contract modifications; obtaining and reacting to suspension and debarment certifications; and other applicable requirements for procurements under federal awards are followed. We also recommend that personnel with adequate knowledge and experience of responsibilities for procurements for federal awards review procurement and contracting decisions for compliance with federal procurement policies. Views of Responsible Officials and Planned Corrective Action: Management concurs with the audit finding. The County will develop written policies and procedures for procurement, including the relevant provisions required by 2 CFR § 200.318 through 2 CFR § 200.326 Contract provisions. Management will evaluate the need to contract with local government consultants to perform control procedures where County personnel are not available or qualified to perform.
2022-005 AL# 66.468 – Capitalization Grants for Drinking Water State Revolving Funds Environmental Protection Agency – Passed Through the Alabama State Department of Environmental Management I – Procurement Significant Deficiency Criteria: Per 2 CFR section 200.318(c) entities are required to have written standards of conduct that cover conflicts of interest and govern the performance of its employees engaged in the selection, award, and administration of contracts. Condition: The entity has no written standards of conduct per 2 CFR section 200.318(c). Context: The Water Works and Gas Board of the City of Red Bay does not have a written policy for standards of conduct. Effect: The entity is not in compliance with 2 CFR section 200.318(c). Cause: The entity failed to adopt a written standard of conduct. Repeat Finding: No Recommendation: The entity should adopt written standards of conduct to cover conflicts of interest and govern the performance of its employees engaged in the selection, award, and administration of contracts. Board’s Response: The Water Works and Gas Board of the City of Red Bay will maintain a written standards of conduct and comply with all State laws in relation the Board members and employees in regard to their relationship with vendors and contractors.
2022-001 AL# 21.027 Coronavirus State and Local Fiscal Recovery Funds Department of the Treasury – Passed Through the State of Alabama – American Rescue Plan Act I – Procurement Significant Deficiency Criteria: Per 2 CFR Section 200.318(c) entities are required to have written standards of conduct that cover conflicts of interest and govern the performance of its employees engaged in the selection, award, and administration of contracts. Condition: The entity has no written standards of conduct per 2 CFR Section 200.318(c). Context: The City of Haleyville does not have a written policy for standards of conduct. Effect: The entity is not in compliance with 2 CFR Section 200.318(c). Cause: The entity failed to adopt a written standard of conduct. Repeat Finding: No Recommendation: The entity should adopt written standards of conduct to cover conflicts of interest and Govern the performance of its employees engaged in the selection, award, and Administration of contracts. Response of Responsible Officials: The City of Haleyville will maintain a written standards of conduct and comply with all State laws in relation to Board members and employees in regard to their relationship with vendors and contractors.
2022-001 AL# 21.027 Coronavirus State and Local Fiscal Recovery Funds Department of the Treasury – Passed Through the State of Alabama – American Rescue Plan Act I – Procurement Significant Deficiency Criteria: Per 2 CFR Section 200.318(c) entities are required to have written standards of conduct that cover conflicts of interest and govern the performance of its employees engaged in the selection, award, and administration of contracts. Condition: The entity has no written standards of conduct per 2 CFR Section 200.318(c). Context: The City of Haleyville does not have a written policy for standards of conduct. Effect: The entity is not in compliance with 2 CFR Section 200.318(c). Cause: The entity failed to adopt a written standard of conduct. Repeat Finding: No Recommendation: The entity should adopt written standards of conduct to cover conflicts of interest and Govern the performance of its employees engaged in the selection, award, and Administration of contracts. Response of Responsible Officials: The City of Haleyville will maintain a written standards of conduct and comply with all State laws in relation to Board members and employees in regard to their relationship with vendors and contractors.
Finding 2022-005 – Procurement Policies Assistance Listing #: ALL Criteria: The Uniform Guidance, 2 CFR Subpart D, requires that all non-federal entities must follow the procurement standards as set forth in parts §200.318 through §200.327 and the non-federal entity’s documented procurement procedures must conform to these procurement standards. Condition: The Organization has general policies and procedures that broadly address procurement, however, the written policies do not comply with the requirements of the Uniform Guidance. The Organization’s procurement policies have been adopted using a model applicable to a commercial entity with multiple references to the Federal Acquisition Regulation (FAR) and its standards, rather than a non-profit organization subject to the Uniform Guidance. Cause: As noted above, fiscal year 2022 is the Organization’s first Single Audit and It appears the Organization is not fully aware of the applicable requirements. Effect: The Organization is not in compliance with the requirements of the Uniform Guidance and its relative procurement standards. In addition, since the Organization is not following the procurement guidance as specified, they are at a heightened risk that they will procure goods and services outside of the allowed scope of the Uniform Guidance, not follow proper procurement steps to selection, and/or not maintain proper procurement history, etc. Questioned Costs: N/A Repeat Finding: No Recommendation: We recommend management update its procurement policies and procedures to comply with the requirements of the Uniform Guidance. Response: The Organization is generally identified and approached by Federal agencies, or prime contractors having or considering federal agencies, to utilize grant funding for NFFCMH contracts. The Organization works with trusted partners, each having a unique or specialized forte within the grant requirements, to assemble a joint team of providers. Many of these partners are, due to repeated utilization and unique recognition within their field, uniquely qualified, or the true only option, for their areas of expertise. The Organization will revise the procurement policy to comply with Uniform Guidance, as opposed to the Federal Acquisition Regulations.
