Criteria: The Code of Federal Regulations §200.318 required that entities must have and use documented procurement procedures that conform to the procurement standards identified in §200.317 through §200.327. These procedures must include written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award and administration of contracts. Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at SAM.gov, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180 300). The Code of Federal Regulations (2 CFR 200.318(I)) requires that each non-Federal entity must maintain records sufficient to detail the history of each procurement transaction. These records must include the rationale for the procurement method, contract type selection, contractor selection or rejection, and the basis for the contract price. Condition: The Organization does not have written procurement policies in accordance with procurement requirements contained within the Uniform Guidance including policies and procedures in place to ensure that before entering into a covered transaction the Organization perform the necessary verifications of suspended or debarred entities. The Organization did not maintain sufficient documentation of its procurement decisions and maintain sufficient documentation of its procurement decisions. Cause: The Organization's federal funding significantly increased in the year ended June 30, 2024 and is the first year that the Organization was required to undergo an audit in accordance with the Uniform Guidance that included a procurement requirement. The Organization has existing purchasing and conflict of interest policies in place; however, it was not aware that its existing purchasing policies were required to be updated to explicitly comply with the standards in the Uniform Guidance. As well as, the Organization does not have procedures in place to ensure suspension and debarment checks are completed prior to entering into purchase or service agreements with vendors and updated on an annual basis. Evidence of actions taken to ensure proper suspension and debarment requirements were not being maintained by the Organization. Effect: In the absence of an appropriately written policy, it is more likely that the Organization's procurement practices will not comply with the Uniform Guidance. The Organization did not comply with the procurement standards concerning suspension and debarment and documentation of procurement activities. Recommendation: A written procurement policy in compliance with federal guidelines and a written standard of conduct should be established in accordance with procurement requirements contained in the Uniform Guidance. Views of Responsible Officials: Management agrees with the finding; see corrective action plan.
Criteria: The Code of Federal Regulations §200.318 required that entities must have and use documented procurement procedures that conform to the procurement standards identified in §200.317 through §200.327. These procedures must include written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award and administration of contracts. Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at SAM.gov, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180 300). The Code of Federal Regulations (2 CFR 200.318(I)) requires that each non-Federal entity must maintain records sufficient to detail the history of each procurement transaction. These records must include the rationale for the procurement method, contract type selection, contractor selection or rejection, and the basis for the contract price. Condition: The Organization does not have written procurement policies in accordance with procurement requirements contained within the Uniform Guidance including policies and procedures in place to ensure that before entering into a covered transaction the Organization perform the necessary verifications of suspended or debarred entities. The Organization did not maintain sufficient documentation of its procurement decisions and maintain sufficient documentation of its procurement decisions. Cause: The Organization's federal funding significantly increased in the year ended June 30, 2024 and is the first year that the Organization was required to undergo an audit in accordance with the Uniform Guidance that included a procurement requirement. The Organization has existing purchasing and conflict of interest policies in place; however, it was not aware that its existing purchasing policies were required to be updated to explicitly comply with the standards in the Uniform Guidance. As well as, the Organization does not have procedures in place to ensure suspension and debarment checks are completed prior to entering into purchase or service agreements with vendors and updated on an annual basis. Evidence of actions taken to ensure proper suspension and debarment requirements were not being maintained by the Organization. Effect: In the absence of an appropriately written policy, it is more likely that the Organization's procurement practices will not comply with the Uniform Guidance. The Organization did not comply with the procurement standards concerning suspension and debarment and documentation of procurement activities. Recommendation: A written procurement policy in compliance with federal guidelines and a written standard of conduct should be established in accordance with procurement requirements contained in the Uniform Guidance. Views of Responsible Officials: Management agrees with the finding; see corrective action plan.
Criteria: The Code of Federal Regulations §200.318 required that entities must have and use documented procurement procedures that conform to the procurement standards identified in §200.317 through §200.327. These procedures must include written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award and administration of contracts. Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at SAM.gov, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180 300). The Code of Federal Regulations (2 CFR 200.318(I)) requires that each non-Federal entity must maintain records sufficient to detail the history of each procurement transaction. These records must include the rationale for the procurement method, contract type selection, contractor selection or rejection, and the basis for the contract price. Condition: The Organization does not have written procurement policies in accordance with procurement requirements contained within the Uniform Guidance including policies and procedures in place to ensure that before entering into a covered transaction the Organization perform the necessary verifications of suspended or debarred entities. The Organization did not maintain sufficient documentation of its procurement decisions and maintain sufficient documentation of its procurement decisions. Cause: The Organization's federal funding significantly increased in the year ended June 30, 2024 and is the first year that the Organization was required to undergo an audit in accordance with the Uniform Guidance that included a procurement requirement. The Organization has existing purchasing and conflict of interest policies in place; however, it was not aware that its existing purchasing policies were required to be updated to explicitly comply with the standards in the Uniform Guidance. As well as, the Organization does not have procedures in place to ensure suspension and debarment checks are completed prior to entering into purchase or service agreements with vendors and updated on an annual basis. Evidence of actions taken to ensure proper suspension and debarment requirements were not being maintained by the Organization. Effect: In the absence of an appropriately written policy, it is more likely that the Organization's procurement practices will not comply with the Uniform Guidance. The Organization did not comply with the procurement standards concerning suspension and debarment and documentation of procurement activities. Recommendation: A written procurement policy in compliance with federal guidelines and a written standard of conduct should be established in accordance with procurement requirements contained in the Uniform Guidance. Views of Responsible Officials: Management agrees with the finding; see corrective action plan.
Criteria: The Code of Federal Regulations §200.318 required that entities must have and use documented procurement procedures that conform to the procurement standards identified in §200.317 through §200.327. These procedures must include written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award and administration of contracts. Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at SAM.gov, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180 300). The Code of Federal Regulations (2 CFR 200.318(I)) requires that each non-Federal entity must maintain records sufficient to detail the history of each procurement transaction. These records must include the rationale for the procurement method, contract type selection, contractor selection or rejection, and the basis for the contract price. Condition: The Organization does not have written procurement policies in accordance with procurement requirements contained within the Uniform Guidance including policies and procedures in place to ensure that before entering into a covered transaction the Organization perform the necessary verifications of suspended or debarred entities. The Organization did not maintain sufficient documentation of its procurement decisions and maintain sufficient documentation of its procurement decisions. Cause: The Organization's federal funding significantly increased in the year ended June 30, 2024 and is the first year that the Organization was required to undergo an audit in accordance with the Uniform Guidance that included a procurement requirement. The Organization has existing purchasing and conflict of interest policies in place; however, it was not aware that its existing purchasing policies were required to be updated to explicitly comply with the standards in the Uniform Guidance. As well as, the Organization does not have procedures in place to ensure suspension and debarment checks are completed prior to entering into purchase or service agreements with vendors and updated on an annual basis. Evidence of actions taken to ensure proper suspension and debarment requirements were not being maintained by the Organization. Effect: In the absence of an appropriately written policy, it is more likely that the Organization's procurement practices will not comply with the Uniform Guidance. The Organization did not comply with the procurement standards concerning suspension and debarment and documentation of procurement activities. Recommendation: A written procurement policy in compliance with federal guidelines and a written standard of conduct should be established in accordance with procurement requirements contained in the Uniform Guidance. Views of Responsible Officials: Management agrees with the finding; see corrective action plan.
Criteria: The Code of Federal Regulations §200.318 required that entities must have and use documented procurement procedures that conform to the procurement standards identified in §200.317 through §200.327. These procedures must include written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award and administration of contracts. Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at SAM.gov, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180 300). The Code of Federal Regulations (2 CFR 200.318(I)) requires that each non-Federal entity must maintain records sufficient to detail the history of each procurement transaction. These records must include the rationale for the procurement method, contract type selection, contractor selection or rejection, and the basis for the contract price. Condition: The Organization does not have written procurement policies in accordance with procurement requirements contained within the Uniform Guidance including policies and procedures in place to ensure that before entering into a covered transaction the Organization perform the necessary verifications of suspended or debarred entities. The Organization did not maintain sufficient documentation of its procurement decisions and maintain sufficient documentation of its procurement decisions. Cause: The Organization's federal funding significantly increased in the year ended June 30, 2024 and is the first year that the Organization was required to undergo an audit in accordance with the Uniform Guidance that included a procurement requirement. The Organization has existing purchasing and conflict of interest policies in place; however, it was not aware that its existing purchasing policies were required to be updated to explicitly comply with the standards in the Uniform Guidance. As well as, the Organization does not have procedures in place to ensure suspension and debarment checks are completed prior to entering into purchase or service agreements with vendors and updated on an annual basis. Evidence of actions taken to ensure proper suspension and debarment requirements were not being maintained by the Organization. Effect: In the absence of an appropriately written policy, it is more likely that the Organization's procurement practices will not comply with the Uniform Guidance. The Organization did not comply with the procurement standards concerning suspension and debarment and documentation of procurement activities. Recommendation: A written procurement policy in compliance with federal guidelines and a written standard of conduct should be established in accordance with procurement requirements contained in the Uniform Guidance. Views of Responsible Officials: Management agrees with the finding; see corrective action plan.
Criteria: The Code of Federal Regulations §200.318 required that entities must have and use documented procurement procedures that conform to the procurement standards identified in §200.317 through §200.327. These procedures must include written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award and administration of contracts. Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at SAM.gov, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180 300). The Code of Federal Regulations (2 CFR 200.318(I)) requires that each non-Federal entity must maintain records sufficient to detail the history of each procurement transaction. These records must include the rationale for the procurement method, contract type selection, contractor selection or rejection, and the basis for the contract price. Condition: The Organization does not have written procurement policies in accordance with procurement requirements contained within the Uniform Guidance including policies and procedures in place to ensure that before entering into a covered transaction the Organization perform the necessary verifications of suspended or debarred entities. The Organization did not maintain sufficient documentation of its procurement decisions and maintain sufficient documentation of its procurement decisions. Cause: The Organization's federal funding significantly increased in the year ended June 30, 2024 and is the first year that the Organization was required to undergo an audit in accordance with the Uniform Guidance that included a procurement requirement. The Organization has existing purchasing and conflict of interest policies in place; however, it was not aware that its existing purchasing policies were required to be updated to explicitly comply with the standards in the Uniform Guidance. As well as, the Organization does not have procedures in place to ensure suspension and debarment checks are completed prior to entering into purchase or service agreements with vendors and updated on an annual basis. Evidence of actions taken to ensure proper suspension and debarment requirements were not being maintained by the Organization. Effect: In the absence of an appropriately written policy, it is more likely that the Organization's procurement practices will not comply with the Uniform Guidance. The Organization did not comply with the procurement standards concerning suspension and debarment and documentation of procurement activities. Recommendation: A written procurement policy in compliance with federal guidelines and a written standard of conduct should be established in accordance with procurement requirements contained in the Uniform Guidance. Views of Responsible Officials: Management agrees with the finding; see corrective action plan.
Criteria: The Code of Federal Regulations §200.318 required that entities must have and use documented procurement procedures that conform to the procurement standards identified in §200.317 through §200.327. These procedures must include written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award and administration of contracts. Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at SAM.gov, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180 300). The Code of Federal Regulations (2 CFR 200.318(I)) requires that each non-Federal entity must maintain records sufficient to detail the history of each procurement transaction. These records must include the rationale for the procurement method, contract type selection, contractor selection or rejection, and the basis for the contract price. Condition: The Organization does not have written procurement policies in accordance with procurement requirements contained within the Uniform Guidance including policies and procedures in place to ensure that before entering into a covered transaction the Organization perform the necessary verifications of suspended or debarred entities. The Organization did not maintain sufficient documentation of its procurement decisions and maintain sufficient documentation of its procurement decisions. Cause: The Organization's federal funding significantly increased in the year ended June 30, 2024 and is the first year that the Organization was required to undergo an audit in accordance with the Uniform Guidance that included a procurement requirement. The Organization has existing purchasing and conflict of interest policies in place; however, it was not aware that its existing purchasing policies were required to be updated to explicitly comply with the standards in the Uniform Guidance. As well as, the Organization does not have procedures in place to ensure suspension and debarment checks are completed prior to entering into purchase or service agreements with vendors and updated on an annual basis. Evidence of actions taken to ensure proper suspension and debarment requirements were not being maintained by the Organization. Effect: In the absence of an appropriately written policy, it is more likely that the Organization's procurement practices will not comply with the Uniform Guidance. The Organization did not comply with the procurement standards concerning suspension and debarment and documentation of procurement activities. Recommendation: A written procurement policy in compliance with federal guidelines and a written standard of conduct should be established in accordance with procurement requirements contained in the Uniform Guidance. Views of Responsible Officials: Management agrees with the finding; see corrective action plan.
