2023-007 – Procurement, Small Purchases (Significant Deficiency in Internal Controls over Compliance, Questioned Costs Greater than $25k) Federal Program Information Federal Award Title and ALN: Research & Development Cluster, 84.031 Federal Awarding Agency: U.S. Department of Education Federal Award ID Number: P031S210288, P031C200002 Federal Award Year: 2023 Condition: During our review of procurement testing, the College did not follow small purchase procedures and obtain quotes to ensure the vendor with the lowest price was used for one sample. Criteria: Per 2 CFR 200.303(a), the non-federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). 2 CFR 200.320(a) sets the micro-purchase threshold at $10,000 and requires purchases over the micro-purchase threshold to use small purchase procedures, whereby price or rate quotations must be obtained. Per 2 CFR 200.318(i), non-federal entities must retain documentation sufficient to detail the history of procurement decisions. Cause: The College did not obtain three quotes prior to using vendor for a purchase. Effect: The College may unintentionally use a higher-cost vendor when failing to obtain price or rate quotations for items over the micro-purchase threshold. Questioned Costs: Known and likely questioned costs of $32,607 Auditor recommendation: We recommend the College strengthen controls to ensure purchasing policies and procedures are being followed and train staff in the purchasing department to comply with all relevant federal procurement requirements.
2023-007 – Procurement, Small Purchases (Significant Deficiency in Internal Controls over Compliance, Questioned Costs Greater than $25k) Federal Program Information Federal Award Title and ALN: Research & Development Cluster, 84.031 Federal Awarding Agency: U.S. Department of Education Federal Award ID Number: P031S210288, P031C200002 Federal Award Year: 2023 Condition: During our review of procurement testing, the College did not follow small purchase procedures and obtain quotes to ensure the vendor with the lowest price was used for one sample. Criteria: Per 2 CFR 200.303(a), the non-federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). 2 CFR 200.320(a) sets the micro-purchase threshold at $10,000 and requires purchases over the micro-purchase threshold to use small purchase procedures, whereby price or rate quotations must be obtained. Per 2 CFR 200.318(i), non-federal entities must retain documentation sufficient to detail the history of procurement decisions. Cause: The College did not obtain three quotes prior to using vendor for a purchase. Effect: The College may unintentionally use a higher-cost vendor when failing to obtain price or rate quotations for items over the micro-purchase threshold. Questioned Costs: Known and likely questioned costs of $32,607 Auditor recommendation: We recommend the College strengthen controls to ensure purchasing policies and procedures are being followed and train staff in the purchasing department to comply with all relevant federal procurement requirements.
2023-007 – Procurement, Small Purchases (Significant Deficiency in Internal Controls over Compliance, Questioned Costs Greater than $25k) Federal Program Information Federal Award Title and ALN: Research & Development Cluster, 84.031 Federal Awarding Agency: U.S. Department of Education Federal Award ID Number: P031S210288, P031C200002 Federal Award Year: 2023 Condition: During our review of procurement testing, the College did not follow small purchase procedures and obtain quotes to ensure the vendor with the lowest price was used for one sample. Criteria: Per 2 CFR 200.303(a), the non-federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). 2 CFR 200.320(a) sets the micro-purchase threshold at $10,000 and requires purchases over the micro-purchase threshold to use small purchase procedures, whereby price or rate quotations must be obtained. Per 2 CFR 200.318(i), non-federal entities must retain documentation sufficient to detail the history of procurement decisions. Cause: The College did not obtain three quotes prior to using vendor for a purchase. Effect: The College may unintentionally use a higher-cost vendor when failing to obtain price or rate quotations for items over the micro-purchase threshold. Questioned Costs: Known and likely questioned costs of $32,607 Auditor recommendation: We recommend the College strengthen controls to ensure purchasing policies and procedures are being followed and train staff in the purchasing department to comply with all relevant federal procurement requirements.
2023-007 – Procurement, Small Purchases (Significant Deficiency in Internal Controls over Compliance, Questioned Costs Greater than $25k) Federal Program Information Federal Award Title and ALN: Research & Development Cluster, 84.031 Federal Awarding Agency: U.S. Department of Education Federal Award ID Number: P031S210288, P031C200002 Federal Award Year: 2023 Condition: During our review of procurement testing, the College did not follow small purchase procedures and obtain quotes to ensure the vendor with the lowest price was used for one sample. Criteria: Per 2 CFR 200.303(a), the non-federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). 2 CFR 200.320(a) sets the micro-purchase threshold at $10,000 and requires purchases over the micro-purchase threshold to use small purchase procedures, whereby price or rate quotations must be obtained. Per 2 CFR 200.318(i), non-federal entities must retain documentation sufficient to detail the history of procurement decisions. Cause: The College did not obtain three quotes prior to using vendor for a purchase. Effect: The College may unintentionally use a higher-cost vendor when failing to obtain price or rate quotations for items over the micro-purchase threshold. Questioned Costs: Known and likely questioned costs of $32,607 Auditor recommendation: We recommend the College strengthen controls to ensure purchasing policies and procedures are being followed and train staff in the purchasing department to comply with all relevant federal procurement requirements.
Information on the Federal Program Federal Program Name: Health Center Program Cluster Federal Agency: U.S. Department of Health and Human Services Federal Assistance Listing Title and Number: Affordable Care Act (ACA) Grants for New and Expanded Services Under the Health Center Program, 93.527 Criteria or Specific Requirement: Under Uniform Guidance compliance requirements for Procurement (2 CFR 200.320 (a) (1) (ii)), micro-purchases may be awarded without soliciting competitive price or rate quotations if the non-Federal entity considers the price to be reasonable based on research, experience, purchase history or other information and documents it files accordingly. Purchase cards can be used for micro-purchases if procedures are documented and approved by the non-Federal entity. Also, the Uniform Guidance compliance requirements for Procurement (Appendix II to Part 200), require that Federal agency or non-Federal entity, all contracts made by the non-Federal entity under the Federal award must contain provisions enumerated in Appendix II to Part 200 (A) to (L). Condition: The Organization entered to various professional services contracts for marketing, advertising and information dissemination that do not exceed the simplified acquisition threshold and are considered micro-purchase awards, but did not maintain appropriate documentation to document the price reasonableness based on research, experience, and purchase history to support its procurement decisions. Contracts entered into also do not include the contract provision required by Appendix II to Part 200. Questioned Costs: $0 Context: During our testing of procurement requirements, vendor contracts over the micro-purchase threshold did not have appropriate documentation to evidence the basis of vendor selection (documentation of the price reasonableness based on research, experience, and purchase history). Also, related to the vendor payments, noted that vendor contracts do not contain the provisions enumerated in Appendix II to Part 200 (A) to (L). Effect: Micro-purchases were made without appropriate documentation to comply with Uniform Guidance requirements. Also, contracts were entered into and approved without the required provision of Appendix II to Part 200 of the Uniform Guidance. Cause: The Organization does not have a comprehensive procurement policy that is in line with Uniform Guidance requirements. Adequate supporting documentation on the procurements were not obtained or maintained within vendor files and vendor contracts do not contain the necessary contract provision and language required by the Uniform Guidance. Repeat Finding: No Recommendation: We recommend the Organization revisit controls over this compliance requirement to ensure that appropriate documentation is gathered and retained within its procurement files to support all Federally funded purchasing decisions. We also recommend the Organization perform a comprehensive review of its procurement policy and ensure that it is in compliance and in-line with the procurement requirements of the Uniform Guidance. Views of responsible officials and planned corrective actions: The Organization will develop a policy and checklist to maintain written documentation of vendor selection and procurement process, along with the review and approval process required under the Uniform Guidance requirements.
Criteria or specific requirement (including statutory, regulatory, or other citation): Procurement. The District should follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. Condition: The District did not follow the small purchase method for procurement that is required for purchases made between $10,000 and $250,000. This method requires that price or rate quotations must be obtained from an adequate number of qualified sources (2 CFR section 200.320(b). Questioned Costs: None. Context: There was only one purchase over $10,000 made with these grants funds during the fiscal year and the required procurement method was not followed. Effect: The District did not comply with the required procurement standard. Cause: This purchase had to be made quickly so the District used their perferred vendor. Recommendation: We recommend that care is taken to ensure that all the procurement requirements are followed based on the amount of the purchase being made with the federal funds. Management's response: We will follow the procurement standard when not in urgent situations for the product or service we are seeking.