Finding 2022-005 – Procurement Policies Assistance Listing #: ALL Criteria: The Uniform Guidance, 2 CFR Subpart D, requires that all non-federal entities must follow the procurement standards as set forth in parts §200.318 through §200.327 and the non-federal entity’s documented procurement procedures must conform to these procurement standards. Condition: The Organization has general policies and procedures that broadly address procurement, however, the written policies do not comply with the requirements of the Uniform Guidance. The Organization’s procurement policies have been adopted using a model applicable to a commercial entity with multiple references to the Federal Acquisition Regulation (FAR) and its standards, rather than a non-profit organization subject to the Uniform Guidance. Cause: As noted above, fiscal year 2022 is the Organization’s first Single Audit and It appears the Organization is not fully aware of the applicable requirements. Effect: The Organization is not in compliance with the requirements of the Uniform Guidance and its relative procurement standards. In addition, since the Organization is not following the procurement guidance as specified, they are at a heightened risk that they will procure goods and services outside of the allowed scope of the Uniform Guidance, not follow proper procurement steps to selection, and/or not maintain proper procurement history, etc. Questioned Costs: N/A Repeat Finding: No Recommendation: We recommend management update its procurement policies and procedures to comply with the requirements of the Uniform Guidance. Response: The Organization is generally identified and approached by Federal agencies, or prime contractors having or considering federal agencies, to utilize grant funding for NFFCMH contracts. The Organization works with trusted partners, each having a unique or specialized forte within the grant requirements, to assemble a joint team of providers. Many of these partners are, due to repeated utilization and unique recognition within their field, uniquely qualified, or the true only option, for their areas of expertise. The Organization will revise the procurement policy to comply with Uniform Guidance, as opposed to the Federal Acquisition Regulations.
Finding 2022-005 – Procurement Policies Assistance Listing #: ALL Criteria: The Uniform Guidance, 2 CFR Subpart D, requires that all non-federal entities must follow the procurement standards as set forth in parts §200.318 through §200.327 and the non-federal entity’s documented procurement procedures must conform to these procurement standards. Condition: The Organization has general policies and procedures that broadly address procurement, however, the written policies do not comply with the requirements of the Uniform Guidance. The Organization’s procurement policies have been adopted using a model applicable to a commercial entity with multiple references to the Federal Acquisition Regulation (FAR) and its standards, rather than a non-profit organization subject to the Uniform Guidance. Cause: As noted above, fiscal year 2022 is the Organization’s first Single Audit and It appears the Organization is not fully aware of the applicable requirements. Effect: The Organization is not in compliance with the requirements of the Uniform Guidance and its relative procurement standards. In addition, since the Organization is not following the procurement guidance as specified, they are at a heightened risk that they will procure goods and services outside of the allowed scope of the Uniform Guidance, not follow proper procurement steps to selection, and/or not maintain proper procurement history, etc. Questioned Costs: N/A Repeat Finding: No Recommendation: We recommend management update its procurement policies and procedures to comply with the requirements of the Uniform Guidance. Response: The Organization is generally identified and approached by Federal agencies, or prime contractors having or considering federal agencies, to utilize grant funding for NFFCMH contracts. The Organization works with trusted partners, each having a unique or specialized forte within the grant requirements, to assemble a joint team of providers. Many of these partners are, due to repeated utilization and unique recognition within their field, uniquely qualified, or the true only option, for their areas of expertise. The Organization will revise the procurement policy to comply with Uniform Guidance, as opposed to the Federal Acquisition Regulations.
Finding 2022-005 – Procurement Policies Assistance Listing #: ALL Criteria: The Uniform Guidance, 2 CFR Subpart D, requires that all non-federal entities must follow the procurement standards as set forth in parts §200.318 through §200.327 and the non-federal entity’s documented procurement procedures must conform to these procurement standards. Condition: The Organization has general policies and procedures that broadly address procurement, however, the written policies do not comply with the requirements of the Uniform Guidance. The Organization’s procurement policies have been adopted using a model applicable to a commercial entity with multiple references to the Federal Acquisition Regulation (FAR) and its standards, rather than a non-profit organization subject to the Uniform Guidance. Cause: As noted above, fiscal year 2022 is the Organization’s first Single Audit and It appears the Organization is not fully aware of the applicable requirements. Effect: The Organization is not in compliance with the requirements of the Uniform Guidance and its relative procurement standards. In addition, since the Organization is not following the procurement guidance as specified, they are at a heightened risk that they will procure goods and services outside of the allowed scope of the Uniform Guidance, not follow proper procurement steps to selection, and/or not maintain proper procurement history, etc. Questioned Costs: N/A Repeat Finding: No Recommendation: We recommend management update its procurement policies and procedures to comply with the requirements of the Uniform Guidance. Response: The Organization is generally identified and approached by Federal agencies, or prime contractors having or considering federal agencies, to utilize grant funding for NFFCMH contracts. The Organization works with trusted partners, each having a unique or specialized forte within the grant requirements, to assemble a joint team of providers. Many of these partners are, due to repeated utilization and unique recognition within their field, uniquely qualified, or the true only option, for their areas of expertise. The Organization will revise the procurement policy to comply with Uniform Guidance, as opposed to the Federal Acquisition Regulations.
