The Christian County Fiscal Court Did Not Have Adequate Controls Over The Procurement, Suspension and Debarment Compliance Requirement On Federal Expenditures Federal Program: Assistance Listing #21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Award Number and Year: Information not available Name of Federal Agency and Pass-Thru Agency (if applicable): U.S. Department of Treasury Compliance Requirements: Procurement, Suspension & Debarment Type of Finding: Material Weakness Amount of Questioned Costs: $0 Opinion Modification (if applicable): No COVID Related: Yes The Christian County Fiscal Court failed to implement adequate controls over Procurement, Suspension and Debarment compliance requirements of the Coronavirus State and Local Fiscal Recovery Funds (SLFRF). The disbursement of the SLFRF monies was not handled in the manner prescribed by the county’s administrative code. Three disbursements totaling $1,378,654 were tested and purchase orders were not utilized for any of the three disbursements. The fiscal court also failed to document adequate controls concerning the compliance with suspension and debarment requirements. There was no documentation that suspension and debarment compliance requirements were followed. The county’s contracts with local utilities failed to include suspension and debarment requirements. Additionally, there was no documentation that a search for suspended or debarred parties was performed prior to disbursing the funds to the utilities. The county treasurer was not aware purchase orders were not issued. Preprinted purchase orders for the ARPA (SLFRF) Fund were not available for use. There was a breakdown in the verification process of debarred or suspended parties. Since the fiscal court did not issue purchase orders for the disbursements from the SLFRF monies, amounts spent could have exceeded budgetary restrictions, rendering them void. Additionally, because there was no documented search for suspended or debarred parties, ineligible vendors or contractors could have been utilized putting the county at risk for being held responsible for unallowed or questioned costs. 2 CFR 200.318(a) states “The non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward.” The Christian County Administrative Code section 4.5 states for claims against Christian County “Each claim shall be recorded by date, receipts, and purchase order number and presented to the Fiscal Court at its next meeting.” Additionally, the Department of Local Government (DLG) requires counties to implement a purchase order system which includes issuing purchase orders for all claims expended from the county’s budget. Good internal controls require the use of established procurement policies to ensure that federal disbursements are handled in the manner consistent with the treatment of non-federal disbursements. 2 CFR 200.214 states “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.” Good internal controls dictate documentation be maintained that verifies debarment and suspension regulations have been communicated and followed for vendors or contractors used in federally funded projects. We recommend that the county improve internal controls over federal expenditures to ensure all compliance requirements are followed. This is not a repeat finding from the previous year.
Federal Agency: Department of Education Federal Program Name: Special Education Cluster Assistance Listing Number: 84.027/84.173 Pass-Through Agency: State of Connecticut Department of Education Pass-Through Number(s): 12060-SDE64370-20977/20983 Award Period: July 1, 2022 through June 30, 2023 Type of Finding: Significant Deficiency of Internal Control over Compliance Criteria or Specific Requirement: The BOE must comply with procurement standards set out at 2 CFR sections 200.318 through 200.326 within Uniform Guidance. Section III – Findings and Questioned Costs – Major Federal Programs (Continued) Condition: The BOE procurement standards did not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned Costs: None noted. Context: Although the BOE did not have a policy in conformity with the federal uniform guidance criteria, the BOE did follow Uniform Guidance and was in compliance with the major program. Cause: The policy has not been updated to be in compliance with uniform guidance requirements. Effect: The lack of controls over reporting could result in errors of reported data. Repeat Finding: No Recommendation: We recommend that the BOE review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of Responsible Officials: Management agrees with the auditors’ recommendations.
Federal Agency: Department of Education Federal Program Name: Special Education Cluster Assistance Listing Number: 84.027/84.173 Pass-Through Agency: State of Connecticut Department of Education Pass-Through Number(s): 12060-SDE64370-20977/20983 Award Period: July 1, 2022 through June 30, 2023 Type of Finding: Significant Deficiency of Internal Control over Compliance Criteria or Specific Requirement: The BOE must comply with procurement standards set out at 2 CFR sections 200.318 through 200.326 within Uniform Guidance. Section III – Findings and Questioned Costs – Major Federal Programs (Continued) Condition: The BOE procurement standards did not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned Costs: None noted. Context: Although the BOE did not have a policy in conformity with the federal uniform guidance criteria, the BOE did follow Uniform Guidance and was in compliance with the major program. Cause: The policy has not been updated to be in compliance with uniform guidance requirements. Effect: The lack of controls over reporting could result in errors of reported data. Repeat Finding: No Recommendation: We recommend that the BOE review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of Responsible Officials: Management agrees with the auditors’ recommendations.
Federal Agency: Department of Education Federal Program Name: Special Education Cluster Assistance Listing Number: 84.027/84.173 Pass-Through Agency: State of Connecticut Department of Education Pass-Through Number(s): 12060-SDE64370-20977/20983 Award Period: July 1, 2022 through June 30, 2023 Type of Finding: Significant Deficiency of Internal Control over Compliance Criteria or Specific Requirement: The BOE must comply with procurement standards set out at 2 CFR sections 200.318 through 200.326 within Uniform Guidance. Section III – Findings and Questioned Costs – Major Federal Programs (Continued) Condition: The BOE procurement standards did not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned Costs: None noted. Context: Although the BOE did not have a policy in conformity with the federal uniform guidance criteria, the BOE did follow Uniform Guidance and was in compliance with the major program. Cause: The policy has not been updated to be in compliance with uniform guidance requirements. Effect: The lack of controls over reporting could result in errors of reported data. Repeat Finding: No Recommendation: We recommend that the BOE review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of Responsible Officials: Management agrees with the auditors’ recommendations.
Federal Agency: Department of Education Federal Program Name: Special Education Cluster Assistance Listing Number: 84.027/84.173 Pass-Through Agency: State of Connecticut Department of Education Pass-Through Number(s): 12060-SDE64370-20977/20983 Award Period: July 1, 2022 through June 30, 2023 Type of Finding: Significant Deficiency of Internal Control over Compliance Criteria or Specific Requirement: The BOE must comply with procurement standards set out at 2 CFR sections 200.318 through 200.326 within Uniform Guidance. Section III – Findings and Questioned Costs – Major Federal Programs (Continued) Condition: The BOE procurement standards did not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned Costs: None noted. Context: Although the BOE did not have a policy in conformity with the federal uniform guidance criteria, the BOE did follow Uniform Guidance and was in compliance with the major program. Cause: The policy has not been updated to be in compliance with uniform guidance requirements. Effect: The lack of controls over reporting could result in errors of reported data. Repeat Finding: No Recommendation: We recommend that the BOE review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of Responsible Officials: Management agrees with the auditors’ recommendations.
Federal Agency: Department of Education Federal Program Name: Special Education Cluster Assistance Listing Number: 84.027/84.173 Pass-Through Agency: State of Connecticut Department of Education Pass-Through Number(s): 12060-SDE64370-20977/20983 Award Period: July 1, 2022 through June 30, 2023 Type of Finding: Significant Deficiency of Internal Control over Compliance Criteria or Specific Requirement: The BOE must comply with procurement standards set out at 2 CFR sections 200.318 through 200.326 within Uniform Guidance. Section III – Findings and Questioned Costs – Major Federal Programs (Continued) Condition: The BOE procurement standards did not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned Costs: None noted. Context: Although the BOE did not have a policy in conformity with the federal uniform guidance criteria, the BOE did follow Uniform Guidance and was in compliance with the major program. Cause: The policy has not been updated to be in compliance with uniform guidance requirements. Effect: The lack of controls over reporting could result in errors of reported data. Repeat Finding: No Recommendation: We recommend that the BOE review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of Responsible Officials: Management agrees with the auditors’ recommendations.