Condition: During the audit, we noted that a procurement policy meeting the minimum requirements under 2 CFR 200.320 was not in place at the Organization. Criteria: The Organization should have and use documented procurement procedures, consistent with the standards for any method of procurement used for the acquisition of property or services required under a Federal or sub-award. Cause: The Organization received a new grant in 2021 and was therefore required to have a procurement policy in place meeting the minimum standards under 2 CFR 200.320. The Organization was unaware of the requirement and did not implement a policy. Effect: Due to the condition above noted, the Organization did not follow procurement standards under 2 CFR 200.320 when acquiring services. However, most costs associated with the major program did not require the acquisition of outside services. Recommendation: The Organization should implement a procurement policy that meets the standards requirement under CFR 200.320 and ensure that all relevant personnel are aware of and follow the requirements in place.
2023-003 Procurement; Federal Agency: Department of Health and Human Services; Program: Social Services Research and Demonstration (ALN 93.647); Pass-through Entity: N/A; Federal Assistance Identification Number or Pass-Through Numbers: N/A; Federal Award Years: Year ended June 30, 2023; Type of Finding: Material Weakness in Internal Control over Compliance; Other Matter Compliance Finding; Criteria: 2 CFR 200.303(a) requires that each non-Federal entity must "Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award." 2 CFR 200.320 requires that each non-Federal entity must "have and use documented procurement procedures, consistent with the standards of this section and §§ 200.317, 200.318, and 200.319 for any of the following methods of procurement used for the acquisition of property or services required under a Federal award or sub-award." Condition: While testing the procurement requirement, we were able to test compensating controls, but noted that internal controls were not properly designed over the procurement requirement. Prior to receiving federal funding beginning in August 2022, the program conducted a request for proposal (RFP) process and began contracting with a vendor. When federal funding was obtained, the vendor was not reevaluated in accordance with the Uniform Guidance to ensure the procurement requirements were being met. In addition, we noted UW Health – Madison’s procurement policy documents do not include all of the information that is required by the Uniform Guidance. Cause: Because the vendor was already in place for the program prior to receiving federal funds, management did not recognize the need to reevaluate the vendor under the requirements of the Uniform Guidance. In addition, management also did not recognize the need to include additional information in its procurement policy documents related to the Uniform Guidance. Effect: Without appropriate internal controls, there is an increased risk of noncompliance related to federal funding. Context: We identified and tested one vendor that was direct and material to the program and related to the procurement and suspension and debarment requirements. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits.Questioned Costs: None. Repeat Finding?: No; Recommendation: While it was determined that the requirements of the Uniform Guidance were met related to the vendor tested, we suggest that management reevaluate all vendors that were previously used prior to receiving federal funding. In addition, we recommend that management update its procurement policies to incorporate the requirements of the Uniform Guidance. View of responsible officials of the auditee: Management agrees with the finding. See corrective action plan.
Criteria: The Uniform Guidance requires that non-federal entities must have and use documented procurement procedures consistent with laws and regulations and the standards for the acquisition of property or services under a federal award or subaward in accordance with 2 CFR 200.318. Additionally, the non-federal entity is required to follow formal procurement methods when the value of the procurement for property or service under a federal financial assistance award exceeds the simplified acquisition threshold in accordance with 2 CFR 200.320. Furthermore, the District must adhere to the Pennsylvania Public School Code 24 P.S. 1-10, 7-751 and 8-807.1 when procuring goods and services to remain in compliance with commonwealth procurement requirements. Condition: The District did not follow the appropriate procedures to comply with the procurement requirements as established by Uniform Guidance and Pennsylvania Public School Code. Cause and Effect: The District has utilized a vendor to purchase online learning products without obtaining formal bids and therefore didn’t following the Districts procurement policy and ultimately did not comply with the standard of the Uniform Guidance and Pennsylvania Public School Code. Questioned Cost: None Context: During testing, it was noted that the District had purchased online learning products from a vendor without following its procurement policy. This was an isolated instance within the scope of the tested population. Identification of Repeat Finding: No Recommendation: We recommend that the District ensure it complies with its written procurement policy. The District should document its process and how it complies with the procurement standards. Views of Responsible Officials: The District will establish processes to ensure that the procurement policy is followed when applicable and necessary.
Criteria: The Uniform Guidance requires that non-federal entities must have and use documented procurement procedures consistent with laws and regulations and the standards for the acquisition of property or services under a federal award or subaward in accordance with 2 CFR 200.318. Additionally, the non-federal entity is required to follow formal procurement methods when the value of the procurement for property or service under a federal financial assistance award exceeds the simplified acquisition threshold in accordance with 2 CFR 200.320. Furthermore, the District must adhere to the Pennsylvania Public School Code 24 P.S. 1-10, 7-751 and 8-807.1 when procuring goods and services to remain in compliance with commonwealth procurement requirements. Condition: The District did not follow the appropriate procedures to comply with the procurement requirements as established by Uniform Guidance and Pennsylvania Public School Code. Cause and Effect: The District has utilized a vendor to purchase online learning products without obtaining formal bids and therefore didn’t following the Districts procurement policy and ultimately did not comply with the standard of the Uniform Guidance and Pennsylvania Public School Code. Questioned Cost: None Context: During testing, it was noted that the District had purchased online learning products from a vendor without following its procurement policy. This was an isolated instance within the scope of the tested population. Identification of Repeat Finding: No Recommendation: We recommend that the District ensure it complies with its written procurement policy. The District should document its process and how it complies with the procurement standards. Views of Responsible Officials: The District will establish processes to ensure that the procurement policy is followed when applicable and necessary.
Criteria: The Uniform Guidance requires that non-federal entities must have and use documented procurement procedures consistent with laws and regulations and the standards for the acquisition of property or services under a federal award or subaward in accordance with 2 CFR 200.318. Additionally, the non-federal entity is required to follow formal procurement methods when the value of the procurement for property or service under a federal financial assistance award exceeds the simplified acquisition threshold in accordance with 2 CFR 200.320. Furthermore, the District must adhere to the Pennsylvania Public School Code 24 P.S. 1-10, 7-751 and 8-807.1 when procuring goods and services to remain in compliance with commonwealth procurement requirements. Condition: The District did not follow the appropriate procedures to comply with the procurement requirements as established by Uniform Guidance and Pennsylvania Public School Code. Cause and Effect: The District has utilized a vendor to purchase online learning products without obtaining formal bids and therefore didn’t following the Districts procurement policy and ultimately did not comply with the standard of the Uniform Guidance and Pennsylvania Public School Code. Questioned Cost: None Context: During testing, it was noted that the District had purchased online learning products from a vendor without following its procurement policy. This was an isolated instance within the scope of the tested population. Identification of Repeat Finding: No Recommendation: We recommend that the District ensure it complies with its written procurement policy. The District should document its process and how it complies with the procurement standards. Views of Responsible Officials: The District will establish processes to ensure that the procurement policy is followed when applicable and necessary.
Criteria: The Uniform Guidance requires that non-federal entities must have and use documented procurement procedures consistent with laws and regulations and the standards for the acquisition of property or services under a federal award or subaward in accordance with 2 CFR 200.318. Additionally, the non-federal entity is required to follow formal procurement methods when the value of the procurement for property or service under a federal financial assistance award exceeds the simplified acquisition threshold in accordance with 2 CFR 200.320. Furthermore, the District must adhere to the Pennsylvania Public School Code 24 P.S. 1-10, 7-751 and 8-807.1 when procuring goods and services to remain in compliance with commonwealth procurement requirements. Condition: The District did not follow the appropriate procedures to comply with the procurement requirements as established by Uniform Guidance and Pennsylvania Public School Code. Cause and Effect: The District has utilized a vendor to purchase online learning products without obtaining formal bids and therefore didn’t following the Districts procurement policy and ultimately did not comply with the standard of the Uniform Guidance and Pennsylvania Public School Code. Questioned Cost: None Context: During testing, it was noted that the District had purchased online learning products from a vendor without following its procurement policy. This was an isolated instance within the scope of the tested population. Identification of Repeat Finding: No Recommendation: We recommend that the District ensure it complies with its written procurement policy. The District should document its process and how it complies with the procurement standards. Views of Responsible Officials: The District will establish processes to ensure that the procurement policy is followed when applicable and necessary.