2022-001 Department of State ? Bureau of Population, Refugees, and MigrationFederal Financial Assistance Listing #19.517, Overseas Refugee Assistance Programs for AfricaAgency for International DevelopmentDepartment of State - Federal Financial Assistance Listing # 98.001, USAID Foreign Assistance for Programs OverseasProcurement, Suspension and DebarmentType of Finding: Significant Deficiency in Internal Control over ComplianceGrant Award Number: Affects all grant awards included under Federal Financial Assistance Listing #19.517 and #98.001 on the Schedule.Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities, other than states, must follow when operating federal programs and the required procurement procedures based on the amount of the transaction.Condition: CVT has documented procurement procedures that conform to applicable federal standards; however, the procedures were not followed regarding maintaining documentation of obtaining quotes for simplified acquisition small purchases and the conclusion as to which item was selected. In addition, CVT was not testing vendors for suspension and debarment.Cause: Controls were not adequately designed due to lack of oversight, awareness, or understanding of all of the specific requirements under the Uniform Guidance and applicable CFR sections.Effect: The best price for the purchase may not have been obtained and payments could be made to recipients who were suspended or debarred.Questioned Costs: None reported.Context/Sampling: For Federal Financial Assistance Listing #19.517, a nonstatistical sample of 60 transactions out of 2,935 total transactions was selected for testing. Required documentation related to procurement was not maintained for 13 of the items selected, and 13 of the items selected did not have support for suspension and debarment. For Federal Financial Assistance Listing #98.001, a nonstatistical sample of 60 transactions out of 1,594 total transactions were selected for testing. Required documentation related to procurement was not maintained for six of the items selected, and seven of the items selected did not have support for suspension, and debarment.Repeat Finding from Prior Year: Yes, prior year finding 2021-001.Recommendation: We recommend that management maintain adequate supporting documentation and records to document history, methods of procurement, and documentation to support check for suspension and debarment to comply with these CFR sections.Views of Responsible Officials: Management agrees with this finding.
2022-001 Department of State ? Bureau of Population, Refugees, and MigrationFederal Financial Assistance Listing #19.517, Overseas Refugee Assistance Programs for AfricaAgency for International DevelopmentDepartment of State - Federal Financial Assistance Listing # 98.001, USAID Foreign Assistance for Programs OverseasProcurement, Suspension and DebarmentType of Finding: Significant Deficiency in Internal Control over ComplianceGrant Award Number: Affects all grant awards included under Federal Financial Assistance Listing #19.517 and #98.001 on the Schedule.Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities, other than states, must follow when operating federal programs and the required procurement procedures based on the amount of the transaction.Condition: CVT has documented procurement procedures that conform to applicable federal standards; however, the procedures were not followed regarding maintaining documentation of obtaining quotes for simplified acquisition small purchases and the conclusion as to which item was selected. In addition, CVT was not testing vendors for suspension and debarment.Cause: Controls were not adequately designed due to lack of oversight, awareness, or understanding of all of the specific requirements under the Uniform Guidance and applicable CFR sections.Effect: The best price for the purchase may not have been obtained and payments could be made to recipients who were suspended or debarred.Questioned Costs: None reported.Context/Sampling: For Federal Financial Assistance Listing #19.517, a nonstatistical sample of 60 transactions out of 2,935 total transactions was selected for testing. Required documentation related to procurement was not maintained for 13 of the items selected, and 13 of the items selected did not have support for suspension and debarment. For Federal Financial Assistance Listing #98.001, a nonstatistical sample of 60 transactions out of 1,594 total transactions were selected for testing. Required documentation related to procurement was not maintained for six of the items selected, and seven of the items selected did not have support for suspension, and debarment.Repeat Finding from Prior Year: Yes, prior year finding 2021-001.Recommendation: We recommend that management maintain adequate supporting documentation and records to document history, methods of procurement, and documentation to support check for suspension and debarment to comply with these CFR sections.Views of Responsible Officials: Management agrees with this finding.
2022-001 Department of State ? Bureau of Population, Refugees, and MigrationFederal Financial Assistance Listing #19.517, Overseas Refugee Assistance Programs for AfricaAgency for International DevelopmentDepartment of State - Federal Financial Assistance Listing # 98.001, USAID Foreign Assistance for Programs OverseasProcurement, Suspension and DebarmentType of Finding: Significant Deficiency in Internal Control over ComplianceGrant Award Number: Affects all grant awards included under Federal Financial Assistance Listing #19.517 and #98.001 on the Schedule.Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities, other than states, must follow when operating federal programs and the required procurement procedures based on the amount of the transaction.Condition: CVT has documented procurement procedures that conform to applicable federal standards; however, the procedures were not followed regarding maintaining documentation of obtaining quotes for simplified acquisition small purchases and the conclusion as to which item was selected. In addition, CVT was not testing vendors for suspension and debarment.Cause: Controls were not adequately designed due to lack of oversight, awareness, or understanding of all of the specific requirements under the Uniform Guidance and applicable CFR sections.Effect: The best price for the purchase may not have been obtained and payments could be made to recipients who were suspended or debarred.Questioned Costs: None reported.Context/Sampling: For Federal Financial Assistance Listing #19.517, a nonstatistical sample of 60 transactions out of 2,935 total transactions was selected for testing. Required documentation related to procurement was not maintained for 13 of the items selected, and 13 of the items selected did not have support for suspension and debarment. For Federal Financial Assistance Listing #98.001, a nonstatistical sample of 60 transactions out of 1,594 total transactions were selected for testing. Required documentation related to procurement was not maintained for six of the items selected, and seven of the items selected did not have support for suspension, and debarment.Repeat Finding from Prior Year: Yes, prior year finding 2021-001.Recommendation: We recommend that management maintain adequate supporting documentation and records to document history, methods of procurement, and documentation to support check for suspension and debarment to comply with these CFR sections.Views of Responsible Officials: Management agrees with this finding.