FINDING 2023-001 PROCUREMENT SIGNIFICANT DEFICIENCY Federal Program: Charter Schools Program Assistance Listing Numbers: 84.282A Criteria Per 2 CFR 200.318, “The non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in §200.317 through 200.327.” Condition The School’s procurement policies do not include wording or procedures to ensure the School is complying with the above standard. Cause A responsible individual is not monitoring Federal regulations to ensure the School’s procurement procedures are properly documented and in line with the regulations. Effect Not documenting these procedures could result in the School completing procurement transactions that are not in compliance with Federal regulations. Recommendation We recommend the School develop a written procurement policy that incorporates the Federal regulations identified above. Views of Responsible Officials and Planned Corrective Actions The School’s Corrective Action Plan is included on page 22
2023-001 PROCUREMENT Federal Program Information: Federal Transit Cluster 20.507 Criteria: 2 CFR 200.303 requires that a 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 and the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).” 2 CFR 200.318(h) states “the non-federal entity must award contracts only to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement. Consideration will be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources.” Condition: For all of the contracts selected for testing, documentation could not be located to support that the Authority verified the entity it planned to enter into a covered transaction with was not debarred, suspended, or otherwise excluded. Questioned Costs: Unknown Context: Total federal expenditures for the Federal Transit Cluster were $10,065,940 for the year ended June 30, 2023. Cause: The Authority did not retain adequate documentation showing entities were not debarred, suspended, or otherwise excluded. Effect: The Authority is not in compliance with the federal statutes, regulations, and terms and conditions of the federal award. Recommendation: We recommend that the Authority implement controls to ensure that entities are not debarred, suspended, or otherwise excluded and that adequate supporting documentation is maintained. Views of Responsible Officials: Management acknowledges the finding. See corrective action plan.
2023-001 PROCUREMENT Federal Program Information: Federal Transit Cluster 20.507 Criteria: 2 CFR 200.303 requires that a 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 and the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).” 2 CFR 200.318(h) states “the non-federal entity must award contracts only to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement. Consideration will be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources.” Condition: For all of the contracts selected for testing, documentation could not be located to support that the Authority verified the entity it planned to enter into a covered transaction with was not debarred, suspended, or otherwise excluded. Questioned Costs: Unknown Context: Total federal expenditures for the Federal Transit Cluster were $10,065,940 for the year ended June 30, 2023. Cause: The Authority did not retain adequate documentation showing entities were not debarred, suspended, or otherwise excluded. Effect: The Authority is not in compliance with the federal statutes, regulations, and terms and conditions of the federal award. Recommendation: We recommend that the Authority implement controls to ensure that entities are not debarred, suspended, or otherwise excluded and that adequate supporting documentation is maintained. Views of Responsible Officials: Management acknowledges the finding. See corrective action plan.
2023-001 PROCUREMENT Federal Program Information: Federal Transit Cluster 20.507 Criteria: 2 CFR 200.303 requires that a 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 and the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).” 2 CFR 200.318(h) states “the non-federal entity must award contracts only to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement. Consideration will be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources.” Condition: For all of the contracts selected for testing, documentation could not be located to support that the Authority verified the entity it planned to enter into a covered transaction with was not debarred, suspended, or otherwise excluded. Questioned Costs: Unknown Context: Total federal expenditures for the Federal Transit Cluster were $10,065,940 for the year ended June 30, 2023. Cause: The Authority did not retain adequate documentation showing entities were not debarred, suspended, or otherwise excluded. Effect: The Authority is not in compliance with the federal statutes, regulations, and terms and conditions of the federal award. Recommendation: We recommend that the Authority implement controls to ensure that entities are not debarred, suspended, or otherwise excluded and that adequate supporting documentation is maintained. Views of Responsible Officials: Management acknowledges the finding. See corrective action plan.
2023-001 PROCUREMENT Federal Program Information: Federal Transit Cluster 20.507 Criteria: 2 CFR 200.303 requires that a 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 and the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).” 2 CFR 200.318(h) states “the non-federal entity must award contracts only to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement. Consideration will be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources.” Condition: For all of the contracts selected for testing, documentation could not be located to support that the Authority verified the entity it planned to enter into a covered transaction with was not debarred, suspended, or otherwise excluded. Questioned Costs: Unknown Context: Total federal expenditures for the Federal Transit Cluster were $10,065,940 for the year ended June 30, 2023. Cause: The Authority did not retain adequate documentation showing entities were not debarred, suspended, or otherwise excluded. Effect: The Authority is not in compliance with the federal statutes, regulations, and terms and conditions of the federal award. Recommendation: We recommend that the Authority implement controls to ensure that entities are not debarred, suspended, or otherwise excluded and that adequate supporting documentation is maintained. Views of Responsible Officials: Management acknowledges the finding. See corrective action plan.
2023-001 PROCUREMENT Federal Program Information: Federal Transit Cluster 20.507 Criteria: 2 CFR 200.303 requires that a 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 and the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).” 2 CFR 200.318(h) states “the non-federal entity must award contracts only to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement. Consideration will be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources.” Condition: For all of the contracts selected for testing, documentation could not be located to support that the Authority verified the entity it planned to enter into a covered transaction with was not debarred, suspended, or otherwise excluded. Questioned Costs: Unknown Context: Total federal expenditures for the Federal Transit Cluster were $10,065,940 for the year ended June 30, 2023. Cause: The Authority did not retain adequate documentation showing entities were not debarred, suspended, or otherwise excluded. Effect: The Authority is not in compliance with the federal statutes, regulations, and terms and conditions of the federal award. Recommendation: We recommend that the Authority implement controls to ensure that entities are not debarred, suspended, or otherwise excluded and that adequate supporting documentation is maintained. Views of Responsible Officials: Management acknowledges the finding. See corrective action plan.
2023-001 PROCUREMENT Federal Program Information: Federal Transit Cluster 20.507 Criteria: 2 CFR 200.303 requires that a 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 and the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).” 2 CFR 200.318(h) states “the non-federal entity must award contracts only to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement. Consideration will be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources.” Condition: For all of the contracts selected for testing, documentation could not be located to support that the Authority verified the entity it planned to enter into a covered transaction with was not debarred, suspended, or otherwise excluded. Questioned Costs: Unknown Context: Total federal expenditures for the Federal Transit Cluster were $10,065,940 for the year ended June 30, 2023. Cause: The Authority did not retain adequate documentation showing entities were not debarred, suspended, or otherwise excluded. Effect: The Authority is not in compliance with the federal statutes, regulations, and terms and conditions of the federal award. Recommendation: We recommend that the Authority implement controls to ensure that entities are not debarred, suspended, or otherwise excluded and that adequate supporting documentation is maintained. Views of Responsible Officials: Management acknowledges the finding. See corrective action plan.
Federal Agency: All Federal Agencies Federal Program Name: All Federal Programs Assistance Listing Number: All Assistance Listing Numbers Federal Award Identification Number and Year: N/A – applies to all Federal Programs Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters (Noncompliance) Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) requires compliance with the provisions of procurement, suspension, and debarment. Condition: The City’s procurement standards do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned costs: None noted. Context: Although the City did not have a policy in place in conformity with the federal uniform guidance criteria, the City did follow its procedures as they relate to the contracts under the procurements applicable to the City’s major program. Cause: The City did not have the resources necessary to implement a conforming policy during the fiscal year under audit. Effect: With the absence of a compliant policy, the City is at risk for noncompliance as it relates to federal procurement. Repeat Finding: Yes, repeat of finding 2022-001. Recommendation: We recommend that the City review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of responsible officials: Management agrees with this finding.