Criteria: The Uniform Guidance requires that non-federal entities must have and use documented procurement procedures consistent with laws and regulations and the standards for the acquisition of property or services under a federal award or subaward in accordance with 2 CFR 200.318. Additionally, the non-federal entity is required to follow formal procurement methods when the value of the procurement for property or service under a federal financial assistance award exceeds the simplified acquisition threshold in accordance with 2 CFR 200.320. Furthermore, the District must adhere to the Pennsylvania Public School Code 24 P.S. 1-10, 7-751 and 8-807.1 when procuring goods and services to remain in compliance with commonwealth procurement requirements. Condition: The District did not follow the appropriate procedures to comply with the procurement requirements as established by Uniform Guidance and Pennsylvania Public School Code. Cause and Effect: The District has utilized a vendor to purchase online learning products without obtaining formal bids and therefore didn’t following the Districts procurement policy and ultimately did not comply with the standard of the Uniform Guidance and Pennsylvania Public School Code. Questioned Cost: None Context: During testing, it was noted that the District had purchased online learning products from a vendor without following its procurement policy. This was an isolated instance within the scope of the tested population. Identification of Repeat Finding: No Recommendation: We recommend that the District ensure it complies with its written procurement policy. The District should document its process and how it complies with the procurement standards. Views of Responsible Officials: The District will establish processes to ensure that the procurement policy is followed when applicable and necessary.
Department of Education COVID-19 Higher Education Emergency Relief Fund (HEERF) – Assistance Listing #84.425E, #84.425F #2023-002 – Major Federal Award Finding – Procurement and Suspension and Debarment Material Weakness in Internal Controls over Compliance This is a repeat of prior year finding #2022-002. Conditions: We noted during testing of procurement for the HEERF program (Institutional Aid) that the University’s procurement policy was not being followed. Competitive bids were not obtained for projects over the simplified acquisition threshold. Criteria: Federal regulations 2 CFR Section 200.317- 200.326 provide that the University must have and use documented procurement procedures and follow written standards that promote full and open vendor competition. Methods included in written standards covering the acquisition of property or services under a Federal award or sub-award must be consistent with specific thresholds as set forth in CFR 200.320. There are five allowable procurement methods described in §200.320, depending upon the dollar value of the purchase or contract. Cause/Context: We tested two transactions over the micro purchase threshold. These transactions were subject to the procurement processes required by the Uniform Guidance as it relates to price quotations. We tested two transactions for a vendor over the simplified acquisition threshold. These transactions were not subject to the procurement processes required by the Uniform Guidance as it relates to price quotations and/or competitive bids. Recommendation: Management should review the University’s procurement policy and update appropriately to reference Uniform Guidance and specific purchasing thresholds. The University should ensure that it follows the requirements outlined in its procurement policy in accordance with the Uniform Guidance. Views of Responsible Officials and Planned Corrective Actions: The University agrees with the recommendations put forth by the auditors. The University will review its current procurement policy to include federal regulations 2 CFR Section 200.317-200.326. Proper oversight will be provided over the procurement process. See also attached Corrective Action Plan.
Department of Education COVID-19 Higher Education Emergency Relief Fund (HEERF) – Assistance Listing #84.425E, #84.425F #2023-002 – Major Federal Award Finding – Procurement and Suspension and Debarment Material Weakness in Internal Controls over Compliance This is a repeat of prior year finding #2022-002. Conditions: We noted during testing of procurement for the HEERF program (Institutional Aid) that the University’s procurement policy was not being followed. Competitive bids were not obtained for projects over the simplified acquisition threshold. Criteria: Federal regulations 2 CFR Section 200.317- 200.326 provide that the University must have and use documented procurement procedures and follow written standards that promote full and open vendor competition. Methods included in written standards covering the acquisition of property or services under a Federal award or sub-award must be consistent with specific thresholds as set forth in CFR 200.320. There are five allowable procurement methods described in §200.320, depending upon the dollar value of the purchase or contract. Cause/Context: We tested two transactions over the micro purchase threshold. These transactions were subject to the procurement processes required by the Uniform Guidance as it relates to price quotations. We tested two transactions for a vendor over the simplified acquisition threshold. These transactions were not subject to the procurement processes required by the Uniform Guidance as it relates to price quotations and/or competitive bids. Recommendation: Management should review the University’s procurement policy and update appropriately to reference Uniform Guidance and specific purchasing thresholds. The University should ensure that it follows the requirements outlined in its procurement policy in accordance with the Uniform Guidance. Views of Responsible Officials and Planned Corrective Actions: The University agrees with the recommendations put forth by the auditors. The University will review its current procurement policy to include federal regulations 2 CFR Section 200.317-200.326. Proper oversight will be provided over the procurement process. See also attached Corrective Action Plan.
Finding 2023-003 Material weakness in internal control over compliance with procurement procedures meeting the requirements of 2 CFR Part 200. Federal Agency: United States Department of State Program Titles: Office of Global Women’s Issues Assistance Listing Number: 19.801 Pass-Through Entity: N/A Award Numbers: SLMAQM21CA3275 Award Periods: September 30, 2021 through September 30, 2025 Criteria Internal controls requirements contained in Title 2 U.S. Code of Federal Regulations Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (the Uniform Guidance) , Subpart D ‐ Post Federal Award Requirements, Section 200.318 through 200.326 Internal Controls, require that a non‐Federal entity use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirement identified in 2 CFR Part 200. A nonfederal entity among others must: - Use the micro-purchase and small purchase methods only for procurements that meet the applicable criteria under 2 CFR sections 200.320(a) (1) and (2). Under the micro-purchase method, the aggregate dollar amount does not exceed $10,000 ($2,000 in the case of acquisition for construction subject to the Wage Rate Requirements (Davis-Bacon Act)). Small purchase procedures are used for purchases that exceed the micro-purchase amount but do not exceed the simplified acquisition threshold ($250,000). Micro-purchases may be awarded without soliciting competitive quotations if the non-federal entity considers the price to be reasonable (2 CFR section 200.320(a)). If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources (2 CFR section 200.320(b)). - For acquisitions exceeding the simplified acquisition threshold, the non-federal entity must use one of the following procurement methods: the sealed bid method if the acquisition meets the criteria in 2 CFR section 200.320(b); the competitive proposals method under the conditions specified in 2 CFR section 200.320((b) (2); or the noncompetitive proposals method (i.e., solicit a proposal from only one source) but only when one or more of four circumstances are met, in accordance with 2 CFR section 200.320(c)). Condition/Context Although the Organization has a procurement policy, and the procedures include the use of a micro purchase threshold of $3,500, small purchases and simplified acquisition thresholds are not clearly identified. As such, the policy does not fully incorporate the procurement standards of the Uniform Guidance including sealed bids, cost or price analysis etc. Cause The Organization's management was not aware that all components including procurement methods of 2 CFR section 200.320 are required to be included in the Organization's procurement policy even if the Organization's procurements would not typically include all procurement methods. Effect The Organization did not ensure that its procurement policy follows the procurement standards set out at 2 CFR Part 200. Questioned Costs Not determinable. Repeat Finding No. Recommendation We recommend the Organization implement measures to ensure that its procurement policy reflect applicable state and local laws and regulations and conform to applicable federal statutes and requirements in 2 CFR Part 200. Views of Responsible Individual and Corrective Action Plan Management agrees with the finding and has provided the accompanying corrective action plan.