2022-001 Department of State ? Bureau of Population, Refugees, and MigrationFederal Financial Assistance Listing #19.517, Overseas Refugee Assistance Programs for AfricaAgency for International DevelopmentDepartment of State - Federal Financial Assistance Listing # 98.001, USAID Foreign Assistance for Programs OverseasProcurement, Suspension and DebarmentType of Finding: Significant Deficiency in Internal Control over ComplianceGrant Award Number: Affects all grant awards included under Federal Financial Assistance Listing #19.517 and #98.001 on the Schedule.Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities, other than states, must follow when operating federal programs and the required procurement procedures based on the amount of the transaction.Condition: CVT has documented procurement procedures that conform to applicable federal standards; however, the procedures were not followed regarding maintaining documentation of obtaining quotes for simplified acquisition small purchases and the conclusion as to which item was selected. In addition, CVT was not testing vendors for suspension and debarment.Cause: Controls were not adequately designed due to lack of oversight, awareness, or understanding of all of the specific requirements under the Uniform Guidance and applicable CFR sections.Effect: The best price for the purchase may not have been obtained and payments could be made to recipients who were suspended or debarred.Questioned Costs: None reported.Context/Sampling: For Federal Financial Assistance Listing #19.517, a nonstatistical sample of 60 transactions out of 2,935 total transactions was selected for testing. Required documentation related to procurement was not maintained for 13 of the items selected, and 13 of the items selected did not have support for suspension and debarment. For Federal Financial Assistance Listing #98.001, a nonstatistical sample of 60 transactions out of 1,594 total transactions were selected for testing. Required documentation related to procurement was not maintained for six of the items selected, and seven of the items selected did not have support for suspension, and debarment.Repeat Finding from Prior Year: Yes, prior year finding 2021-001.Recommendation: We recommend that management maintain adequate supporting documentation and records to document history, methods of procurement, and documentation to support check for suspension and debarment to comply with these CFR sections.Views of Responsible Officials: Management agrees with this finding.
2022-001 Department of State ? Bureau of Population, Refugees, and MigrationFederal Financial Assistance Listing #19.517, Overseas Refugee Assistance Programs for AfricaAgency for International DevelopmentDepartment of State - Federal Financial Assistance Listing # 98.001, USAID Foreign Assistance for Programs OverseasProcurement, Suspension and DebarmentType of Finding: Significant Deficiency in Internal Control over ComplianceGrant Award Number: Affects all grant awards included under Federal Financial Assistance Listing #19.517 and #98.001 on the Schedule.Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities, other than states, must follow when operating federal programs and the required procurement procedures based on the amount of the transaction.Condition: CVT has documented procurement procedures that conform to applicable federal standards; however, the procedures were not followed regarding maintaining documentation of obtaining quotes for simplified acquisition small purchases and the conclusion as to which item was selected. In addition, CVT was not testing vendors for suspension and debarment.Cause: Controls were not adequately designed due to lack of oversight, awareness, or understanding of all of the specific requirements under the Uniform Guidance and applicable CFR sections.Effect: The best price for the purchase may not have been obtained and payments could be made to recipients who were suspended or debarred.Questioned Costs: None reported.Context/Sampling: For Federal Financial Assistance Listing #19.517, a nonstatistical sample of 60 transactions out of 2,935 total transactions was selected for testing. Required documentation related to procurement was not maintained for 13 of the items selected, and 13 of the items selected did not have support for suspension and debarment. For Federal Financial Assistance Listing #98.001, a nonstatistical sample of 60 transactions out of 1,594 total transactions were selected for testing. Required documentation related to procurement was not maintained for six of the items selected, and seven of the items selected did not have support for suspension, and debarment.Repeat Finding from Prior Year: Yes, prior year finding 2021-001.Recommendation: We recommend that management maintain adequate supporting documentation and records to document history, methods of procurement, and documentation to support check for suspension and debarment to comply with these CFR sections.Views of Responsible Officials: Management agrees with this finding.
2022-001 Department of State ? Bureau of Population, Refugees, and MigrationFederal Financial Assistance Listing #19.517, Overseas Refugee Assistance Programs for AfricaAgency for International DevelopmentDepartment of State - Federal Financial Assistance Listing # 98.001, USAID Foreign Assistance for Programs OverseasProcurement, Suspension and DebarmentType of Finding: Significant Deficiency in Internal Control over ComplianceGrant Award Number: Affects all grant awards included under Federal Financial Assistance Listing #19.517 and #98.001 on the Schedule.Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities, other than states, must follow when operating federal programs and the required procurement procedures based on the amount of the transaction.Condition: CVT has documented procurement procedures that conform to applicable federal standards; however, the procedures were not followed regarding maintaining documentation of obtaining quotes for simplified acquisition small purchases and the conclusion as to which item was selected. In addition, CVT was not testing vendors for suspension and debarment.Cause: Controls were not adequately designed due to lack of oversight, awareness, or understanding of all of the specific requirements under the Uniform Guidance and applicable CFR sections.Effect: The best price for the purchase may not have been obtained and payments could be made to recipients who were suspended or debarred.Questioned Costs: None reported.Context/Sampling: For Federal Financial Assistance Listing #19.517, a nonstatistical sample of 60 transactions out of 2,935 total transactions was selected for testing. Required documentation related to procurement was not maintained for 13 of the items selected, and 13 of the items selected did not have support for suspension and debarment. For Federal Financial Assistance Listing #98.001, a nonstatistical sample of 60 transactions out of 1,594 total transactions were selected for testing. Required documentation related to procurement was not maintained for six of the items selected, and seven of the items selected did not have support for suspension, and debarment.Repeat Finding from Prior Year: Yes, prior year finding 2021-001.Recommendation: We recommend that management maintain adequate supporting documentation and records to document history, methods of procurement, and documentation to support check for suspension and debarment to comply with these CFR sections.Views of Responsible Officials: Management agrees with this finding.