Criteria: The Code of Federal Regulations §200.318 required that entities must have and use documented procurement procedures that conform to the procurement standards identified in §200.317 through §200.327. These procedures must include written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award and administration of contracts. Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at SAM.gov, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180 300). The Code of Federal Regulations (2 CFR 200.318(I)) requires that each non-Federal entity must maintain records sufficient to detail the history of each procurement transaction. These records must include the rationale for the procurement method, contract type selection, contractor selection or rejection, and the basis for the contract price. Condition: The Organization does not have written procurement policies in accordance with procurement requirements contained within the Uniform Guidance including policies and procedures in place to ensure that before entering into a covered transaction the Organization perform the necessary verifications of suspended or debarred entities. The Organization did not maintain sufficient documentation of its procurement decisions and maintain sufficient documentation of its procurement decisions. Cause: The Organization's federal funding significantly increased in the year ended June 30, 2024 and is the first year that the Organization was required to undergo an audit in accordance with the Uniform Guidance that included a procurement requirement. The Organization has existing purchasing and conflict of interest policies in place; however, it was not aware that its existing purchasing policies were required to be updated to explicitly comply with the standards in the Uniform Guidance. As well as, the Organization does not have procedures in place to ensure suspension and debarment checks are completed prior to entering into purchase or service agreements with vendors and updated on an annual basis. Evidence of actions taken to ensure proper suspension and debarment requirements were not being maintained by the Organization. Effect: In the absence of an appropriately written policy, it is more likely that the Organization's procurement practices will not comply with the Uniform Guidance. The Organization did not comply with the procurement standards concerning suspension and debarment and documentation of procurement activities. Recommendation: A written procurement policy in compliance with federal guidelines and a written standard of conduct should be established in accordance with procurement requirements contained in the Uniform Guidance. Views of Responsible Officials: Management agrees with the finding; see corrective action plan.
Criteria: The Code of Federal Regulations §200.318 required that entities must have and use documented procurement procedures that conform to the procurement standards identified in §200.317 through §200.327. These procedures must include written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award and administration of contracts. Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at SAM.gov, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180 300). The Code of Federal Regulations (2 CFR 200.318(I)) requires that each non-Federal entity must maintain records sufficient to detail the history of each procurement transaction. These records must include the rationale for the procurement method, contract type selection, contractor selection or rejection, and the basis for the contract price. Condition: The Organization does not have written procurement policies in accordance with procurement requirements contained within the Uniform Guidance including policies and procedures in place to ensure that before entering into a covered transaction the Organization perform the necessary verifications of suspended or debarred entities. The Organization did not maintain sufficient documentation of its procurement decisions and maintain sufficient documentation of its procurement decisions. Cause: The Organization's federal funding significantly increased in the year ended June 30, 2024 and is the first year that the Organization was required to undergo an audit in accordance with the Uniform Guidance that included a procurement requirement. The Organization has existing purchasing and conflict of interest policies in place; however, it was not aware that its existing purchasing policies were required to be updated to explicitly comply with the standards in the Uniform Guidance. As well as, the Organization does not have procedures in place to ensure suspension and debarment checks are completed prior to entering into purchase or service agreements with vendors and updated on an annual basis. Evidence of actions taken to ensure proper suspension and debarment requirements were not being maintained by the Organization. Effect: In the absence of an appropriately written policy, it is more likely that the Organization's procurement practices will not comply with the Uniform Guidance. The Organization did not comply with the procurement standards concerning suspension and debarment and documentation of procurement activities. Recommendation: A written procurement policy in compliance with federal guidelines and a written standard of conduct should be established in accordance with procurement requirements contained in the Uniform Guidance. Views of Responsible Officials: Management agrees with the finding; see corrective action plan.
Criteria: The Code of Federal Regulations §200.318 required that entities must have and use documented procurement procedures that conform to the procurement standards identified in §200.317 through §200.327. These procedures must include written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award and administration of contracts. Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at SAM.gov, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180 300). The Code of Federal Regulations (2 CFR 200.318(I)) requires that each non-Federal entity must maintain records sufficient to detail the history of each procurement transaction. These records must include the rationale for the procurement method, contract type selection, contractor selection or rejection, and the basis for the contract price. Condition: The Organization does not have written procurement policies in accordance with procurement requirements contained within the Uniform Guidance including policies and procedures in place to ensure that before entering into a covered transaction the Organization perform the necessary verifications of suspended or debarred entities. The Organization did not maintain sufficient documentation of its procurement decisions and maintain sufficient documentation of its procurement decisions. Cause: The Organization's federal funding significantly increased in the year ended June 30, 2024 and is the first year that the Organization was required to undergo an audit in accordance with the Uniform Guidance that included a procurement requirement. The Organization has existing purchasing and conflict of interest policies in place; however, it was not aware that its existing purchasing policies were required to be updated to explicitly comply with the standards in the Uniform Guidance. As well as, the Organization does not have procedures in place to ensure suspension and debarment checks are completed prior to entering into purchase or service agreements with vendors and updated on an annual basis. Evidence of actions taken to ensure proper suspension and debarment requirements were not being maintained by the Organization. Effect: In the absence of an appropriately written policy, it is more likely that the Organization's procurement practices will not comply with the Uniform Guidance. The Organization did not comply with the procurement standards concerning suspension and debarment and documentation of procurement activities. Recommendation: A written procurement policy in compliance with federal guidelines and a written standard of conduct should be established in accordance with procurement requirements contained in the Uniform Guidance. Views of Responsible Officials: Management agrees with the finding; see corrective action plan.
Criteria: The Code of Federal Regulations §200.318 required that entities must have and use documented procurement procedures that conform to the procurement standards identified in §200.317 through §200.327. These procedures must include written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award and administration of contracts. Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at SAM.gov, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180 300). The Code of Federal Regulations (2 CFR 200.318(I)) requires that each non-Federal entity must maintain records sufficient to detail the history of each procurement transaction. These records must include the rationale for the procurement method, contract type selection, contractor selection or rejection, and the basis for the contract price. Condition: The Organization does not have written procurement policies in accordance with procurement requirements contained within the Uniform Guidance including policies and procedures in place to ensure that before entering into a covered transaction the Organization perform the necessary verifications of suspended or debarred entities. The Organization did not maintain sufficient documentation of its procurement decisions and maintain sufficient documentation of its procurement decisions. Cause: The Organization's federal funding significantly increased in the year ended June 30, 2024 and is the first year that the Organization was required to undergo an audit in accordance with the Uniform Guidance that included a procurement requirement. The Organization has existing purchasing and conflict of interest policies in place; however, it was not aware that its existing purchasing policies were required to be updated to explicitly comply with the standards in the Uniform Guidance. As well as, the Organization does not have procedures in place to ensure suspension and debarment checks are completed prior to entering into purchase or service agreements with vendors and updated on an annual basis. Evidence of actions taken to ensure proper suspension and debarment requirements were not being maintained by the Organization. Effect: In the absence of an appropriately written policy, it is more likely that the Organization's procurement practices will not comply with the Uniform Guidance. The Organization did not comply with the procurement standards concerning suspension and debarment and documentation of procurement activities. Recommendation: A written procurement policy in compliance with federal guidelines and a written standard of conduct should be established in accordance with procurement requirements contained in the Uniform Guidance. Views of Responsible Officials: Management agrees with the finding; see corrective action plan.
Criteria: The Code of Federal Regulations §200.318 required that entities must have and use documented procurement procedures that conform to the procurement standards identified in §200.317 through §200.327. These procedures must include written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award and administration of contracts. Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at SAM.gov, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180 300). The Code of Federal Regulations (2 CFR 200.318(I)) requires that each non-Federal entity must maintain records sufficient to detail the history of each procurement transaction. These records must include the rationale for the procurement method, contract type selection, contractor selection or rejection, and the basis for the contract price. Condition: The Organization does not have written procurement policies in accordance with procurement requirements contained within the Uniform Guidance including policies and procedures in place to ensure that before entering into a covered transaction the Organization perform the necessary verifications of suspended or debarred entities. The Organization did not maintain sufficient documentation of its procurement decisions and maintain sufficient documentation of its procurement decisions. Cause: The Organization's federal funding significantly increased in the year ended June 30, 2024 and is the first year that the Organization was required to undergo an audit in accordance with the Uniform Guidance that included a procurement requirement. The Organization has existing purchasing and conflict of interest policies in place; however, it was not aware that its existing purchasing policies were required to be updated to explicitly comply with the standards in the Uniform Guidance. As well as, the Organization does not have procedures in place to ensure suspension and debarment checks are completed prior to entering into purchase or service agreements with vendors and updated on an annual basis. Evidence of actions taken to ensure proper suspension and debarment requirements were not being maintained by the Organization. Effect: In the absence of an appropriately written policy, it is more likely that the Organization's procurement practices will not comply with the Uniform Guidance. The Organization did not comply with the procurement standards concerning suspension and debarment and documentation of procurement activities. Recommendation: A written procurement policy in compliance with federal guidelines and a written standard of conduct should be established in accordance with procurement requirements contained in the Uniform Guidance. Views of Responsible Officials: Management agrees with the finding; see corrective action plan.
Criteria: The Code of Federal Regulations §200.318 required that entities must have and use documented procurement procedures that conform to the procurement standards identified in §200.317 through §200.327. These procedures must include written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award and administration of contracts. Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at SAM.gov, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180 300). The Code of Federal Regulations (2 CFR 200.318(I)) requires that each non-Federal entity must maintain records sufficient to detail the history of each procurement transaction. These records must include the rationale for the procurement method, contract type selection, contractor selection or rejection, and the basis for the contract price. Condition: The Organization does not have written procurement policies in accordance with procurement requirements contained within the Uniform Guidance including policies and procedures in place to ensure that before entering into a covered transaction the Organization perform the necessary verifications of suspended or debarred entities. The Organization did not maintain sufficient documentation of its procurement decisions and maintain sufficient documentation of its procurement decisions. Cause: The Organization's federal funding significantly increased in the year ended June 30, 2024 and is the first year that the Organization was required to undergo an audit in accordance with the Uniform Guidance that included a procurement requirement. The Organization has existing purchasing and conflict of interest policies in place; however, it was not aware that its existing purchasing policies were required to be updated to explicitly comply with the standards in the Uniform Guidance. As well as, the Organization does not have procedures in place to ensure suspension and debarment checks are completed prior to entering into purchase or service agreements with vendors and updated on an annual basis. Evidence of actions taken to ensure proper suspension and debarment requirements were not being maintained by the Organization. Effect: In the absence of an appropriately written policy, it is more likely that the Organization's procurement practices will not comply with the Uniform Guidance. The Organization did not comply with the procurement standards concerning suspension and debarment and documentation of procurement activities. Recommendation: A written procurement policy in compliance with federal guidelines and a written standard of conduct should be established in accordance with procurement requirements contained in the Uniform Guidance. Views of Responsible Officials: Management agrees with the finding; see corrective action plan.
Criteria: The Code of Federal Regulations §200.318 required that entities must have and use documented procurement procedures that conform to the procurement standards identified in §200.317 through §200.327. These procedures must include written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award and administration of contracts. Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at SAM.gov, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180 300). The Code of Federal Regulations (2 CFR 200.318(I)) requires that each non-Federal entity must maintain records sufficient to detail the history of each procurement transaction. These records must include the rationale for the procurement method, contract type selection, contractor selection or rejection, and the basis for the contract price. Condition: The Organization does not have written procurement policies in accordance with procurement requirements contained within the Uniform Guidance including policies and procedures in place to ensure that before entering into a covered transaction the Organization perform the necessary verifications of suspended or debarred entities. The Organization did not maintain sufficient documentation of its procurement decisions and maintain sufficient documentation of its procurement decisions. Cause: The Organization's federal funding significantly increased in the year ended June 30, 2024 and is the first year that the Organization was required to undergo an audit in accordance with the Uniform Guidance that included a procurement requirement. The Organization has existing purchasing and conflict of interest policies in place; however, it was not aware that its existing purchasing policies were required to be updated to explicitly comply with the standards in the Uniform Guidance. As well as, the Organization does not have procedures in place to ensure suspension and debarment checks are completed prior to entering into purchase or service agreements with vendors and updated on an annual basis. Evidence of actions taken to ensure proper suspension and debarment requirements were not being maintained by the Organization. Effect: In the absence of an appropriately written policy, it is more likely that the Organization's procurement practices will not comply with the Uniform Guidance. The Organization did not comply with the procurement standards concerning suspension and debarment and documentation of procurement activities. Recommendation: A written procurement policy in compliance with federal guidelines and a written standard of conduct should be established in accordance with procurement requirements contained in the Uniform Guidance. Views of Responsible Officials: Management agrees with the finding; see corrective action plan.