Federal Agency: U.S. Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.CNC Pass-Through Agency: Wisconsin Department of Public Institution Pass-Through Numbers: 2023-135901-SB-546; 2023-135901-NSL-547; 2023-135901-DPI-SK_NSL-561 Award Period: 07/01/2022 – 06/30/2023 Compliance Requirement Affected: Procurement and Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Matter Criteria or Specific Requirement: 2 CFR 200.320 Methods of Procurement outlines various purchasing methods thresholds and requirements including, but not limited to, guidance with regards to when a non-federal entity is required to obtain rate quotations and sealed bids. Additionally, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: The District did not have a procurement or suspension and debarment policy that met the requirements of the Uniform Guidance at the time the transactions took place. Context: During our testing of procurement transactions of the program we noted that the District is not following federal procurement requirements, as it relates to conflict of interest. In addition, during our testing of suspension and debarment, we noted that the District is not following federal suspension and debarment requirements nor does the currently policy include procedures relating to suspension and debarment. Cause: The District has not implemented procurement or suspension and debarment policies that meet the requirements of the Uniform Guidance. Effect: Implementing and consistently following procurement policies that meet the requirements of Uniform Guidance are required and are designed to ensure fiscal responsibility, objective contractor performance and elimination of unfair completive advantage while spending federal funds. Additionally, not verifying that an entity is debarred or suspended could result in entering into covered transactions with debarred or suspended vendors. Recommendation: We recommend the District review and update the procurement and suspension and debarment policies. We also recommend that the District ensure that approved policies that meet federal requirements are consistently followed. Views of Responsible Officials and Planned Corrective Action: There is no disagreement with the finding. Management has reviewed and updated the procurement and suspension and debarment policy to be in compliance with Uniform Guidance.
Federal Agency: U.S. Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.CNC Pass-Through Agency: Wisconsin Department of Public Institution Pass-Through Numbers: 2023-135901-SB-546; 2023-135901-NSL-547; 2023-135901-DPI-SK_NSL-561 Award Period: 07/01/2022 – 06/30/2023 Compliance Requirement Affected: Procurement and Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Matter Criteria or Specific Requirement: 2 CFR 200.320 Methods of Procurement outlines various purchasing methods thresholds and requirements including, but not limited to, guidance with regards to when a non-federal entity is required to obtain rate quotations and sealed bids. Additionally, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: The District did not have a procurement or suspension and debarment policy that met the requirements of the Uniform Guidance at the time the transactions took place. Context: During our testing of procurement transactions of the program we noted that the District is not following federal procurement requirements, as it relates to conflict of interest. In addition, during our testing of suspension and debarment, we noted that the District is not following federal suspension and debarment requirements nor does the currently policy include procedures relating to suspension and debarment. Cause: The District has not implemented procurement or suspension and debarment policies that meet the requirements of the Uniform Guidance. Effect: Implementing and consistently following procurement policies that meet the requirements of Uniform Guidance are required and are designed to ensure fiscal responsibility, objective contractor performance and elimination of unfair completive advantage while spending federal funds. Additionally, not verifying that an entity is debarred or suspended could result in entering into covered transactions with debarred or suspended vendors. Recommendation: We recommend the District review and update the procurement and suspension and debarment policies. We also recommend that the District ensure that approved policies that meet federal requirements are consistently followed. Views of Responsible Officials and Planned Corrective Action: There is no disagreement with the finding. Management has reviewed and updated the procurement and suspension and debarment policy to be in compliance with Uniform Guidance.
Federal Agency: U.S. Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.CNC Pass-Through Agency: Wisconsin Department of Public Institution Pass-Through Numbers: 2023-135901-SB-546; 2023-135901-NSL-547; 2023-135901-DPI-SK_NSL-561 Award Period: 07/01/2022 – 06/30/2023 Compliance Requirement Affected: Procurement and Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Matter Criteria or Specific Requirement: 2 CFR 200.320 Methods of Procurement outlines various purchasing methods thresholds and requirements including, but not limited to, guidance with regards to when a non-federal entity is required to obtain rate quotations and sealed bids. Additionally, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: The District did not have a procurement or suspension and debarment policy that met the requirements of the Uniform Guidance at the time the transactions took place. Context: During our testing of procurement transactions of the program we noted that the District is not following federal procurement requirements, as it relates to conflict of interest. In addition, during our testing of suspension and debarment, we noted that the District is not following federal suspension and debarment requirements nor does the currently policy include procedures relating to suspension and debarment. Cause: The District has not implemented procurement or suspension and debarment policies that meet the requirements of the Uniform Guidance. Effect: Implementing and consistently following procurement policies that meet the requirements of Uniform Guidance are required and are designed to ensure fiscal responsibility, objective contractor performance and elimination of unfair completive advantage while spending federal funds. Additionally, not verifying that an entity is debarred or suspended could result in entering into covered transactions with debarred or suspended vendors. Recommendation: We recommend the District review and update the procurement and suspension and debarment policies. We also recommend that the District ensure that approved policies that meet federal requirements are consistently followed. Views of Responsible Officials and Planned Corrective Action: There is no disagreement with the finding. Management has reviewed and updated the procurement and suspension and debarment policy to be in compliance with Uniform Guidance.
Federal Agency: U.S. Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.CNC Pass-Through Agency: Wisconsin Department of Public Institution Pass-Through Numbers: 2023-135901-SB-546; 2023-135901-NSL-547; 2023-135901-DPI-SK_NSL-561 Award Period: 07/01/2022 – 06/30/2023 Compliance Requirement Affected: Procurement and Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Matter Criteria or Specific Requirement: 2 CFR 200.320 Methods of Procurement outlines various purchasing methods thresholds and requirements including, but not limited to, guidance with regards to when a non-federal entity is required to obtain rate quotations and sealed bids. Additionally, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: The District did not have a procurement or suspension and debarment policy that met the requirements of the Uniform Guidance at the time the transactions took place. Context: During our testing of procurement transactions of the program we noted that the District is not following federal procurement requirements, as it relates to conflict of interest. In addition, during our testing of suspension and debarment, we noted that the District is not following federal suspension and debarment requirements nor does the currently policy include procedures relating to suspension and debarment. Cause: The District has not implemented procurement or suspension and debarment policies that meet the requirements of the Uniform Guidance. Effect: Implementing and consistently following procurement policies that meet the requirements of Uniform Guidance are required and are designed to ensure fiscal responsibility, objective contractor performance and elimination of unfair completive advantage while spending federal funds. Additionally, not verifying that an entity is debarred or suspended could result in entering into covered transactions with debarred or suspended vendors. Recommendation: We recommend the District review and update the procurement and suspension and debarment policies. We also recommend that the District ensure that approved policies that meet federal requirements are consistently followed. Views of Responsible Officials and Planned Corrective Action: There is no disagreement with the finding. Management has reviewed and updated the procurement and suspension and debarment policy to be in compliance with Uniform Guidance.
Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2023-591029-DPI-NSL-547 Award Period: 07/01/2022 – 06/30/2023 Type of Finding: Material Weakness in Internal Control Over Compliance and Other Matter Criteria or Specific Requirement: 2 CFR 200.320 Methods of Procurement state that if the small purchases method is used, price or rate quotations must be obtained from an adequate number of qualified sources (at least 2). Requests for proposals must be publicized and identify all evaluation factors and their relative importance. Proposals must be solicited from an adequate number of qualified offerors. Any response to publicized requests for proposals must be considered to the maximum extent practical. Additionally, when a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. Condition: During our testing of procurement transactions of the program we noted that the District was not consistently following the procurement policy, specifically requirements related to small purchases. Small purchases were not supported by an adequate number of quotes (at least two) or proposals to ensure the District is prudent with the monies used towards the program. In addition, during our testing of suspension and debarment, we identified two vendor contracts that were entered into that did not include language related to suspension and debarment. Questioned Costs: None Context: During our testing of procurement transactions of the program we noted that the small purchases were not supported by an adequate number of quotes (at least two) to ensure the District is prudent with the monies used towards the program. In our sample of five procurement transactions subject to small purchase requirements we noted that the District did not retain documentation of an adequate number of price quotes for two vendors selected for testing. Additionally, in our sample of two suspension and debarment transactions, the District did not verify that either vendor was not suspended or debarred before entering into the transaction. Cause: The District did not follow their Federal Funds Procurement Policy and District controls did not properly document procurement, suspension and debarment requirements in accordance with Uniform Guidance. Effect: Obtaining price quotes and proposals from an adequate number of vendors allows the District to use federal funds in the most fiscally responsible way. The lack of price quotes or proposals may cause the District to overpay for supplies or services. The lack of documentation related to suspension and debarment could result in the District doing business with a suspended or debarred vendor.Recommendation: We recommend the District review their policies and procedures related to Uniform Guidance and the District’s Federal Funds Procurement Policy. We also recommend the District evaluate current procedures and controls, including segregation of duties, to ensure that policies are consistently followed and properly documented in accordance with District policies. View of Responsible Officials: There is no disagreement with the finding.
Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2023-591029-DPI-NSL-547 Award Period: 07/01/2022 – 06/30/2023 Type of Finding: Material Weakness in Internal Control Over Compliance and Other Matter Criteria or Specific Requirement: 2 CFR 200.320 Methods of Procurement state that if the small purchases method is used, price or rate quotations must be obtained from an adequate number of qualified sources (at least 2). Requests for proposals must be publicized and identify all evaluation factors and their relative importance. Proposals must be solicited from an adequate number of qualified offerors. Any response to publicized requests for proposals must be considered to the maximum extent practical. Additionally, when a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. Condition: During our testing of procurement transactions of the program we noted that the District was not consistently following the procurement policy, specifically requirements related to small purchases. Small purchases were not supported by an adequate number of quotes (at least two) or proposals to ensure the District is prudent with the monies used towards the program. In addition, during our testing of suspension and debarment, we identified two vendor contracts that were entered into that did not include language related to suspension and debarment. Questioned Costs: None Context: During our testing of procurement transactions of the program we noted that the small purchases were not supported by an adequate number of quotes (at least two) to ensure the District is prudent with the monies used towards the program. In our sample of five procurement transactions subject to small purchase requirements we noted that the District did not retain documentation of an adequate number of price quotes for two vendors selected for testing. Additionally, in our sample of two suspension and debarment transactions, the District did not verify that either vendor was not suspended or debarred before entering into the transaction. Cause: The District did not follow their Federal Funds Procurement Policy and District controls did not properly document procurement, suspension and debarment requirements in accordance with Uniform Guidance. Effect: Obtaining price quotes and proposals from an adequate number of vendors allows the District to use federal funds in the most fiscally responsible way. The lack of price quotes or proposals may cause the District to overpay for supplies or services. The lack of documentation related to suspension and debarment could result in the District doing business with a suspended or debarred vendor.Recommendation: We recommend the District review their policies and procedures related to Uniform Guidance and the District’s Federal Funds Procurement Policy. We also recommend the District evaluate current procedures and controls, including segregation of duties, to ensure that policies are consistently followed and properly documented in accordance with District policies. View of Responsible Officials: There is no disagreement with the finding.
Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2023-155130-SB-546; 2023-155130-NSL-547 Award Period: 07/01/2022 – 06/30/2023 Compliance Requirement Affected: Procurement Type of Finding Significant deficiency in internal control over compliance Criteria 2 CFR 200.320 Methods of Procurement state that if the small purchases method is used, price or rate quotations must be obtained from an adequate number of qualified sources (at least 2) and that the procurement is vendor aggregate, not single item. Proposals must be solicited from an adequate number of qualified offerors. Condition During our testing of procurement transactions of the program we noted that 2 of 3 vendors selected were not supported by any price or rate quotations to ensure the District is prudent with the monies used towards the program. Questioned Costs None. Context The District's procurement did not conform to Uniform Guidance for 2 of 3 vendors tested in our sample. Cause The District did not follow Federal Funds Procurement policy. Effect Obtaining price or rate quotations from an adequate number of vendors allows the District to use federal funds in the most fiscally responsible way. The lack of quotes and proposals may cause the District to over pay for supplies or services. Repeat Finding Yes – 2022-005Recommendation We recommend the District review procurement policies and establish a procurement process in order to ensure this policy is being followed. Views of Responsible Officials There is no disagreement with the audit finding.
Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2023-155130-SB-546; 2023-155130-NSL-547 Award Period: 07/01/2022 – 06/30/2023 Compliance Requirement Affected: Procurement Type of Finding Significant deficiency in internal control over compliance Criteria 2 CFR 200.320 Methods of Procurement state that if the small purchases method is used, price or rate quotations must be obtained from an adequate number of qualified sources (at least 2) and that the procurement is vendor aggregate, not single item. Proposals must be solicited from an adequate number of qualified offerors. Condition During our testing of procurement transactions of the program we noted that 2 of 3 vendors selected were not supported by any price or rate quotations to ensure the District is prudent with the monies used towards the program. Questioned Costs None. Context The District's procurement did not conform to Uniform Guidance for 2 of 3 vendors tested in our sample. Cause The District did not follow Federal Funds Procurement policy. Effect Obtaining price or rate quotations from an adequate number of vendors allows the District to use federal funds in the most fiscally responsible way. The lack of quotes and proposals may cause the District to over pay for supplies or services. Repeat Finding Yes – 2022-005Recommendation We recommend the District review procurement policies and establish a procurement process in order to ensure this policy is being followed. Views of Responsible Officials There is no disagreement with the audit finding.
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.
Information on Federal Programs U.S. Department of Energy - Weatherization Assistance for Low-Income Persons (passed through the North Dakota Division of Community Services, Award # 5073-DOE22-30) AL# 81.042 Criteria – Section 2 CFR sections 200.320(a) and (b) of the Uniform Guidance requires that the auditee following specific guidelines for selection of vendors in excess of the micro-purchase threshold which includes maintaining documentation related to their rationale for selections and agreement for goods and services to be provided. Condition – For the year ended June 30, 2023, we requested the entities documentation supporting rationale for a selection of vendors and signed contracts for expenditures in excess of the micro-purchase threshold. In a sample of 11 vendors selected for testing, one vendor did not have proper documentation rationale for selection and a signed contract. Cause – Internal controls are not designed to allow for the appropriate retention of documentation to support that appropriate procurement standards have been met. Effect or Potential Effect – Federal expenditures may be paid to vendors that are not in compliance with procurement standards under Uniform Guidance. Questioned Costs – Undeterminable Context – The vendor selected for testing was a long-standing relationship and while appropriate documentation may have been obtained at the start of the agreement, it was not maintained for the year under audit. Repeat Finding – This is a new finding. Recommendation – The entity should review their list of vendors to determine which fall under the Procurement, Suspension and Debarment standards and obtain any additional missing support or contracts to establish compliance.
2023-002 - Procurement, Suspension, and Debarment - Contract Bidding Finding Type. Immaterial noncompliance; Significant deficiency in internal control over compliance (Procurement, Suspension, and Debarment) Federal program(s) U.S. Department of Agriculture - Child Nutrition Cluster (ALN 10.553, 10.555, and 10.559); Passed through Michigan Department of Education; All project numbers. Criteria. Recipients of federal awards are required to ensure that federal procurement standards are followed for any purchases over the federal micropurchase threshold. For small purchases (aggregate dollar acquisitions higher than the micropurchase threshold but lower than the simplified acquisition threshold), 2 CFR 200.320 requires recipients to obtain price or rate quotations from an adequate number of qualified sources. Condition. The District did not obtain price or rate quotations for the purchase of services for one vendor that met the small purchase threshold. Cause. This condition was the result of an inaccurate understanding of procurement requirements by management. Effect. As a result of this condition, the District paid a vendor with federal funding that was not procured in accordance with federal regulations. Questioned Costs. $25,336 of expenditures were questioned as a result of this finding. Recommendation. We recommend that the District update its procedures to ensure that all services are appropriately procured in accordance with federal and state requirements. View of Responsible Officials. Management concurs with finding. The District will only allocate costs to the food service program that have been properly bid out and obtain quotes for all services in excess of the Federal micropurchase threshold. Responsible Official. Director of Business and Finance
2023-002 - Procurement, Suspension, and Debarment - Contract Bidding Finding Type. Immaterial noncompliance; Significant deficiency in internal control over compliance (Procurement, Suspension, and Debarment) Federal program(s) U.S. Department of Agriculture - Child Nutrition Cluster (ALN 10.553, 10.555, and 10.559); Passed through Michigan Department of Education; All project numbers. Criteria. Recipients of federal awards are required to ensure that federal procurement standards are followed for any purchases over the federal micropurchase threshold. For small purchases (aggregate dollar acquisitions higher than the micropurchase threshold but lower than the simplified acquisition threshold), 2 CFR 200.320 requires recipients to obtain price or rate quotations from an adequate number of qualified sources. Condition. The District did not obtain price or rate quotations for the purchase of services for one vendor that met the small purchase threshold. Cause. This condition was the result of an inaccurate understanding of procurement requirements by management. Effect. As a result of this condition, the District paid a vendor with federal funding that was not procured in accordance with federal regulations. Questioned Costs. $25,336 of expenditures were questioned as a result of this finding. Recommendation. We recommend that the District update its procedures to ensure that all services are appropriately procured in accordance with federal and state requirements. View of Responsible Officials. Management concurs with finding. The District will only allocate costs to the food service program that have been properly bid out and obtain quotes for all services in excess of the Federal micropurchase threshold. Responsible Official. Director of Business and Finance