2022-001 Department of State ? Bureau of Population, Refugees, and MigrationFederal Financial Assistance Listing #19.517, Overseas Refugee Assistance Programs for AfricaAgency for International DevelopmentDepartment of State - Federal Financial Assistance Listing # 98.001, USAID Foreign Assistance for Programs OverseasProcurement, Suspension and DebarmentType of Finding: Significant Deficiency in Internal Control over ComplianceGrant Award Number: Affects all grant awards included under Federal Financial Assistance Listing #19.517 and #98.001 on the Schedule.Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities, other than states, must follow when operating federal programs and the required procurement procedures based on the amount of the transaction.Condition: CVT has documented procurement procedures that conform to applicable federal standards; however, the procedures were not followed regarding maintaining documentation of obtaining quotes for simplified acquisition small purchases and the conclusion as to which item was selected. In addition, CVT was not testing vendors for suspension and debarment.Cause: Controls were not adequately designed due to lack of oversight, awareness, or understanding of all of the specific requirements under the Uniform Guidance and applicable CFR sections.Effect: The best price for the purchase may not have been obtained and payments could be made to recipients who were suspended or debarred.Questioned Costs: None reported.Context/Sampling: For Federal Financial Assistance Listing #19.517, a nonstatistical sample of 60 transactions out of 2,935 total transactions was selected for testing. Required documentation related to procurement was not maintained for 13 of the items selected, and 13 of the items selected did not have support for suspension and debarment. For Federal Financial Assistance Listing #98.001, a nonstatistical sample of 60 transactions out of 1,594 total transactions were selected for testing. Required documentation related to procurement was not maintained for six of the items selected, and seven of the items selected did not have support for suspension, and debarment.Repeat Finding from Prior Year: Yes, prior year finding 2021-001.Recommendation: We recommend that management maintain adequate supporting documentation and records to document history, methods of procurement, and documentation to support check for suspension and debarment to comply with these CFR sections.Views of Responsible Officials: Management agrees with this finding.
2022-001 Department of State ? Bureau of Population, Refugees, and MigrationFederal Financial Assistance Listing #19.517, Overseas Refugee Assistance Programs for AfricaAgency for International DevelopmentDepartment of State - Federal Financial Assistance Listing # 98.001, USAID Foreign Assistance for Programs OverseasProcurement, Suspension and DebarmentType of Finding: Significant Deficiency in Internal Control over ComplianceGrant Award Number: Affects all grant awards included under Federal Financial Assistance Listing #19.517 and #98.001 on the Schedule.Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities, other than states, must follow when operating federal programs and the required procurement procedures based on the amount of the transaction.Condition: CVT has documented procurement procedures that conform to applicable federal standards; however, the procedures were not followed regarding maintaining documentation of obtaining quotes for simplified acquisition small purchases and the conclusion as to which item was selected. In addition, CVT was not testing vendors for suspension and debarment.Cause: Controls were not adequately designed due to lack of oversight, awareness, or understanding of all of the specific requirements under the Uniform Guidance and applicable CFR sections.Effect: The best price for the purchase may not have been obtained and payments could be made to recipients who were suspended or debarred.Questioned Costs: None reported.Context/Sampling: For Federal Financial Assistance Listing #19.517, a nonstatistical sample of 60 transactions out of 2,935 total transactions was selected for testing. Required documentation related to procurement was not maintained for 13 of the items selected, and 13 of the items selected did not have support for suspension and debarment. For Federal Financial Assistance Listing #98.001, a nonstatistical sample of 60 transactions out of 1,594 total transactions were selected for testing. Required documentation related to procurement was not maintained for six of the items selected, and seven of the items selected did not have support for suspension, and debarment.Repeat Finding from Prior Year: Yes, prior year finding 2021-001.Recommendation: We recommend that management maintain adequate supporting documentation and records to document history, methods of procurement, and documentation to support check for suspension and debarment to comply with these CFR sections.Views of Responsible Officials: Management agrees with this finding.
2022-001 Department of State ? Bureau of Population, Refugees, and MigrationFederal Financial Assistance Listing #19.517, Overseas Refugee Assistance Programs for AfricaAgency for International DevelopmentDepartment of State - Federal Financial Assistance Listing # 98.001, USAID Foreign Assistance for Programs OverseasProcurement, Suspension and DebarmentType of Finding: Significant Deficiency in Internal Control over ComplianceGrant Award Number: Affects all grant awards included under Federal Financial Assistance Listing #19.517 and #98.001 on the Schedule.Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities, other than states, must follow when operating federal programs and the required procurement procedures based on the amount of the transaction.Condition: CVT has documented procurement procedures that conform to applicable federal standards; however, the procedures were not followed regarding maintaining documentation of obtaining quotes for simplified acquisition small purchases and the conclusion as to which item was selected. In addition, CVT was not testing vendors for suspension and debarment.Cause: Controls were not adequately designed due to lack of oversight, awareness, or understanding of all of the specific requirements under the Uniform Guidance and applicable CFR sections.Effect: The best price for the purchase may not have been obtained and payments could be made to recipients who were suspended or debarred.Questioned Costs: None reported.Context/Sampling: For Federal Financial Assistance Listing #19.517, a nonstatistical sample of 60 transactions out of 2,935 total transactions was selected for testing. Required documentation related to procurement was not maintained for 13 of the items selected, and 13 of the items selected did not have support for suspension and debarment. For Federal Financial Assistance Listing #98.001, a nonstatistical sample of 60 transactions out of 1,594 total transactions were selected for testing. Required documentation related to procurement was not maintained for six of the items selected, and seven of the items selected did not have support for suspension, and debarment.Repeat Finding from Prior Year: Yes, prior year finding 2021-001.Recommendation: We recommend that management maintain adequate supporting documentation and records to document history, methods of procurement, and documentation to support check for suspension and debarment to comply with these CFR sections.Views of Responsible Officials: Management agrees with this finding.
