Reference Number: 2023-001 Compliance Requirement: Procurement and Suspension/Debarment Type of Finding: Compliance Internal Control Impact: None Compliance Impact: Material Noncompliance AL Number and Title: 84.425 - COVID-19 Education Stabilization Fund Federal Awarding Agency: U. S. Department of Education Federal Award Number: None Pass-through Entity: Alabama Department of Education Pass-through Award Number: None Questioned Costs: $1,029,533.57 Items purchased were not competitively bid in accordance with Procurement and Suspension/Debarment requirements. Finding The U.S. Code of Federal Regulations Title 2, Part 200.318, of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) states that non-Federal entities must have and use its own documented procurement procedures which reflect State and local laws and regulations provided that the procurements conform to applicable Federal law and the standards identified within that section. The Code of Alabama 1975, Title 39, which is a State law, requires the construction, installation, repair, renovation of public buildings in excess of $50,000.00 that are paid, in whole or part, with public funds to be bid under the provisions of the Public Works Law. In addition, the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) 2CFR 200.320, states that when the aggregate dollar amount is higher than the simplified acquisition threshold ($250,000.00), the Uniform Guidance requires one of the two “formal procurement methods”, sealed bids or formal request for proposals should be used. The Blount County Board of Education (the “Board”) entered a Public Works contract in November 2021 for the purchase and installation of HVAC units at multiple local schools totaling $1,576,971.00 of which $1,029,533.57 of COVID-19 Education Stabilization Funds were expended during the audit period, The Board did not obtain bids on the project in accordance with the State of Alabama Public Works Law. The Board used a purchasing consortium contract which is not allowed under the Public Works Law or the procurement guidelines contained in the Uniform Guidance for purchases greater than the simplified acquisition threshold. As a result, the Board did not comply with Uniform Guidance procurement requirements for these purchases. Recommendation: The Board should ensure compliance with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) 2 CFR 200.318 and CFR 200.320 and the Code of Alabama 1975, Title 39. Views of Responsible Officials of the Auditee The Board agrees with the finding.
Federal Agency: Department of Treasury Assistance Listing Number and Title: 21.027 – Coronavirus State and Local Fiscal Recovery Funds Funding Year(s): 2023-2026 Criteria: Per 2 CFR §200.318, General procurement standards, the entity must establish policies for procurement of equipment, real property and other services funded by federal funds. The procurement records and files for purchases in excess of the micro purchase threshold shall include at a minimum the following items: the basis for contractor selection, justification for lack of competition when competitive bids are not obtained, and basis for award cost or price. In addition, award recipients must not utilize any vendor which is suspended or debarred or is otherwise excluded from the central contractor registry. To ensure this is done, recipients should utilize the Excluded Parties List System website. Condition/Context: For our sample of one (representing the entire population), there was no documentation of policies and procedures for procurement of equipment, real property and other services funded by federal funds. We determined for this program that rate quotations and rationale for limited competition was not retained for the vendor. It was also determined that there was no documentation retained regarding verification of vendor suspension or debarment for the vendor. Questioned Costs: None noted. Cause: The entity has written policies for construction procurements, including requirements to obtain at least 2 competitive bids for projects over $5,000 and two proposals for architectural services over $100,000. The entity’s policies also require use of American Institute of Architects contract agreements for construction projects among other requirements. However, the entity does not have policies and procedures designed for procurements under the Uniform Guidance, and therefore, there is not a formal process established to document the performance of such controls. We note that inadequate controls could result in a reasonable possibility that the entity would not be able to detect and correct noncompliance in a timely manner. Effect: Costs charged to federal awards without appropriate documentation of procurement policies and processes may be subject to disallowance. Repeat Finding: No. Recommendation: We recommend developing written procurement policies in accordance with the Uniform Guidance and implementing a system of review and approval controls to complement the design of processes over the procurement, suspension, and debarment compliance requirements. In addition, we recommend retaining documentation regarding procurement decisions including rate quotations and verification of vendor suspension and debarment checks. Views of Responsible Officials: Management notes the details of this finding and the resulting material weakness. Management will enact processes outlined in our Corrective Action Plan to correct this deficiency in the future.
Federal Agency: Department of Treasury Assistance Listing Number and Title: 21.027 – Coronavirus State and Local Fiscal Recovery Funds Funding Year(s): 2023-2026 Criteria: Per 2 CFR §200.318, General procurement standards, the entity must establish policies for procurement of equipment, real property and other services funded by federal funds. The procurement records and files for purchases in excess of the micro purchase threshold shall include at a minimum the following items: the basis for contractor selection, justification for lack of competition when competitive bids are not obtained, and basis for award cost or price. In addition, award recipients must not utilize any vendor which is suspended or debarred or is otherwise excluded from the central contractor registry. To ensure this is done, recipients should utilize the Excluded Parties List System website. Condition/Context: For our sample of one (representing the entire population), there was no documentation of policies and procedures for procurement of equipment, real property and other services funded by federal funds. We determined for this program that rate quotations and rationale for limited competition was not retained for the vendor. It was also determined that there was no documentation retained regarding verification of vendor suspension or debarment for the vendor. Questioned Costs: None noted. Cause: The entity has written policies for construction procurements, including requirements to obtain at least 2 competitive bids for projects over $5,000 and two proposals for architectural services over $100,000. The entity’s policies also require use of American Institute of Architects contract agreements for construction projects among other requirements. However, the entity does not have policies and procedures designed for procurements under the Uniform Guidance, and therefore, there is not a formal process established to document the performance of such controls. We note that inadequate controls could result in a reasonable possibility that the entity would not be able to detect and correct noncompliance in a timely manner. Effect: Costs charged to federal awards without appropriate documentation of procurement policies and processes may be subject to disallowance. Repeat Finding: No. Recommendation: We recommend developing written procurement policies in accordance with the Uniform Guidance and implementing a system of review and approval controls to complement the design of processes over the procurement, suspension, and debarment compliance requirements. In addition, we recommend retaining documentation regarding procurement decisions including rate quotations and verification of vendor suspension and debarment checks. Views of Responsible Officials: Management notes the details of this finding and the resulting material weakness. Management will enact processes outlined in our Corrective Action Plan to correct this deficiency in the future.
Finding 2023-001 Noncompliance and Material Weakness in Internal Control Over Compliance with Procurement, Suspension, & Debarment Standard – Federal Program CFDA 93.647 Social Services Research and Demonstration Criteria – 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, §200.318(a). An entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations, for the acquisition of property and services required under a Federal award or subaward. Condition and Context – Single audit procedures noted the Organization does not have a documented procurement policy or documented procurement procedures. Cause – The Organization has not adopted formal procurement, suspension, and debarment policies and procedures. The Organization previously relied upon the policies and procedures of the Community Action Program that was contracted to perform fiscal management activities. In the current year, the Organization created their own policies and procedures manual. No procurement policy was included. Effect – The Organization was not in compliance with procurement standards. Questioned Costs – None Recommendations – Management should create a procurement policy and strengthen their processes, controls, and review over direct federal award expenditures to ensure compliance with the Uniform Administrative Requirements. Views of Responsible Officials and Planned Corrective Actions – Management has agreed to create a procurement policy and strengthen controls to ensure compliance with Uniform Administrative Requirements.
2023-001 Procurement, Suspension and Debarment Information on the Federal Program: Program Name: Congressional Appropriations Program Federal Agency: United States Department of Treasury AL Number/Name: 21.U01 NeighborWorks® System Program FY 2023 Appropriation Criteria: According to 2 CFR § 200.318(a), General Procurement Standards, the non-Federal entity must have and use documented procurement procedures, consistent with State and local laws and regulations, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in the Uniform Guidance. In addition, 2 CFR §200.318(i) states that the non-federal entity must maintain records sufficient to detail the history of the procurement. These records are required to include, but are not necessarily limited to the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. All procurement transactions must be conducted in a manner providing full and open competition consistent with §200.319 and must be performed using the appropriate procurement method as outlined in §200.320. Furthermore, 2 CFR §200.320(c), Noncompetitive Procurement, states that there are specific circumstances in which noncompetitive procurement can be used. Noncompetitive procurement can only be awarded if one or more of the following circumstances apply: (1) The acquisition of property or services, the aggregate dollar amount of which does not exceed the micro-purchase threshold; (2) The item is available only from a single source; (3) The public exigency or emergency for the requirement will not permit a delay resulting from publicizing a competitive solicitation; (4) The Federal awarding agency or pass-through entity expressly authorizes a noncompetitive procurement in response to a written request from the non-Federal entity; or (5) After solicitation of a number of sources, competition is determined inadequate. Condition: During our review of the Corporation’s procurement policies, we noted that the Corporation’s written internal procurement policies and procedures during the first quarter of fiscal year 2023 are not in conformity with the requirements identified in the Uniform Guidance procurement requirements. During our testing of the procurement, suspension and debarment compliance requirement, we selected 10 procurement samples for testing. We noted that 2 out of the 10 procurement samples were procured by way of a noncompetitive proposal process through a solicitation from only one source under the criteria of either: (1) the item is available only from a single source or (2) there is an urgent and compelling need for the goods or services. However, based on our review of the 2 procurement files, we noted that the 2 procurement files do not appropriately justify the use of a noncompetitive procurement process due to the following reasons: 1. The supplies or services being procured are sold or provided by other vendors, not just by a single source. 2. Incumbency of the vendor is not a valid noncompetitive procurement justification. 3. Contracting without providing for full and open competition shall not be justified on the basis of (1) lack of advance planning by the requiring activity; or (2) concerns related to the amount of funds available for the acquisition of supplies or services. Cause: The Corporation’s personnel did not adhere to the federal requirements and the Corporation’s internal procurement policies and procedures particularly on the use of noncompetitive procurements. Effect: Failure to perform procurement procedures in accordance with the Corporation’s documented policies and the procurement procedures under the Uniform Guidance procurement requirements could result in expenditures incurred being disallowed. Questioned Costs: Not determinable. Context: This is a condition identified per review of the Corporation’s compliance with the specified requirements using a non-statistical sample. The total federal expenditures related to the 2 noncompetitive procurements is $105,985 for the year ended September 30, 2023. The total contract value of the 2 noncompetitive procurements is $430,000 with contract terms that ranges from 6 months to 4 years. The total federal expenditures for all of the 10 procurement samples selected for testing is $2,472,158 for the year ended September 30, 2023. Repeat Finding: This is a repeat finding of 2022-001. Recommendation: We understand that the Corporation updated its procurement policies and procedures in March 2023 to conform with the requirements identified in the Uniform Guidance procurement requirements. We recommend that the Corporation should ensure that the use of Noncompetitive Procurement criteria under the Uniform Guidance procurement requirements are adhered to and appropriate justifications for these contracts are used and documented appropriately. In addition, the Corporation should continue to use the system in place to track and monitor the terms of vendor contracts in order to plan in advance if the contracts will need to be subject to a competitive procurement process providing full and open competition as required. Views of Responsible Officials: Management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.