2023-002 - Procurement, Suspension, and Debarment - Contract Bidding Finding Type. Immaterial noncompliance; Significant deficiency in internal control over compliance (Procurement, Suspension, and Debarment) Federal program(s) U.S. Department of Agriculture - Child Nutrition Cluster (ALN 10.553, 10.555, and 10.559); Passed through Michigan Department of Education; All project numbers. Criteria. Recipients of federal awards are required to ensure that federal procurement standards are followed for any purchases over the federal micropurchase threshold. For small purchases (aggregate dollar acquisitions higher than the micropurchase threshold but lower than the simplified acquisition threshold), 2 CFR 200.320 requires recipients to obtain price or rate quotations from an adequate number of qualified sources. Condition. The District did not obtain price or rate quotations for the purchase of services for one vendor that met the small purchase threshold. Cause. This condition was the result of an inaccurate understanding of procurement requirements by management. Effect. As a result of this condition, the District paid a vendor with federal funding that was not procured in accordance with federal regulations. Questioned Costs. $25,336 of expenditures were questioned as a result of this finding. Recommendation. We recommend that the District update its procedures to ensure that all services are appropriately procured in accordance with federal and state requirements. View of Responsible Officials. Management concurs with finding. The District will only allocate costs to the food service program that have been properly bid out and obtain quotes for all services in excess of the Federal micropurchase threshold. Responsible Official. Director of Business and Finance
2023-002 - Procurement, Suspension, and Debarment - Contract Bidding Finding Type. Immaterial noncompliance; Significant deficiency in internal control over compliance (Procurement, Suspension, and Debarment) Federal program(s) U.S. Department of Agriculture - Child Nutrition Cluster (ALN 10.553, 10.555, and 10.559); Passed through Michigan Department of Education; All project numbers. Criteria. Recipients of federal awards are required to ensure that federal procurement standards are followed for any purchases over the federal micropurchase threshold. For small purchases (aggregate dollar acquisitions higher than the micropurchase threshold but lower than the simplified acquisition threshold), 2 CFR 200.320 requires recipients to obtain price or rate quotations from an adequate number of qualified sources. Condition. The District did not obtain price or rate quotations for the purchase of services for one vendor that met the small purchase threshold. Cause. This condition was the result of an inaccurate understanding of procurement requirements by management. Effect. As a result of this condition, the District paid a vendor with federal funding that was not procured in accordance with federal regulations. Questioned Costs. $25,336 of expenditures were questioned as a result of this finding. Recommendation. We recommend that the District update its procedures to ensure that all services are appropriately procured in accordance with federal and state requirements. View of Responsible Officials. Management concurs with finding. The District will only allocate costs to the food service program that have been properly bid out and obtain quotes for all services in excess of the Federal micropurchase threshold. Responsible Official. Director of Business and Finance
2023-002 - Procurement, Suspension, and Debarment - Contract Bidding Finding Type. Immaterial noncompliance; Significant deficiency in internal control over compliance (Procurement, Suspension, and Debarment) Federal program(s) U.S. Department of Agriculture - Child Nutrition Cluster (ALN 10.553, 10.555, and 10.559); Passed through Michigan Department of Education; All project numbers. Criteria. Recipients of federal awards are required to ensure that federal procurement standards are followed for any purchases over the federal micropurchase threshold. For small purchases (aggregate dollar acquisitions higher than the micropurchase threshold but lower than the simplified acquisition threshold), 2 CFR 200.320 requires recipients to obtain price or rate quotations from an adequate number of qualified sources. Condition. The District did not obtain price or rate quotations for the purchase of services for one vendor that met the small purchase threshold. Cause. This condition was the result of an inaccurate understanding of procurement requirements by management. Effect. As a result of this condition, the District paid a vendor with federal funding that was not procured in accordance with federal regulations. Questioned Costs. $25,336 of expenditures were questioned as a result of this finding. Recommendation. We recommend that the District update its procedures to ensure that all services are appropriately procured in accordance with federal and state requirements. View of Responsible Officials. Management concurs with finding. The District will only allocate costs to the food service program that have been properly bid out and obtain quotes for all services in excess of the Federal micropurchase threshold. Responsible Official. Director of Business and Finance
2023-002 - Procurement, Suspension, and Debarment - Contract Bidding Finding Type. Immaterial noncompliance; Significant deficiency in internal control over compliance (Procurement, Suspension, and Debarment) Federal program(s) U.S. Department of Agriculture - Child Nutrition Cluster (ALN 10.553, 10.555, and 10.559); Passed through Michigan Department of Education; All project numbers. Criteria. Recipients of federal awards are required to ensure that federal procurement standards are followed for any purchases over the federal micropurchase threshold. For small purchases (aggregate dollar acquisitions higher than the micropurchase threshold but lower than the simplified acquisition threshold), 2 CFR 200.320 requires recipients to obtain price or rate quotations from an adequate number of qualified sources. Condition. The District did not obtain price or rate quotations for the purchase of services for one vendor that met the small purchase threshold. Cause. This condition was the result of an inaccurate understanding of procurement requirements by management. Effect. As a result of this condition, the District paid a vendor with federal funding that was not procured in accordance with federal regulations. Questioned Costs. $25,336 of expenditures were questioned as a result of this finding. Recommendation. We recommend that the District update its procedures to ensure that all services are appropriately procured in accordance with federal and state requirements. View of Responsible Officials. Management concurs with finding. The District will only allocate costs to the food service program that have been properly bid out and obtain quotes for all services in excess of the Federal micropurchase threshold. Responsible Official. Director of Business and Finance
2023-002 - Procurement, Suspension, and Debarment - Contract Bidding Finding Type. Immaterial noncompliance; Significant deficiency in internal control over compliance (Procurement, Suspension, and Debarment) Federal program(s) U.S. Department of Agriculture - Child Nutrition Cluster (ALN 10.553, 10.555, and 10.559); Passed through Michigan Department of Education; All project numbers. Criteria. Recipients of federal awards are required to ensure that federal procurement standards are followed for any purchases over the federal micropurchase threshold. For small purchases (aggregate dollar acquisitions higher than the micropurchase threshold but lower than the simplified acquisition threshold), 2 CFR 200.320 requires recipients to obtain price or rate quotations from an adequate number of qualified sources. Condition. The District did not obtain price or rate quotations for the purchase of services for one vendor that met the small purchase threshold. Cause. This condition was the result of an inaccurate understanding of procurement requirements by management. Effect. As a result of this condition, the District paid a vendor with federal funding that was not procured in accordance with federal regulations. Questioned Costs. $25,336 of expenditures were questioned as a result of this finding. Recommendation. We recommend that the District update its procedures to ensure that all services are appropriately procured in accordance with federal and state requirements. View of Responsible Officials. Management concurs with finding. The District will only allocate costs to the food service program that have been properly bid out and obtain quotes for all services in excess of the Federal micropurchase threshold. Responsible Official. Director of Business and Finance
2023-002 - Procurement, Suspension, and Debarment - Contract Bidding Finding Type. Immaterial noncompliance; Significant deficiency in internal control over compliance (Procurement, Suspension, and Debarment) Federal program(s) U.S. Department of Agriculture - Child Nutrition Cluster (ALN 10.553, 10.555, and 10.559); Passed through Michigan Department of Education; All project numbers. Criteria. Recipients of federal awards are required to ensure that federal procurement standards are followed for any purchases over the federal micropurchase threshold. For small purchases (aggregate dollar acquisitions higher than the micropurchase threshold but lower than the simplified acquisition threshold), 2 CFR 200.320 requires recipients to obtain price or rate quotations from an adequate number of qualified sources. Condition. The District did not obtain price or rate quotations for the purchase of services for one vendor that met the small purchase threshold. Cause. This condition was the result of an inaccurate understanding of procurement requirements by management. Effect. As a result of this condition, the District paid a vendor with federal funding that was not procured in accordance with federal regulations. Questioned Costs. $25,336 of expenditures were questioned as a result of this finding. Recommendation. We recommend that the District update its procedures to ensure that all services are appropriately procured in accordance with federal and state requirements. View of Responsible Officials. Management concurs with finding. The District will only allocate costs to the food service program that have been properly bid out and obtain quotes for all services in excess of the Federal micropurchase threshold. Responsible Official. Director of Business and Finance