Federal Agency: All Federal Agencies Federal Program Name: All Federal Programs Assistance Listing Number: All Assistance Listing Numbers Federal Award Identification Number and Year: N/A – applies to all Federal Programs Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters (Noncompliance) Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) requires compliance with the provisions of procurement, suspension, and debarment. Condition: The City’s procurement standards do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned costs: None noted. Context: Although the City did not have a policy in place in conformity with the federal uniform guidance criteria, the City did follow its procedures as they relate to the contracts under the procurements applicable to the City’s major program. Cause: The City did not have the resources necessary to implement a conforming policy during the fiscal year under audit. Effect: With the absence of a compliant policy, the City is at risk for noncompliance as it relates to federal procurement. Repeat Finding: Yes, repeat of finding 2022-001. Recommendation: We recommend that the City review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of responsible officials: Management agrees with this finding.
Federal Agency: All Federal Agencies Federal Program Name: All Federal Programs Assistance Listing Number: All Assistance Listing Numbers Federal Award Identification Number and Year: N/A – applies to all Federal Programs Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters (Noncompliance) Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) requires compliance with the provisions of procurement, suspension, and debarment. Condition: The City’s procurement standards do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned costs: None noted. Context: Although the City did not have a policy in place in conformity with the federal uniform guidance criteria, the City did follow its procedures as they relate to the contracts under the procurements applicable to the City’s major program. Cause: The City did not have the resources necessary to implement a conforming policy during the fiscal year under audit. Effect: With the absence of a compliant policy, the City is at risk for noncompliance as it relates to federal procurement. Repeat Finding: Yes, repeat of finding 2022-001. Recommendation: We recommend that the City review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of responsible officials: Management agrees with this finding.
Federal Agency: All Federal Agencies Federal Program Name: All Federal Programs Assistance Listing Number: All Assistance Listing Numbers Federal Award Identification Number and Year: N/A – applies to all Federal Programs Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters (Noncompliance) Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) requires compliance with the provisions of procurement, suspension, and debarment. Condition: The City’s procurement standards do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned costs: None noted. Context: Although the City did not have a policy in place in conformity with the federal uniform guidance criteria, the City did follow its procedures as they relate to the contracts under the procurements applicable to the City’s major program. Cause: The City did not have the resources necessary to implement a conforming policy during the fiscal year under audit. Effect: With the absence of a compliant policy, the City is at risk for noncompliance as it relates to federal procurement. Repeat Finding: Yes, repeat of finding 2022-001. Recommendation: We recommend that the City review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of responsible officials: Management agrees with this finding.
Federal Agency: All Federal Agencies Federal Program Name: All Federal Programs Assistance Listing Number: All Assistance Listing Numbers Federal Award Identification Number and Year: N/A – applies to all Federal Programs Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters (Noncompliance) Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) requires compliance with the provisions of procurement, suspension, and debarment. Condition: The City’s procurement standards do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned costs: None noted. Context: Although the City did not have a policy in place in conformity with the federal uniform guidance criteria, the City did follow its procedures as they relate to the contracts under the procurements applicable to the City’s major program. Cause: The City did not have the resources necessary to implement a conforming policy during the fiscal year under audit. Effect: With the absence of a compliant policy, the City is at risk for noncompliance as it relates to federal procurement. Repeat Finding: Yes, repeat of finding 2022-001. Recommendation: We recommend that the City review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of responsible officials: Management agrees with this finding.
Federal Agency: All Federal Agencies Federal Program Name: All Federal Programs Assistance Listing Number: All Assistance Listing Numbers Federal Award Identification Number and Year: N/A – applies to all Federal Programs Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters (Noncompliance) Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) requires compliance with the provisions of procurement, suspension, and debarment. Condition: The City’s procurement standards do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned costs: None noted. Context: Although the City did not have a policy in place in conformity with the federal uniform guidance criteria, the City did follow its procedures as they relate to the contracts under the procurements applicable to the City’s major program. Cause: The City did not have the resources necessary to implement a conforming policy during the fiscal year under audit. Effect: With the absence of a compliant policy, the City is at risk for noncompliance as it relates to federal procurement. Repeat Finding: Yes, repeat of finding 2022-001. Recommendation: We recommend that the City review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of responsible officials: Management agrees with this finding.
Federal Agency: All Federal Agencies Federal Program Name: All Federal Programs Assistance Listing Number: All Assistance Listing Numbers Federal Award Identification Number and Year: N/A – applies to all Federal Programs Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters (Noncompliance) Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) requires compliance with the provisions of procurement, suspension, and debarment. Condition: The City’s procurement standards do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned costs: None noted. Context: Although the City did not have a policy in place in conformity with the federal uniform guidance criteria, the City did follow its procedures as they relate to the contracts under the procurements applicable to the City’s major program. Cause: The City did not have the resources necessary to implement a conforming policy during the fiscal year under audit. Effect: With the absence of a compliant policy, the City is at risk for noncompliance as it relates to federal procurement. Repeat Finding: Yes, repeat of finding 2022-001. Recommendation: We recommend that the City review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of responsible officials: Management agrees with this finding.
Federal Agency: All Federal Agencies Federal Program Name: All Federal Programs Assistance Listing Number: All Assistance Listing Numbers Federal Award Identification Number and Year: N/A – applies to all Federal Programs Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters (Noncompliance) Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) requires compliance with the provisions of procurement, suspension, and debarment. Condition: The City’s procurement standards do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned costs: None noted. Context: Although the City did not have a policy in place in conformity with the federal uniform guidance criteria, the City did follow its procedures as they relate to the contracts under the procurements applicable to the City’s major program. Cause: The City did not have the resources necessary to implement a conforming policy during the fiscal year under audit. Effect: With the absence of a compliant policy, the City is at risk for noncompliance as it relates to federal procurement. Repeat Finding: Yes, repeat of finding 2022-001. Recommendation: We recommend that the City review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of responsible officials: Management agrees with this finding.
Federal Agency: All Federal Agencies Federal Program Name: All Federal Programs Assistance Listing Number: All Assistance Listing Numbers Federal Award Identification Number and Year: N/A – applies to all Federal Programs Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters (Noncompliance) Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) requires compliance with the provisions of procurement, suspension, and debarment. Condition: The City’s procurement standards do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned costs: None noted. Context: Although the City did not have a policy in place in conformity with the federal uniform guidance criteria, the City did follow its procedures as they relate to the contracts under the procurements applicable to the City’s major program. Cause: The City did not have the resources necessary to implement a conforming policy during the fiscal year under audit. Effect: With the absence of a compliant policy, the City is at risk for noncompliance as it relates to federal procurement. Repeat Finding: Yes, repeat of finding 2022-001. Recommendation: We recommend that the City review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of responsible officials: Management agrees with this finding.
Federal Agency: All Federal Agencies Federal Program Name: All Federal Programs Assistance Listing Number: All Assistance Listing Numbers Federal Award Identification Number and Year: N/A – applies to all Federal Programs Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters (Noncompliance) Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) requires compliance with the provisions of procurement, suspension, and debarment. Condition: The City’s procurement standards do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned costs: None noted. Context: Although the City did not have a policy in place in conformity with the federal uniform guidance criteria, the City did follow its procedures as they relate to the contracts under the procurements applicable to the City’s major program. Cause: The City did not have the resources necessary to implement a conforming policy during the fiscal year under audit. Effect: With the absence of a compliant policy, the City is at risk for noncompliance as it relates to federal procurement. Repeat Finding: Yes, repeat of finding 2022-001. Recommendation: We recommend that the City review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of responsible officials: Management agrees with this finding.