2023-002 GRANT REPORTING U.S. Department of Housing and Urban Development ALN 14.228 – Community Development Block Grants Contract No. IR052 (2022) Passed through the Florida Department of Commerce Criteria: Section (8) of the agreement with the Florida Department of Commerce (DOC), formerly referred to as the Florida Department of Economic Opportunity (DEO), specifies requirements for the submission of monthly, quarterly and administrative reports and other required information. These reports are detailed in Attachment G to the agreement. Section (18) of the agreement with the DOC requires the City to comply with procurement standards in 2 CFR Section 200.318 – 200.327 and Section 200.330. The agreement further requires the City to provide the DOC copies of all proposed procurement documents for their review and approval prior to the obligation or disbursement of any funds (except for administrative expenses). 2 CFR 200.303(a) requires non-Federal entities to establish and maintain effective internal controls over compliance with laws and regulations applicable to Federal funding. Condition: The Audit Certification Memo for fiscal year 2022 (due June 30, 2023) and the Section 3 Summary Report (due July 31, 2023) were not filed with the DOC. Further, the Contract and Subcontract Activity report (due on April 15, 2023) was not filed timely (filed September 7, 2023). With regards to the reimbursement request, the initial reporting was rejected due to noncompliance with procurement provisions in the grant agreement. As a result, the DOC denied $74,813 of the City’s request as ineligible expenditures. Cause of condition: The City did not have effective controls in place to ensure that all required reports were submitted on a timely basis to the DOC; nor were effective controls in place to ensure that only vendors that had been procured in accordance with the provisions of the grant agreement were included in the reimbursement request. Potential effect of condition: The City is not in compliance with the reporting requirements set forth by the grantor, nor with the procurement requirements set forth in the contract. Perspective: The City has been in communication with the DOC regarding the Section 3 requirements to assist the City and its contractor to better understand the qualitative efforts needed for hiring and recruitment of Section 3 workers. These communications have been documented on the monthly progress reports submitted to the DOC. Further, the City is in the process of negotiating an amendment to the grantor agreement. An unexecuted draft of this agreement includes language that removes the requirement for the City to file semi-annual Contract and Subcontract Activity forms, replacing them with a close-out report due at completion of the project. The proposed amendment also includes language that will require the Section 3 Summary Report to be filed quarterly rather than annually. With regards to the reimbursement request, the City resubmitted the reimbursement request subsequent to year-end to exclude the vendor identified as ineligible by the DOC. The expenditures reported on the 2023 SEFA were adjusted to reflect only eligible expenditures. Questioned costs: None. Recommendation: The City should review and revise, as needed, its current control structure over grant reporting to ensure that all required reports are prepared, independently reviewed and remitted to the grantor on a timely basis. Once the City obtains an executed amendment to the agreement, the City should update its controls to ensure the changes to the grant reporting are incorporated into their procedures. While reviewing grant agreements prior to being signed, the program manager should coordinate with the Finance Department to ensure that the City has controls in place over compliance with procurement provisions contained in the grant agreement. Management’s Response: The City has filled a position focused mainly on projects and grants reporting. The employee will verify all grant requirements are fulfilled on time and according to the grant contract. Processes are being put in place that will include conversations with the project manager which will ensure they are notified of the necessary steps to fulfill the requirements, as well as final Finance review to ensure compliance.
Assistance Listing Number, Federal Agency, and Program Name 20.509, U.S. Department of Transportation, Formula Grants for Rural Areas Federal Award Identification Number and Year MI 2020 008 07 Pass through Entity Michigan Department of Transportation (MDOT) Finding Type Material weakness and material noncompliance with laws and regulations Repeat Finding No Criteria Per 2 CFR 200.212 and 200.318, 2 CFR Section 180.300, and 48 CFR Section 52.209 6, recipients must have procedures in place for verifying that an entity with which they plan to enter into a covered transaction is not debarred, suspended, or otherwise excluded. They must also have procedures in place to ensure procurement policies are followed for all contracts that are partially or fully funded with federal funds. Condition Of the 40 contracts with a contractor, 2 were entered into without verification that the entity was not debarred, suspended, or otherwise excluded. Additionally, 2 of the 40 contracts tested did not have documentation to support that either the small purchase procedures were followed or the rationale for a noncompetitive solicitation was documented. Questioned Costs None Identification of How Questioned Costs Were Computed N/A Context Of the sample of 40 contracts procured this year that we selected for testing, 2 of them did not include adequate documentation regarding review that the contractor was not debarred, suspended, or otherwise excluded. The Authority has since confirmed, as of the date of the audit, that that contractor was not on the suspended or debarred list, and, therefore, there are no questioned costs. Also, 2 of the 40 samples selected did not have required support for the procurement method selected based on federal guidelines, as well as the Authority's purchasing policy. Cause and Effect Internal control procedures related to compliance with suspension and debarment requirements and to ensuring the procurement policy is followed and all factors documented properly did not operate effectively. As a result, the Authority did not perform procedures to ensure that a contractor is not debarred, suspended, or otherwise excluded from entering into contracts with federal funding. The Authority has since confirmed, as of the date of the audit, that that contractor was not on the suspended or debarred list, and, therefore, there are no questioned costs. The Authority also did not obtain price quotes, as required by the small purchases provision, or have the appropriate rationale, as required by the noncompetitive solicitation provision, before selecting a vendor for services. That resulted in insufficient documentation to support the procurement for the 1 contract. Recommendation Internal control procedures should be implemented to ensure that all contracts include verification that an entity is not debarred, suspended, or otherwise excluded and that documentation of this review is maintained in the contract file. The Authority should also implement internal control procedures to ensure the proper documentation is kept in the procurement files to support any and all procurement decisions in accordance with the purchasing policy. Views of Responsible Officials and Corrective Action Plan Management will ensure that all contracts include verification that an entity is not debarred, suspended, or otherwise excluded and maintain documentation of this review in the contract file. While our current internal controls already support this practice, we acknowledge that there were instances in which this was unintentionally missed. We are re educating procurement staff regarding the necessity of these verifications. Additionally, the contract in question related to emergency professional services in support of the Authority's response to the global pandemic. Due to the emergent situation, the ideal processes were not followed. We acknowledge that internal controls must be followed for all contracts, regardless of urgency. Furthermore, the contract should have been reevaluated when the public health emergency ended, and the processes used should have been fully documented. We will endeavor to have full documentation in the future.
U.S. Department of Transportation; U.S. Treasury Department Federal Financial Assistance Listings 20.507 Federal Transit Cluster FTA 5307 CARES Act 2020 – Agreement #CA-17, ID-2021-027 Federal Financial Assistance Listings 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement – Procurement, Suspension, and Debarment Material Weakness in Internal Control over Compliance 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. Condition: We noted that while the City does have a purchasing policy, elements required by Uniform Guidance are absent from the policy. This created a situation where the City did not verify vendors were not suspended or debarred before entering into contract with that vendor. In addition, elements that are required to be included in contracts with vendors who are paid using federal monies were missing from the contracts. Cause: The City had not reviewed its procurement policy to ensure that the policy and contracts included the provisions that were required by the Uniform Guidance. Effect: While our testing noted no instances of noncompliance, the absence of internal controls over compliance as it relates to having a Uniform Guidance compliant policy, could lead the City to enter into covered transactions that are not compliant with federal regulations. Questioned Costs: None reported. Context/Sampling: Sampling was not used to test compliance of the Policy. Repeat Finding from Prior Year(s): No Recommendation: The City should review the applicable provisions of the CFR to ensure their written procurement policy is compliant with Uniform Guidance requirements. Views of Responsible Officials: The City concurs with the auditor’s findings.
U.S. Department of Transportation; U.S. Treasury Department Federal Financial Assistance Listings 20.507 Federal Transit Cluster FTA 5307 CARES Act 2020 – Agreement #CA-17, ID-2021-027 Federal Financial Assistance Listings 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement – Procurement, Suspension, and Debarment Material Weakness in Internal Control over Compliance 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. Condition: We noted that while the City does have a purchasing policy, elements required by Uniform Guidance are absent from the policy. This created a situation where the City did not verify vendors were not suspended or debarred before entering into contract with that vendor. In addition, elements that are required to be included in contracts with vendors who are paid using federal monies were missing from the contracts. Cause: The City had not reviewed its procurement policy to ensure that the policy and contracts included the provisions that were required by the Uniform Guidance. Effect: While our testing noted no instances of noncompliance, the absence of internal controls over compliance as it relates to having a Uniform Guidance compliant policy, could lead the City to enter into covered transactions that are not compliant with federal regulations. Questioned Costs: None reported. Context/Sampling: Sampling was not used to test compliance of the Policy. Repeat Finding from Prior Year(s): No Recommendation: The City should review the applicable provisions of the CFR to ensure their written procurement policy is compliant with Uniform Guidance requirements. Views of Responsible Officials: The City concurs with the auditor’s findings.
U.S. Department of Transportation; U.S. Treasury Department Federal Financial Assistance Listings 20.507 Federal Transit Cluster FTA 5307 CARES Act 2020 – Agreement #CA-17, ID-2021-027 Federal Financial Assistance Listings 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement – Procurement, Suspension, and Debarment Material Weakness in Internal Control over Compliance 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. Condition: We noted that while the City does have a purchasing policy, elements required by Uniform Guidance are absent from the policy. This created a situation where the City did not verify vendors were not suspended or debarred before entering into contract with that vendor. In addition, elements that are required to be included in contracts with vendors who are paid using federal monies were missing from the contracts. Cause: The City had not reviewed its procurement policy to ensure that the policy and contracts included the provisions that were required by the Uniform Guidance. Effect: While our testing noted no instances of noncompliance, the absence of internal controls over compliance as it relates to having a Uniform Guidance compliant policy, could lead the City to enter into covered transactions that are not compliant with federal regulations. Questioned Costs: None reported. Context/Sampling: Sampling was not used to test compliance of the Policy. Repeat Finding from Prior Year(s): No Recommendation: The City should review the applicable provisions of the CFR to ensure their written procurement policy is compliant with Uniform Guidance requirements. Views of Responsible Officials: The City concurs with the auditor’s findings.
Federal Agency: United States Department of Health and Human Services Federal Program Name: Family Violence Prevention and Services Assistance Listing Number: 93.592 Award Period: 9/30/2022-9/29/2023 Type of Finding: • Significant Deficiency Criteria or specific requirement: Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. (2 CFR sections 200.212 and 200.318(h); 2 CFR section 1800.30; 48 CFR section 52.209-6). Condition: The Organization did not perform a SAMS.gov suspension & debarment check for their contracted hotel vendors. Questioned costs: None. Context: Two out of the five samples were deficient. However, CLA elected to a SAMS.gov check on 2/22/24 and noted that both hotels that were selected (Talking Stick Resort and Isleta Resort & Casino) were not debarred. These vendors were not checked as NIWRC was not aware that checks were required for hotels, even when hotels are subject to a contracted agreement (e.g., being used as a venue). Cause: The Organization did not have a system in place to ensure the suspension & debarment compliance requirement was addressed for each applicable covered transactions. Effect: Contracts could be entered into with suspended or debarred vendors leading to noncompliance. Repeat Finding: No Recommendation: CLA recommends the Organization increase training for those individuals involved in procurement and contract approval to ensure suspension and debarment checks are performed on all covered transactions. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.
Condition: The Organization purchased property and services without implementing procedures that comply with procurement standards set out at 2 CFR sections 200.318 through 200.326. 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. Cause: The Organization did not 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. Effect: The Organization did not comply with procurement requirements identified in 2 CFR part 200. Context: A sample of 5 purchases totaling $37,971 was selected for audit from a population of 21 purchases totaling $284,550. The test found that five purchases did not adhere to the Organization's documented procurement procedures and 1 purchase that also did not include competitive bidding. Recommendation: We recommend that the Organization use their own documented procurement procedures that comply with procurement standards set out at 2 CFR sections 200.318 through 200.326. Views of Responsible Officials: Management agrees with the finding.
The U. S. Code of Federal Regulations Title 2, Part 200.318, of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) states that non-Federal entities must have and use its own documented procurement procedures which reflect State and local laws and regulations provided that the procurements conform to applicable Federal law and the standards identified within that section. The Code of Alabama 1975, Section 16-13B-1, requires boards of education to competitively bid the labor, services, work, or the purchase of materials, equipment, supplies, or other personal property involving forty thousand dollars ($40,000.00) or more. In addition, the U. S. Code of Federal Regulations Title 2, Part 200.320, of the Uniform Guidance states that non-Federal entities must have and use documented procurement procedures and that when purchases are made that exceed the simplified acquisition threshold defined in the Uniform Guidance formal procurement methods are required. Formal procurement methods include sealed bids, competitive proposals, and, in specific circumstances, noncompetitive proposals. Furthermore, the U. S. Code of Federal Regulations Title 2, Part 200.324, of the Uniform Guidance states that the non-Federal entity must perform a cost or price analysis in connection with every procurement action in excess of the simplified acquisition threshold including contract modifications. The Mobile County Board of School Commissioners (the “Board”) entered into a contract for STEM classroom services for $572,265.00 using COVID-19 Education Stabilization Funds without obtaining bids in accordance with State of Alabama Bid Law or performing a cost or price analysis. The Board did not maintain adequate documentation for utilizing the noncompetitive procurement method. The Board did not follow their procurement policies, State Bid Laws, or the Uniform Guidance regarding this purchase. As a result, the Board did not comply with the Uniform Guidance procurement requirements. Recommendation: The Board should ensure compliance with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) 2 CFR 200.318, CFR 200.320, and CFR 200.324 and the Code of Alabama 1975, 16-13B-1.