2023-002 - Procurement, Suspension, and Debarment - Contract Bidding Finding Type. Immaterial noncompliance; Significant deficiency in internal control over compliance (Procurement, Suspension, and Debarment) Federal program(s) U.S. Department of Agriculture - Child Nutrition Cluster (ALN 10.553, 10.555, and 10.559); Passed through Michigan Department of Education; All project numbers. Criteria. Recipients of federal awards are required to ensure that federal procurement standards are followed for any purchases over the federal micropurchase threshold. For small purchases (aggregate dollar acquisitions higher than the micropurchase threshold but lower than the simplified acquisition threshold), 2 CFR 200.320 requires recipients to obtain price or rate quotations from an adequate number of qualified sources. Condition. The District did not obtain price or rate quotations for the purchase of services for one vendor that met the small purchase threshold. Cause. This condition was the result of an inaccurate understanding of procurement requirements by management. Effect. As a result of this condition, the District paid a vendor with federal funding that was not procured in accordance with federal regulations. Questioned Costs. $25,336 of expenditures were questioned as a result of this finding. Recommendation. We recommend that the District update its procedures to ensure that all services are appropriately procured in accordance with federal and state requirements. View of Responsible Officials. Management concurs with finding. The District will only allocate costs to the food service program that have been properly bid out and obtain quotes for all services in excess of the Federal micropurchase threshold. Responsible Official. Director of Business and Finance
2023-002 - Procurement, Suspension, and Debarment - Contract Bidding Finding Type. Immaterial noncompliance; Significant deficiency in internal control over compliance (Procurement, Suspension, and Debarment) Federal program(s) U.S. Department of Agriculture - Child Nutrition Cluster (ALN 10.553, 10.555, and 10.559); Passed through Michigan Department of Education; All project numbers. Criteria. Recipients of federal awards are required to ensure that federal procurement standards are followed for any purchases over the federal micropurchase threshold. For small purchases (aggregate dollar acquisitions higher than the micropurchase threshold but lower than the simplified acquisition threshold), 2 CFR 200.320 requires recipients to obtain price or rate quotations from an adequate number of qualified sources. Condition. The District did not obtain price or rate quotations for the purchase of services for one vendor that met the small purchase threshold. Cause. This condition was the result of an inaccurate understanding of procurement requirements by management. Effect. As a result of this condition, the District paid a vendor with federal funding that was not procured in accordance with federal regulations. Questioned Costs. $25,336 of expenditures were questioned as a result of this finding. Recommendation. We recommend that the District update its procedures to ensure that all services are appropriately procured in accordance with federal and state requirements. View of Responsible Officials. Management concurs with finding. The District will only allocate costs to the food service program that have been properly bid out and obtain quotes for all services in excess of the Federal micropurchase threshold. Responsible Official. Director of Business and Finance
2023-001: Procurement Special Education Cluster Assistance Listing Numbers – 84.027A; 84.027X; 84.173A; 84.173X Questioned Costs: Undetermined Criteria: 2 CFR 200.320 of the Uniform Guidance requires small purchases (generally above $10,000 but below $250,000) be made upon obtaining an adequate number of qualified sources as determined appropriate by the non-Federal entity and an adequate number of quotes from qualified sources. Furthermore, appendix II of the Uniform Guidance requires certain compliance matters to be included in contracts involving federal funds with vendors. Condition: The School Board purchased two instructional informational technology programs for use in its Special Education program; one for $249,000 and one for $86,000. Sufficient evidence was not provided to demonstrate that the School Board’s personnel obtained and decided upon these purchases using an adequate number of quotes. Also, the compliance matters required by appendix II were not included in the contract. Universe/population: A sampling of three product procurements whose payments during the fiscal year totaling $535,726 were selected for testing from a population of twenty-one such payments totaling $992,154. Two of the three purchases tested (and noted above in the condition caption) were found to be non-compliant with the procurement requirements of the Uniform Guidance. Effect: The School Board may be non-compliant with the requirements of the Uniform Guidance, which encourages competition to control costs. Furthermore, if the provisions of appendix II are not included then the School Board risks lacking various protections under federal law. Cause: This may be the result of a misunderstanding of the applicability of the Uniform Guidance by the grant administrator. Recommendation: Federal grant administrators and others should be reminded of the contractual and regulatory responsibilities to follow the Uniform Guidance. Adherence to the Uniform Guidance is also required by School Board policy. View of Responsible Official: The Business Department will review the Uniform Guidance requirements with all grant administrators and procurement staff to ensure compliance with federal regulations and district policy; and it will establish a more thorough review process for contracts to ensure compliance with all requirements.
Assistance Listing Number, Federal Agency, and Program Name - ALN 21 .027, Department of the Treasury, Coronavirus State and Local Fiscal Recovery Fund Federal Award Identification Number and Year - SLFRP2024-2001 Pass-through Entity - Not applicable Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - The City should ensure there is a process in place, prior to theprocurement of goods and services, to verify that the City has followed its internal procurement policy pursuant to 2 CFR 200.319 and 200.320. Condition - We identified 4 expenditures, during testing, that the City did not verify were in accordance with its internal procurement policy, pursuant to 2 CFR 200.319 and 200.320 prior to entering into contracts with award funds. Questioned Costs - None Identification of How Questioned Costs Were Computed - Not applicable Context - From July 1, 2022 through June 30, 2023, any good or service purchased by the City is subject to the City's internal procurement policy, pursuant to 2 CFR 200.319 and 200.320. We selected 22 expenditures for testing, and 4 lacked evidence of the City following its internal procurement policy. However, based on our testing, we noted that all 4 expenditures were allowable under the terms of the grant, thereby creating no questioned costs. Cause and Effect - The City is required to verify that there is a process in place to ensure all eligible expenditures adhere to its internal procurement policy, pursuant to 2 CFR 200.319 and 200.320. The City did not complete this requirement due to override of preexisting controls implemented by the City. Recommendation - We recommend that an additional internal control be put in place to ensure that all eligible expenditures adhere to the City's internal procurement policy. Views of Responsible Officials and Planned Corrective Actions - Procedures have already been put into place to ensure that each purchase adheres to the internal purchasing policies. City management and staff will continue to improve communication with and between departments to ensure all staff understand the purchasing policy.
2023-002 Procurement U.S. DEPARTMENT OF EDUCATION passed through the Louisiana Department of Education 84.027A, 84.173A Special Education Cluster 2022-2023 Award Year Grant No. 28-22-2C-39 Criteria: The Uniform Guidance federal regulations (200.320) require, among other things, that procedure for small purchases of goods and services in an amount between $10,000 to $250,000 follow the small purchase procedures and obtain an adequate number of prices/quotes. The Uniform Guidance federal regulations require when a non-Federal entity enters into a covered transaction, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.955, is not suspended or debarred or otherwise excluded from participating in covered transactions. This verification may be accomplished by (1) checking the Excluded Parties List System (EPLS), (2) collecting certification from entity, (3) adding a clause or condition within the contract with the entity. In addition to other provisions required by the Federal agency or non-Federal entity, all contracts made by the non-Federal award entity must contain provisions that are outlined in Appendix II to Part 200, namely: A.) All contracts > $10,000 must address termination for cause and convenience by the nonfederal entity including the manner by which it will be affected and the basis for settlement. B.) Equal Employment Opportunity. Except as otherwise provided under 41 CFR Part 60, all contracts that meet the definition of "federally assisted construction contract" in 41 CFR Part 60-1.3 must include the equal opportunity clause provided under 41 CFR 60-1.4(b ), in accordance with Executive Order 11246, "Equal Employment Opportunity" (30 FR 12319, 12935, 3 CFR Part, 1964-1965 Comp., p. 339), as amended by Executive Order 11375, "'Amending Executive Order 11246 Relating to Equal Employment Opportunity," and implementing regulations at 41 CFR part 60, '"Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor." C.) Debarment and Suspension (Executive Orders 12549 and 12689)-A contract award (see 2 CFR 180.220) must not be made to parties listed on the government wide Excluded Parties List System in the System for Award Management (SAM), in accordance with the 0MB guidelines at 2 CFR 180 that implement Executive Orders 12549 (3 CFR Part 1986 Comp., p. 189) and 12689 (3 CFR Part 1989 Comp., p. 235), "Debarment and Suspension." The Excluded Parties List System in SAM contains the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority other than Executive Order 12549. Condition: While testing compliance with the federal procurement regulations, 3 vendors were identified with expenditures greater than $10,000 and less than $250,000 and testing was performed relating to the documentation to support the procurement process. Of the 3 vendors, 1 provided professional services and 2 provided equipment and materials and supplies during the year ended June 30, 2023. Compliance testing focused on the proper renewing and awarding of the contracts to determine compliance with the procurement regulations. The 3 contracts totaled $62,620. There was no evidence provided to demonstrate that quotes and prices were obtained for 1 of the 3 vendors or providers as required by Federal procurement regulations. Also, no evidence was provided to demonstrate that 3 of the 3 vendors were appropriately checked for suspension and debarment. Lastly, provisions of Appendix II of the Uniform Guidance were not included in 3 of the 3 contracts with federal dollars. Cause: Personnel administering the grants and those in the School Board purchasing department did not execute and enforce the revised purchasing policy containing the Uniform Guidance requirements. Effect: The School Board is not in compliance with the requirements of the Uniform Guidance Procurement regulations with respect to these purchases. Questioned Costs: None. Recommendation: We recommend for the School Board to more fully implement and follow its revised policies and procedures for purchases made with federal awards so that these required federal procurement regulations are followed. We recommend that the School Board include Appendix II to Part II Summary as applicable in their future contracts. Repeat Finding: No.