Federal Agency: All Federal Agencies Federal Program Name: All Federal Programs Assistance Listing Number: All Assistance Listing Numbers Federal Award Identification Number and Year: N/A – applies to all Federal Programs Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters (Noncompliance) Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) requires compliance with the provisions of procurement, suspension, and debarment. Condition: The City’s procurement standards do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned costs: None noted. Context: Although the City did not have a policy in place in conformity with the federal uniform guidance criteria, the City did follow its procedures as they relate to the contracts under the procurements applicable to the City’s major program. Cause: The City did not have the resources necessary to implement a conforming policy during the fiscal year under audit. Effect: With the absence of a compliant policy, the City is at risk for noncompliance as it relates to federal procurement. Repeat Finding: Yes, repeat of finding 2022-001. Recommendation: We recommend that the City review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of responsible officials: Management agrees with this finding.
Federal Agency: All Federal Agencies Federal Program Name: All Federal Programs Assistance Listing Number: All Assistance Listing Numbers Federal Award Identification Number and Year: N/A – applies to all Federal Programs Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters (Noncompliance) Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) requires compliance with the provisions of procurement, suspension, and debarment. Condition: The City’s procurement standards do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned costs: None noted. Context: Although the City did not have a policy in place in conformity with the federal uniform guidance criteria, the City did follow its procedures as they relate to the contracts under the procurements applicable to the City’s major program. Cause: The City did not have the resources necessary to implement a conforming policy during the fiscal year under audit. Effect: With the absence of a compliant policy, the City is at risk for noncompliance as it relates to federal procurement. Repeat Finding: Yes, repeat of finding 2022-001. Recommendation: We recommend that the City review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of responsible officials: Management agrees with this finding.
Federal Agency: All Federal Agencies Federal Program Name: All Federal Programs Assistance Listing Number: All Assistance Listing Numbers Federal Award Identification Number and Year: N/A – applies to all Federal Programs Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters (Noncompliance) Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) requires compliance with the provisions of procurement, suspension, and debarment. Condition: The City’s procurement standards do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned costs: None noted. Context: Although the City did not have a policy in place in conformity with the federal uniform guidance criteria, the City did follow its procedures as they relate to the contracts under the procurements applicable to the City’s major program. Cause: The City did not have the resources necessary to implement a conforming policy during the fiscal year under audit. Effect: With the absence of a compliant policy, the City is at risk for noncompliance as it relates to federal procurement. Repeat Finding: Yes, repeat of finding 2022-001. Recommendation: We recommend that the City review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of responsible officials: Management agrees with this finding.
Federal Agency: All Federal Agencies Federal Program Name: All Federal Programs Assistance Listing Number: All Assistance Listing Numbers Federal Award Identification Number and Year: N/A – applies to all Federal Programs Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters (Noncompliance) Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) requires compliance with the provisions of procurement, suspension, and debarment. Condition: The City’s procurement standards do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned costs: None noted. Context: Although the City did not have a policy in place in conformity with the federal uniform guidance criteria, the City did follow its procedures as they relate to the contracts under the procurements applicable to the City’s major program. Cause: The City did not have the resources necessary to implement a conforming policy during the fiscal year under audit. Effect: With the absence of a compliant policy, the City is at risk for noncompliance as it relates to federal procurement. Repeat Finding: Yes, repeat of finding 2022-001. Recommendation: We recommend that the City review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of responsible officials: Management agrees with this finding.
2023-001 Federal Program Name: COVID-19 Higher Education Emergency Relief Fund (HEERF) - COVID-19 HEERF Minority Serving Institutions (MSIs) Federal Assistance Listing Number: 84.425L Award Year: July 6, 2020 – June 30, 2023 Condition: The University's procurement policy does not contain adequate documentation to demonstrate compliance with federal procurement regulations (Deficiency). Questioned Costs: None. Context: The University's documented procurement policies do not contain all the specific requirements of 2 CFR sections 200.318 through 200.326. Effect: The risks exist that the University could follow their procurement policy and procure an item with federal funds, which would not meet the federal procurement regulations. Cause: The writing of the policy did not take into account the federal procurement regulations which are required to be incorporated for items procured with federal funds. Repeat Finding: No. Recommendation: We recommend that the University revise procurement policies to incorporate all required elements of the federal procurement regulations. Views of Responsible Officials and Planned Corrective Action: The University agrees with the comment and will revise procurement policies and incorporate all required elements of the federal procurement regulations.
FINDING: 2023-003 – Procurement Federal Agency: U.S. Department of Agriculture & U.S. Department of Education Federal Program: Child Nutrition Cluster & Special Education Cluster CFDA Numbers: 10.555 & 84.027 and 84.173 Pass Through Agency: Minnesota Department of Education Pass Through Number: 01-0276-000-000, H027A220087, H027X210087, H173A220086, and H173X210086 Award Periods: Fiscal year ended June 30, 2023 Type of Finding: Material Weakness in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: 2 CFR §200.318 - §200.321 requires that all procurement transactions be conducted in a manner providing full and open competition consistent with the standards of the section. Procurement by noncompetitive proposals may be utilized if the item is available only from a single source, however efforts must be made and the process fully documented in order to conclude that the use of a sole source procurement is appropriate. Condition: It was noted during procurement testing that the district did not document its process for concluding that procurements met the requirements of being a sole source situation. Questioned Costs: ALN 10.555 - $19,122.61 and ALN 84.027 and 84.173 - $68,100. Context: Of the 13 procurement transactions tested, 2 of them were considered sole source by the District but did not have the proper documentation to support the process used to determine that. Effect: The District was not in compliance with Uniform Guidance requirements for the proper documentation of all procurement transactions. Repeat Finding: Yes. 2022-001. Recommendation: We recommend the District reviews its procedures and controls over procurement to ensure that all procurements are documented such that a third party can clearly see and understand the detailed history of the procurement. Views of Responsible Official: There is no disagreement with the audit finding. The District will implement procedures to document its rationale for the procurement method used.
FINDING: 2023-003 – Procurement Federal Agency: U.S. Department of Agriculture & U.S. Department of Education Federal Program: Child Nutrition Cluster & Special Education Cluster CFDA Numbers: 10.555 & 84.027 and 84.173 Pass Through Agency: Minnesota Department of Education Pass Through Number: 01-0276-000-000, H027A220087, H027X210087, H173A220086, and H173X210086 Award Periods: Fiscal year ended June 30, 2023 Type of Finding: Material Weakness in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: 2 CFR §200.318 - §200.321 requires that all procurement transactions be conducted in a manner providing full and open competition consistent with the standards of the section. Procurement by noncompetitive proposals may be utilized if the item is available only from a single source, however efforts must be made and the process fully documented in order to conclude that the use of a sole source procurement is appropriate. Condition: It was noted during procurement testing that the district did not document its process for concluding that procurements met the requirements of being a sole source situation. Questioned Costs: ALN 10.555 - $19,122.61 and ALN 84.027 and 84.173 - $68,100. Context: Of the 13 procurement transactions tested, 2 of them were considered sole source by the District but did not have the proper documentation to support the process used to determine that. Effect: The District was not in compliance with Uniform Guidance requirements for the proper documentation of all procurement transactions. Repeat Finding: Yes. 2022-001. Recommendation: We recommend the District reviews its procedures and controls over procurement to ensure that all procurements are documented such that a third party can clearly see and understand the detailed history of the procurement. Views of Responsible Official: There is no disagreement with the audit finding. The District will implement procedures to document its rationale for the procurement method used.