The U. S. Code of Federal Regulations Title 2, Part 200.318, of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) states that non-Federal entities must have and use its own documented procurement procedures which reflect State and local laws and regulations provided that the procurements conform to applicable Federal law and the standards identified within that section. The Code of Alabama 1975, Section 16-13B-1, requires boards of education to competitively bid the labor, services, work, or the purchase of materials, equipment, supplies, or other personal property involving forty thousand dollars ($40,000.00) or more. In addition, the U. S. Code of Federal Regulations Title 2, Part 200.320, of the Uniform Guidance states that non-Federal entities must have and use documented procurement procedures and that when purchases are made that exceed the simplified acquisition threshold defined in the Uniform Guidance formal procurement methods are required. Formal procurement methods include sealed bids, competitive proposals, and, in specific circumstances, noncompetitive proposals. Furthermore, the U. S. Code of Federal Regulations Title 2, Part 200.324, of the Uniform Guidance states that the non-Federal entity must perform a cost or price analysis in connection with every procurement action in excess of the simplified acquisition threshold including contract modifications. The Mobile County Board of School Commissioners (the “Board”) entered into a contract for STEM classroom services for $572,265.00 using COVID-19 Education Stabilization Funds without obtaining bids in accordance with State of Alabama Bid Law or performing a cost or price analysis. The Board did not maintain adequate documentation for utilizing the noncompetitive procurement method. The Board did not follow their procurement policies, State Bid Laws, or the Uniform Guidance regarding this purchase. As a result, the Board did not comply with the Uniform Guidance procurement requirements. Recommendation: The Board should ensure compliance with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) 2 CFR 200.318, CFR 200.320, and CFR 200.324 and the Code of Alabama 1975, 16-13B-1.
The U. S. Code of Federal Regulations Title 2, Part 200.318, of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) states that non-Federal entities must have and use its own documented procurement procedures which reflect State and local laws and regulations provided that the procurements conform to applicable Federal law and the standards identified within that section. The Code of Alabama 1975, Section 16-13B-1, requires boards of education to competitively bid the labor, services, work, or the purchase of materials, equipment, supplies, or other personal property involving forty thousand dollars ($40,000.00) or more. In addition, the U. S. Code of Federal Regulations Title 2, Part 200.320, of the Uniform Guidance states that non-Federal entities must have and use documented procurement procedures and that when purchases are made that exceed the simplified acquisition threshold defined in the Uniform Guidance formal procurement methods are required. Formal procurement methods include sealed bids, competitive proposals, and, in specific circumstances, noncompetitive proposals. Furthermore, the U. S. Code of Federal Regulations Title 2, Part 200.324, of the Uniform Guidance states that the non-Federal entity must perform a cost or price analysis in connection with every procurement action in excess of the simplified acquisition threshold including contract modifications. The Mobile County Board of School Commissioners (the “Board”) entered into a contract for STEM classroom services for $572,265.00 using COVID-19 Education Stabilization Funds without obtaining bids in accordance with State of Alabama Bid Law or performing a cost or price analysis. The Board did not maintain adequate documentation for utilizing the noncompetitive procurement method. The Board did not follow their procurement policies, State Bid Laws, or the Uniform Guidance regarding this purchase. As a result, the Board did not comply with the Uniform Guidance procurement requirements. Recommendation: The Board should ensure compliance with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) 2 CFR 200.318, CFR 200.320, and CFR 200.324 and the Code of Alabama 1975, 16-13B-1.
The U. S. Code of Federal Regulations Title 2, Part 200.318, of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) states that non-Federal entities must have and use its own documented procurement procedures which reflect State and local laws and regulations provided that the procurements conform to applicable Federal law and the standards identified within that section. The Code of Alabama 1975, Section 16-13B-1, requires boards of education to competitively bid the labor, services, work, or the purchase of materials, equipment, supplies, or other personal property involving forty thousand dollars ($40,000.00) or more. In addition, the U. S. Code of Federal Regulations Title 2, Part 200.320, of the Uniform Guidance states that non-Federal entities must have and use documented procurement procedures and that when purchases are made that exceed the simplified acquisition threshold defined in the Uniform Guidance formal procurement methods are required. Formal procurement methods include sealed bids, competitive proposals, and, in specific circumstances, noncompetitive proposals. Furthermore, the U. S. Code of Federal Regulations Title 2, Part 200.324, of the Uniform Guidance states that the non-Federal entity must perform a cost or price analysis in connection with every procurement action in excess of the simplified acquisition threshold including contract modifications. The Mobile County Board of School Commissioners (the “Board”) entered into a contract for STEM classroom services for $572,265.00 using COVID-19 Education Stabilization Funds without obtaining bids in accordance with State of Alabama Bid Law or performing a cost or price analysis. The Board did not maintain adequate documentation for utilizing the noncompetitive procurement method. The Board did not follow their procurement policies, State Bid Laws, or the Uniform Guidance regarding this purchase. As a result, the Board did not comply with the Uniform Guidance procurement requirements. Recommendation: The Board should ensure compliance with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) 2 CFR 200.318, CFR 200.320, and CFR 200.324 and the Code of Alabama 1975, 16-13B-1.
Finding 2023-004: Procurement Information About the Program: All Programs Criteria: According to 2 CFR §200.303, the non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non- Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in Standards for Internal Control in the Federal Government issued by the Comptroller General of the United States or the internal Control Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Additionally, according to 2 CFR §200.318 Procurement standards, the non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Title 2, Subtitle A Chapter II Part 200 Subpart D 200.319 Procurement Standards. All procurement transactions for the acquisition of property or services required under a Federal award must be conducted in a manner providing full and open competition consistent with the standards of this section and §200.320. The non-Federal entity must have written procedures for procurement transactions. These procedures must ensure that all solicitations: (1) Incorporate a clear and accurate description of the technical requirements for the material, product, or service to be procured. Such description must not, in competitive procurements, contain features which unduly restrict competition. The description may include a statement of the qualitative nature of the material, product or service to be procured and, when necessary, must set forth those minimum essential characteristics and standards to which it must conform if it is to satisfy its intended use. Noncompetitive procurements can only be awarded in accordance with §200.320(c). According to 2 CFR §200.320 Procurement Standards, there are specific circumstances in which noncompetitive procurement can be used. Noncompetitive procurement can only be awarded if one or more of the following circumstances apply: 1. The acquisition of property or services, the aggregate dollar amount of which does not exceed the micro-purchase threshold (see paragraph (a)(1) of this section); 2. The item is available only from a single source; 3. The public exigency or emergency for the requirement will not permit a delay resulting from publicizing a competitive solicitation; 4. The Federal awarding agency or pass-through entity expressly authorizes a noncompetitive procurement in response to a written request from the non-Federal entity; or 5. After solicitation of a number of sources, competition is determined inadequate. Condition: During our testing over procurement, we determined NFHA did not clearly document the rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. In addition, for noncompetitive procurements, there was no documentation to support which of the five criteria was met to allow for the noncompetitive procurement. Cause: Management did not have effective internal controls in place to ensure that procurement requirements were adequately documented and retained. Effect: Procurement records were insufficient to meet the requirements noted in the Criteria section above, as well as NFHA's internal procurement policy. Questioned Costs: None. Context: We noted that several items selected for testing did not document the rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. In addition, we noted that several items selected for testing for noncompetitive procurements did not maintain documentation of which of the five criteria were met to allow for the noncompetitive procurement. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend NFHA update its policies to treat Federal and non-Federal procurement the same and ensure compliance with Uniform Guidance. NFHA should retain sufficient procurement documentation to meet the requirements noted in the Criteria section above.
Finding 2023-004: Procurement Information About the Program: All Programs Criteria: According to 2 CFR §200.303, the non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non- Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in Standards for Internal Control in the Federal Government issued by the Comptroller General of the United States or the internal Control Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Additionally, according to 2 CFR §200.318 Procurement standards, the non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Title 2, Subtitle A Chapter II Part 200 Subpart D 200.319 Procurement Standards. All procurement transactions for the acquisition of property or services required under a Federal award must be conducted in a manner providing full and open competition consistent with the standards of this section and §200.320. The non-Federal entity must have written procedures for procurement transactions. These procedures must ensure that all solicitations: (1) Incorporate a clear and accurate description of the technical requirements for the material, product, or service to be procured. Such description must not, in competitive procurements, contain features which unduly restrict competition. The description may include a statement of the qualitative nature of the material, product or service to be procured and, when necessary, must set forth those minimum essential characteristics and standards to which it must conform if it is to satisfy its intended use. Noncompetitive procurements can only be awarded in accordance with §200.320(c). According to 2 CFR §200.320 Procurement Standards, there are specific circumstances in which noncompetitive procurement can be used. Noncompetitive procurement can only be awarded if one or more of the following circumstances apply: 1. The acquisition of property or services, the aggregate dollar amount of which does not exceed the micro-purchase threshold (see paragraph (a)(1) of this section); 2. The item is available only from a single source; 3. The public exigency or emergency for the requirement will not permit a delay resulting from publicizing a competitive solicitation; 4. The Federal awarding agency or pass-through entity expressly authorizes a noncompetitive procurement in response to a written request from the non-Federal entity; or 5. After solicitation of a number of sources, competition is determined inadequate. Condition: During our testing over procurement, we determined NFHA did not clearly document the rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. In addition, for noncompetitive procurements, there was no documentation to support which of the five criteria was met to allow for the noncompetitive procurement. Cause: Management did not have effective internal controls in place to ensure that procurement requirements were adequately documented and retained. Effect: Procurement records were insufficient to meet the requirements noted in the Criteria section above, as well as NFHA's internal procurement policy. Questioned Costs: None. Context: We noted that several items selected for testing did not document the rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. In addition, we noted that several items selected for testing for noncompetitive procurements did not maintain documentation of which of the five criteria were met to allow for the noncompetitive procurement. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend NFHA update its policies to treat Federal and non-Federal procurement the same and ensure compliance with Uniform Guidance. NFHA should retain sufficient procurement documentation to meet the requirements noted in the Criteria section above.
Finding 2023-004: Procurement Information About the Program: All Programs Criteria: According to 2 CFR §200.303, the non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non- Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in Standards for Internal Control in the Federal Government issued by the Comptroller General of the United States or the internal Control Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Additionally, according to 2 CFR §200.318 Procurement standards, the non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Title 2, Subtitle A Chapter II Part 200 Subpart D 200.319 Procurement Standards. All procurement transactions for the acquisition of property or services required under a Federal award must be conducted in a manner providing full and open competition consistent with the standards of this section and §200.320. The non-Federal entity must have written procedures for procurement transactions. These procedures must ensure that all solicitations: (1) Incorporate a clear and accurate description of the technical requirements for the material, product, or service to be procured. Such description must not, in competitive procurements, contain features which unduly restrict competition. The description may include a statement of the qualitative nature of the material, product or service to be procured and, when necessary, must set forth those minimum essential characteristics and standards to which it must conform if it is to satisfy its intended use. Noncompetitive procurements can only be awarded in accordance with §200.320(c). According to 2 CFR §200.320 Procurement Standards, there are specific circumstances in which noncompetitive procurement can be used. Noncompetitive procurement can only be awarded if one or more of the following circumstances apply: 1. The acquisition of property or services, the aggregate dollar amount of which does not exceed the micro-purchase threshold (see paragraph (a)(1) of this section); 2. The item is available only from a single source; 3. The public exigency or emergency for the requirement will not permit a delay resulting from publicizing a competitive solicitation; 4. The Federal awarding agency or pass-through entity expressly authorizes a noncompetitive procurement in response to a written request from the non-Federal entity; or 5. After solicitation of a number of sources, competition is determined inadequate. Condition: During our testing over procurement, we determined NFHA did not clearly document the rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. In addition, for noncompetitive procurements, there was no documentation to support which of the five criteria was met to allow for the noncompetitive procurement. Cause: Management did not have effective internal controls in place to ensure that procurement requirements were adequately documented and retained. Effect: Procurement records were insufficient to meet the requirements noted in the Criteria section above, as well as NFHA's internal procurement policy. Questioned Costs: None. Context: We noted that several items selected for testing did not document the rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. In addition, we noted that several items selected for testing for noncompetitive procurements did not maintain documentation of which of the five criteria were met to allow for the noncompetitive procurement. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend NFHA update its policies to treat Federal and non-Federal procurement the same and ensure compliance with Uniform Guidance. NFHA should retain sufficient procurement documentation to meet the requirements noted in the Criteria section above.