Criteria: The Code of Federal Regulations §200.318 required that entities must have and use documented procurement procedures that conform to the procurement standards identified in §200.317 through §200.327. These procedures must include written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award and administration of contracts. Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at SAM.gov, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180 300). The Code of Federal Regulations (2 CFR 200.318(I)) requires that each non-Federal entity must maintain records sufficient to detail the history of each procurement transaction. These records must include the rationale for the procurement method, contract type selection, contractor selection or rejection, and the basis for the contract price. Condition: The Organization does not have written procurement policies in accordance with procurement requirements contained within the Uniform Guidance including policies and procedures in place to ensure that before entering into a covered transaction the Organization perform the necessary verifications of suspended or debarred entities. The Organization did not maintain sufficient documentation of its procurement decisions and maintain sufficient documentation of its procurement decisions. Cause: The Organization's federal funding significantly increased in the year ended June 30, 2024 and is the first year that the Organization was required to undergo an audit in accordance with the Uniform Guidance that included a procurement requirement. The Organization has existing purchasing and conflict of interest policies in place; however, it was not aware that its existing purchasing policies were required to be updated to explicitly comply with the standards in the Uniform Guidance. As well as, the Organization does not have procedures in place to ensure suspension and debarment checks are completed prior to entering into purchase or service agreements with vendors and updated on an annual basis. Evidence of actions taken to ensure proper suspension and debarment requirements were not being maintained by the Organization. Effect: In the absence of an appropriately written policy, it is more likely that the Organization's procurement practices will not comply with the Uniform Guidance. The Organization did not comply with the procurement standards concerning suspension and debarment and documentation of procurement activities. Recommendation: A written procurement policy in compliance with federal guidelines and a written standard of conduct should be established in accordance with procurement requirements contained in the Uniform Guidance. Views of Responsible Officials: Management agrees with the finding; see corrective action plan.
Criteria: The Code of Federal Regulations §200.318 required that entities must have and use documented procurement procedures that conform to the procurement standards identified in §200.317 through §200.327. These procedures must include written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award and administration of contracts. Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at SAM.gov, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180 300). The Code of Federal Regulations (2 CFR 200.318(I)) requires that each non-Federal entity must maintain records sufficient to detail the history of each procurement transaction. These records must include the rationale for the procurement method, contract type selection, contractor selection or rejection, and the basis for the contract price. Condition: The Organization does not have written procurement policies in accordance with procurement requirements contained within the Uniform Guidance including policies and procedures in place to ensure that before entering into a covered transaction the Organization perform the necessary verifications of suspended or debarred entities. The Organization did not maintain sufficient documentation of its procurement decisions and maintain sufficient documentation of its procurement decisions. Cause: The Organization's federal funding significantly increased in the year ended June 30, 2024 and is the first year that the Organization was required to undergo an audit in accordance with the Uniform Guidance that included a procurement requirement. The Organization has existing purchasing and conflict of interest policies in place; however, it was not aware that its existing purchasing policies were required to be updated to explicitly comply with the standards in the Uniform Guidance. As well as, the Organization does not have procedures in place to ensure suspension and debarment checks are completed prior to entering into purchase or service agreements with vendors and updated on an annual basis. Evidence of actions taken to ensure proper suspension and debarment requirements were not being maintained by the Organization. Effect: In the absence of an appropriately written policy, it is more likely that the Organization's procurement practices will not comply with the Uniform Guidance. The Organization did not comply with the procurement standards concerning suspension and debarment and documentation of procurement activities. Recommendation: A written procurement policy in compliance with federal guidelines and a written standard of conduct should be established in accordance with procurement requirements contained in the Uniform Guidance. Views of Responsible Officials: Management agrees with the finding; see corrective action plan.
The procurement policy and conflict of interest policy of the Organization do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326.
The procurement policy and conflict of interest policy of the Organization do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326.
The procurement policy and conflict of interest policy of the Organization do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326.
The procurement policy and conflict of interest policy of the Organization do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326.
The procurement policy and conflict of interest policy of the Organization do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326.
Information on the Federal Programs: United States Department of Education, both programs are passed through Massachusetts Department of Elementary and Secondary Education CFDA Nos. 84.027 & 84.173; Special Education Cluster; Grant Period Ending Fiscal Year End 2024 CFDA Nos. 84.425 & 84.425D; ESSER Program; Grant Period Ending Fiscal Year End 2024 Condition: In the course of allowable costs and procurement testing (B-010), it was discovered that the client failed to check vendors for suspension/debarment prior to contracting; note I-002 email from client. Client does have appropriate policies/procedures in place for managing Federal awards, including this particular criteria; see Policies & Procedures, MPS Grant Manual – Policies Over Federal Awards, however they were not being followed. Criteria: Non-Federal entities are required to follow procurement standards per 2 CFR sections 200.303 and 200.318-326, Uniform Guidance, as well as their own documented procurement standards, which must reflect applicable state and local laws and regulations – whichever is stricter. Per 2 CFR 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). UG §200.318 General procurement standards. 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 Section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. 2 CFR Part 180 identifies two types of covered transactions: a transaction at the primary tier versus a transaction at the lower tier. A covered transaction at the primary tier is any transaction between a Federal agency and a person. A person can be an individual or business, federal agency or non-federal agency. A covered transaction at the lower tier is where a participant, such as a non-federal entity, in a covered transaction does business with another person. A “covered transaction” can be further defined as a non-procurement transaction or procurement transaction. A subaward, regardless of amount, qualifies as a non-procurement transaction, unless exempt by 2 CFR Part 180.215. A procurement transaction for goods or services that equals or exceeds $25,000 qualifies as a covered transaction, unless other criteria is met within 2 CFR Part 180.220. For example, a procurement transaction could be a covered transaction, regardless of amount, if the transaction requires approval by a Federal agency. Cause: Excerpt from client Policies & Procedures, MPS Grant Manual – Policies Over Federal Awards: Debarment and Suspension (p. 28) The District awards contracts only to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement. Consideration will be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources. The District may not subcontract with or award sub grants to any person or company who is debarred or suspended. For all contracts over $25,000 the District verifies that the vendor with whom the District intends to do business with is not excluded or disqualified. 2 C.F.R. Part 200, Appendix II (1) and 2 C.F.R. §§ 180.220 and 180.300. In this case, therefore, the proper control was in place but not followed. Effect or Possible Effect of the Condition: Non-compliance with 2 CFR 200 Section 180.995. Questioned Costs: Not applicable. Isolated Instance or Systemic Problem: This appears to be an isolated problem as the controls over this compliance requirement are in place but were not being followed. Repeat of a Finding in the Immediately Prior Audit (with Prior Year Audit Finding Number (where applicable)): No Recommendation to Prevent Future Occurrence: It is recommended that the Town follow scrupulously its own MPS Grant Manual – Policies Over Federal Awards: Debarment and Suspension, which is fully compliant with 2 CFR 200 Uniform Guidance.
Information on the Federal Programs: United States Department of Education, both programs are passed through Massachusetts Department of Elementary and Secondary Education CFDA Nos. 84.027 & 84.173; Special Education Cluster; Grant Period Ending Fiscal Year End 2024 CFDA Nos. 84.425 & 84.425D; ESSER Program; Grant Period Ending Fiscal Year End 2024 Condition: In the course of allowable costs and procurement testing (B-010), it was discovered that the client failed to check vendors for suspension/debarment prior to contracting; note I-002 email from client. Client does have appropriate policies/procedures in place for managing Federal awards, including this particular criteria; see Policies & Procedures, MPS Grant Manual – Policies Over Federal Awards, however they were not being followed. Criteria: Non-Federal entities are required to follow procurement standards per 2 CFR sections 200.303 and 200.318-326, Uniform Guidance, as well as their own documented procurement standards, which must reflect applicable state and local laws and regulations – whichever is stricter. Per 2 CFR 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). UG §200.318 General procurement standards. 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 Section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. 2 CFR Part 180 identifies two types of covered transactions: a transaction at the primary tier versus a transaction at the lower tier. A covered transaction at the primary tier is any transaction between a Federal agency and a person. A person can be an individual or business, federal agency or non-federal agency. A covered transaction at the lower tier is where a participant, such as a non-federal entity, in a covered transaction does business with another person. A “covered transaction” can be further defined as a non-procurement transaction or procurement transaction. A subaward, regardless of amount, qualifies as a non-procurement transaction, unless exempt by 2 CFR Part 180.215. A procurement transaction for goods or services that equals or exceeds $25,000 qualifies as a covered transaction, unless other criteria is met within 2 CFR Part 180.220. For example, a procurement transaction could be a covered transaction, regardless of amount, if the transaction requires approval by a Federal agency. Cause: Excerpt from client Policies & Procedures, MPS Grant Manual – Policies Over Federal Awards: Debarment and Suspension (p. 28) The District awards contracts only to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement. Consideration will be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources. The District may not subcontract with or award sub grants to any person or company who is debarred or suspended. For all contracts over $25,000 the District verifies that the vendor with whom the District intends to do business with is not excluded or disqualified. 2 C.F.R. Part 200, Appendix II (1) and 2 C.F.R. §§ 180.220 and 180.300. In this case, therefore, the proper control was in place but not followed. Effect or Possible Effect of the Condition: Non-compliance with 2 CFR 200 Section 180.995. Questioned Costs: Not applicable. Isolated Instance or Systemic Problem: This appears to be an isolated problem as the controls over this compliance requirement are in place but were not being followed. Repeat of a Finding in the Immediately Prior Audit (with Prior Year Audit Finding Number (where applicable)): No Recommendation to Prevent Future Occurrence: It is recommended that the Town follow scrupulously its own MPS Grant Manual – Policies Over Federal Awards: Debarment and Suspension, which is fully compliant with 2 CFR 200 Uniform Guidance.
Information on the Federal Programs: United States Department of Education, both programs are passed through Massachusetts Department of Elementary and Secondary Education CFDA Nos. 84.027 & 84.173; Special Education Cluster; Grant Period Ending Fiscal Year End 2024 CFDA Nos. 84.425 & 84.425D; ESSER Program; Grant Period Ending Fiscal Year End 2024 Condition: In the course of allowable costs and procurement testing (B-010), it was discovered that the client failed to check vendors for suspension/debarment prior to contracting; note I-002 email from client. Client does have appropriate policies/procedures in place for managing Federal awards, including this particular criteria; see Policies & Procedures, MPS Grant Manual – Policies Over Federal Awards, however they were not being followed. Criteria: Non-Federal entities are required to follow procurement standards per 2 CFR sections 200.303 and 200.318-326, Uniform Guidance, as well as their own documented procurement standards, which must reflect applicable state and local laws and regulations – whichever is stricter. Per 2 CFR 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). UG §200.318 General procurement standards. 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 Section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. 2 CFR Part 180 identifies two types of covered transactions: a transaction at the primary tier versus a transaction at the lower tier. A covered transaction at the primary tier is any transaction between a Federal agency and a person. A person can be an individual or business, federal agency or non-federal agency. A covered transaction at the lower tier is where a participant, such as a non-federal entity, in a covered transaction does business with another person. A “covered transaction” can be further defined as a non-procurement transaction or procurement transaction. A subaward, regardless of amount, qualifies as a non-procurement transaction, unless exempt by 2 CFR Part 180.215. A procurement transaction for goods or services that equals or exceeds $25,000 qualifies as a covered transaction, unless other criteria is met within 2 CFR Part 180.220. For example, a procurement transaction could be a covered transaction, regardless of amount, if the transaction requires approval by a Federal agency. Cause: Excerpt from client Policies & Procedures, MPS Grant Manual – Policies Over Federal Awards: Debarment and Suspension (p. 28) The District awards contracts only to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement. Consideration will be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources. The District may not subcontract with or award sub grants to any person or company who is debarred or suspended. For all contracts over $25,000 the District verifies that the vendor with whom the District intends to do business with is not excluded or disqualified. 2 C.F.R. Part 200, Appendix II (1) and 2 C.F.R. §§ 180.220 and 180.300. In this case, therefore, the proper control was in place but not followed. Effect or Possible Effect of the Condition: Non-compliance with 2 CFR 200 Section 180.995. Questioned Costs: Not applicable. Isolated Instance or Systemic Problem: This appears to be an isolated problem as the controls over this compliance requirement are in place but were not being followed. Repeat of a Finding in the Immediately Prior Audit (with Prior Year Audit Finding Number (where applicable)): No Recommendation to Prevent Future Occurrence: It is recommended that the Town follow scrupulously its own MPS Grant Manual – Policies Over Federal Awards: Debarment and Suspension, which is fully compliant with 2 CFR 200 Uniform Guidance.