2022-001 Department of State ? Bureau of Population, Refugees, and MigrationFederal Financial Assistance Listing #19.517, Overseas Refugee Assistance Programs for AfricaAgency for International DevelopmentDepartment of State - Federal Financial Assistance Listing # 98.001, USAID Foreign Assistance for Programs OverseasProcurement, Suspension and DebarmentType of Finding: Significant Deficiency in Internal Control over ComplianceGrant Award Number: Affects all grant awards included under Federal Financial Assistance Listing #19.517 and #98.001 on the Schedule.Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities, other than states, must follow when operating federal programs and the required procurement procedures based on the amount of the transaction.Condition: CVT has documented procurement procedures that conform to applicable federal standards; however, the procedures were not followed regarding maintaining documentation of obtaining quotes for simplified acquisition small purchases and the conclusion as to which item was selected. In addition, CVT was not testing vendors for suspension and debarment.Cause: Controls were not adequately designed due to lack of oversight, awareness, or understanding of all of the specific requirements under the Uniform Guidance and applicable CFR sections.Effect: The best price for the purchase may not have been obtained and payments could be made to recipients who were suspended or debarred.Questioned Costs: None reported.Context/Sampling: For Federal Financial Assistance Listing #19.517, a nonstatistical sample of 60 transactions out of 2,935 total transactions was selected for testing. Required documentation related to procurement was not maintained for 13 of the items selected, and 13 of the items selected did not have support for suspension and debarment. For Federal Financial Assistance Listing #98.001, a nonstatistical sample of 60 transactions out of 1,594 total transactions were selected for testing. Required documentation related to procurement was not maintained for six of the items selected, and seven of the items selected did not have support for suspension, and debarment.Repeat Finding from Prior Year: Yes, prior year finding 2021-001.Recommendation: We recommend that management maintain adequate supporting documentation and records to document history, methods of procurement, and documentation to support check for suspension and debarment to comply with these CFR sections.Views of Responsible Officials: Management agrees with this finding.
2022-001 Department of State ? Bureau of Population, Refugees, and MigrationFederal Financial Assistance Listing #19.517, Overseas Refugee Assistance Programs for AfricaAgency for International DevelopmentDepartment of State - Federal Financial Assistance Listing # 98.001, USAID Foreign Assistance for Programs OverseasProcurement, Suspension and DebarmentType of Finding: Significant Deficiency in Internal Control over ComplianceGrant Award Number: Affects all grant awards included under Federal Financial Assistance Listing #19.517 and #98.001 on the Schedule.Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities, other than states, must follow when operating federal programs and the required procurement procedures based on the amount of the transaction.Condition: CVT has documented procurement procedures that conform to applicable federal standards; however, the procedures were not followed regarding maintaining documentation of obtaining quotes for simplified acquisition small purchases and the conclusion as to which item was selected. In addition, CVT was not testing vendors for suspension and debarment.Cause: Controls were not adequately designed due to lack of oversight, awareness, or understanding of all of the specific requirements under the Uniform Guidance and applicable CFR sections.Effect: The best price for the purchase may not have been obtained and payments could be made to recipients who were suspended or debarred.Questioned Costs: None reported.Context/Sampling: For Federal Financial Assistance Listing #19.517, a nonstatistical sample of 60 transactions out of 2,935 total transactions was selected for testing. Required documentation related to procurement was not maintained for 13 of the items selected, and 13 of the items selected did not have support for suspension and debarment. For Federal Financial Assistance Listing #98.001, a nonstatistical sample of 60 transactions out of 1,594 total transactions were selected for testing. Required documentation related to procurement was not maintained for six of the items selected, and seven of the items selected did not have support for suspension, and debarment.Repeat Finding from Prior Year: Yes, prior year finding 2021-001.Recommendation: We recommend that management maintain adequate supporting documentation and records to document history, methods of procurement, and documentation to support check for suspension and debarment to comply with these CFR sections.Views of Responsible Officials: Management agrees with this finding.
Finding Number: 2022‐002 Repeat Finding: Yes, 2021‐002 Federal Program Name/Assistance Listing Title: COVID‐19 Federal Transit Cluster Federal Assistance Listing Number: 20.507 Federal Agency: U.S. Department of Transportation Federal Award Number: N/A Federal Pass‐Through Agency: N/A State Program Name: State Urbanized Area Formula Program, State Formula Grants For Rural Areas State Agency: Texas Department of Transportation Questioned Costs: N/A Type of Finding: Noncompliance, Material Weakness Compliance Requirement: Procurement, Suspension and Debarment Criteria Non‐federal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR §§200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable State and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR part 200. Additionally, non‐federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. When a non‐federal entity enters into a covered transaction with an entity at a lower tier, the non‐federal entity must verify that the entity, as defined in 2 CFR §180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the System of Award Management (SAM) maintained by the General Services Administration (GSA) or (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR §180.300). Condition The Transit District did not meet the requirement to verify that covered transactions were only made to an entity that was not suspended or debarred or otherwise excluded. Additionally, the Transit District did not follow federal guidelines for purchases exceeding the small purchases threshold. Cause The Transit District’s internal controls over procurement of goods and services were not adequate. Effect The Transit District was not in compliance with Federal regulations and guidelines related to suspension and debarment or procurement. Context The sample was not intended to be, and was not, a statistically valid sample. During our review of purchasing, we noted the following: - For seven procurements over $25,000 reviewed, documentation demonstrating a vendor check for suspension and debarment was not retained. - For five vendors reviewed with total expenditures below the Simplified Acquisition threshold, no documentation of quotes was maintained. - For three vendors reviewed with total expenditures that exceeded the Simplified Acquisition threshold, no documentation of a sealed procurement issued in accordance with federal guidelines was maintained. Recommendation The Transit District should maintain documentation of procurement actions in the vendor file including sealed procurements issued, quotes and suspension and debarment checks. Review of procurement compliance should occur before the Transit District’s funds are obligated. Views of Responsible Officials See Corrective Action Plan.