Federal Aid Policies Finding 2023-002 Condition: The Authority’s management has completely turned over and been restructured. However, the Authority’s policies for federal aid approved in 2021 have not been revised to update for the current management structure. The policies have also not been updated for changes in the 2 CFR 200 that have occurred. Criteria: The 2 CFR 200 requires the adoption of federal aid policies and that they are to be updated and maintained in accordance with the federal regulations. These policies include the following along with the 2 CFR 200 reference. a. Cash Management Procedure –200.302(b)(6) and 200.305 b. Cost Allowability Procedures –200.302(b)(7) c. Conflicts of Interest Policy –200.318(c) d. Procurement Procedures –200.318(a) and 200.319(d) e. Method for Conducting Technical Evaluations of Proposals and Selecting Recipients –200.320(b)(2)(ii) f. Travel Policy –200.475(a) g. Procedures for Managing Equipment –200.313(d) h. Employee Benefits –200.431 Cause: The Authority has experienced a high turnover of employees since 2021 when the policies were adopted and have not been reviewed since their adoption. Effect: The Authority is noncompliant with 2 CFR 200. Directive: We direct the Authority review and update all federal aid policies and implement procedures to ensure that they are being reviewed at least once a year for changes in the Authority’s management structure or changes that occur in the 2 CFR 200. Management’s Response--Corrective Action Plan: Contact person is Rufus Adams, Executive Director, 275 East Wall Street, P.O. Box 837, Benton Harbor, Michigan 49023. Telephone (269) 927-2268. The Authority will update their federal policies to comply with 2 CFR 200 and will review all policies on an annual basis going forward.
Federal Aid Policies Finding 2023-002 Condition: The Authority’s management has completely turned over and been restructured. However, the Authority’s policies for federal aid approved in 2021 have not been revised to update for the current management structure. The policies have also not been updated for changes in the 2 CFR 200 that have occurred. Criteria: The 2 CFR 200 requires the adoption of federal aid policies and that they are to be updated and maintained in accordance with the federal regulations. These policies include the following along with the 2 CFR 200 reference. a. Cash Management Procedure –200.302(b)(6) and 200.305 b. Cost Allowability Procedures –200.302(b)(7) c. Conflicts of Interest Policy –200.318(c) d. Procurement Procedures –200.318(a) and 200.319(d) e. Method for Conducting Technical Evaluations of Proposals and Selecting Recipients –200.320(b)(2)(ii) f. Travel Policy –200.475(a) g. Procedures for Managing Equipment –200.313(d) h. Employee Benefits –200.431 Cause: The Authority has experienced a high turnover of employees since 2021 when the policies were adopted and have not been reviewed since their adoption. Effect: The Authority is noncompliant with 2 CFR 200. Directive: We direct the Authority review and update all federal aid policies and implement procedures to ensure that they are being reviewed at least once a year for changes in the Authority’s management structure or changes that occur in the 2 CFR 200. Management’s Response--Corrective Action Plan: Contact person is Rufus Adams, Executive Director, 275 East Wall Street, P.O. Box 837, Benton Harbor, Michigan 49023. Telephone (269) 927-2268. The Authority will update their federal policies to comply with 2 CFR 200 and will review all policies on an annual basis going forward.
Federal Aid Policies Finding 2023-002 Condition: The Authority’s management has completely turned over and been restructured. However, the Authority’s policies for federal aid approved in 2021 have not been revised to update for the current management structure. The policies have also not been updated for changes in the 2 CFR 200 that have occurred. Criteria: The 2 CFR 200 requires the adoption of federal aid policies and that they are to be updated and maintained in accordance with the federal regulations. These policies include the following along with the 2 CFR 200 reference. a. Cash Management Procedure –200.302(b)(6) and 200.305 b. Cost Allowability Procedures –200.302(b)(7) c. Conflicts of Interest Policy –200.318(c) d. Procurement Procedures –200.318(a) and 200.319(d) e. Method for Conducting Technical Evaluations of Proposals and Selecting Recipients –200.320(b)(2)(ii) f. Travel Policy –200.475(a) g. Procedures for Managing Equipment –200.313(d) h. Employee Benefits –200.431 Cause: The Authority has experienced a high turnover of employees since 2021 when the policies were adopted and have not been reviewed since their adoption. Effect: The Authority is noncompliant with 2 CFR 200. Directive: We direct the Authority review and update all federal aid policies and implement procedures to ensure that they are being reviewed at least once a year for changes in the Authority’s management structure or changes that occur in the 2 CFR 200. Management’s Response--Corrective Action Plan: Contact person is Rufus Adams, Executive Director, 275 East Wall Street, P.O. Box 837, Benton Harbor, Michigan 49023. Telephone (269) 927-2268. The Authority will update their federal policies to comply with 2 CFR 200 and will review all policies on an annual basis going forward.
Federal Aid Policies Finding 2023-002 Condition: The Authority’s management has completely turned over and been restructured. However, the Authority’s policies for federal aid approved in 2021 have not been revised to update for the current management structure. The policies have also not been updated for changes in the 2 CFR 200 that have occurred. Criteria: The 2 CFR 200 requires the adoption of federal aid policies and that they are to be updated and maintained in accordance with the federal regulations. These policies include the following along with the 2 CFR 200 reference. a. Cash Management Procedure –200.302(b)(6) and 200.305 b. Cost Allowability Procedures –200.302(b)(7) c. Conflicts of Interest Policy –200.318(c) d. Procurement Procedures –200.318(a) and 200.319(d) e. Method for Conducting Technical Evaluations of Proposals and Selecting Recipients –200.320(b)(2)(ii) f. Travel Policy –200.475(a) g. Procedures for Managing Equipment –200.313(d) h. Employee Benefits –200.431 Cause: The Authority has experienced a high turnover of employees since 2021 when the policies were adopted and have not been reviewed since their adoption. Effect: The Authority is noncompliant with 2 CFR 200. Directive: We direct the Authority review and update all federal aid policies and implement procedures to ensure that they are being reviewed at least once a year for changes in the Authority’s management structure or changes that occur in the 2 CFR 200. Management’s Response--Corrective Action Plan: Contact person is Rufus Adams, Executive Director, 275 East Wall Street, P.O. Box 837, Benton Harbor, Michigan 49023. Telephone (269) 927-2268. The Authority will update their federal policies to comply with 2 CFR 200 and will review all policies on an annual basis going forward.
Federal Aid Policies Finding 2023-002 Condition: The Authority’s management has completely turned over and been restructured. However, the Authority’s policies for federal aid approved in 2021 have not been revised to update for the current management structure. The policies have also not been updated for changes in the 2 CFR 200 that have occurred. Criteria: The 2 CFR 200 requires the adoption of federal aid policies and that they are to be updated and maintained in accordance with the federal regulations. These policies include the following along with the 2 CFR 200 reference. a. Cash Management Procedure –200.302(b)(6) and 200.305 b. Cost Allowability Procedures –200.302(b)(7) c. Conflicts of Interest Policy –200.318(c) d. Procurement Procedures –200.318(a) and 200.319(d) e. Method for Conducting Technical Evaluations of Proposals and Selecting Recipients –200.320(b)(2)(ii) f. Travel Policy –200.475(a) g. Procedures for Managing Equipment –200.313(d) h. Employee Benefits –200.431 Cause: The Authority has experienced a high turnover of employees since 2021 when the policies were adopted and have not been reviewed since their adoption. Effect: The Authority is noncompliant with 2 CFR 200. Directive: We direct the Authority review and update all federal aid policies and implement procedures to ensure that they are being reviewed at least once a year for changes in the Authority’s management structure or changes that occur in the 2 CFR 200. Management’s Response--Corrective Action Plan: Contact person is Rufus Adams, Executive Director, 275 East Wall Street, P.O. Box 837, Benton Harbor, Michigan 49023. Telephone (269) 927-2268. The Authority will update their federal policies to comply with 2 CFR 200 and will review all policies on an annual basis going forward.
Failure to Follow Procurement Policy Finding 2023-003 Condition: The Authority did not comply with the current procurement policy as procedures were not fully followed and forms required by the Authority’s procurement policy were not completed. The following forms required by either 2 CFR 200 and/or the Authority’s own procurement policy were not completed for the current year capital asset purchases: Written Record of Procurement Checklist Form, Method of Procurement Decision Matrix, Advertisement and Solicitation Form, Bid Quotations, Fewer Than 3 Offers Received Evaluation if applicable, Proposal Tabulation, Certification of Compliance with Federal Clauses for the assets less than $25,000, and Responsibility Determination (sam.gov debarred verification). Also, as stated in the prior finding, the procurement policy needs to be updated. Criteria: According to 2 CFR 200.214 Suspension and Debarment, Non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. The following excerpts are from 2 CFR Part 200.318 General Procurement Standards. (a) The non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in §§ 200.317 through 200.327. (i) the non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. According to 2 CFR 200.320 Methods of Procurement to be Followed, the non-Federal entity must have and use documented procurement procedures, consistent with the standards of this section and §§ 200.317, 200.318, and 200.319 for any of the following methods of procurement used for the acquisition of property or services required under a Federal award or sub-award. Concurrently, the Authority’s did not comply with its own current procurement policy as it did not follow or prepare the required documentation detailed in the following sections. Procurement Requests-The Authority will maintain sufficient records to detail the history of a procurement. Such records shall include method of procurement, selection of contract type, contractor selection (or rejection), and the contract price. The Authority will treat any prospective contractor or sub-contractor listed on a centralized State government debarment and suspension list as nonresponsible and ineligible for contract award. Debarment and Suspension- The Authority will treat any prospective contractor or sub-contractor listed on a centralized State government debarment and suspension list as non-responsible and ineligible for contract awards. To see if a prospective contractor is eligible, we will look on the website www.SAM.gov and when the bid has been received. Methods of Procurement- a. Micro and Emergency Purchases (do not exceed $10,000)-(a) A written determination as to why price is deemed fair and reasonable must be on file with each purchase made under this method of procurement using Micro-Purchase Price Reasonableness Determination Form. (b) Splitting of procurements to avoid the competitive procurement requirements of federal and state statues shall not be condoned. b. Small Purchase Procurement ($10,000 to $250,000)-(a) A minimum of two price or rate quotations shall be obtained from qualified sources; (b) The procurement will be made from the lowest priced qualified bid, if products or goods are equal; (c) MDOT requires for procurements under $25,000.00. Included Procurement Appendix A, B, E, F, G, H, or I and Vehicle Specification certification if applies. (d) MDOT requires for procurements over $25,000.00 solicitations, including specifications and written selection procedures (lowest bids), Include Procurement Appendix A, F, G, H or I and Vehicle Specification certification if applies. Third Party Contracts with applicable clauses and bond documents must be included. Cause: The Authority did not follow its own procurement policy. Effect: The Authority is noncompliant with 2 CFR 200 and its own procurement policy. Directive: We direct the Authority review and update its procurement policy and implement procedures to ensure that the Authority is complying with the federal requirements, required forms are being completed, and documentation is being maintained. Management’s Response--Corrective Action Plan: Contact person is Rufus Adams, Executive Director, 275 East Wall Street, P.O. Box 837, Benton Harbor, Michigan 49023. Telephone (269) 927-2268. The Authority will review and update its procurement policy to comply with federal requirements. The Authority’s management, consultant, and finance director will review the procedures in the policy to ensure they are being acted upon accordingly going forward.