Information on the Federal Programs: United States Department of Education, both programs are passed through Massachusetts Department of Elementary and Secondary Education CFDA Nos. 84.027 & 84.173; Special Education Cluster; Grant Period Ending Fiscal Year End 2024 CFDA Nos. 84.425 & 84.425D; ESSER Program; Grant Period Ending Fiscal Year End 2024 Condition: In the course of allowable costs and procurement testing (B-010), it was discovered that the client failed to check vendors for suspension/debarment prior to contracting; note I-002 email from client. Client does have appropriate policies/procedures in place for managing Federal awards, including this particular criteria; see Policies & Procedures, MPS Grant Manual – Policies Over Federal Awards, however they were not being followed. Criteria: Non-Federal entities are required to follow procurement standards per 2 CFR sections 200.303 and 200.318-326, Uniform Guidance, as well as their own documented procurement standards, which must reflect applicable state and local laws and regulations – whichever is stricter. Per 2 CFR 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). UG §200.318 General procurement standards. 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 Section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. 2 CFR Part 180 identifies two types of covered transactions: a transaction at the primary tier versus a transaction at the lower tier. A covered transaction at the primary tier is any transaction between a Federal agency and a person. A person can be an individual or business, federal agency or non-federal agency. A covered transaction at the lower tier is where a participant, such as a non-federal entity, in a covered transaction does business with another person. A “covered transaction” can be further defined as a non-procurement transaction or procurement transaction. A subaward, regardless of amount, qualifies as a non-procurement transaction, unless exempt by 2 CFR Part 180.215. A procurement transaction for goods or services that equals or exceeds $25,000 qualifies as a covered transaction, unless other criteria is met within 2 CFR Part 180.220. For example, a procurement transaction could be a covered transaction, regardless of amount, if the transaction requires approval by a Federal agency. Cause: Excerpt from client Policies & Procedures, MPS Grant Manual – Policies Over Federal Awards: Debarment and Suspension (p. 28) The District awards contracts only to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement. Consideration will be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources. The District may not subcontract with or award sub grants to any person or company who is debarred or suspended. For all contracts over $25,000 the District verifies that the vendor with whom the District intends to do business with is not excluded or disqualified. 2 C.F.R. Part 200, Appendix II (1) and 2 C.F.R. §§ 180.220 and 180.300. In this case, therefore, the proper control was in place but not followed. Effect or Possible Effect of the Condition: Non-compliance with 2 CFR 200 Section 180.995. Questioned Costs: Not applicable. Isolated Instance or Systemic Problem: This appears to be an isolated problem as the controls over this compliance requirement are in place but were not being followed. Repeat of a Finding in the Immediately Prior Audit (with Prior Year Audit Finding Number (where applicable)): No Recommendation to Prevent Future Occurrence: It is recommended that the Town follow scrupulously its own MPS Grant Manual – Policies Over Federal Awards: Debarment and Suspension, which is fully compliant with 2 CFR 200 Uniform Guidance.
Information on the Federal Programs: United States Department of Education, both programs are passed through Massachusetts Department of Elementary and Secondary Education CFDA Nos. 84.027 & 84.173; Special Education Cluster; Grant Period Ending Fiscal Year End 2024 CFDA Nos. 84.425 & 84.425D; ESSER Program; Grant Period Ending Fiscal Year End 2024 Condition: In the course of allowable costs and procurement testing (B-010), it was discovered that the client failed to check vendors for suspension/debarment prior to contracting; note I-002 email from client. Client does have appropriate policies/procedures in place for managing Federal awards, including this particular criteria; see Policies & Procedures, MPS Grant Manual – Policies Over Federal Awards, however they were not being followed. Criteria: Non-Federal entities are required to follow procurement standards per 2 CFR sections 200.303 and 200.318-326, Uniform Guidance, as well as their own documented procurement standards, which must reflect applicable state and local laws and regulations – whichever is stricter. Per 2 CFR 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). UG §200.318 General procurement standards. 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 Section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. 2 CFR Part 180 identifies two types of covered transactions: a transaction at the primary tier versus a transaction at the lower tier. A covered transaction at the primary tier is any transaction between a Federal agency and a person. A person can be an individual or business, federal agency or non-federal agency. A covered transaction at the lower tier is where a participant, such as a non-federal entity, in a covered transaction does business with another person. A “covered transaction” can be further defined as a non-procurement transaction or procurement transaction. A subaward, regardless of amount, qualifies as a non-procurement transaction, unless exempt by 2 CFR Part 180.215. A procurement transaction for goods or services that equals or exceeds $25,000 qualifies as a covered transaction, unless other criteria is met within 2 CFR Part 180.220. For example, a procurement transaction could be a covered transaction, regardless of amount, if the transaction requires approval by a Federal agency. Cause: Excerpt from client Policies & Procedures, MPS Grant Manual – Policies Over Federal Awards: Debarment and Suspension (p. 28) The District awards contracts only to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement. Consideration will be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources. The District may not subcontract with or award sub grants to any person or company who is debarred or suspended. For all contracts over $25,000 the District verifies that the vendor with whom the District intends to do business with is not excluded or disqualified. 2 C.F.R. Part 200, Appendix II (1) and 2 C.F.R. §§ 180.220 and 180.300. In this case, therefore, the proper control was in place but not followed. Effect or Possible Effect of the Condition: Non-compliance with 2 CFR 200 Section 180.995. Questioned Costs: Not applicable. Isolated Instance or Systemic Problem: This appears to be an isolated problem as the controls over this compliance requirement are in place but were not being followed. Repeat of a Finding in the Immediately Prior Audit (with Prior Year Audit Finding Number (where applicable)): No Recommendation to Prevent Future Occurrence: It is recommended that the Town follow scrupulously its own MPS Grant Manual – Policies Over Federal Awards: Debarment and Suspension, which is fully compliant with 2 CFR 200 Uniform Guidance.
Information on the Federal Programs: United States Department of Education, both programs are passed through Massachusetts Department of Elementary and Secondary Education CFDA Nos. 84.027 & 84.173; Special Education Cluster; Grant Period Ending Fiscal Year End 2024 CFDA Nos. 84.425 & 84.425D; ESSER Program; Grant Period Ending Fiscal Year End 2024 Condition: In the course of allowable costs and procurement testing (B-010), it was discovered that the client failed to check vendors for suspension/debarment prior to contracting; note I-002 email from client. Client does have appropriate policies/procedures in place for managing Federal awards, including this particular criteria; see Policies & Procedures, MPS Grant Manual – Policies Over Federal Awards, however they were not being followed. Criteria: Non-Federal entities are required to follow procurement standards per 2 CFR sections 200.303 and 200.318-326, Uniform Guidance, as well as their own documented procurement standards, which must reflect applicable state and local laws and regulations – whichever is stricter. Per 2 CFR 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). UG §200.318 General procurement standards. 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 Section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. 2 CFR Part 180 identifies two types of covered transactions: a transaction at the primary tier versus a transaction at the lower tier. A covered transaction at the primary tier is any transaction between a Federal agency and a person. A person can be an individual or business, federal agency or non-federal agency. A covered transaction at the lower tier is where a participant, such as a non-federal entity, in a covered transaction does business with another person. A “covered transaction” can be further defined as a non-procurement transaction or procurement transaction. A subaward, regardless of amount, qualifies as a non-procurement transaction, unless exempt by 2 CFR Part 180.215. A procurement transaction for goods or services that equals or exceeds $25,000 qualifies as a covered transaction, unless other criteria is met within 2 CFR Part 180.220. For example, a procurement transaction could be a covered transaction, regardless of amount, if the transaction requires approval by a Federal agency. Cause: Excerpt from client Policies & Procedures, MPS Grant Manual – Policies Over Federal Awards: Debarment and Suspension (p. 28) The District awards contracts only to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement. Consideration will be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources. The District may not subcontract with or award sub grants to any person or company who is debarred or suspended. For all contracts over $25,000 the District verifies that the vendor with whom the District intends to do business with is not excluded or disqualified. 2 C.F.R. Part 200, Appendix II (1) and 2 C.F.R. §§ 180.220 and 180.300. In this case, therefore, the proper control was in place but not followed. Effect or Possible Effect of the Condition: Non-compliance with 2 CFR 200 Section 180.995. Questioned Costs: Not applicable. Isolated Instance or Systemic Problem: This appears to be an isolated problem as the controls over this compliance requirement are in place but were not being followed. Repeat of a Finding in the Immediately Prior Audit (with Prior Year Audit Finding Number (where applicable)): No Recommendation to Prevent Future Occurrence: It is recommended that the Town follow scrupulously its own MPS Grant Manual – Policies Over Federal Awards: Debarment and Suspension, which is fully compliant with 2 CFR 200 Uniform Guidance.
Information on the Federal Programs: United States Department of Education, both programs are passed through Massachusetts Department of Elementary and Secondary Education CFDA Nos. 84.027 & 84.173; Special Education Cluster; Grant Period Ending Fiscal Year End 2024 CFDA Nos. 84.425 & 84.425D; ESSER Program; Grant Period Ending Fiscal Year End 2024 Condition: In the course of allowable costs and procurement testing (B-010), it was discovered that the client failed to check vendors for suspension/debarment prior to contracting; note I-002 email from client. Client does have appropriate policies/procedures in place for managing Federal awards, including this particular criteria; see Policies & Procedures, MPS Grant Manual – Policies Over Federal Awards, however they were not being followed. Criteria: Non-Federal entities are required to follow procurement standards per 2 CFR sections 200.303 and 200.318-326, Uniform Guidance, as well as their own documented procurement standards, which must reflect applicable state and local laws and regulations – whichever is stricter. Per 2 CFR 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). UG §200.318 General procurement standards. 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 Section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. 2 CFR Part 180 identifies two types of covered transactions: a transaction at the primary tier versus a transaction at the lower tier. A covered transaction at the primary tier is any transaction between a Federal agency and a person. A person can be an individual or business, federal agency or non-federal agency. A covered transaction at the lower tier is where a participant, such as a non-federal entity, in a covered transaction does business with another person. A “covered transaction” can be further defined as a non-procurement transaction or procurement transaction. A subaward, regardless of amount, qualifies as a non-procurement transaction, unless exempt by 2 CFR Part 180.215. A procurement transaction for goods or services that equals or exceeds $25,000 qualifies as a covered transaction, unless other criteria is met within 2 CFR Part 180.220. For example, a procurement transaction could be a covered transaction, regardless of amount, if the transaction requires approval by a Federal agency. Cause: Excerpt from client Policies & Procedures, MPS Grant Manual – Policies Over Federal Awards: Debarment and Suspension (p. 28) The District awards contracts only to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement. Consideration will be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources. The District may not subcontract with or award sub grants to any person or company who is debarred or suspended. For all contracts over $25,000 the District verifies that the vendor with whom the District intends to do business with is not excluded or disqualified. 2 C.F.R. Part 200, Appendix II (1) and 2 C.F.R. §§ 180.220 and 180.300. In this case, therefore, the proper control was in place but not followed. Effect or Possible Effect of the Condition: Non-compliance with 2 CFR 200 Section 180.995. Questioned Costs: Not applicable. Isolated Instance or Systemic Problem: This appears to be an isolated problem as the controls over this compliance requirement are in place but were not being followed. Repeat of a Finding in the Immediately Prior Audit (with Prior Year Audit Finding Number (where applicable)): No Recommendation to Prevent Future Occurrence: It is recommended that the Town follow scrupulously its own MPS Grant Manual – Policies Over Federal Awards: Debarment and Suspension, which is fully compliant with 2 CFR 200 Uniform Guidance.