FINDING: 2023-003 – Procurement Federal Agency: U.S. Department of Agriculture & U.S. Department of Education Federal Program: Child Nutrition Cluster & Special Education Cluster CFDA Numbers: 10.555 & 84.027 and 84.173 Pass Through Agency: Minnesota Department of Education Pass Through Number: 01-0276-000-000, H027A220087, H027X210087, H173A220086, and H173X210086 Award Periods: Fiscal year ended June 30, 2023 Type of Finding: Material Weakness in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: 2 CFR §200.318 - §200.321 requires that all procurement transactions be conducted in a manner providing full and open competition consistent with the standards of the section. Procurement by noncompetitive proposals may be utilized if the item is available only from a single source, however efforts must be made and the process fully documented in order to conclude that the use of a sole source procurement is appropriate. Condition: It was noted during procurement testing that the district did not document its process for concluding that procurements met the requirements of being a sole source situation. Questioned Costs: ALN 10.555 - $19,122.61 and ALN 84.027 and 84.173 - $68,100. Context: Of the 13 procurement transactions tested, 2 of them were considered sole source by the District but did not have the proper documentation to support the process used to determine that. Effect: The District was not in compliance with Uniform Guidance requirements for the proper documentation of all procurement transactions. Repeat Finding: Yes. 2022-001. Recommendation: We recommend the District reviews its procedures and controls over procurement to ensure that all procurements are documented such that a third party can clearly see and understand the detailed history of the procurement. Views of Responsible Official: There is no disagreement with the audit finding. The District will implement procedures to document its rationale for the procurement method used.
FINDING: 2023-003 – Procurement Federal Agency: U.S. Department of Agriculture & U.S. Department of Education Federal Program: Child Nutrition Cluster & Special Education Cluster CFDA Numbers: 10.555 & 84.027 and 84.173 Pass Through Agency: Minnesota Department of Education Pass Through Number: 01-0276-000-000, H027A220087, H027X210087, H173A220086, and H173X210086 Award Periods: Fiscal year ended June 30, 2023 Type of Finding: Material Weakness in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: 2 CFR §200.318 - §200.321 requires that all procurement transactions be conducted in a manner providing full and open competition consistent with the standards of the section. Procurement by noncompetitive proposals may be utilized if the item is available only from a single source, however efforts must be made and the process fully documented in order to conclude that the use of a sole source procurement is appropriate. Condition: It was noted during procurement testing that the district did not document its process for concluding that procurements met the requirements of being a sole source situation. Questioned Costs: ALN 10.555 - $19,122.61 and ALN 84.027 and 84.173 - $68,100. Context: Of the 13 procurement transactions tested, 2 of them were considered sole source by the District but did not have the proper documentation to support the process used to determine that. Effect: The District was not in compliance with Uniform Guidance requirements for the proper documentation of all procurement transactions. Repeat Finding: Yes. 2022-001. Recommendation: We recommend the District reviews its procedures and controls over procurement to ensure that all procurements are documented such that a third party can clearly see and understand the detailed history of the procurement. Views of Responsible Official: There is no disagreement with the audit finding. The District will implement procedures to document its rationale for the procurement method used.
FINDING: 2023-003 – Procurement Federal Agency: U.S. Department of Agriculture & U.S. Department of Education Federal Program: Child Nutrition Cluster & Special Education Cluster CFDA Numbers: 10.555 & 84.027 and 84.173 Pass Through Agency: Minnesota Department of Education Pass Through Number: 01-0276-000-000, H027A220087, H027X210087, H173A220086, and H173X210086 Award Periods: Fiscal year ended June 30, 2023 Type of Finding: Material Weakness in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: 2 CFR §200.318 - §200.321 requires that all procurement transactions be conducted in a manner providing full and open competition consistent with the standards of the section. Procurement by noncompetitive proposals may be utilized if the item is available only from a single source, however efforts must be made and the process fully documented in order to conclude that the use of a sole source procurement is appropriate. Condition: It was noted during procurement testing that the district did not document its process for concluding that procurements met the requirements of being a sole source situation. Questioned Costs: ALN 10.555 - $19,122.61 and ALN 84.027 and 84.173 - $68,100. Context: Of the 13 procurement transactions tested, 2 of them were considered sole source by the District but did not have the proper documentation to support the process used to determine that. Effect: The District was not in compliance with Uniform Guidance requirements for the proper documentation of all procurement transactions. Repeat Finding: Yes. 2022-001. Recommendation: We recommend the District reviews its procedures and controls over procurement to ensure that all procurements are documented such that a third party can clearly see and understand the detailed history of the procurement. Views of Responsible Official: There is no disagreement with the audit finding. The District will implement procedures to document its rationale for the procurement method used.
FINDING: 2023-003 – Procurement Federal Agency: U.S. Department of Agriculture & U.S. Department of Education Federal Program: Child Nutrition Cluster & Special Education Cluster CFDA Numbers: 10.555 & 84.027 and 84.173 Pass Through Agency: Minnesota Department of Education Pass Through Number: 01-0276-000-000, H027A220087, H027X210087, H173A220086, and H173X210086 Award Periods: Fiscal year ended June 30, 2023 Type of Finding: Material Weakness in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: 2 CFR §200.318 - §200.321 requires that all procurement transactions be conducted in a manner providing full and open competition consistent with the standards of the section. Procurement by noncompetitive proposals may be utilized if the item is available only from a single source, however efforts must be made and the process fully documented in order to conclude that the use of a sole source procurement is appropriate. Condition: It was noted during procurement testing that the district did not document its process for concluding that procurements met the requirements of being a sole source situation. Questioned Costs: ALN 10.555 - $19,122.61 and ALN 84.027 and 84.173 - $68,100. Context: Of the 13 procurement transactions tested, 2 of them were considered sole source by the District but did not have the proper documentation to support the process used to determine that. Effect: The District was not in compliance with Uniform Guidance requirements for the proper documentation of all procurement transactions. Repeat Finding: Yes. 2022-001. Recommendation: We recommend the District reviews its procedures and controls over procurement to ensure that all procurements are documented such that a third party can clearly see and understand the detailed history of the procurement. Views of Responsible Official: There is no disagreement with the audit finding. The District will implement procedures to document its rationale for the procurement method used.
FINDING: 2023-003 – Procurement Federal Agency: U.S. Department of Agriculture & U.S. Department of Education Federal Program: Child Nutrition Cluster & Special Education Cluster CFDA Numbers: 10.555 & 84.027 and 84.173 Pass Through Agency: Minnesota Department of Education Pass Through Number: 01-0276-000-000, H027A220087, H027X210087, H173A220086, and H173X210086 Award Periods: Fiscal year ended June 30, 2023 Type of Finding: Material Weakness in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: 2 CFR §200.318 - §200.321 requires that all procurement transactions be conducted in a manner providing full and open competition consistent with the standards of the section. Procurement by noncompetitive proposals may be utilized if the item is available only from a single source, however efforts must be made and the process fully documented in order to conclude that the use of a sole source procurement is appropriate. Condition: It was noted during procurement testing that the district did not document its process for concluding that procurements met the requirements of being a sole source situation. Questioned Costs: ALN 10.555 - $19,122.61 and ALN 84.027 and 84.173 - $68,100. Context: Of the 13 procurement transactions tested, 2 of them were considered sole source by the District but did not have the proper documentation to support the process used to determine that. Effect: The District was not in compliance with Uniform Guidance requirements for the proper documentation of all procurement transactions. Repeat Finding: Yes. 2022-001. Recommendation: We recommend the District reviews its procedures and controls over procurement to ensure that all procurements are documented such that a third party can clearly see and understand the detailed history of the procurement. Views of Responsible Official: There is no disagreement with the audit finding. The District will implement procedures to document its rationale for the procurement method used.