Failure to Follow Procurement Policy Finding 2023-003 Condition: The Authority did not comply with the current procurement policy as procedures were not fully followed and forms required by the Authority’s procurement policy were not completed. The following forms required by either 2 CFR 200 and/or the Authority’s own procurement policy were not completed for the current year capital asset purchases: Written Record of Procurement Checklist Form, Method of Procurement Decision Matrix, Advertisement and Solicitation Form, Bid Quotations, Fewer Than 3 Offers Received Evaluation if applicable, Proposal Tabulation, Certification of Compliance with Federal Clauses for the assets less than $25,000, and Responsibility Determination (sam.gov debarred verification). Also, as stated in the prior finding, the procurement policy needs to be updated. Criteria: According to 2 CFR 200.214 Suspension and Debarment, Non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. The following excerpts are from 2 CFR Part 200.318 General Procurement Standards. (a) The non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in §§ 200.317 through 200.327. (i) the non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. According to 2 CFR 200.320 Methods of Procurement to be Followed, the non-Federal entity must have and use documented procurement procedures, consistent with the standards of this section and §§ 200.317, 200.318, and 200.319 for any of the following methods of procurement used for the acquisition of property or services required under a Federal award or sub-award. Concurrently, the Authority’s did not comply with its own current procurement policy as it did not follow or prepare the required documentation detailed in the following sections. Procurement Requests-The Authority will maintain sufficient records to detail the history of a procurement. Such records shall include method of procurement, selection of contract type, contractor selection (or rejection), and the contract price. The Authority will treat any prospective contractor or sub-contractor listed on a centralized State government debarment and suspension list as nonresponsible and ineligible for contract award. Debarment and Suspension- The Authority will treat any prospective contractor or sub-contractor listed on a centralized State government debarment and suspension list as non-responsible and ineligible for contract awards. To see if a prospective contractor is eligible, we will look on the website www.SAM.gov and when the bid has been received. Methods of Procurement- a. Micro and Emergency Purchases (do not exceed $10,000)-(a) A written determination as to why price is deemed fair and reasonable must be on file with each purchase made under this method of procurement using Micro-Purchase Price Reasonableness Determination Form. (b) Splitting of procurements to avoid the competitive procurement requirements of federal and state statues shall not be condoned. b. Small Purchase Procurement ($10,000 to $250,000)-(a) A minimum of two price or rate quotations shall be obtained from qualified sources; (b) The procurement will be made from the lowest priced qualified bid, if products or goods are equal; (c) MDOT requires for procurements under $25,000.00. Included Procurement Appendix A, B, E, F, G, H, or I and Vehicle Specification certification if applies. (d) MDOT requires for procurements over $25,000.00 solicitations, including specifications and written selection procedures (lowest bids), Include Procurement Appendix A, F, G, H or I and Vehicle Specification certification if applies. Third Party Contracts with applicable clauses and bond documents must be included. Cause: The Authority did not follow its own procurement policy. Effect: The Authority is noncompliant with 2 CFR 200 and its own procurement policy. Directive: We direct the Authority review and update its procurement policy and implement procedures to ensure that the Authority is complying with the federal requirements, required forms are being completed, and documentation is being maintained. Management’s Response--Corrective Action Plan: Contact person is Rufus Adams, Executive Director, 275 East Wall Street, P.O. Box 837, Benton Harbor, Michigan 49023. Telephone (269) 927-2268. The Authority will review and update its procurement policy to comply with federal requirements. The Authority’s management, consultant, and finance director will review the procedures in the policy to ensure they are being acted upon accordingly going forward.
Failure to Follow Procurement Policy Finding 2023-003 Condition: The Authority did not comply with the current procurement policy as procedures were not fully followed and forms required by the Authority’s procurement policy were not completed. The following forms required by either 2 CFR 200 and/or the Authority’s own procurement policy were not completed for the current year capital asset purchases: Written Record of Procurement Checklist Form, Method of Procurement Decision Matrix, Advertisement and Solicitation Form, Bid Quotations, Fewer Than 3 Offers Received Evaluation if applicable, Proposal Tabulation, Certification of Compliance with Federal Clauses for the assets less than $25,000, and Responsibility Determination (sam.gov debarred verification). Also, as stated in the prior finding, the procurement policy needs to be updated. Criteria: According to 2 CFR 200.214 Suspension and Debarment, Non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. The following excerpts are from 2 CFR Part 200.318 General Procurement Standards. (a) The non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in §§ 200.317 through 200.327. (i) the non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. According to 2 CFR 200.320 Methods of Procurement to be Followed, the non-Federal entity must have and use documented procurement procedures, consistent with the standards of this section and §§ 200.317, 200.318, and 200.319 for any of the following methods of procurement used for the acquisition of property or services required under a Federal award or sub-award. Concurrently, the Authority’s did not comply with its own current procurement policy as it did not follow or prepare the required documentation detailed in the following sections. Procurement Requests-The Authority will maintain sufficient records to detail the history of a procurement. Such records shall include method of procurement, selection of contract type, contractor selection (or rejection), and the contract price. The Authority will treat any prospective contractor or sub-contractor listed on a centralized State government debarment and suspension list as nonresponsible and ineligible for contract award. Debarment and Suspension- The Authority will treat any prospective contractor or sub-contractor listed on a centralized State government debarment and suspension list as non-responsible and ineligible for contract awards. To see if a prospective contractor is eligible, we will look on the website www.SAM.gov and when the bid has been received. Methods of Procurement- a. Micro and Emergency Purchases (do not exceed $10,000)-(a) A written determination as to why price is deemed fair and reasonable must be on file with each purchase made under this method of procurement using Micro-Purchase Price Reasonableness Determination Form. (b) Splitting of procurements to avoid the competitive procurement requirements of federal and state statues shall not be condoned. b. Small Purchase Procurement ($10,000 to $250,000)-(a) A minimum of two price or rate quotations shall be obtained from qualified sources; (b) The procurement will be made from the lowest priced qualified bid, if products or goods are equal; (c) MDOT requires for procurements under $25,000.00. Included Procurement Appendix A, B, E, F, G, H, or I and Vehicle Specification certification if applies. (d) MDOT requires for procurements over $25,000.00 solicitations, including specifications and written selection procedures (lowest bids), Include Procurement Appendix A, F, G, H or I and Vehicle Specification certification if applies. Third Party Contracts with applicable clauses and bond documents must be included. Cause: The Authority did not follow its own procurement policy. Effect: The Authority is noncompliant with 2 CFR 200 and its own procurement policy. Directive: We direct the Authority review and update its procurement policy and implement procedures to ensure that the Authority is complying with the federal requirements, required forms are being completed, and documentation is being maintained. Management’s Response--Corrective Action Plan: Contact person is Rufus Adams, Executive Director, 275 East Wall Street, P.O. Box 837, Benton Harbor, Michigan 49023. Telephone (269) 927-2268. The Authority will review and update its procurement policy to comply with federal requirements. The Authority’s management, consultant, and finance director will review the procedures in the policy to ensure they are being acted upon accordingly going forward.
Failure to Follow Procurement Policy Finding 2023-003 Condition: The Authority did not comply with the current procurement policy as procedures were not fully followed and forms required by the Authority’s procurement policy were not completed. The following forms required by either 2 CFR 200 and/or the Authority’s own procurement policy were not completed for the current year capital asset purchases: Written Record of Procurement Checklist Form, Method of Procurement Decision Matrix, Advertisement and Solicitation Form, Bid Quotations, Fewer Than 3 Offers Received Evaluation if applicable, Proposal Tabulation, Certification of Compliance with Federal Clauses for the assets less than $25,000, and Responsibility Determination (sam.gov debarred verification). Also, as stated in the prior finding, the procurement policy needs to be updated. Criteria: According to 2 CFR 200.214 Suspension and Debarment, Non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. The following excerpts are from 2 CFR Part 200.318 General Procurement Standards. (a) The non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in §§ 200.317 through 200.327. (i) the non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. According to 2 CFR 200.320 Methods of Procurement to be Followed, the non-Federal entity must have and use documented procurement procedures, consistent with the standards of this section and §§ 200.317, 200.318, and 200.319 for any of the following methods of procurement used for the acquisition of property or services required under a Federal award or sub-award. Concurrently, the Authority’s did not comply with its own current procurement policy as it did not follow or prepare the required documentation detailed in the following sections. Procurement Requests-The Authority will maintain sufficient records to detail the history of a procurement. Such records shall include method of procurement, selection of contract type, contractor selection (or rejection), and the contract price. The Authority will treat any prospective contractor or sub-contractor listed on a centralized State government debarment and suspension list as nonresponsible and ineligible for contract award. Debarment and Suspension- The Authority will treat any prospective contractor or sub-contractor listed on a centralized State government debarment and suspension list as non-responsible and ineligible for contract awards. To see if a prospective contractor is eligible, we will look on the website www.SAM.gov and when the bid has been received. Methods of Procurement- a. Micro and Emergency Purchases (do not exceed $10,000)-(a) A written determination as to why price is deemed fair and reasonable must be on file with each purchase made under this method of procurement using Micro-Purchase Price Reasonableness Determination Form. (b) Splitting of procurements to avoid the competitive procurement requirements of federal and state statues shall not be condoned. b. Small Purchase Procurement ($10,000 to $250,000)-(a) A minimum of two price or rate quotations shall be obtained from qualified sources; (b) The procurement will be made from the lowest priced qualified bid, if products or goods are equal; (c) MDOT requires for procurements under $25,000.00. Included Procurement Appendix A, B, E, F, G, H, or I and Vehicle Specification certification if applies. (d) MDOT requires for procurements over $25,000.00 solicitations, including specifications and written selection procedures (lowest bids), Include Procurement Appendix A, F, G, H or I and Vehicle Specification certification if applies. Third Party Contracts with applicable clauses and bond documents must be included. Cause: The Authority did not follow its own procurement policy. Effect: The Authority is noncompliant with 2 CFR 200 and its own procurement policy. Directive: We direct the Authority review and update its procurement policy and implement procedures to ensure that the Authority is complying with the federal requirements, required forms are being completed, and documentation is being maintained. Management’s Response--Corrective Action Plan: Contact person is Rufus Adams, Executive Director, 275 East Wall Street, P.O. Box 837, Benton Harbor, Michigan 49023. Telephone (269) 927-2268. The Authority will review and update its procurement policy to comply with federal requirements. The Authority’s management, consultant, and finance director will review the procedures in the policy to ensure they are being acted upon accordingly going forward.