Finding Number: 2022‐002 Repeat Finding: Yes, 2021‐002 Federal Program Name/Assistance Listing Title: COVID‐19 Federal Transit Cluster Federal Assistance Listing Number: 20.507 Federal Agency: U.S. Department of Transportation Federal Award Number: N/A Federal Pass‐Through Agency: N/A State Program Name: State Urbanized Area Formula Program, State Formula Grants For Rural Areas State Agency: Texas Department of Transportation Questioned Costs: N/A Type of Finding: Noncompliance, Material Weakness Compliance Requirement: Procurement, Suspension and Debarment Criteria Non‐federal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR §§200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable State and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR part 200. Additionally, non‐federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. When a non‐federal entity enters into a covered transaction with an entity at a lower tier, the non‐federal entity must verify that the entity, as defined in 2 CFR §180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the System of Award Management (SAM) maintained by the General Services Administration (GSA) or (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR §180.300). Condition The Transit District did not meet the requirement to verify that covered transactions were only made to an entity that was not suspended or debarred or otherwise excluded. Additionally, the Transit District did not follow federal guidelines for purchases exceeding the small purchases threshold. Cause The Transit District’s internal controls over procurement of goods and services were not adequate. Effect The Transit District was not in compliance with Federal regulations and guidelines related to suspension and debarment or procurement. Context The sample was not intended to be, and was not, a statistically valid sample. During our review of purchasing, we noted the following: - For seven procurements over $25,000 reviewed, documentation demonstrating a vendor check for suspension and debarment was not retained. - For five vendors reviewed with total expenditures below the Simplified Acquisition threshold, no documentation of quotes was maintained. - For three vendors reviewed with total expenditures that exceeded the Simplified Acquisition threshold, no documentation of a sealed procurement issued in accordance with federal guidelines was maintained. Recommendation The Transit District should maintain documentation of procurement actions in the vendor file including sealed procurements issued, quotes and suspension and debarment checks. Review of procurement compliance should occur before the Transit District’s funds are obligated. Views of Responsible Officials See Corrective Action Plan.
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.
Assistance Listing Number, Federal Agency, and Program Name - 21.027 U.S. Department of the Treasury Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year - YDYNCVFA9NH4 Pass through Entity - City of Raleigh, North Carolina Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - 2 CFR 200.318 requires that a nonfederal entity that acquires property or services under a federal award or subaward is required to adopt, maintain, and follow written procurement procedures, which comply with sections 2 CFR 200.318 through 327. Condition - WakeMed does not have a written policy in place over procurement methods, which covers 2 CFR 200.318 200.327, nor did WakeMed follow required procurement guidelines. Questioned Costs - $1,010,233 Identification of How Questioned Costs Were Computed - Questioned costs reflect the entire amount of costs expended under the grant during 2022. Context - WakeMed did not have a written policy in place over procurement methods, which covers 2 CFR 200.318 200.327, when the grant was awarded. In addition, WakeMed did not follow required procurement procedures related to expenditures under the grant, including a competitive bid process for costs charged to the grant as WakeMed entered into the construction contract prior to being awarded the funds. Cause and Effect - Failure to comply with the terms and conditions of the grant agreement, including procurement provisions, where controls were not in place to identify the requirement to have a written procurement policy and follow 2 CFR 200.318 200.327. Recommendation - WakeMed should develop a written procurement policy, which complies with the 2 CFR 200.318 200.327 sections, and ensure controls are in place to comply with the procurement policy on an ongoing basis. Views of Responsible Officials and Planned Corrective Actions - Management agrees with the finding as reported. WakeMed is in the process of updating their existing procurement policy to include the relevant sections from the Code of Federal Regulations and will provide education to the areas involved in procurement and use of federal funds on these requirements.
2022-004 Procurement - Material Weakness Criteria: The Town must follow the procurement standards et out at 2CFR section 200.318 through 200.326. This requires bids be placed for purchases ranging from $10,000-$250,000. The Town currently has policies in place utilizing the state library listing of approved vendors for potential purchases over $50,000. The CFR does allow an entity to increase the lower limit from $10,000 to $50,000 in certain circumstances. One of the conditions is that the entity qualifies as a low risk entity. The Town currently does not qualify as a low risk entity therefore the Town does not qualify for the increase of the lower limit. Sole source vendors are the exception to this rule. Condition: The Town did not obtained 3 bids for over $10,000 purchases. The Town did use the State's liability to identify eligible vendors but failed to get bids. Cause: The Town has had significant difficulties in retaining both a Town Clerk and Accountant who have the capacity to follow procurement policies. This caused purchases to be made without following required procurement procedures. Effect: The Town is not in compliance with the Uniform Guidance and therefore, the Town bas the possibility of not being able to renew contracts in the future. Recommendation: We recommend that the Town follow the procurement policy to comply with federal guidance. Views of Responsible Officias and Planned Corrective Actions: See Corrective Action Plan.