Finding 2023-001: Procurement Information on the Federal Programs: Assistance Listing Number 19.511 and 19.518 Criteria: CFR 200.318 states that non-Federal entities must have and use documented procurement procedures consistent with the requirements for procurement regulations included in paragraphs 318 through 327. Condition: During our audit, we noted multiple instances where vendors were engaged without a complete set of documentation supporting a procurement process, or justification to support using a noncompetitive procurement process in accordance with CFR 200.320(c). Cause: Asylum Access does not maintain documented policies regarding procurement and therefore compliance with Federal regulations cannot be determined. Context: Absent a policy related to compliance with CFR 200, Asylum Access is at risk of entering into contracts for goods or services under Federal awards that were not adequately procured based on the regulations in the Uniform Guidance and the awarding agency or pass-through entity could disallow the costs paid for the goods or services. Effect: Asylum Access may have disallowed costs for not properly procuring goods or services. Questioned Costs: None noted. Identification as a Repeat Finding: N/A Recommendation: We recommend Asylum Access establish a procurement policy to become compliant with CFR 200. We further recommend it ensure all staff are properly trained with respect to the new policy to ensure compliance.
Finding 2023-001: Procurement Information on the Federal Programs: Assistance Listing Number 19.511 and 19.518 Criteria: CFR 200.318 states that non-Federal entities must have and use documented procurement procedures consistent with the requirements for procurement regulations included in paragraphs 318 through 327. Condition: During our audit, we noted multiple instances where vendors were engaged without a complete set of documentation supporting a procurement process, or justification to support using a noncompetitive procurement process in accordance with CFR 200.320(c). Cause: Asylum Access does not maintain documented policies regarding procurement and therefore compliance with Federal regulations cannot be determined. Context: Absent a policy related to compliance with CFR 200, Asylum Access is at risk of entering into contracts for goods or services under Federal awards that were not adequately procured based on the regulations in the Uniform Guidance and the awarding agency or pass-through entity could disallow the costs paid for the goods or services. Effect: Asylum Access may have disallowed costs for not properly procuring goods or services. Questioned Costs: None noted. Identification as a Repeat Finding: N/A Recommendation: We recommend Asylum Access establish a procurement policy to become compliant with CFR 200. We further recommend it ensure all staff are properly trained with respect to the new policy to ensure compliance.
Finding 2023-001: Procurement Information on the Federal Programs: Assistance Listing Number 19.511 and 19.518 Criteria: CFR 200.318 states that non-Federal entities must have and use documented procurement procedures consistent with the requirements for procurement regulations included in paragraphs 318 through 327. Condition: During our audit, we noted multiple instances where vendors were engaged without a complete set of documentation supporting a procurement process, or justification to support using a noncompetitive procurement process in accordance with CFR 200.320(c). Cause: Asylum Access does not maintain documented policies regarding procurement and therefore compliance with Federal regulations cannot be determined. Context: Absent a policy related to compliance with CFR 200, Asylum Access is at risk of entering into contracts for goods or services under Federal awards that were not adequately procured based on the regulations in the Uniform Guidance and the awarding agency or pass-through entity could disallow the costs paid for the goods or services. Effect: Asylum Access may have disallowed costs for not properly procuring goods or services. Questioned Costs: None noted. Identification as a Repeat Finding: N/A Recommendation: We recommend Asylum Access establish a procurement policy to become compliant with CFR 200. We further recommend it ensure all staff are properly trained with respect to the new policy to ensure compliance.
Finding 2023-001: Procurement Information on the Federal Programs: Assistance Listing Number 19.511 and 19.518 Criteria: CFR 200.318 states that non-Federal entities must have and use documented procurement procedures consistent with the requirements for procurement regulations included in paragraphs 318 through 327. Condition: During our audit, we noted multiple instances where vendors were engaged without a complete set of documentation supporting a procurement process, or justification to support using a noncompetitive procurement process in accordance with CFR 200.320(c). Cause: Asylum Access does not maintain documented policies regarding procurement and therefore compliance with Federal regulations cannot be determined. Context: Absent a policy related to compliance with CFR 200, Asylum Access is at risk of entering into contracts for goods or services under Federal awards that were not adequately procured based on the regulations in the Uniform Guidance and the awarding agency or pass-through entity could disallow the costs paid for the goods or services. Effect: Asylum Access may have disallowed costs for not properly procuring goods or services. Questioned Costs: None noted. Identification as a Repeat Finding: N/A Recommendation: We recommend Asylum Access establish a procurement policy to become compliant with CFR 200. We further recommend it ensure all staff are properly trained with respect to the new policy to ensure compliance.
Federal agency: U.S. Department of Education Federal program title: Parent Training and Information Technical Assistance Centers Assistance Listing Number: 84.328M and 84.328R Award Period: various Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria or specific requirement: FACETS should have a formal procurement policy to guide it when entering into covered transactions, including all components identified in 2 CFR 200.318. Condition: FACETS had three expenses applied to the grant in excess of the micro-purchase threshold but did not have a procurement policy that included all the components identified in 2 CFR 200.318. Questioned costs: None Context: FACETS entered into three transactions in excess of the micro purchase threshold for which price or rate quotations were not obtained from multiple vendors. Management indicated that multiple bids were not received because the desired services were only available from a single source, but this was not documented. Cause: Management Oversight Effect: The effect of not having a formal procurement policy would be noncompliance with 2 CFR 200.318. Repeat finding: No Recommendation: It is recommended that FACETS supplement its procurement policy to address requirements specific to federal awards. Views of responsible officials: There is no disagreement with the audit finding. Management will update its formal procurement policy to fully comply with 2 CFR 200.318 and is working with their outside accounting firm to adopt the relevant policies.
Federal agency: U.S. Department of Education Federal program title: Parent Training and Information Technical Assistance Centers Assistance Listing Number: 84.328M and 84.328R Award Period: various Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria or specific requirement: FACETS should have a formal procurement policy to guide it when entering into covered transactions, including all components identified in 2 CFR 200.318. Condition: FACETS had three expenses applied to the grant in excess of the micro-purchase threshold but did not have a procurement policy that included all the components identified in 2 CFR 200.318. Questioned costs: None Context: FACETS entered into three transactions in excess of the micro purchase threshold for which price or rate quotations were not obtained from multiple vendors. Management indicated that multiple bids were not received because the desired services were only available from a single source, but this was not documented. Cause: Management Oversight Effect: The effect of not having a formal procurement policy would be noncompliance with 2 CFR 200.318. Repeat finding: No Recommendation: It is recommended that FACETS supplement its procurement policy to address requirements specific to federal awards. Views of responsible officials: There is no disagreement with the audit finding. Management will update its formal procurement policy to fully comply with 2 CFR 200.318 and is working with their outside accounting firm to adopt the relevant policies.