Failure to Follow Procurement Policy Finding 2023-003 Condition: The Authority did not comply with the current procurement policy as procedures were not fully followed and forms required by the Authority’s procurement policy were not completed. The following forms required by either 2 CFR 200 and/or the Authority’s own procurement policy were not completed for the current year capital asset purchases: Written Record of Procurement Checklist Form, Method of Procurement Decision Matrix, Advertisement and Solicitation Form, Bid Quotations, Fewer Than 3 Offers Received Evaluation if applicable, Proposal Tabulation, Certification of Compliance with Federal Clauses for the assets less than $25,000, and Responsibility Determination (sam.gov debarred verification). Also, as stated in the prior finding, the procurement policy needs to be updated. Criteria: According to 2 CFR 200.214 Suspension and Debarment, Non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. The following excerpts are from 2 CFR Part 200.318 General Procurement Standards. (a) The non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in §§ 200.317 through 200.327. (i) the non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. According to 2 CFR 200.320 Methods of Procurement to be Followed, the non-Federal entity must have and use documented procurement procedures, consistent with the standards of this section and §§ 200.317, 200.318, and 200.319 for any of the following methods of procurement used for the acquisition of property or services required under a Federal award or sub-award. Concurrently, the Authority’s did not comply with its own current procurement policy as it did not follow or prepare the required documentation detailed in the following sections. Procurement Requests-The Authority will maintain sufficient records to detail the history of a procurement. Such records shall include method of procurement, selection of contract type, contractor selection (or rejection), and the contract price. The Authority will treat any prospective contractor or sub-contractor listed on a centralized State government debarment and suspension list as nonresponsible and ineligible for contract award. Debarment and Suspension- The Authority will treat any prospective contractor or sub-contractor listed on a centralized State government debarment and suspension list as non-responsible and ineligible for contract awards. To see if a prospective contractor is eligible, we will look on the website www.SAM.gov and when the bid has been received. Methods of Procurement- a. Micro and Emergency Purchases (do not exceed $10,000)-(a) A written determination as to why price is deemed fair and reasonable must be on file with each purchase made under this method of procurement using Micro-Purchase Price Reasonableness Determination Form. (b) Splitting of procurements to avoid the competitive procurement requirements of federal and state statues shall not be condoned. b. Small Purchase Procurement ($10,000 to $250,000)-(a) A minimum of two price or rate quotations shall be obtained from qualified sources; (b) The procurement will be made from the lowest priced qualified bid, if products or goods are equal; (c) MDOT requires for procurements under $25,000.00. Included Procurement Appendix A, B, E, F, G, H, or I and Vehicle Specification certification if applies. (d) MDOT requires for procurements over $25,000.00 solicitations, including specifications and written selection procedures (lowest bids), Include Procurement Appendix A, F, G, H or I and Vehicle Specification certification if applies. Third Party Contracts with applicable clauses and bond documents must be included. Cause: The Authority did not follow its own procurement policy. Effect: The Authority is noncompliant with 2 CFR 200 and its own procurement policy. Directive: We direct the Authority review and update its procurement policy and implement procedures to ensure that the Authority is complying with the federal requirements, required forms are being completed, and documentation is being maintained. Management’s Response--Corrective Action Plan: Contact person is Rufus Adams, Executive Director, 275 East Wall Street, P.O. Box 837, Benton Harbor, Michigan 49023. Telephone (269) 927-2268. The Authority will review and update its procurement policy to comply with federal requirements. The Authority’s management, consultant, and finance director will review the procedures in the policy to ensure they are being acted upon accordingly going forward.
Reference Number: 2023-001 Description: Procurement Program: 93.354 – Public Health Emergency Response Criteria: 2 CFR section 200.318 requires organizations expending federal funds to follow a written procurement policy that is in accordance with federal statutes. Condition: The Organization’s written procurement policy requires that the Organization obtain an adequate number of price quotes for purchases between $3,500 to $150,000. The Organization did not properly obtain any price quotes on an architecture firm doing work on their clinic building. Cause: Organization chose a firm they have previously worked with. Effect: The Organization was not in compliance with the requirements of Uniform Guidance related to procurement. Auditors’ Recommendation: Ensure the Organization follows their written procurement policy when expending federal funds. Views of Responsible Officials and Planned Corrective Actions: See Organization’s corrective action plan.
Finding Reference: 2023-001 – I. Procurement, Suspension and Debarment Information on the Federal Program: Grantor: Department of the Treasury Program Name: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Criteria or Specific Requirement: For compliance requirement I.1 Procurement, Nuvance Health and Subsidiaries (the “System”) must follow the procurement standards set out at 2 CFR sections 200.318 through 200.327. The System may also use its 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: As part of our testing over the operating effectiveness of internal controls over the Procurement compliance requirement, we noted that the System did not have a procurement policy that conforms to all applicable federal laws, State and Local Fiscal Recovery Funds Regulations, and the standards contained in the Uniform Guidance, as applicable, when purchasing services with the federal funds related to the program. Cause: The System did not comply and maintain a procurement policy that conforms to the provisions required by the Uniform Guidance upon receiving federal funds related to the program. Effect or Potential Effect: Purchasing of goods and/or services with program funds may not be in compliance with the Uniform Guidance. Questioned Costs: Not applicable. Context: The System’s internal procurement policy has not been reviewed to incorporate all of the required provisions within 2 CFR 200.318 through 200.327. Identification as a repeat finding: This finding is not a repeat finding from the prior year. Recommendation: The System should update its procurement policy to include the provisions required by the Uniform Guidance for purchasing goods and/or services with federal funds. View of responsible officials: Management concurs with this finding and is currently drafting a procurement policy to incorporate the provisions required by the Uniform Guidance for purchasing goods and/or services with federal funds.
Finding Reference: 2023-001 – I. Procurement, Suspension and Debarment Information on the Federal Program: Grantor: Department of the Treasury Program Name: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Criteria or Specific Requirement: For compliance requirement I.1 Procurement, Nuvance Health and Subsidiaries (the “System”) must follow the procurement standards set out at 2 CFR sections 200.318 through 200.327. The System may also use its 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: As part of our testing over the operating effectiveness of internal controls over the Procurement compliance requirement, we noted that the System did not have a procurement policy that conforms to all applicable federal laws, State and Local Fiscal Recovery Funds Regulations, and the standards contained in the Uniform Guidance, as applicable, when purchasing services with the federal funds related to the program. Cause: The System did not comply and maintain a procurement policy that conforms to the provisions required by the Uniform Guidance upon receiving federal funds related to the program. Effect or Potential Effect: Purchasing of goods and/or services with program funds may not be in compliance with the Uniform Guidance. Questioned Costs: Not applicable. Context: The System’s internal procurement policy has not been reviewed to incorporate all of the required provisions within 2 CFR 200.318 through 200.327. Identification as a repeat finding: This finding is not a repeat finding from the prior year. Recommendation: The System should update its procurement policy to include the provisions required by the Uniform Guidance for purchasing goods and/or services with federal funds. View of responsible officials: Management concurs with this finding and is currently drafting a procurement policy to incorporate the provisions required by the Uniform Guidance for purchasing goods and/or services with federal funds.
2023-003 – COVID 19: Coronavirus State and Local Fiscal Recovery Funds Federal Awarding Agency – U.S. Department of the Treasury Assistance Listing Number – 21.027 FAIN – n/a Award Year – 2021 Questioned costs – none Criteria: 2 CFR Part 200 in general and 2 CFR sections 200.303(a) require non-Federal entities to establish and maintain effective internal controls over Federal awards, including the requirements for allowable costs, cost principles, and earmarking. The related compliance requirements are set in 2 CFR Part 200 sections 200.514(c), 200.212, 200.318(h), 200.332, 180.300 and subpart E; 48 CFR section 52.209-6; 31 CFR section 19.300; sections 602 and 603 of the Social Security Act as added by section 9901 of the American Rescue Plan Act of 2021, Pub. L. No. 117-2 as codified at 42 USC 802 and 803 and 31 CFR Part 35, federal awarding agency regulations, and the terms and conditions of the award. Condition: Controls related to calculation and reporting of lost revenue were not effective and the amount calculated as base year revenue was incorrectly reported. Cause: Base year calculation of revenue was performed using interim financial information and was not reconciled to final audited reports. Base year calculation of revenue was not clearly documented. Subsequent year revenue calculations were performed by a consultant who was not engaged to review the base year calculation. Controls over such calculations were not effective. Effect: Calculation of lost revenue was incorrectly reported. Expenditures related to the provision of government services related to such lost revenue did not exceed the actual lost revenue. Recommendation: We recommend that the City ensure that all controls for grants be documented in written procedures which should include the name or title of the positions responsible for each control (preparation, review, reconciliation, etc.) and that the performance of the controls be documented in a clear, reperformable manner including the name and date of each responsible individual and which specific control they performed over compliance for the grant.
2023-003 – COVID 19: Coronavirus State and Local Fiscal Recovery Funds Federal Awarding Agency – U.S. Department of the Treasury Assistance Listing Number – 21.027 FAIN – n/a Award Year – 2021 Questioned costs – none Criteria: 2 CFR Part 200 in general and 2 CFR sections 200.303(a) require non-Federal entities to establish and maintain effective internal controls over Federal awards, including the requirements for allowable costs, cost principles, and earmarking. The related compliance requirements are set in 2 CFR Part 200 sections 200.514(c), 200.212, 200.318(h), 200.332, 180.300 and subpart E; 48 CFR section 52.209-6; 31 CFR section 19.300; sections 602 and 603 of the Social Security Act as added by section 9901 of the American Rescue Plan Act of 2021, Pub. L. No. 117-2 as codified at 42 USC 802 and 803 and 31 CFR Part 35, federal awarding agency regulations, and the terms and conditions of the award. Condition: Controls related to calculation and reporting of lost revenue were not effective and the amount calculated as base year revenue was incorrectly reported. Cause: Base year calculation of revenue was performed using interim financial information and was not reconciled to final audited reports. Base year calculation of revenue was not clearly documented. Subsequent year revenue calculations were performed by a consultant who was not engaged to review the base year calculation. Controls over such calculations were not effective. Effect: Calculation of lost revenue was incorrectly reported. Expenditures related to the provision of government services related to such lost revenue did not exceed the actual lost revenue. Recommendation: We recommend that the City ensure that all controls for grants be documented in written procedures which should include the name or title of the positions responsible for each control (preparation, review, reconciliation, etc.) and that the performance of the controls be documented in a clear, reperformable manner including the name and date of each responsible individual and which specific control they performed over compliance for the grant.
Criteria The non-federal entity must have and use documented procurement procedures, consistent with the standards of §§ 200.317, §§ 200.318, and §§ 200.319 when procuring the acquisition of property or services under a Federal award or subaward. Condition The County approved a contract to be paid for with federal awards without following 2CFR200.320(b), formal procurement methods, as the contract exceed the use of 2CFR200.320(a), informal procurement methods. Cause The County was not aware of the formal procurement method requirement for Federal awards. Effect The County was out of complaince with 2CFR200.320, Methods of Procurement to be Followed. Questioned Costs $431,191 Perspective Information The County has a written Federal procurement policy in accordance with 2CFR200.317 through 200.327. The County received COVID related Federal award funds and due to the inexperience and lack of guidance on the use and compliance requirements of the award, did not procure a project in accordance with the 2CFR200.320. Identification of Repeat Findings This is not a repeat finding. Recommendation We recommend the County receive additional training related to procurement activities and expand the County's internal controls related to Federal awards. Views of Responsible Officials We agree with the audit findings and are taking corrective action to train Grant Administrators, elected officials and employees on the procurement standards related to Federal awards.