Information on the Federal Programs: United States Department of Education, both programs are passed through Massachusetts Department of Elementary and Secondary Education CFDA Nos. 84.027 & 84.173; Special Education Cluster; Grant Period Ending Fiscal Year End 2024 CFDA Nos. 84.425 & 84.425D; ESSER Program; Grant Period Ending Fiscal Year End 2024 Condition: In the course of allowable costs and procurement testing (B-010), it was discovered that the client failed to check vendors for suspension/debarment prior to contracting; note I-002 email from client. Client does have appropriate policies/procedures in place for managing Federal awards, including this particular criteria; see Policies & Procedures, MPS Grant Manual – Policies Over Federal Awards, however they were not being followed. Criteria: Non-Federal entities are required to follow procurement standards per 2 CFR sections 200.303 and 200.318-326, Uniform Guidance, as well as their own documented procurement standards, which must reflect applicable state and local laws and regulations – whichever is stricter. Per 2 CFR 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). UG §200.318 General procurement standards. 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 Section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. 2 CFR Part 180 identifies two types of covered transactions: a transaction at the primary tier versus a transaction at the lower tier. A covered transaction at the primary tier is any transaction between a Federal agency and a person. A person can be an individual or business, federal agency or non-federal agency. A covered transaction at the lower tier is where a participant, such as a non-federal entity, in a covered transaction does business with another person. A “covered transaction” can be further defined as a non-procurement transaction or procurement transaction. A subaward, regardless of amount, qualifies as a non-procurement transaction, unless exempt by 2 CFR Part 180.215. A procurement transaction for goods or services that equals or exceeds $25,000 qualifies as a covered transaction, unless other criteria is met within 2 CFR Part 180.220. For example, a procurement transaction could be a covered transaction, regardless of amount, if the transaction requires approval by a Federal agency. Cause: Excerpt from client Policies & Procedures, MPS Grant Manual – Policies Over Federal Awards: Debarment and Suspension (p. 28) The District awards contracts only to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement. Consideration will be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources. The District may not subcontract with or award sub grants to any person or company who is debarred or suspended. For all contracts over $25,000 the District verifies that the vendor with whom the District intends to do business with is not excluded or disqualified. 2 C.F.R. Part 200, Appendix II (1) and 2 C.F.R. §§ 180.220 and 180.300. In this case, therefore, the proper control was in place but not followed. Effect or Possible Effect of the Condition: Non-compliance with 2 CFR 200 Section 180.995. Questioned Costs: Not applicable. Isolated Instance or Systemic Problem: This appears to be an isolated problem as the controls over this compliance requirement are in place but were not being followed. Repeat of a Finding in the Immediately Prior Audit (with Prior Year Audit Finding Number (where applicable)): No Recommendation to Prevent Future Occurrence: It is recommended that the Town follow scrupulously its own MPS Grant Manual – Policies Over Federal Awards: Debarment and Suspension, which is fully compliant with 2 CFR 200 Uniform Guidance.
Information on the Federal Programs: United States Department of Education, both programs are passed through Massachusetts Department of Elementary and Secondary Education CFDA Nos. 84.027 & 84.173; Special Education Cluster; Grant Period Ending Fiscal Year End 2024 CFDA Nos. 84.425 & 84.425D; ESSER Program; Grant Period Ending Fiscal Year End 2024 Condition: In the course of allowable costs and procurement testing (B-010), it was discovered that the client failed to check vendors for suspension/debarment prior to contracting; note I-002 email from client. Client does have appropriate policies/procedures in place for managing Federal awards, including this particular criteria; see Policies & Procedures, MPS Grant Manual – Policies Over Federal Awards, however they were not being followed. Criteria: Non-Federal entities are required to follow procurement standards per 2 CFR sections 200.303 and 200.318-326, Uniform Guidance, as well as their own documented procurement standards, which must reflect applicable state and local laws and regulations – whichever is stricter. Per 2 CFR 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). UG §200.318 General procurement standards. 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 Section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. 2 CFR Part 180 identifies two types of covered transactions: a transaction at the primary tier versus a transaction at the lower tier. A covered transaction at the primary tier is any transaction between a Federal agency and a person. A person can be an individual or business, federal agency or non-federal agency. A covered transaction at the lower tier is where a participant, such as a non-federal entity, in a covered transaction does business with another person. A “covered transaction” can be further defined as a non-procurement transaction or procurement transaction. A subaward, regardless of amount, qualifies as a non-procurement transaction, unless exempt by 2 CFR Part 180.215. A procurement transaction for goods or services that equals or exceeds $25,000 qualifies as a covered transaction, unless other criteria is met within 2 CFR Part 180.220. For example, a procurement transaction could be a covered transaction, regardless of amount, if the transaction requires approval by a Federal agency. Cause: Excerpt from client Policies & Procedures, MPS Grant Manual – Policies Over Federal Awards: Debarment and Suspension (p. 28) The District awards contracts only to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement. Consideration will be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources. The District may not subcontract with or award sub grants to any person or company who is debarred or suspended. For all contracts over $25,000 the District verifies that the vendor with whom the District intends to do business with is not excluded or disqualified. 2 C.F.R. Part 200, Appendix II (1) and 2 C.F.R. §§ 180.220 and 180.300. In this case, therefore, the proper control was in place but not followed. Effect or Possible Effect of the Condition: Non-compliance with 2 CFR 200 Section 180.995. Questioned Costs: Not applicable. Isolated Instance or Systemic Problem: This appears to be an isolated problem as the controls over this compliance requirement are in place but were not being followed. Repeat of a Finding in the Immediately Prior Audit (with Prior Year Audit Finding Number (where applicable)): No Recommendation to Prevent Future Occurrence: It is recommended that the Town follow scrupulously its own MPS Grant Manual – Policies Over Federal Awards: Debarment and Suspension, which is fully compliant with 2 CFR 200 Uniform Guidance.
Information on the Federal Programs: United States Department of Education, both programs are passed through Massachusetts Department of Elementary and Secondary Education CFDA Nos. 84.027 & 84.173; Special Education Cluster; Grant Period Ending Fiscal Year End 2024 CFDA Nos. 84.425 & 84.425D; ESSER Program; Grant Period Ending Fiscal Year End 2024 Condition: In the course of allowable costs and procurement testing (B-010), it was discovered that the client failed to check vendors for suspension/debarment prior to contracting; note I-002 email from client. Client does have appropriate policies/procedures in place for managing Federal awards, including this particular criteria; see Policies & Procedures, MPS Grant Manual – Policies Over Federal Awards, however they were not being followed. Criteria: Non-Federal entities are required to follow procurement standards per 2 CFR sections 200.303 and 200.318-326, Uniform Guidance, as well as their own documented procurement standards, which must reflect applicable state and local laws and regulations – whichever is stricter. Per 2 CFR 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). UG §200.318 General procurement standards. 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 Section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. 2 CFR Part 180 identifies two types of covered transactions: a transaction at the primary tier versus a transaction at the lower tier. A covered transaction at the primary tier is any transaction between a Federal agency and a person. A person can be an individual or business, federal agency or non-federal agency. A covered transaction at the lower tier is where a participant, such as a non-federal entity, in a covered transaction does business with another person. A “covered transaction” can be further defined as a non-procurement transaction or procurement transaction. A subaward, regardless of amount, qualifies as a non-procurement transaction, unless exempt by 2 CFR Part 180.215. A procurement transaction for goods or services that equals or exceeds $25,000 qualifies as a covered transaction, unless other criteria is met within 2 CFR Part 180.220. For example, a procurement transaction could be a covered transaction, regardless of amount, if the transaction requires approval by a Federal agency. Cause: Excerpt from client Policies & Procedures, MPS Grant Manual – Policies Over Federal Awards: Debarment and Suspension (p. 28) The District awards contracts only to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement. Consideration will be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources. The District may not subcontract with or award sub grants to any person or company who is debarred or suspended. For all contracts over $25,000 the District verifies that the vendor with whom the District intends to do business with is not excluded or disqualified. 2 C.F.R. Part 200, Appendix II (1) and 2 C.F.R. §§ 180.220 and 180.300. In this case, therefore, the proper control was in place but not followed. Effect or Possible Effect of the Condition: Non-compliance with 2 CFR 200 Section 180.995. Questioned Costs: Not applicable. Isolated Instance or Systemic Problem: This appears to be an isolated problem as the controls over this compliance requirement are in place but were not being followed. Repeat of a Finding in the Immediately Prior Audit (with Prior Year Audit Finding Number (where applicable)): No Recommendation to Prevent Future Occurrence: It is recommended that the Town follow scrupulously its own MPS Grant Manual – Policies Over Federal Awards: Debarment and Suspension, which is fully compliant with 2 CFR 200 Uniform Guidance.
2024-005 - Procurement and Suspension and Debarment Federal Program Information: Department of Treasury - State & Local Fiscal Recovery Fund ALN - 21.027 - State & Local Fiscal Recovery Fund Criteria: The following CFR(s) apply to this finding: 2 CFR §200.318(a) Condition: During our testing we reviewed the procurement policy for the City and identified multiple provisions required were not included in the policy. Cause: The control lapse occurred because there was turnover in key positions and the policy has not been reviewed. Effect: Procurement activities conducted under this incomplete policy may not adhere to required federal standards, increasing the risk of noncompliance, unallowable costs or procurement practices that do not ensure fair and open competition. Identification of Questioned Costs: None identified. Context: The procurement policy in effect during the fiscal year was reviewed which is not a statistically valid sample. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the City revise its procurement policy to fully incorporate all elements required by 2 CFR §200.317-200.327. Additionally, we suggest the City implement a regular policy review process to ensure continued compliance with federal regulations. Views of Responsible Officials and Corrective Action Plan: Please see the Corrective Action Plan issued by the City.
2024-005 - Procurement and Suspension and Debarment Federal Program Information: Department of Treasury - State & Local Fiscal Recovery Fund ALN - 21.027 - State & Local Fiscal Recovery Fund Criteria: The following CFR(s) apply to this finding: 2 CFR §200.318(a) Condition: During our testing we reviewed the procurement policy for the City and identified multiple provisions required were not included in the policy. Cause: The control lapse occurred because there was turnover in key positions and the policy has not been reviewed. Effect: Procurement activities conducted under this incomplete policy may not adhere to required federal standards, increasing the risk of noncompliance, unallowable costs or procurement practices that do not ensure fair and open competition. Identification of Questioned Costs: None identified. Context: The procurement policy in effect during the fiscal year was reviewed which is not a statistically valid sample. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the City revise its procurement policy to fully incorporate all elements required by 2 CFR §200.317-200.327. Additionally, we suggest the City implement a regular policy review process to ensure continued compliance with federal regulations. Views of Responsible Officials and Corrective Action Plan: Please see the Corrective Action Plan issued by the City.
2024-005 - Procurement and Suspension and Debarment Federal Program Information: Department of Treasury - State & Local Fiscal Recovery Fund ALN - 21.027 - State & Local Fiscal Recovery Fund Criteria: The following CFR(s) apply to this finding: 2 CFR §200.318(a) Condition: During our testing we reviewed the procurement policy for the City and identified multiple provisions required were not included in the policy. Cause: The control lapse occurred because there was turnover in key positions and the policy has not been reviewed. Effect: Procurement activities conducted under this incomplete policy may not adhere to required federal standards, increasing the risk of noncompliance, unallowable costs or procurement practices that do not ensure fair and open competition. Identification of Questioned Costs: None identified. Context: The procurement policy in effect during the fiscal year was reviewed which is not a statistically valid sample. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the City revise its procurement policy to fully incorporate all elements required by 2 CFR §200.317-200.327. Additionally, we suggest the City implement a regular policy review process to ensure continued compliance with federal regulations. Views of Responsible Officials and Corrective Action Plan: Please see the Corrective Action Plan issued by the City.