2023-006 Child Nutrition Cluster - Procurement Information on Federal Program: U.S Department of Agriculture Child Nutrition Cluster (National School Breakfast Program, School Lunch Program, and Special Milk Program for Children CFDA No. 10.553, 10.555, and 10.556) passed through the New York State Education Department. Criteria: CFR Section 200.318 stipulates that a non-Federal entity must use its own documented procurement procedures which reflect applicable state, local, and tribal laws and regulations, provided that the procurements conform to applicable Federal law and the standards identified in Part 200 Subpart D. Additionally, 2 CFR Section 200.213 stipulates that no awards, subawards, or contracts be awarded to parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Statement of Condition: During our discussions with management and reverification of use of same vendors as previous year, we noted that the District is not verifying the eligibility of vendors to participate in Federal assistance programs on an annual basis. They are however, checking the status of any new vendors. Statement of Cause: The District did not review compliance requirements related to procurement outlined in 2 CFR Section 200.318 and Section 200.213. Statement of Effect: The District is not in compliance with 2 CFR Section 200.213. The District is not performing required procedures, as a result, vendors that are not eligible for participation in Federal assistance programs or activities could be selected or the District could be overpaying for goods and services. Questioned Costs: None Perspective Information: As part of required follow up of prior year audit findings, a review of vendors charged to the school lunch fund and therefore represent purchases with federal dollars was performed. Of the District’s vendors charged to the fund, none were suspended or debarred from participation in Federal assistance programs or activities. Repeat Finding: Yes Recommendation: We recommend that the District review the requirements of 2 CFR Section 200.213 and ensure that a review of the eligibility of potential vendors to participate in Federal assistance programs or activities is performed prior to disbursing funds to the vendor. Views of the Responsible Officials and Planned Corrective Actions: The District will monitor vendors to ensure they are able to accept federal monies.
2023-006 Child Nutrition Cluster - Procurement Information on Federal Program: U.S Department of Agriculture Child Nutrition Cluster (National School Breakfast Program, School Lunch Program, and Special Milk Program for Children CFDA No. 10.553, 10.555, and 10.556) passed through the New York State Education Department. Criteria: CFR Section 200.318 stipulates that a non-Federal entity must use its own documented procurement procedures which reflect applicable state, local, and tribal laws and regulations, provided that the procurements conform to applicable Federal law and the standards identified in Part 200 Subpart D. Additionally, 2 CFR Section 200.213 stipulates that no awards, subawards, or contracts be awarded to parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Statement of Condition: During our discussions with management and reverification of use of same vendors as previous year, we noted that the District is not verifying the eligibility of vendors to participate in Federal assistance programs on an annual basis. They are however, checking the status of any new vendors. Statement of Cause: The District did not review compliance requirements related to procurement outlined in 2 CFR Section 200.318 and Section 200.213. Statement of Effect: The District is not in compliance with 2 CFR Section 200.213. The District is not performing required procedures, as a result, vendors that are not eligible for participation in Federal assistance programs or activities could be selected or the District could be overpaying for goods and services. Questioned Costs: None Perspective Information: As part of required follow up of prior year audit findings, a review of vendors charged to the school lunch fund and therefore represent purchases with federal dollars was performed. Of the District’s vendors charged to the fund, none were suspended or debarred from participation in Federal assistance programs or activities. Repeat Finding: Yes Recommendation: We recommend that the District review the requirements of 2 CFR Section 200.213 and ensure that a review of the eligibility of potential vendors to participate in Federal assistance programs or activities is performed prior to disbursing funds to the vendor. Views of the Responsible Officials and Planned Corrective Actions: The District will monitor vendors to ensure they are able to accept federal monies.
2023-006 Child Nutrition Cluster - Procurement Information on Federal Program: U.S Department of Agriculture Child Nutrition Cluster (National School Breakfast Program, School Lunch Program, and Special Milk Program for Children CFDA No. 10.553, 10.555, and 10.556) passed through the New York State Education Department. Criteria: CFR Section 200.318 stipulates that a non-Federal entity must use its own documented procurement procedures which reflect applicable state, local, and tribal laws and regulations, provided that the procurements conform to applicable Federal law and the standards identified in Part 200 Subpart D. Additionally, 2 CFR Section 200.213 stipulates that no awards, subawards, or contracts be awarded to parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Statement of Condition: During our discussions with management and reverification of use of same vendors as previous year, we noted that the District is not verifying the eligibility of vendors to participate in Federal assistance programs on an annual basis. They are however, checking the status of any new vendors. Statement of Cause: The District did not review compliance requirements related to procurement outlined in 2 CFR Section 200.318 and Section 200.213. Statement of Effect: The District is not in compliance with 2 CFR Section 200.213. The District is not performing required procedures, as a result, vendors that are not eligible for participation in Federal assistance programs or activities could be selected or the District could be overpaying for goods and services. Questioned Costs: None Perspective Information: As part of required follow up of prior year audit findings, a review of vendors charged to the school lunch fund and therefore represent purchases with federal dollars was performed. Of the District’s vendors charged to the fund, none were suspended or debarred from participation in Federal assistance programs or activities. Repeat Finding: Yes Recommendation: We recommend that the District review the requirements of 2 CFR Section 200.213 and ensure that a review of the eligibility of potential vendors to participate in Federal assistance programs or activities is performed prior to disbursing funds to the vendor. Views of the Responsible Officials and Planned Corrective Actions: The District will monitor vendors to ensure they are able to accept federal monies.
2023-006 Child Nutrition Cluster - Procurement Information on Federal Program: U.S Department of Agriculture Child Nutrition Cluster (National School Breakfast Program, School Lunch Program, and Special Milk Program for Children CFDA No. 10.553, 10.555, and 10.556) passed through the New York State Education Department. Criteria: CFR Section 200.318 stipulates that a non-Federal entity must use its own documented procurement procedures which reflect applicable state, local, and tribal laws and regulations, provided that the procurements conform to applicable Federal law and the standards identified in Part 200 Subpart D. Additionally, 2 CFR Section 200.213 stipulates that no awards, subawards, or contracts be awarded to parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Statement of Condition: During our discussions with management and reverification of use of same vendors as previous year, we noted that the District is not verifying the eligibility of vendors to participate in Federal assistance programs on an annual basis. They are however, checking the status of any new vendors. Statement of Cause: The District did not review compliance requirements related to procurement outlined in 2 CFR Section 200.318 and Section 200.213. Statement of Effect: The District is not in compliance with 2 CFR Section 200.213. The District is not performing required procedures, as a result, vendors that are not eligible for participation in Federal assistance programs or activities could be selected or the District could be overpaying for goods and services. Questioned Costs: None Perspective Information: As part of required follow up of prior year audit findings, a review of vendors charged to the school lunch fund and therefore represent purchases with federal dollars was performed. Of the District’s vendors charged to the fund, none were suspended or debarred from participation in Federal assistance programs or activities. Repeat Finding: Yes Recommendation: We recommend that the District review the requirements of 2 CFR Section 200.213 and ensure that a review of the eligibility of potential vendors to participate in Federal assistance programs or activities is performed prior to disbursing funds to the vendor. Views of the Responsible Officials and Planned Corrective Actions: The District will monitor vendors to ensure they are able to accept federal monies.
Child Nutrition Cluster – Procurement Information on Federal Program: U.S Department of Agriculture Child Nutrition Cluster (National School Lunch Program, School Breakfast Program and Food Distribution Federal Assistance Listing No. 10.555 and 10.553) passed through the New York State Education Department. Criteria: CFR Section 200.318 stipulates that a non-Federal entity must use its own documented procurement procedures which reflect applicable state, local, and tribal laws and regulations, provided that the procurements conform to applicable Federal law and the standards identified in Part 200 Subpart D. Additionally, 2 CFR Section 200.213 stipulates that no awards, subawards, or contracts be awarded to parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Statement of Condition: During our discussions with management and reverification of use of same vendors as previous year, we noted that the District is not verifying the eligibility of vendors to participate in Federal assistance programs. Statement of Cause: The District did not review compliance requirements related to procurement outlined in 2 CFR Section 200.318 and Section 200.213. Statement of Effect: The District is not in compliance with 2 CFR Section 200.213. The District is not performing required procedures, as a result, vendors that are not eligible for participation in Federal assistance programs or activities could be selected or the District could be overpaying for goods and services. Questioned Costs: None Perspective Information: As part of required follow up of prior year audit findings, a review of vendors charged to the school lunch fund and therefore represent purchases with federal dollars was performed. Of the District’s vendors charged to the fund, none were suspended or debarred from participation in Federal assistance programs or activities. Repeat Finding: Yes Recommendation: We recommend that the District review the requirements of 2 CFR Section 200.213 and ensure that a review of the eligibility of potential vendors to participate in Federal assistance programs or activities is performed prior to disbursing funds to the vendor. Views of the Responsible Officials and Planned Corrective Actions: The Business Administrator will work closely with the new Food Service Director to verify and record any company/vendor that is paid with Federal money.