Criteria: According to 2 CFR section 200.318(c) and 48 CFR sections 52.203-13 and 52.303-16, an entity should have written standards of conduct to cover conflicts of interest and govern the performance of its employees engaged in the selection, award, and administration of contracts. According to 2 CFR section 200.214, an entity is subject to the non-procurement debarment and suspension regulations. Condition: During our testing of federal award expenditures, it was noted that there were no formal written policies in place for standards of conducts covering conflict of interests for employees engaged in the selection, award, and administration of contracts nor to determine if a vendor is suspended or disbarred. Recommendation: The City should create policies and procedures for applicable requirements in order to comply with Federal regulations including procedures that cover conflicts of interest and govern the performance of its employees engaged in the selection, award, and administration of contracts and for procedures to determine whether vendors have been suspended or debarred prior to entering into contracts or purchase orders for all transactions and maintain documentation supporting this verification View of Responsible Officials and Planned Corrective Action: 1. Develop Comprehensive Policies and Procedures: Policy Development: Create policies that align with federal, state, and municipal regulations governing conflicts of interest and employee conduct in contract selection, award, and administration. Conflicts of Interest Policy: Define clear guidelines and procedures for identifying, disclosing, managing, and mitigating conflicts of interest among employees involved in contracting activities. Contract Administration Procedures: Establish detailed procedures that encompass the entire contract lifecycle, ensuring compliance with federal, state, and municipal requirements at every stage. Training and Awareness: Conduct training sessions for employees involved in contracting to ensure understanding and adherence to the newly developed policies, procedures and current bid law regulations set forth by the State of Alabama. 2. Implement Procedures for Vendor Evaluation and Debarment Checks: Vendor Evaluation Process: Develop standardized procedures for evaluating vendors before entering into contracts, including criteria for assessing qualifications, capabilities, and compliance with regulatory requirements. Debarment Check Procedure: Establish a systematic procedure to verify whether potential vendors have been suspended or debarred by federal, state, or municipal authorities prior to initiating contract negotiations. Documentation Requirements: Specify the documentation that must be collected and maintained to demonstrate compliance with vendor evaluation and debarment check procedures. 3. Maintain Comprehensive Documentation: Document Retention Policy: Create a policy outlining requirements for retaining all documentation related to contracts, including vendor evaluations, debarment checks, contract awards, modifications, and performance records. Centralized Documentation Management: Implement a centralized system or repository for storing and managing contract-related documentation, ensuring accessibility, security, and compliance with retention policies. Audit Trail: Maintain a clear audit trail for all contract-related activities, documenting decisionmaking processes and actions taken to ensure accountability and compliance. 4. Monitoring and Compliance Oversight: Monitoring Mechanisms: Establish mechanisms for ongoing monitoring of compliance with federal, state, and municipal regulations, as well as internal policies related to conflicts of interest, contract administration, and vendor debarment checks. Regular Audits: Conduct regular audits of contract management practices and documentation to identify any deviations from established procedures and regulatory requirements. Reporting and Accountability: Implement a reporting structure that provides regular updates to management and stakeholders on compliance status, audit findings, and corrective actions taken to address deficiencies. 5. Continuous Improvement and Adaptation: Feedback and Review: Encourage feedback from employees involved in contract management to identify opportunities for improving policies, procedures, and compliance practices. Benchmarking: Benchmark contract management practices against industry standards, best practices, and regulatory changes to continuously enhance processes and ensure alignment with evolving requirements. Adaptation to Changes: Stay informed about updates and changes in federal, state, and municipal regulations impacting conflicts of interest, contract administration, and vendor management, and update policies and procedures accordingly.
Finding 2023-004 – Procurement Policy Criteria: In accordance with Uniform Guidance 2 CFR, Part §200.318 "General Procurement Standards", the non-federal entity must have and use documented procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a federal award or subaward. The non-federal entity's document procedures must conform to the procurement standards identified in 2 CFR, Part §200.317 - §200.327. Condition: During our review of the Coalition's Policies and Procedures, we determined that the Coalition's Procurement policy does not comply with 2 CFR, Part §200.317 - §200.327. Questioned Costs: None Cause: The Coalition was unaware of the changes in General Procurement Standards within Uniform Guidance and therefore does not have sufficiently established control policies and procedures to comply with 2 CFR, Part §200.317 - §200.327. Effect: The Coalition does not have the ability to determine if disbursements, projects, and bids comply with 2 CFR, Part §200.317 - §200.327. Recommendation: We recommend the Coalition becomes familiar with requirements of 2 CFR, Part §200.317 - §200.327. and establishes appropriate internal control policies and procedures related to procurement and that all staff be trained in those policies and procedures, so they are familiar with the requirements. We further recommend no contract or agreement be awarded by the Coalition in which appropriate procurement policies have not been followed. Views of Responsible Officials: See the corrective action plan that accompanies the schedule of findings and questioned costs.
Finding 2023-004 – Procurement Policy Criteria: In accordance with Uniform Guidance 2 CFR, Part §200.318 "General Procurement Standards", the non-federal entity must have and use documented procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a federal award or subaward. The non-federal entity's document procedures must conform to the procurement standards identified in 2 CFR, Part §200.317 - §200.327. Condition: During our review of the Coalition's Policies and Procedures, we determined that the Coalition's Procurement policy does not comply with 2 CFR, Part §200.317 - §200.327. Questioned Costs: None Cause: The Coalition was unaware of the changes in General Procurement Standards within Uniform Guidance and therefore does not have sufficiently established control policies and procedures to comply with 2 CFR, Part §200.317 - §200.327. Effect: The Coalition does not have the ability to determine if disbursements, projects, and bids comply with 2 CFR, Part §200.317 - §200.327. Recommendation: We recommend the Coalition becomes familiar with requirements of 2 CFR, Part §200.317 - §200.327. and establishes appropriate internal control policies and procedures related to procurement and that all staff be trained in those policies and procedures, so they are familiar with the requirements. We further recommend no contract or agreement be awarded by the Coalition in which appropriate procurement policies have not been followed. Views of Responsible Officials: See the corrective action plan that accompanies the schedule of findings and questioned costs.
2023-006 — Procurement Federal/state program information: Funding agency: U.S. Department of Health and Human Services Title: Indian Self-Determination ALN: 93.441 Award period: 10/1/2022 – 9/30/2023 Criteria: Non-federal entities other than states must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. This includes oversight of contractors’ performance, maintaining written standards of conduct for employees involved in contracting, awarding contracts only to responsible contractors, and maintaining records to document history of procurements. Further, according to the CBNHC Finance Policies and Procedures, the Board of Directors shall approve all purchases over $5,000. Condition: For one vendor paid over $5,000 during fiscal year 2023, there was no evidence that selection and use of this vendor was approved by the Board of Directors. For one additional contractor, CBNHC did not have an active contract in place with the contractor. Context: Two of 35 nonpayroll transactions tested. Questioned Costs: None. Cause: CBNHC is not implementing their Financial Policies and Procedures to ensure that the selection and use of all vendors and contractors are properly documented and approved according to purchase authority levels. Effect: CBNHC is not in compliance with procurement requirements for the Indian Self-Determination program. Auditor’s Recommendations: CBNHC should implement its Financial Policies and Procedures to ensure that the selection and use of all vendors and contractors are properly documented and approved. Management’s Response: In fiscal year 2023, CBNHC experienced significant disruption in its administrative operations caused by political struggles over its rightful governing body. During this period, two key leadership members were administratively unavailable to support the proper procurement of vendor contract renewals. The purchases were made outside the CBNHC procurement policies unbeknownst to CBNHC leadership.
2023-006 — Procurement Federal/state program information: Funding agency: U.S. Department of Health and Human Services Title: Indian Self-Determination ALN: 93.441 Award period: 10/1/2022 – 9/30/2023 Criteria: Non-federal entities other than states must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. This includes oversight of contractors’ performance, maintaining written standards of conduct for employees involved in contracting, awarding contracts only to responsible contractors, and maintaining records to document history of procurements. Further, according to the CBNHC Finance Policies and Procedures, the Board of Directors shall approve all purchases over $5,000. Condition: For one vendor paid over $5,000 during fiscal year 2023, there was no evidence that selection and use of this vendor was approved by the Board of Directors. For one additional contractor, CBNHC did not have an active contract in place with the contractor. Context: Two of 35 nonpayroll transactions tested. Questioned Costs: None. Cause: CBNHC is not implementing their Financial Policies and Procedures to ensure that the selection and use of all vendors and contractors are properly documented and approved according to purchase authority levels. Effect: CBNHC is not in compliance with procurement requirements for the Indian Self-Determination program. Auditor’s Recommendations: CBNHC should implement its Financial Policies and Procedures to ensure that the selection and use of all vendors and contractors are properly documented and approved. Management’s Response: In fiscal year 2023, CBNHC experienced significant disruption in its administrative operations caused by political struggles over its rightful governing body. During this period, two key leadership members were administratively unavailable to support the proper procurement of vendor contract renewals. The purchases were made outside the CBNHC procurement policies unbeknownst to CBNHC leadership.
Procurement Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 93.696, Certified Community Behavioral Health Clinic Expansion Grant Federal Award Identification Number and Year: 1H79SM086491-01, Program Grant Period 09/29/2022-09/29/2023 Pass-through Entity: N/A Type: Material weakness in internal control and material noncompliance with laws and regulations Repeat Finding: No Criteria: Per 2 CFR 200.318(a), the non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in §§ 200.317 through 200.327. In addition, per 2 CFR 200.318(i), the non-Federal entity must maintain records sufficient to detail the history of procurement. Condition: The Board did not utilize federal procurement requirements cited above for the project evaluation and coordination services for the Certified Community Behavioral Health Clinics project. Identification of How Likely Questioned Costs Were Computed: The questioned costs were determined from project evaluation and coordination services billed (federal portion) during the October 1, 2022, through September 29, 2023, period as summarized from the request for disbursement of funds submitted to SAMHSA. Known Questioned Costs: $150,000 Context: We tested the procurement of the one material contract and identified the contract did not follow federal procurement requirements. Cause/Effect: Prior to the Board being awarded of the grant, a bid for grant writing services was procured with the additional question of the availability of project evaluation services being able to be provided. Since the grant writing was procured and the Board decided to contract with the same consulting firm that provided the grant writing, they did not believe they needed to bid the project evaluation and coordination services for this project. The Board did not utilize federal procurement requirements to ensure fair and open competition and reasonable cost for project evaluation and coordination services for the Certified Community Behavioral Health Clinic project. Recommendation: We recommend the Board follow federal procurement as required in 2 CFR 200.319(d) for all contracts reimbursed with federal funds. View of Responsible Officials and Planned Corrective Action Plan: See attached corrective action plan.
Evaluating Potential Contractor for Debarment and Suspension Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 93.696, Certified Community Behavioral Health Clinic Expansion Grant Federal Award Identification Number and Year: 1H79SM086491-01, Program Grant Period 09/29/2022-09/29/2023 Pass-through Entity: N/A Type: Material weakness in internal control and material noncompliance with laws and regulations Repeat Finding: No Criteria: A nonfederal entity must have adequate procedures in place to verify that an entity with which it plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded (2 CFR sections 200.212 and 200.318(h); 2 CFR section 180.300; 48 CFR section 52.209-6). Condition: During procurement testing of the Certified Community Behavior Health Clinic Expansion Grant, we noted that the Board did not have documentation that sam.gov was reviewed to ensure the consultant utilized was not suspended or debarred. Identification of How Likely Questioned Costs Were Computed: N/A Known Questioned Costs: None. Subsequently, the sam.gov website was reviewed to ensure that the contractors were not suspended or debarred. Context: The consultant utilized for the Certified Community Behavior Health Clinic Expansion Grant project was not evaluated. Cause/Effect: The Board currently has a process for suspension and debarment for direct service providers only, and did not have controls in place to comply with suspension and debarment evaluation requirements for the Certified Community Behavioral Health Clinic Expansion Grant or other federal funds outside of direct service providers. Recommendation: We recommend the Board implement adequate controls to ensure verification of debarment, suspension, or exclusion takes place before entering into covered transactions. View of Responsible Officials and Planned Corrective Action Plan: See attached corrective action plan.
2023-003: Procurement Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 93.696, Certified Community Behavioral Health Clinic Expansion Grant Federal Award Identification Number and Year: 1H79SM086680-01, Program Grant Period 09/29/2022-09/29/2023 Pass-through Entity: N/A SANILAC COUNTY COMMUNITY MENTAL HEALTH AUTHORITY SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED SEPTEMBER 30, 2023 Type: Material weakness in internal control and material noncompliance with laws and regulations Repeat Finding: No Criteria: Per 2 CFR 200.318(a), the non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in §§ 200.317 through 200.327. In addition, per 2 CFR 200.318(i), the non-Federal entity must maintain records sufficient to detail the history of procurement. Condition: The Authority did not utilize federal procurement requirements cited above for the tele-health services and SUD Peer Recovery Service contracted service providers utilized for the Certified Community Behavioral Health Clinics project. Identification of How Likely Questioned Costs Were Computed: The questioned costs were determined from the tele-health services and SUD Peer Recovery Service contractor payments billed (federal portion) during the October 1, 2022, through September 29, 2023, period as summarized from the request for disbursement of funds submitted to SAMHSA. Known Questioned Costs: $33,440 Context: We tested the procurement of the three contracts related to tele-health services and SUD Peer Recovery Service contract service providers utilized and funded by the grant and identified that two of the three contracts did not follow federal procurement requirements. Cause/Effect: Prior to the Authority being awarded the grant, tele-health services were previously being provided under a current contract. The Authority was not able to document the basis for not providing a competitive procurement of tele-health services specific to this contract nor supporting a reason it should follow a noncompetitive procurement methodology. The contract for SUD Peer Recovery Services has been indicated by management to meet the criteria as a sole source procurement as allowed under 2 CFR 200.320(c); however, adequate documentation was not available to support this claim at the time the contract was awarded (subsequently a Google search was provided of only Lapeer and Sanilac Counties). The Authority did not utilize federal procurement requirements to ensure fair and open competition and reasonable cost for tele-health services and SUD Peer Recovery Services and coordination services for the Certified Community Behavioral Health Clinic project. Recommendation: We recommend the Authority follow federal procurement as required in 2 CFR 200.319(d) for all contracts reimbursed with federal funds. View of Responsible Officials and Planned Corrective Action Plan: See attached corrective action plan.