FA 2024-001 Strengthen Controls over Expenditures Compliance Requirements: Activities Allowed or Unallowed Allowable Costs/Cost Principles Procurement and Suspension and Debarment Internal Control Impact: Significant Deficiency Compliance Impact: Nonmaterial Noncompliance Federal Awarding Agency: U.S. Department of Agriculture Pass-Through Entity: Georgia Department of Education AL Numbers and Titles: 10.553 – School Breakfast Program 10.555 – National School Lunch Program Federal Award Numbers: 245GA324N1199 (Year: 2024), 235GA32N1099 (Year: 2023) Questioned Costs: $7,388 Description: A review of expenditures charged to the Child Nutrition Cluster revealed that the School District’s internal control procedures were not operating appropriately to ensure that expenditures were reviewed and approved and that the School District’s procurement and suspension and debarment procedures were followed. Background Information: The Child Nutrition Cluster (CNC) is comprised of various programs that are intended to assist states in administering and overseeing food service program operators that provide healthful, nutritious meals to eligible children in public and non-profit private schools, residential childcare institutions, and summer programs. This Cluster of programs also fosters healthy eating habits in children by providing fresh fruits and fresh vegetables to children attending elementary and secondary schools and encourages the domestic consumption of nutritious agricultural commodities. CNC funding was granted to the Georgia Department of Education (GaDOE) by the U.S. Department of Agriculture. GaDOE is responsible for distributing funds to local educational agencies (LEAs) and overseeing the various CNC programs. CNC funds totaling $1,087,437.24 were expended and reported on the Wilkinson County Board of Education’s Schedule of Expenditures of Federal Awards (SEFA) for fiscal year 2024. Criteria: As a recipient of federal awards, the School District is required to establish and maintain effective internal control over federal awards that provides reasonable assurance of managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards pursuant to Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Section 200.303 – Internal Controls. Provisions included in the Uniform Guidance, Section 200.403 – Factors Affecting Allowability of Costs state that “costs must meet the following general criteria in order to be allowable under Federal awards: (a) Be necessary and reasonable for the performance of the Federal award and be allocable thereto under these principles, (b) Conform to any limitations or exclusions set forth in these principles or in the Federal award as to types or amount of cost items, (c) Be consistent with policies and procedures that apply uniformly to both federally-financed and other activities of the non-Federal entity… (g) Be adequately documented…” Additionally, provisions included in the Uniform Guidance, Section 200.318 – General Procurement Standards state in part that “(a) the non-Federal entity must use its own documented procurement procedures which reflect applicable State, local, and tribal laws and regulations and… (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.” In addition, provisions included in the Uniform Guidance, Section 200.320 – Methods of Procurement to Be Followed provide guidance for procurement through small purchase procedures and state “If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources.” Condition: A sample of 39 expenditures was randomly selected for testing using a non-statistical sampling approach. These expenditures were reviewed to determine if appropriate internal controls were implemented and applicable compliance requirements were met. For eight of the 10 sample expenditures that were incurred outside of the School District’s Co-Op process, evidence of review and approval was not reflected within the voucher package. Additionally, auditor reviewed five of these same expenditures and a sample of 29 additional expenditures, which was randomly selected for testing using a non-statistical sampling approach, to determine if procurement transactions complied with the School District’s procurement procedures and proper oversight was maintained to ensure that contractors were performing according to their contracts. The following deficiencies were noted with expenditures incurred outside of the School District’s Co-Op process: • Evidence of review and approval was not reflected within the voucher package and/or purchase files for 17 additional expenditures. • The School District could not provide evidence that an adequate number of rate or price quotations were obtained from qualified sources for eight small purchase expenditures reviewed. Questioned Costs: Upon testing a sample of $14,237 in procurement transactions that were incurred outside of the School District’s Co-Op process, known questioned costs of $7,388 were identified for expenditures that did not follow the School District’s procurement procedures. Using the population of procurements that were incurred outside of the School District’s Co-Op process of $56,274, we project the likely questioned costs to be approximately $29,200. Cause: The School District did not follow its policies and procedures that govern the nonpersonal services expenditure process for federal programs. Effect: The School District is not in compliance with the Uniform Guidance and GaDOE guidance related to CNC. Failure to ensure that expenditures are appropriately approved and procedures to address procurement and suspension and debarment compliance requirements are implemented exposes the School District to unnecessary risk of error and misuse of federal funds and could result in the expenditure of federal funds for unallowable purposes and/or with unqualified vendors. In addition, this deficiency could lead to the return of funding associated with unallowable expenditures. Recommendation: The School District should review current internal control procedures related to CNC. Where vulnerable, the School District should develop and/or modify its policies and procedures to ensure that all expenditures reflect evidence of review and approval, required procurement methods are properly identified and followed and required procurement and suspension and debarment documentation is properly identified, safeguarded, and retained. In addition, management should develop a monitoring process to ensure that these procedures are operating appropriately. Views of Responsible Officials: We concur with this finding.
FA 2024-001 Strengthen Controls over Expenditures Compliance Requirements: Activities Allowed or Unallowed Allowable Costs/Cost Principles Procurement and Suspension and Debarment Internal Control Impact: Significant Deficiency Compliance Impact: Nonmaterial Noncompliance Federal Awarding Agency: U.S. Department of Agriculture Pass-Through Entity: Georgia Department of Education AL Numbers and Titles: 10.553 – School Breakfast Program 10.555 – National School Lunch Program Federal Award Numbers: 245GA324N1199 (Year: 2024), 235GA32N1099 (Year: 2023) Questioned Costs: $7,388 Description: A review of expenditures charged to the Child Nutrition Cluster revealed that the School District’s internal control procedures were not operating appropriately to ensure that expenditures were reviewed and approved and that the School District’s procurement and suspension and debarment procedures were followed. Background Information: The Child Nutrition Cluster (CNC) is comprised of various programs that are intended to assist states in administering and overseeing food service program operators that provide healthful, nutritious meals to eligible children in public and non-profit private schools, residential childcare institutions, and summer programs. This Cluster of programs also fosters healthy eating habits in children by providing fresh fruits and fresh vegetables to children attending elementary and secondary schools and encourages the domestic consumption of nutritious agricultural commodities. CNC funding was granted to the Georgia Department of Education (GaDOE) by the U.S. Department of Agriculture. GaDOE is responsible for distributing funds to local educational agencies (LEAs) and overseeing the various CNC programs. CNC funds totaling $1,087,437.24 were expended and reported on the Wilkinson County Board of Education’s Schedule of Expenditures of Federal Awards (SEFA) for fiscal year 2024. Criteria: As a recipient of federal awards, the School District is required to establish and maintain effective internal control over federal awards that provides reasonable assurance of managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards pursuant to Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Section 200.303 – Internal Controls. Provisions included in the Uniform Guidance, Section 200.403 – Factors Affecting Allowability of Costs state that “costs must meet the following general criteria in order to be allowable under Federal awards: (a) Be necessary and reasonable for the performance of the Federal award and be allocable thereto under these principles, (b) Conform to any limitations or exclusions set forth in these principles or in the Federal award as to types or amount of cost items, (c) Be consistent with policies and procedures that apply uniformly to both federally-financed and other activities of the non-Federal entity… (g) Be adequately documented…” Additionally, provisions included in the Uniform Guidance, Section 200.318 – General Procurement Standards state in part that “(a) the non-Federal entity must use its own documented procurement procedures which reflect applicable State, local, and tribal laws and regulations and… (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.” In addition, provisions included in the Uniform Guidance, Section 200.320 – Methods of Procurement to Be Followed provide guidance for procurement through small purchase procedures and state “If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources.” Condition: A sample of 39 expenditures was randomly selected for testing using a non-statistical sampling approach. These expenditures were reviewed to determine if appropriate internal controls were implemented and applicable compliance requirements were met. For eight of the 10 sample expenditures that were incurred outside of the School District’s Co-Op process, evidence of review and approval was not reflected within the voucher package. Additionally, auditor reviewed five of these same expenditures and a sample of 29 additional expenditures, which was randomly selected for testing using a non-statistical sampling approach, to determine if procurement transactions complied with the School District’s procurement procedures and proper oversight was maintained to ensure that contractors were performing according to their contracts. The following deficiencies were noted with expenditures incurred outside of the School District’s Co-Op process: • Evidence of review and approval was not reflected within the voucher package and/or purchase files for 17 additional expenditures. • The School District could not provide evidence that an adequate number of rate or price quotations were obtained from qualified sources for eight small purchase expenditures reviewed. Questioned Costs: Upon testing a sample of $14,237 in procurement transactions that were incurred outside of the School District’s Co-Op process, known questioned costs of $7,388 were identified for expenditures that did not follow the School District’s procurement procedures. Using the population of procurements that were incurred outside of the School District’s Co-Op process of $56,274, we project the likely questioned costs to be approximately $29,200. Cause: The School District did not follow its policies and procedures that govern the nonpersonal services expenditure process for federal programs. Effect: The School District is not in compliance with the Uniform Guidance and GaDOE guidance related to CNC. Failure to ensure that expenditures are appropriately approved and procedures to address procurement and suspension and debarment compliance requirements are implemented exposes the School District to unnecessary risk of error and misuse of federal funds and could result in the expenditure of federal funds for unallowable purposes and/or with unqualified vendors. In addition, this deficiency could lead to the return of funding associated with unallowable expenditures. Recommendation: The School District should review current internal control procedures related to CNC. Where vulnerable, the School District should develop and/or modify its policies and procedures to ensure that all expenditures reflect evidence of review and approval, required procurement methods are properly identified and followed and required procurement and suspension and debarment documentation is properly identified, safeguarded, and retained. In addition, management should develop a monitoring process to ensure that these procedures are operating appropriately. Views of Responsible Officials: We concur with this finding.
Finding 2024-002: Procurement Federal Program Information: Department of Housing and Urban Development Continuum of Care Program, Direct funding – AL No. 14.267, Grant No. CA1320L9T142208. CA1320L9T142309, CA1255L9T142208, CA0841L9T141908, CA0773L9T142214, CA0773L9T142315, CA1317L9T132106 and CA1403L9T132106 Condition: Wipfli, LLP obtained the supporting documentation for purchases of client furnishings, cleaning services, and pest control services. The documentation indicated these vendors were selected based on best price. Turning Point of Central California, Inc. was able to provide explanations for why the vendor were selected, but procurement records supporting the explanations were not available for the pest control vendor. In addition, Wipfli noted Turning Point of Central California, Inc.’s procurement policy included references to outdated federal regulations and did not comply with all of the procurement requirements in the Uniform Guidance (2 CFR Part 200). This is a repeat finding from the June 30, 2021, 2022 and 2023 audits. Criteria: The Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, 2 CFR Part 200, section 318(i) (Uniform Guidance) states that the non-Federal entity must maintain records sufficient to detail the history of procurement. The records will include, but are not necessarily limited to the following: rationale for the method of procurement, selection of contractor type, contractor selection or rejection, and the basis for the contract price. In addition, the Uniform Guidance, 2 CFR Part 200, section 200.118 states that the non-Federal entity must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326 and must use their own documented procurement procedures that must conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. Cause: Turning Point of Central California, Inc. did not retain procurement records to support its assertion that it is contracting with vendors that provide the best prices. Turning Point of Central California, Inc. has not updated its procurement policy to comply with the Uniform Guidance (2 CFR Part 200). Effect: Due to the conditions noted above, Turning Point of Central California, Inc. was not in compliance with the procurement regulations and there exists a material weakness in internal controls over the procurement compliance requirement. Recommendation: We recommend Turning Point of Central California, Inc. implement controls to ensure the procurement decisions are properly documented in accordance with updated internal policies and procedures that conform to the Uniform Guidance (2 CFR Part 200). View of responsible officials: Management agrees with the finding and has submitted a corrective action plan.
Finding Number: 2024-002 Repeat Finding: Similar to prior year finding 2023-003 Program Name/Assistance Listing Title: Indian School Equalization, Special Education Cluster Assistance Listing Number: 15.042, 84.027 Federal Agency: U.S. Department of the Interior, U.S. Department of Education Federal Award Number: A23AV00811 Questioned Costs: None Type of Finding: Noncompliance, Material Weakness Compliance Requirement: Procurement, Suspension and Debarment Criteria: Under 2 CFR §215.43 the School is required to implement certain procurement policies that adhere to the minimum federal requirements as outlined in 2 CFR §215.44. 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. Condition: The School did not always follow procurement standards as put forth in 2 CFR §200.318 through §200.326. Effect: Noncompliance with federal regulation that led to a qualified audit opinion over the listed federal programs as noted above. Cause: Management oversight. Context: For two of 25 vendors within the Simplified Acquisition Threshold tested, the School did not maintain documentation that appropriate procurement procedures were performed or provide documentation to support the School’s reasoning for a noncompetitive procurement. Recommendation: The School should review its procurement procedures to ensure that proper procurement procedures are performed documentation is maintained to support the procurement. Response: The School’s responses are presented in a separate document. Contact person: Dolores Silva, Chief Financial Officer
Finding Number: 2024-002 Repeat Finding: Similar to prior year finding 2023-003 Program Name/Assistance Listing Title: Indian School Equalization, Special Education Cluster Assistance Listing Number: 15.042, 84.027 Federal Agency: U.S. Department of the Interior, U.S. Department of Education Federal Award Number: A23AV00811 Questioned Costs: None Type of Finding: Noncompliance, Material Weakness Compliance Requirement: Procurement, Suspension and Debarment Criteria: Under 2 CFR §215.43 the School is required to implement certain procurement policies that adhere to the minimum federal requirements as outlined in 2 CFR §215.44. 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. Condition: The School did not always follow procurement standards as put forth in 2 CFR §200.318 through §200.326. Effect: Noncompliance with federal regulation that led to a qualified audit opinion over the listed federal programs as noted above. Cause: Management oversight. Context: For two of 25 vendors within the Simplified Acquisition Threshold tested, the School did not maintain documentation that appropriate procurement procedures were performed or provide documentation to support the School’s reasoning for a noncompetitive procurement. Recommendation: The School should review its procurement procedures to ensure that proper procurement procedures are performed documentation is maintained to support the procurement. Response: The School’s responses are presented in a separate document. Contact person: Dolores Silva, Chief Financial Officer
2024-005 Improve Internal Controls Over Procurement Federal Program(s) Information Federal Agency: Department of the Treasury Award Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Year: 2024 Compliance Requirement: Procurement Type of Finding Compliance Internal Control over Compliance – Significant Deficiency Criteria or Specific Requirement 2 CFR 200.318–200.327 requires the City to follow documented procurement procedures consistent with applicable Federal statutes, regulations, and the terms and conditions of their Federal award. The City must maintain records sufficient to detail the history of procurement, including, but not limited to, the rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Condition and Context During our testing of six procurement transactions under the SLFRF program, the City was unable to provide documentation supporting procurement policies and procedures were followed for one transaction. Specifically, the City did not provide evidence of procurement history, competitive selection, or justification for the selected vendor related to this expenditure. Invoices were provided to support the expenditure. Cause The City’s internal controls did not ensure that procurement documentation was adequately maintained and available to support all federally funded transactions as required by Uniform Guidance. Effect or Potential Effect Lack of supporting procurement documentation increases the risk of noncompliance with Federal procurement requirements. No questioned costs are reported, as the expenditure was below the questioned cost threshold. Recommendation We recommend that the City strengthen its controls to ensure all required procurement documentation is maintained and readily available for all federally funded transactions. The City should provide training to procurement and program staff on Federal documentation requirements and regularly review procurement files for completeness. Views of Responsible Official Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.