Child Nutrition Cluster – Procurement Information on Federal Program: U.S Department of Agriculture Child Nutrition Cluster (National School Lunch Program, School Breakfast Program and Food Distribution Federal Assistance Listing No. 10.555 and 10.553) passed through the New York State Education Department. Criteria: CFR Section 200.318 stipulates that a non-Federal entity must use its own documented procurement procedures which reflect applicable state, local, and tribal laws and regulations, provided that the procurements conform to applicable Federal law and the standards identified in Part 200 Subpart D. Additionally, 2 CFR Section 200.213 stipulates that no awards, subawards, or contracts be awarded to parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Statement of Condition: During our discussions with management and reverification of use of same vendors as previous year, we noted that the District is not verifying the eligibility of vendors to participate in Federal assistance programs. Statement of Cause: The District did not review compliance requirements related to procurement outlined in 2 CFR Section 200.318 and Section 200.213. Statement of Effect: The District is not in compliance with 2 CFR Section 200.213. The District is not performing required procedures, as a result, vendors that are not eligible for participation in Federal assistance programs or activities could be selected or the District could be overpaying for goods and services. Questioned Costs: None Perspective Information: As part of required follow up of prior year audit findings, a review of vendors charged to the school lunch fund and therefore represent purchases with federal dollars was performed. Of the District’s vendors charged to the fund, none were suspended or debarred from participation in Federal assistance programs or activities. Repeat Finding: Yes Recommendation: We recommend that the District review the requirements of 2 CFR Section 200.213 and ensure that a review of the eligibility of potential vendors to participate in Federal assistance programs or activities is performed prior to disbursing funds to the vendor. Views of the Responsible Officials and Planned Corrective Actions: The Business Administrator will work closely with the new Food Service Director to verify and record any company/vendor that is paid with Federal money.
Child Nutrition Cluster – Procurement Information on Federal Program: U.S Department of Agriculture Child Nutrition Cluster (National School Lunch Program, School Breakfast Program and Food Distribution Federal Assistance Listing No. 10.555 and 10.553) passed through the New York State Education Department. Criteria: CFR Section 200.318 stipulates that a non-Federal entity must use its own documented procurement procedures which reflect applicable state, local, and tribal laws and regulations, provided that the procurements conform to applicable Federal law and the standards identified in Part 200 Subpart D. Additionally, 2 CFR Section 200.213 stipulates that no awards, subawards, or contracts be awarded to parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Statement of Condition: During our discussions with management and reverification of use of same vendors as previous year, we noted that the District is not verifying the eligibility of vendors to participate in Federal assistance programs. Statement of Cause: The District did not review compliance requirements related to procurement outlined in 2 CFR Section 200.318 and Section 200.213. Statement of Effect: The District is not in compliance with 2 CFR Section 200.213. The District is not performing required procedures, as a result, vendors that are not eligible for participation in Federal assistance programs or activities could be selected or the District could be overpaying for goods and services. Questioned Costs: None Perspective Information: As part of required follow up of prior year audit findings, a review of vendors charged to the school lunch fund and therefore represent purchases with federal dollars was performed. Of the District’s vendors charged to the fund, none were suspended or debarred from participation in Federal assistance programs or activities. Repeat Finding: Yes Recommendation: We recommend that the District review the requirements of 2 CFR Section 200.213 and ensure that a review of the eligibility of potential vendors to participate in Federal assistance programs or activities is performed prior to disbursing funds to the vendor. Views of the Responsible Officials and Planned Corrective Actions: The Business Administrator will work closely with the new Food Service Director to verify and record any company/vendor that is paid with Federal money.
Criteria: Per 2 CFR 200.318(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: the rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Condition/context: Of the four procurement transactions subjected to testing, there were two professional service contracts that the District did not have documentation supporting the sole source procurement method. Cause: The District did not maintain proper sole source documentation for these vendors due to the unique services provided. Effect: Per 2 CFR 200.339, if a non-Federal entity fails to comply with Federal statutes, regulations or the terms and conditions of a Federal award, the Federal awarding agency or pass-through entity may impose additional conditions, as described in §200.208 Specific conditions. If the Federal awarding agency or pass-through entity determines that noncompliance cannot be remedied by imposing additional conditions, the Federal awarding agency or pass-through entity may take one or more of the following actions, as appropriate in the circumstances: (a) Temporarily withhold cash payments pending correction of the deficiency by the non-Federal entity or more severe enforcement action by the Federal awarding agency or pass-through entity. (b) Disallow (that is, deny both use of funds and any applicable matching credit for) all or part of the cost of the activity or action not in compliance. (c) Wholly or partly suspend or terminate the Federal award. (d) Initiate suspension or debarment proceedings as authorized under 2 CFR part 180 and Federal awarding agency regulations (or in the case of a pass-through entity, recommend such a proceeding be initiated by a Federal awarding agency). (e) Withhold further Federal awards for the project or program. (f) Take other remedies that may be legally available. Questioned costs: None. Identification as a repeat finding: No. Recommendation: We recommend the Procurement policy be modified to more clearly state that documentation will be maintained to identify the determination for sole-sourcing as described in 2 CFR 200.318 for all professional service contracts over $2,500 (those requiring some kind of documentation to be maintained). Furthermore, we recommend that contracting personnel be familiar with the specifics of the procurement policies of the District. Views of responsible officials: Management concurs with the finding. See Exhibit I for corrective action plan.
Criteria: Per 2 CFR 200.318(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: the rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Condition/context: Of the four procurement transactions subjected to testing, there were two professional service contracts that the District did not have documentation supporting the sole source procurement method. Cause: The District did not maintain proper sole source documentation for these vendors due to the unique services provided. Effect: Per 2 CFR 200.339, if a non-Federal entity fails to comply with Federal statutes, regulations or the terms and conditions of a Federal award, the Federal awarding agency or pass-through entity may impose additional conditions, as described in §200.208 Specific conditions. If the Federal awarding agency or pass-through entity determines that noncompliance cannot be remedied by imposing additional conditions, the Federal awarding agency or pass-through entity may take one or more of the following actions, as appropriate in the circumstances: (a) Temporarily withhold cash payments pending correction of the deficiency by the non-Federal entity or more severe enforcement action by the Federal awarding agency or pass-through entity. (b) Disallow (that is, deny both use of funds and any applicable matching credit for) all or part of the cost of the activity or action not in compliance. (c) Wholly or partly suspend or terminate the Federal award. (d) Initiate suspension or debarment proceedings as authorized under 2 CFR part 180 and Federal awarding agency regulations (or in the case of a pass-through entity, recommend such a proceeding be initiated by a Federal awarding agency). (e) Withhold further Federal awards for the project or program. (f) Take other remedies that may be legally available. Questioned costs: None. Identification as a repeat finding: No. Recommendation: We recommend the Procurement policy be modified to more clearly state that documentation will be maintained to identify the determination for sole-sourcing as described in 2 CFR 200.318 for all professional service contracts over $2,500 (those requiring some kind of documentation to be maintained). Furthermore, we recommend that contracting personnel be familiar with the specifics of the procurement policies of the District. Views of responsible officials: Management concurs with the finding. See Exhibit I for corrective action plan.