2022-002—Unallowable Gift Card Disbursements Charged to Federal Program Type of Finding: (F) Instance of Noncompliance Related to Federal Awards Funding Agency: U.S. Department of Health and Human Services AL #: 93.231 – COVID-19: Epidemiology and Laboratory Capacity Award #: Various Award Period: 09/30/2021 – 09/29/2026 Estimated Questioned Costs: $15,300 Compliance Requirement: Allowable Costs/Cost Principles Statement of Condition AAIHB distributed gift cards to both salaried employees and independent contractors as a gesture of appreciation for working extended hours related to COVID-19 contact tracing efforts. The total value of the gift cards was approximately $15,300 and was charged to the COVID-19: Epidemiology and Laboratory Capacity grant (AL #93.231). For contractors, these gift cards were provided in addition to their regular compensation. The gift card disbursements were not processed through payroll nor formalized in contract terms, and there is no documentation indicating the entity obtained approval from the awarding agency. Criteria In accordance with 2 CFR § 200.403, costs charged to federal awards must be necessary, reasonable, allocable, and conform to limitations set forth in federal regulations. Per 2 CFR § 200.421(e)(3), the cost of gifts—including cash or cash equivalents such as gift cards—is generally unallowable. Compensation for employees must comply with 2 CFR § 200.430, including support through written policies and documentation of time and effort. Contractor payments must align with procurement standards in 2 CFR § 200.318–200.324 and be governed by written contracts. Effect The use of federal funds to provide gift cards constitutes an unallowable cost under Uniform Guidance. The questioned amount may be subject to repayment to the awarding agency or passthrough entity. Cause The auditee sought to recognize the extraordinary efforts of personnel during the COVID-19 public health response. However, they were unaware that the use of gift cards for this purpose was inconsistent with Uniform Guidance and lacked prior approval or supporting policy. Recommendation We recommend the auditee discontinue the use of federal funds for gift card distributions. All compensation for employees should be processed through payroll, supported by appropriate documentation and internal policies. Payments to contractors should be governed by written contracts and comply with applicable procurement standards. If the auditee believes these costs are justifiable, they should consult the awarding agency for a determination and, if necessary, reimburse the federal award.
2022-002—Unallowable Gift Card Disbursements Charged to Federal Program Type of Finding: (F) Instance of Noncompliance Related to Federal Awards Funding Agency: U.S. Department of Health and Human Services AL #: 93.231 – COVID-19: Epidemiology and Laboratory Capacity Award #: Various Award Period: 09/30/2021 – 09/29/2026 Estimated Questioned Costs: $15,300 Compliance Requirement: Allowable Costs/Cost Principles Statement of Condition AAIHB distributed gift cards to both salaried employees and independent contractors as a gesture of appreciation for working extended hours related to COVID-19 contact tracing efforts. The total value of the gift cards was approximately $15,300 and was charged to the COVID-19: Epidemiology and Laboratory Capacity grant (AL #93.231). For contractors, these gift cards were provided in addition to their regular compensation. The gift card disbursements were not processed through payroll nor formalized in contract terms, and there is no documentation indicating the entity obtained approval from the awarding agency. Criteria In accordance with 2 CFR § 200.403, costs charged to federal awards must be necessary, reasonable, allocable, and conform to limitations set forth in federal regulations. Per 2 CFR § 200.421(e)(3), the cost of gifts—including cash or cash equivalents such as gift cards—is generally unallowable. Compensation for employees must comply with 2 CFR § 200.430, including support through written policies and documentation of time and effort. Contractor payments must align with procurement standards in 2 CFR § 200.318–200.324 and be governed by written contracts. Effect The use of federal funds to provide gift cards constitutes an unallowable cost under Uniform Guidance. The questioned amount may be subject to repayment to the awarding agency or passthrough entity. Cause The auditee sought to recognize the extraordinary efforts of personnel during the COVID-19 public health response. However, they were unaware that the use of gift cards for this purpose was inconsistent with Uniform Guidance and lacked prior approval or supporting policy. Recommendation We recommend the auditee discontinue the use of federal funds for gift card distributions. All compensation for employees should be processed through payroll, supported by appropriate documentation and internal policies. Payments to contractors should be governed by written contracts and comply with applicable procurement standards. If the auditee believes these costs are justifiable, they should consult the awarding agency for a determination and, if necessary, reimburse the federal award.
2022-002—Unallowable Gift Card Disbursements Charged to Federal Program Type of Finding: (F) Instance of Noncompliance Related to Federal Awards Funding Agency: U.S. Department of Health and Human Services AL #: 93.231 – COVID-19: Epidemiology and Laboratory Capacity Award #: Various Award Period: 09/30/2021 – 09/29/2026 Estimated Questioned Costs: $15,300 Compliance Requirement: Allowable Costs/Cost Principles Statement of Condition AAIHB distributed gift cards to both salaried employees and independent contractors as a gesture of appreciation for working extended hours related to COVID-19 contact tracing efforts. The total value of the gift cards was approximately $15,300 and was charged to the COVID-19: Epidemiology and Laboratory Capacity grant (AL #93.231). For contractors, these gift cards were provided in addition to their regular compensation. The gift card disbursements were not processed through payroll nor formalized in contract terms, and there is no documentation indicating the entity obtained approval from the awarding agency. Criteria In accordance with 2 CFR § 200.403, costs charged to federal awards must be necessary, reasonable, allocable, and conform to limitations set forth in federal regulations. Per 2 CFR § 200.421(e)(3), the cost of gifts—including cash or cash equivalents such as gift cards—is generally unallowable. Compensation for employees must comply with 2 CFR § 200.430, including support through written policies and documentation of time and effort. Contractor payments must align with procurement standards in 2 CFR § 200.318–200.324 and be governed by written contracts. Effect The use of federal funds to provide gift cards constitutes an unallowable cost under Uniform Guidance. The questioned amount may be subject to repayment to the awarding agency or passthrough entity. Cause The auditee sought to recognize the extraordinary efforts of personnel during the COVID-19 public health response. However, they were unaware that the use of gift cards for this purpose was inconsistent with Uniform Guidance and lacked prior approval or supporting policy. Recommendation We recommend the auditee discontinue the use of federal funds for gift card distributions. All compensation for employees should be processed through payroll, supported by appropriate documentation and internal policies. Payments to contractors should be governed by written contracts and comply with applicable procurement standards. If the auditee believes these costs are justifiable, they should consult the awarding agency for a determination and, if necessary, reimburse the federal award.