Finding 2024-002 – COVID 19 – Coronavirus State and Local Fiscal Recovery Fund - AL No. 21.027 U.S. Department of Treasury Noncompliance and Material Weakness Related to Internal Control over Compliance of the Major Program 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 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. As governmental subrecipients of states they are also required to use the same state procurement policies and procedures for federal funds as for non‐federal funds, the Town is required to follow Massachusetts General Laws, Chapter (MGL) 30(b). MGL 30(b) requires the solicitation of three written or oral quotes for procurements of supplies between $10,000 and $49,999 and sealed bids or proposals for procurements of supplies $50,000 and over. Management of the Town is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. However, a deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context: During fiscal year 2024, the Town did not comply with the required procurement policies and procedures in place as it related to expenses charged to the major program requiring procurement procedures. One of the expenses tested was for engineering services that would have been exempt under Massachusetts General Laws, Chapter (MGL) 30(b) (State Procurement Requirement), under federal statutes and procurement requirements for engineering services identified in 2 CFR Part 200, the Town would have been required to go out to bid for the services. Questioned Costs: $413,477.78 Cause: The noncompliance occurred because the organization mistakenly relied on Massachusetts Chapter 30B exemptions, which govern state and local procurements, and did not recognize the need to comply with the more stringent federal procurement requirements for federal fund usage. Staff members were not sufficiently aware of the specific requirements under 2 CFR Part 200 and the precedence of federal procurement regulations over state law in this context. Effect or Potential Effect: There is risk that the amounts charged to the federal awards major program may not be in accordance with procurement, suspension, and debarment principles. Identification as a Repeat Finding: 2023-003 Recommendation: The Town of Bellingham should address the nocompliance and material weakness in internal controls noted above in order to ensure that procurements are conducted in accordance with federal and state requirements. Management Response: We acknowledge the audit finding regarding our reliance on Massachusetts Chapter 30B exemptions for procurement involving federal funds. We understand that federal procurement regulations under 2 CFR Part 200 take precedence over state law and that we failed fully to comply with federal requirements for competitive bidding, sole-source justification, and documentation. We are committed to addressing this issue by reviewing our procurement policies to clearly differentiate between state and federal requirements, ensuring that federal standards govern all procurement involving federal funds. We will provide additional training to staff, implement stronger documentation procedures, and review past procurement to ensure full compliance moving forward.
Federal Agency: Department of Transportation Federal Program: 20.205 Highway Planning and Construction (HPC) Various awards State Agency: Missouri Department of Transportation (MoDOT) Type of Finding: Internal Control (Significant Deficiency) and Nonmaterial Noncompliance Compliance Requirement: Procurement and Suspension and Debarment The MoDOT did not establish policies and procedures to monitor contractor and subrecipient compliance with Build America, Buy America (BABA) domestic preference provisions for Infrastructure Investment and Jobs Act (IIJA)-funded projects of the HPC program. As a result, the MoDOT did not ensure contractors and subrecipients complied with these provisions. During the year ended June 30, 2024, the MoDOT expended approximately $922 million in IIJA funding for the HPC program, which represents approximately 68 percent of total program spending. The MoDOT is responsible for ensuring compliance with BABA domestic preference provisions for all IIJA-funded infrastructure projects. Section 70914(a) of the BABA Act, enacted as part of the IIJA, requires all iron, steel, manufactured products, and construction materials used in IIJA-funded infrastructure projects to be produced in the United States. Regulation 2 CFR Section 200.318(a) requires the MoDOT to maintain documented procurement procedures, and 2 CFR Section 200.318(b) requires the MoDOT to monitor contractor and subrecipient compliance with the terms and conditions of project agreements, including BABA provisions. The MoDOT includes BABA provisions in every contractor and subrecipient project agreement, including IIJA-funded projects. However, the MoDOT did not develop monitoring policies and procedures and did not verify contractors and subrecipients complied with these provisions. MoDOT officials stated specific monitoring procedures had not yet been developed because the requirements were relatively new and took effect in May 2022. In addition to noncompliance with federal requirements, without adequate monitoring policies and procedures, the MoDOT lacks assurance its contractors and subrecipients are in compliance with BABA requirements. Regulation 2 CFR Section 200.303(a) requires the non-federal entity to "[e]stablish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award." Recommendation The MoDOT implement and enforce policies and procedures to monitor HPC program IIJA-funded projects to ensure contractor and subrecipient compliance with BABA domestic preference provisions, as required. Auditee's Response We agree with the auditor's finding. Our Corrective Action Plan includes our planned actions to address the finding.
2024-003: Suspension and Debarment Verification Assistance Listing Number (ALN) and Title: 20.205 Highway Planning and Construction Federal Grantor: U.S. Department of Transportation (DOT) Passed-through: Oregon Department of Transportation (ODOT) Award Identification Numbers and Years: Finding is applicable to all 20.205 awards on the SEFA for 2024 Compliance Requirement: Procurement and Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control over Compliance Prior Year Audit Finding: No Criteria: 2 CFR 200.214 prohibits non-federal entities from contracting with or making subawards to parties listed on the governmentwide suspension and debarment list. 2 CFR 200.318(h) requires non-federal entities to verify that vendors are not suspended or debarred before entering into covered transactions (e.g., procurements expected to equal or exceed $25,000). This verification is typically done by checking the System for Award Management (SAM.gov) or collecting a certification from the entity. Prudent practice and effective internal control require documentation of these verification procedures and results. Condition: LCOG did not maintain documentation to demonstrate that it verified whether certain vendors paid with ALN 20.205 funds were excluded or disqualified under the suspension and debarment rules. While management stated they performed reviews of the SAM.gov listing prior to expenditure, no evidence (such as dated screenshots, search results printouts, or certifications) was available to support that the required verifications were performed for tested vendors. Questioned Costs: None. Context: During compliance testing for ALN 20.205, we selected a sample of two covered transactions. No other covered transactions were procured during FY 2024. LCOG could not provide documentation of its verification process for one the vendors in these transactions. Subsequent review of SAM.gov performed during the audit did not indicate the vendor had been suspended or debarred. Cause: LCOG has not implemented formal procedures requiring the retention of documentation demonstrating suspension and debarment checks for vendors paid with federal funds. Effect: Without documented verification, LCOG cannot demonstrate compliance with federal suspension and debarment requirements. While no ineligible vendors were identified in our sample, the lack of documented procedures and evidence represents a failure in the design or operation of internal controls, increasing the risk that LCOG could inadvertently contract with a suspended or debarred party using federal funds in the future. Recommendation: We recommend LCOG establish and implement formal, documented procedures for verifying that vendors are not suspended or debarred before entering into covered transactions paid with federal funds. These procedures should specify the method of verification (e.g., checking SAM.gov) and require retention of evidence (e.g., dated printouts or screenshots of the search results) within the procurement or vendor files. Auditee Views: The suspension and debarment check during the procurement process is one of the steps completed by the Procurement Officer for any covered transaction that is not the subject of a formal procurement. The Executive Director completed this check. For the one vendor referenced above, a sole source contract was to be awarded and the check for suspension and debarment of the vendor was completed by reviewing entity records in SAM.gov. The review of SAM.gov records did not disclose any suspensions or debarments of the vendor. In the future, we will take a screen shot of the result and place it in the procurement file. This will become part of the process immediately for any procurements that are not formal RFPs. Formal RFPs require vendors to certify that they are not suspended or debarred.
FA 2024-001 Strengthen Controls over Expenditures Compliance Requirement: Procurement and Suspension and Debarment Internal Control Impact: Material Weakness Compliance Impact: Material Noncompliance Federal Awarding Agency: U.S. Department of Agriculture Pass-Through Entity: Georgia Department of Education AL Numbers and Titles: 10.553 – School Breakfast Program 10.555 – National School Lunch Program Federal Award Numbers: 235GA324N1099 (Year: 2024), 245GA324N1199 (Year: 2024) Questioned Costs: $46,877.67 Description: A review of expenditures charged to the Child Nutrition Cluster revealed that the School District’s internal control procedures were not operating appropriately to ensure that the School District’s procurement procedures were followed. Background Information: The Child Nutrition Cluster (CNC) is comprised of various programs that are intended to assist states in administering and overseeing food service program operators that provide healthful, nutritious meals to eligible children in public and non-profit private schools, residential child care institutions, and summer programs. This Cluster of programs also fosters healthy eating habits in children by providing fresh fruits and fresh vegetables to children attending elementary and secondary schools and encourages the domestic consumption of nutritious agricultural commodities. CNC funding was granted to the Georgia Department of Education (GaDOE) by the U.S. Department of Agriculture. GaDOE is responsible for distributing funds to local educational agencies (LEAs) and overseeing the various CNC programs. CNC funds totaling $1,204,722 were expended and reported on the Terrell County Board of Education’s Schedule of Expenditures of Federal Awards (SEFA) for fiscal year 2024. Criteria: As a recipient of federal awards, the School District is required to establish and maintain effective internal control over federal awards that provides reasonable assurance of managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards pursuant to Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Section 200.303 – Internal Controls. Additionally, provisions included in the Uniform Guidance, Section 200.318 – General Procurement Standards state in part that “(a) the non-Federal entity must use its own documented procurement procedures which reflect applicable State, local, and tribal laws and regulations and… (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.” In addition, provisions included in the Uniform Guidance, Section 200.320 – Methods of Procurement to Be Followed provide guidance for procurement through small purchase procedures and state “If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources.” Condition: A sample of 47 procurement transactions was randomly selected for testing using a non-statistical sampling approach. These transactions were reviewed to determine if appropriate internal controls were implemented and applicable compliance requirements were met. The School District could not provide evidence that an adequate number of rate or price quotations were obtained from qualified sources for 18 small purchase expenditures reviewed. Questioned Costs: Upon testing a sample of $192,188.67 in procurement transactions, known questioned costs of $46,877.67 were identified for expenditures that did not follow the School District’s procurement procedures. Using the total population of $681,669.21 in procurement transactions, we project the likely questioned costs to be approximately $166,269.24. The following Assistance Listing Numbers were affected by known and likely questioned costs: 10.553 and 10.555. Cause: When discussing the issues noted with management, they indicated that School District personnel did not maintain sufficient documentation to support that multiple quotations were obtained. Effect: The School District is not in compliance with the Uniform Guidance and GaDOE guidance. Failure to appropriately implement procedures to address procurement compliance requirements exposes the School District to unnecessary risk of error and misuse of federal funds and could result in the expenditure of federal funds with unqualified vendors. In addition, this deficiency could lead to the return of funding associated with unallowable expenditures. Recommendation: The School District should evaluate and improve internal control procedures to ensure that required procurement methods are properly identified and followed. In addition, management should develop a monitoring process to ensure that these procedures are operating appropriately. Views of Responsible Officials: We concur with this finding.