2023-004: Evaluating Potential Contractor for Debarment and Suspension Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 93.696, Certified Community Behavioral Health Clinic Expansion Grant Federal Award Identification Number and Year: 1H79SM086680-01, Program Grant Period 09/29/2022-09/29/2023 Pass-through Entity: N/A Type: Material weakness in internal control and material noncompliance with laws and regulations Repeat Finding: No Criteria: A nonfederal entity must have adequate procedures in place to verify that an entity with which it plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded (2 CFR sections 200.212 and 200.318(h); 2 CRF section 180.300; 48 CFR section 52.209-6). Condition: During procurement testing of the Certified Community Behavior Health Clinic Expansion Grant, we noted that the Authority did not have documentation that sam.gov was reviewed to ensure the consultant utilized was not suspended or debarred for two of the three contracts expended. The Authority checked suspension and debarment on the individual clinicians, however, did not check it for the company. Identification of How Likely Questioned Costs Were Computed: N/A Known Questioned Costs: None. Subsequently, the sam.gov was reviewed to ensure that the contractors were not suspended or debarred. Context: The consultant utilized for the Certified Community Behavior Health Clinic Expansion Grant project were not evaluated prior to the award of the contract. Cause/Effect: The Authority did not have controls in place to ensure timely compliance with the suspension and debarment evaluation requirements prior to the awarding of contracts for the Certified Community Behavioral Health Clinic Expansion Grant or other federal funds. Recommendation: We recommend the Authority implement adequate controls to ensure verification of debarment, suspension, or exclusion takes place before entering covered transactions. View of Responsible Officials and Planned Corrective Action Plan: See attached corrective action plan.
2023-005: Written Policies and Procedures Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 93.696, Certified Community Behavioral Health Clinic Expansion Grant Federal Award Identification Number and Year: 1H79SM086680-01, Program Grant Period 09/29/2022-09/29/2023 Pass-through Entity: N/A Type: Material weakness in internal control and noncompliance with laws and regulations Repeat Finding: No Criteria: As a precondition to receive federal awards, prospective recipients must have effective internal controls over the federal award. As described in 2 CFR, Part 200.303, nonfederal entities must have certain written policies and procedures surrounding the management of their federal awards. Such policies should include procedures for collecting payments of federal funds per 2 CRF 200.305, cash management (i.e., minimizing the time between draws and actual disbursing of federal awards) per 2 CFR 200.302(b)(6), allowable cost per 2 CFR 200.403, and conflict of interest per 2 CFR 200.318. Per 2 CFR 200.319(d), the non-Federal entity must have written procedures for procurement transactions. Condition: The Authority did not have written procedures for cash management and allowable cost. Identification of How Likely Questioned Costs Were Computed: N/A Known Questioned Costs: None Context: N/A Cause/Effect: Although the Authority is aware that they were required to have written policies and procedures for the items noted above, they were using the grant agreement guidelines that provide grantees with guidance for ensuring the existing accounting and personnel policies and procedures include the necessary controls. These guidelines address the compliance areas required by the Uniform Guidance. Recommendation: We recommend the Authority adopt written policies and procedures over cash management and allowable costs required under the Uniform Guidance. View of Responsible Officials and Planned Corrective Action Plan: See attached corrective action plan.
Finding Type: Significant Deficiency in Internal Controls and Noncompliance (Procurement, Suspension & Debarment) Federal Program: U.S. Department of Treasury – Coronavirus State and Local Fiscal Recovery Funds (AL #21.027) Criteria: The Code of Federal Regulations (CFR) Section 200.318(a) requires non-Federal entities to establish and use documented procurement procedures that conform to the procurement standards identified in Sections 200.317 through 200.327. Condition: While the County does have a written procurement policy that meets the requirements, the policy was not being followed. The County did not maintain records sufficient to detail the history of procurement including the rationale for the method of procurement, selection of contract type, contractor selection or rejection, or the basis for the contract price. The County did not maintain documentation to sufficiently support a written price analysis on one procurement tested. The County was unable to provide proposals from non-winning bidders and/or a price analysis when only one bid was received on two contracts tested. The County does not have formal procedures or controls in place to ensure written documentation of a cost analysis or a contract file are maintained. Cause: The County does not have controls in place to ensure that its procurement policy is being followed and that contract files are complete. Effect: As a result of this condition, the County did not fully comply with the Uniform Guidance. Questioned Costs: No costs have been questioned as a result of this finding. Recommendation: We recommend that the County implement controls to ensure the procurement policy is followed and complete contract files are maintained. Views of Responsible Officials: The County will work to implement controls to ensure the procurement policy is followed.
Finding 2023-009 - Procurement Information on Federal Programs: All programs Criteria or Specific Requirements: According to 2 CFR §200.303, the 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). Additionally, according to 2 CFR §200.320, Procurement standards, the non-Federal entity must have and use documented procurement procedures, consistent with the standards of this section and §200.318, and §200.319 for any of the following methods of procurement used for the acquisition of property or services required under a Federal award or sub-award: a) Informal procurement methods, b) Formal procurement methods, c) Noncompetitive procurement. Condition: During the review of the procurement compliance requirement related to major program, it was determined that U.S. Water Alliance did not have a document procurement policy in place until August 2023. Cause: Management did not have internal control procedures in place to ensure that procurement requirements were adequately followed, documented and retained when Federal awards were obtained. Effect: Failure to have and use documented procurement procedures could have resulted in noncompliance with the Criteria section above. Perspective: U.S. Water Alliance established a documented procurement policy that was put in place in August 2023. Within a random sample of 26 disbursements, 3 disbursements would have required compliance with the simplified acquisition method, but would have also met the exception due to the existence of an emergency causing public harm and the specialized nature of the work performed. Questioned Costs: Questioned costs were not identified. Repeat Finding: Not applicable. Recommendation: U.S. Water Alliance should adhere to its procurement policy put in place in August 2023 to ensure compliance with the Uniform Guidance going forward. Views of Responsible Officials and Planned Corrective Actions: While the Alliance did not have a standalone procurement policy in place until August 2023, it did have purchasing policies embedded in its Accounting and Finance Manual that covered purchases relative to our work at that time. No further corrective action is needed however policies are reviewed annually to ensure compliance under 2 CFR 200.516(a).
Finding 2023-009 - Procurement Information on Federal Programs: All programs Criteria or Specific Requirements: According to 2 CFR §200.303, the 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). Additionally, according to 2 CFR §200.320, Procurement standards, the non-Federal entity must have and use documented procurement procedures, consistent with the standards of this section and §200.318, and §200.319 for any of the following methods of procurement used for the acquisition of property or services required under a Federal award or sub-award: a) Informal procurement methods, b) Formal procurement methods, c) Noncompetitive procurement. Condition: During the review of the procurement compliance requirement related to major program, it was determined that U.S. Water Alliance did not have a document procurement policy in place until August 2023. Cause: Management did not have internal control procedures in place to ensure that procurement requirements were adequately followed, documented and retained when Federal awards were obtained. Effect: Failure to have and use documented procurement procedures could have resulted in noncompliance with the Criteria section above. Perspective: U.S. Water Alliance established a documented procurement policy that was put in place in August 2023. Within a random sample of 26 disbursements, 3 disbursements would have required compliance with the simplified acquisition method, but would have also met the exception due to the existence of an emergency causing public harm and the specialized nature of the work performed. Questioned Costs: Questioned costs were not identified. Repeat Finding: Not applicable. Recommendation: U.S. Water Alliance should adhere to its procurement policy put in place in August 2023 to ensure compliance with the Uniform Guidance going forward. Views of Responsible Officials and Planned Corrective Actions: While the Alliance did not have a standalone procurement policy in place until August 2023, it did have purchasing policies embedded in its Accounting and Finance Manual that covered purchases relative to our work at that time. No further corrective action is needed however policies are reviewed annually to ensure compliance under 2 CFR 200.516(a).
Finding 2023-009 - Procurement Information on Federal Programs: All programs Criteria or Specific Requirements: According to 2 CFR §200.303, the 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). Additionally, according to 2 CFR §200.320, Procurement standards, the non-Federal entity must have and use documented procurement procedures, consistent with the standards of this section and §200.318, and §200.319 for any of the following methods of procurement used for the acquisition of property or services required under a Federal award or sub-award: a) Informal procurement methods, b) Formal procurement methods, c) Noncompetitive procurement. Condition: During the review of the procurement compliance requirement related to major program, it was determined that U.S. Water Alliance did not have a document procurement policy in place until August 2023. Cause: Management did not have internal control procedures in place to ensure that procurement requirements were adequately followed, documented and retained when Federal awards were obtained. Effect: Failure to have and use documented procurement procedures could have resulted in noncompliance with the Criteria section above. Perspective: U.S. Water Alliance established a documented procurement policy that was put in place in August 2023. Within a random sample of 26 disbursements, 3 disbursements would have required compliance with the simplified acquisition method, but would have also met the exception due to the existence of an emergency causing public harm and the specialized nature of the work performed. Questioned Costs: Questioned costs were not identified. Repeat Finding: Not applicable. Recommendation: U.S. Water Alliance should adhere to its procurement policy put in place in August 2023 to ensure compliance with the Uniform Guidance going forward. Views of Responsible Officials and Planned Corrective Actions: While the Alliance did not have a standalone procurement policy in place until August 2023, it did have purchasing policies embedded in its Accounting and Finance Manual that covered purchases relative to our work at that time. No further corrective action is needed however policies are reviewed annually to ensure compliance under 2 CFR 200.516(a).
Finding 2023-009 - Procurement Information on Federal Programs: All programs Criteria or Specific Requirements: According to 2 CFR §200.303, the 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). Additionally, according to 2 CFR §200.320, Procurement standards, the non-Federal entity must have and use documented procurement procedures, consistent with the standards of this section and §200.318, and §200.319 for any of the following methods of procurement used for the acquisition of property or services required under a Federal award or sub-award: a) Informal procurement methods, b) Formal procurement methods, c) Noncompetitive procurement. Condition: During the review of the procurement compliance requirement related to major program, it was determined that U.S. Water Alliance did not have a document procurement policy in place until August 2023. Cause: Management did not have internal control procedures in place to ensure that procurement requirements were adequately followed, documented and retained when Federal awards were obtained. Effect: Failure to have and use documented procurement procedures could have resulted in noncompliance with the Criteria section above. Perspective: U.S. Water Alliance established a documented procurement policy that was put in place in August 2023. Within a random sample of 26 disbursements, 3 disbursements would have required compliance with the simplified acquisition method, but would have also met the exception due to the existence of an emergency causing public harm and the specialized nature of the work performed. Questioned Costs: Questioned costs were not identified. Repeat Finding: Not applicable. Recommendation: U.S. Water Alliance should adhere to its procurement policy put in place in August 2023 to ensure compliance with the Uniform Guidance going forward. Views of Responsible Officials and Planned Corrective Actions: While the Alliance did not have a standalone procurement policy in place until August 2023, it did have purchasing policies embedded in its Accounting and Finance Manual that covered purchases relative to our work at that time. No further corrective action is needed however policies are reviewed annually to ensure compliance under 2 CFR 200.516(a).