2024-005 Inadequate Contract Retention and Suspension/Debarment Verification (Material Weakness) Federal Agency: Department of Education Pass-through Agency: New Hampshire Department of Education Cluster/Program: Special Education Cluster Assistance Listing Number(s): 84.027, 84.173, 84.027X, 84.173X Passed-through Identification: 20220039, 20221010, 20221035, 20221036, 20221037, 20230209, 20230211, 20230212, 20230214, 20230215, 20230231, 20230232, 2024188, 20240189, 20240190, 20240191, 20240191, 20240199, 20240308 Compliance Requirement: Procurement and Suspension and Debarment Type of Finding: Internal Control over Compliance – Material Weakness Material Noncompliance Criteria or Specific Requirement: Federal regulations require that non-federal entities, including school administrative units (SAUs), maintain adequate documentation for all procurement transactions and ensure that vendors are eligible to participate in federal programs. Specifically, 2 CFR 200.318–200.327 outlines standards for procurement, including maintaining documentation that demonstrates compliance with federal requirements, ensuring fair and open competition, and retaining executed contracts and related procurement records. Additionally, 2 CFR 180 and 2 CFR 200.213 require verification that vendors are not suspended, debarred, or otherwise excluded from participation in federal programs prior to entering into a contract. Federal guidance emphasizes that all procurement documentation, including executed contracts, bid evaluations, and vendor eligibility verification, must be retained to provide an audit trail demonstrating compliance and prudent use of federal funds. Maintaining proper documentation and performing required verification steps helps prevent the risk of fraud, waste, or improper payments and ensures transparency and accountability in the use of public resources. Condition: During testing of procurement activities, we noted that two signed and executed contracts could not be located. Furthermore, for all vendors reviewed except one, there was no evidence that the School Administrative Unit (SAU) performed procedures to verify that the vendors were not suspended or debarred. Cause: The SAU did not have a consistent process for retaining executed contracts or for documenting the verification of vendor eligibility under suspension/debarment requirements. Staff were not aware of the federal verification requirements or lacked formal procedures to ensure compliance. Effect: The absence of executed contracts and verification procedures increases the risk of noncompliance with federal procurement regulations. This could potentially result in questioned costs during a federal audit and may expose the SAU to financial or reputational risk if funds were improperly paid to ineligible vendors. Questioned Costs: $679,147 Identification as Repeat Finding: This is not a repeat finding. Recommendation: The SAU should implement a formal procurement policy that ensures all contracts are properly executed, signed, and retained. The policy should also establish a standardized process to verify all vendors against federal suspension and debarment lists prior to awarding contracts, with documentation of all verification steps maintained as part of the procurement record. Additionally, staff should be trained on these procedures to ensure ongoing compliance with federal requirements. Views of Responsible Officials: Management’s views and corrective action plan is included at the end of this report.
Criteria: 2024 Compliance Supplement stated that the non-federal entity must meet the general procurement standards in 2 CFR section 200.318(a), which indicated that the recipient or subrecipient must maintain and use documented procedures for procurement transactions under a Federal award or subaward, including for acquisition of property or services. These documented procurement procedures must be consistent with State, local, and tribal laws and regulations and the standards identified in §§ 200.317 through 200.327. Condition/Context: As a result of our audit procedures, we noted that Eden's current purchasing (procurement) policy does not include the elements required by the Uniform Guidance. In particular, the policy should address the procurement methods outlined in the procurement claw (i.e. micro-purchases, small purchases, competitive bidding, etc.). Repeat Finding from Prior Year(s): No Cause and Effect: This issue arose from Eden’s limited understanding of the Uniform Guidance’s procurement requirements, which contributed to non-compliance with program requirements. Questioned Cost: None Recommendation: We recommend that management revisit its procurement policies to incorporate the necessary elements required by the Uniform Guidance. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding that the agency did not have policies for Procurement or Suspension and Debarment. The agency intends to adopt a procurement policy and procedures that meets the general procurement standards in 2 CFR section 200.318(a) and the State of California. The agency is also creating policies and procedures to ensure vendors are not suspended or debarred from work on federally funded projects.
FINDING REFERENCE NUMBER 2024-009 FEDERAL PROGRAMS (ALN – 84.027) SPECIAL EDUCATION – GRANTS TO STATES (IDEA, PART B) – SPECIAL EDUCATION CLUSTER (IDEA) (ALN – 84.173) SPECIAL EDUCATION – PRESCHOOL GRANTS (IDEA PRESCHOOL) – SPECIAL EDUCATION CLUSTER (IDEA) (ALN – 84.938A) HURRICANE EDUCATION RECOVERY – INMMEDIATE AID TO RESTART SCHOOL OPERATIONS (RESTART) U.S. DEPARTMENT OF EDUCATION AWARD NUMBERS H027A220003 (07/01/2022 – 09/30/2023); H027A230003 (07/01/2023 – 09/30/2024); H173A220003 (07/01/2022 – 09/30/2023); H173A230003 (07/01/2023 – 09/30/2024); S938A180002 (04/26/2018 – 09/30/2025). COMPLIANCE REQUIREMENT PROCUREMENT AND SUSPENSION AND DEBARMENT TYPE OF FINDING MATERIAL NONCOMPLIANCE AND MATERIAL WEAKNESS CRITERIA 2 CFR Section 200.317, establishes that when conducting procurement transactions under a Federal award, a State or Indian Tribe must follow the same policies and procedures it uses for procurements with non-Federal funds. 2 CFR §200.318(a)(i) establishes that the recipient or subrecipient must maintain and use documented procedures for procurement transactions under a Federal award or subaward, including for acquisition of property or services. These documented procurement procedures must be consistent with State, local, and tribal laws and regulations and the standards identified in §§ 200.317 through 200.327. The recipient or subrecipient must maintain records sufficient to detail the history of each procurement transaction. These records must include the rationale for the procurement method, contract type selection, contractor selection or rejection, and the basis for the contract price. STATEMENT OF CONDITION For the ALN 84.938A Restart program, we selected the same sample determined to audit the compliance requirement activities allowed or unallowed/allowable costs/cost principle of forty (40) disbursements from a population of six hundred eighty-three (683) disbursements to suppliers made during the fiscal year 2023-2024. For these forty (40) disbursements, we evaluated the procurement process, and we found the following deficiencies: For nineteen (19) of the cases, the PRDE did not provide either all the necessary documentation or, in some instances, only partial information, preventing a proper assessment of the procurement process for each authorized disbursement. In relation to the IDEA Cluster Program (ALNs 84.027 and 84.173), we requested a list of all procurement procedures performed related to professional services and direct services to participants. No information was provided related to procurement procedures. In addition, we selected a sample of twenty-five (25) transactions for which a quotation process should have been performed, no evidence of quotation process was provided. This represents a scope limitation. QUESTIONED COSTS None. PERSPECTIVE INFORMATION After we requested all the supporting information related to procurement processes, the PRDE was not be able to provide the basic documentation for the procurement performed during the reasonable period of time. STATEMENT OF CAUSE In relation to the IDEA Cluster, the program performs a procurement process related to specific services for which no evidence of the procurement performed was provided. In addition, quotations for some purchases are performed through the Purchase Department of the PRDE. Evidence of the sample selection was not provided for evaluation For the ALN 84.938A, due to the lack of an adequate archiving process for the documentation of the procurement processes, the evidence could not be provided for our evaluation POSSIBLE ASSERTED EFFECT Due to the lack of filing documentation related to the procurements performed program ALN 84.938A Restart, we were unable to properly ascertain if compliance with the procurement process was performed. In relation to the IDEA Cluster, we were unable to ascertain compliance with the procurement compliance requirements. IDENTIFICATION OF REPEAT FINDING This is a repeat finding (Finding Reference Number 2023-007). RECOMMENDATIONS We recommend that the PRDE review its internal control procedures for filings to ensure that all procurement documentation is readily available to any auditor or entity tasked with assessing the procurement process. VIEWS OF RESPONSIBLE OFFICIALS Management agrees with the audit finding. The Puerto Rico Department of Education (PRDE) acknowledges that the requested procurement documentation was not fully available at the time of the auditors’ review. However, management made every effort to gather and reconstruct the information for all the selected transactions, and the complete documentation will be available. Furthermore, the PRDE is taking actions to improve the accessibility and organization of procurement files to ensure that all documentation is readily available for review in a timely manner. Internal controls over document retention and filing procedures are being reinforced to prevent recurrence of this situation. It is important to note that the procurement processes followed by the PRDE comply with the applicable requirements established under the Code of Federal Regulations (2 CFR Part 200 – Uniform Guidance). Management remains committed to strengthening its internal controls, ensuring full compliance with federal and state requirements, and maintaining complete and timely documentation to support all procurement activities. IMPLEMENTATION DATE Current Fiscal Year. RESPONSIBLE PERSON María de los A. Lizardi Valdés Office of Federal Affairs Director Edgar Delgado Serrano Office of Federal Affairs Associate Director
Federal Procurement Regulations Significant Deficiency U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES ALN #: 93.224 - Health Centers Program and 93.527 - Grants for New and Expanded Services under the Health Center Program Federal Award Identification #: 20H80CS00111, 24H80CS00111, 21H8FCS40976, 23H8GCS47647 Condition: During the Health Centers Program audit, it was noted that HAH did not follow their procurement policies as required by the Uniform Guidance 2 CFR 200.318. Criteria: 2 CFR 200.318 Questioned Costs: $0 Context: During the audit, it was noted that while the majority of program expenditures are salary and benefits, HAH did not follow their policies for procurement for other goods and services, and did not obtain multiple bids or sole source justification for any purchases that exceeded the micro-purchases threshold. Cause: Turnover at HAH, who separated from the parent entity in FY24 resulting in changes in procedures. Effect: Lack of internal control to ensure program requirements Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend that HAH establish an updated procurement policy and designate an individual to review all purchases over the micro-purchases threshold and review procurement documentation to ensure it is sufficient before expenses are approved for payment. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
NONCOMPLIANCE WITH PROCUREMENT AND SUSPENSION AND DEBARMENT REQUIREMENTS, CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS, ASSISTANCE LISTING No. 21.027, DIRECT ALLOCATION, GRANT No. AM-23-0295, YEAR ENDED JUNE 30, 2024 Criteria: Per 2 CFR 200.214, non-Federal entities are subject to the non-procurement, debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition: The city did not comply with the procurement standards outlined in 2 CFR §200.318-§200.327, which require competitive procurement processes and verification that contractors are not suspended or debarred. Specifically, the city did not verify the eligibility of program recipients/participants/contractors through the System for Award Management (SAM) or equivalent documentation in order to verify that they were not suspended, debarred, or otherwise excluded from participation in the program. Cause: The city does not have procurement policies and procedures in place that allow it to comply with procurement standards outlined in the Uniform Guidance. Effect: Non-compliance with program terms and conditions. Questioned Costs: None Recommendation: Management should develop procedures that will provide reasonable assurance that procurement of goods and services are made in compliance with applicable federal regulations and other procurement requirements specific to a federal award or subaward, and that no subaward, contract, or agreement for purchase of goods or services is made with any suspended or debarred party. Views of responsible officials and planned corrective action: The government agrees with this finding and will adhere to the attached corrective action plan.
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Opioid STR Assistance Listing Number: 93.788 Federal Award Identification Number and Year: 167552 - 2024 Pass-Through Agency: Oregon Health Authority Pass-Through Number(s): 167552 Award Period: January 4, 2021, through September 29, 2024 Type of Finding: Material Weakness in Internal Controls over Compliance and Material Noncompliance: Procurement, Suspension and Debarment Criteria or specific requirement: 2 CFR Part 200 sections 200.214 and 200.318-327 outlines the required general procurement standards, competition, and methods of procurement to be followed. These elements must be incorporated into an organization’s procurement policies and must be followed to ensure procurements are supported and covered transactions are only entered into with entities that are not federally suspended or debarred. Condition: The Alliance does not have formal procurement or suspension and debarment policy. For the sampled procurement transactions, documentation was not retained supporting the determination that the vendors were single source providers, as required by Uniform Guidance. In addition, a suspension and debarment check was not performed before entering into the covered transaction. Questioned costs: Yes Known: $9,239 Likely: $39,740 Context: The Organization does not have written procurement policies nor suspension and debarment policies. CLA tested six procurement transactions charged to the major program. For the sampled procurement transactions, documentation was not retained detailing the history of the procurement, including: the rationale for the method of procurement, selection of contract type, basis for contractor selection, and the basis for the contract price. Documentation should be retained to evidence the adequate number of price comparisons, price analyses, and rationale of acquisition, including to limit competition where competition is limited or contractor is single source. In addition, five covered transactions were tested for suspension and debarment. Documentation was not retained showing selected entities were checked for suspension and debarment prior to entering into the covered transactions. Cause: Due to a lack of knowledge about federal procurement, suspension and debarment, and documentation requirements. Effect: There is an increased possibility of entering into a covered transaction with vendors/contractors who are federally suspended or debarred. Without adequate records retained, the Alliance is at risk of noncompliance with federal suspension and debarment requirements. Repeat Finding: No Recommendation: CLA recommends the Alliance to develop the procurement policy compliance in with Uniform Guidance, including such documentation as the procurement threshold of the transaction, price comparisons and analyses made, bids obtained, proof of any limited competition, dated vendor screenings and signed authorization of the appropriate program personnel. CLA also recommends emphasizing the importance of the procurement standards and established policy to all authorized purchasers within the Alliance. The Alliance also needs to ensure that the policy includes suspension, and debarment checks, and it should be done prior to entering into the program. Each type of disbursement that leaves the Alliance (check, ACH, EFT, credit card, etc.) to improve documentary evidence that costs are being reviewed and approved for appropriateness. Views of responsible officials: There is no disagreement with the audit finding.