2023-002 Procurement U.S. DEPARTMENT OF EDUCATION passed through the Louisiana Department of Education 84.027A, 84.173A Special Education Cluster 2022-2023 Award Year Grant No. 28-22-2C-39 Criteria: The Uniform Guidance federal regulations (200.320) require, among other things, that procedure for small purchases of goods and services in an amount between $10,000 to $250,000 follow the small purchase procedures and obtain an adequate number of prices/quotes. The Uniform Guidance federal regulations require when a non-Federal entity enters into a covered transaction, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.955, is not suspended or debarred or otherwise excluded from participating in covered transactions. This verification may be accomplished by (1) checking the Excluded Parties List System (EPLS), (2) collecting certification from entity, (3) adding a clause or condition within the contract with the entity. In addition to other provisions required by the Federal agency or non-Federal entity, all contracts made by the non-Federal award entity must contain provisions that are outlined in Appendix II to Part 200, namely: A.) All contracts > $10,000 must address termination for cause and convenience by the nonfederal entity including the manner by which it will be affected and the basis for settlement. B.) Equal Employment Opportunity. Except as otherwise provided under 41 CFR Part 60, all contracts that meet the definition of "federally assisted construction contract" in 41 CFR Part 60-1.3 must include the equal opportunity clause provided under 41 CFR 60-1.4(b ), in accordance with Executive Order 11246, "Equal Employment Opportunity" (30 FR 12319, 12935, 3 CFR Part, 1964-1965 Comp., p. 339), as amended by Executive Order 11375, "'Amending Executive Order 11246 Relating to Equal Employment Opportunity," and implementing regulations at 41 CFR part 60, '"Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor." C.) Debarment and Suspension (Executive Orders 12549 and 12689)-A contract award (see 2 CFR 180.220) must not be made to parties listed on the government wide Excluded Parties List System in the System for Award Management (SAM), in accordance with the 0MB guidelines at 2 CFR 180 that implement Executive Orders 12549 (3 CFR Part 1986 Comp., p. 189) and 12689 (3 CFR Part 1989 Comp., p. 235), "Debarment and Suspension." The Excluded Parties List System in SAM contains the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority other than Executive Order 12549. Condition: While testing compliance with the federal procurement regulations, 3 vendors were identified with expenditures greater than $10,000 and less than $250,000 and testing was performed relating to the documentation to support the procurement process. Of the 3 vendors, 1 provided professional services and 2 provided equipment and materials and supplies during the year ended June 30, 2023. Compliance testing focused on the proper renewing and awarding of the contracts to determine compliance with the procurement regulations. The 3 contracts totaled $62,620. There was no evidence provided to demonstrate that quotes and prices were obtained for 1 of the 3 vendors or providers as required by Federal procurement regulations. Also, no evidence was provided to demonstrate that 3 of the 3 vendors were appropriately checked for suspension and debarment. Lastly, provisions of Appendix II of the Uniform Guidance were not included in 3 of the 3 contracts with federal dollars. Cause: Personnel administering the grants and those in the School Board purchasing department did not execute and enforce the revised purchasing policy containing the Uniform Guidance requirements. Effect: The School Board is not in compliance with the requirements of the Uniform Guidance Procurement regulations with respect to these purchases. Questioned Costs: None. Recommendation: We recommend for the School Board to more fully implement and follow its revised policies and procedures for purchases made with federal awards so that these required federal procurement regulations are followed. We recommend that the School Board include Appendix II to Part II Summary as applicable in their future contracts. Repeat Finding: No.
2023-002 Procurement U.S. DEPARTMENT OF EDUCATION passed through the Louisiana Department of Education 84.027A, 84.173A Special Education Cluster 2022-2023 Award Year Grant No. 28-22-2C-39 Criteria: The Uniform Guidance federal regulations (200.320) require, among other things, that procedure for small purchases of goods and services in an amount between $10,000 to $250,000 follow the small purchase procedures and obtain an adequate number of prices/quotes. The Uniform Guidance federal regulations require when a non-Federal entity enters into a covered transaction, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.955, is not suspended or debarred or otherwise excluded from participating in covered transactions. This verification may be accomplished by (1) checking the Excluded Parties List System (EPLS), (2) collecting certification from entity, (3) adding a clause or condition within the contract with the entity. In addition to other provisions required by the Federal agency or non-Federal entity, all contracts made by the non-Federal award entity must contain provisions that are outlined in Appendix II to Part 200, namely: A.) All contracts > $10,000 must address termination for cause and convenience by the nonfederal entity including the manner by which it will be affected and the basis for settlement. B.) Equal Employment Opportunity. Except as otherwise provided under 41 CFR Part 60, all contracts that meet the definition of "federally assisted construction contract" in 41 CFR Part 60-1.3 must include the equal opportunity clause provided under 41 CFR 60-1.4(b ), in accordance with Executive Order 11246, "Equal Employment Opportunity" (30 FR 12319, 12935, 3 CFR Part, 1964-1965 Comp., p. 339), as amended by Executive Order 11375, "'Amending Executive Order 11246 Relating to Equal Employment Opportunity," and implementing regulations at 41 CFR part 60, '"Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor." C.) Debarment and Suspension (Executive Orders 12549 and 12689)-A contract award (see 2 CFR 180.220) must not be made to parties listed on the government wide Excluded Parties List System in the System for Award Management (SAM), in accordance with the 0MB guidelines at 2 CFR 180 that implement Executive Orders 12549 (3 CFR Part 1986 Comp., p. 189) and 12689 (3 CFR Part 1989 Comp., p. 235), "Debarment and Suspension." The Excluded Parties List System in SAM contains the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority other than Executive Order 12549. Condition: While testing compliance with the federal procurement regulations, 3 vendors were identified with expenditures greater than $10,000 and less than $250,000 and testing was performed relating to the documentation to support the procurement process. Of the 3 vendors, 1 provided professional services and 2 provided equipment and materials and supplies during the year ended June 30, 2023. Compliance testing focused on the proper renewing and awarding of the contracts to determine compliance with the procurement regulations. The 3 contracts totaled $62,620. There was no evidence provided to demonstrate that quotes and prices were obtained for 1 of the 3 vendors or providers as required by Federal procurement regulations. Also, no evidence was provided to demonstrate that 3 of the 3 vendors were appropriately checked for suspension and debarment. Lastly, provisions of Appendix II of the Uniform Guidance were not included in 3 of the 3 contracts with federal dollars. Cause: Personnel administering the grants and those in the School Board purchasing department did not execute and enforce the revised purchasing policy containing the Uniform Guidance requirements. Effect: The School Board is not in compliance with the requirements of the Uniform Guidance Procurement regulations with respect to these purchases. Questioned Costs: None. Recommendation: We recommend for the School Board to more fully implement and follow its revised policies and procedures for purchases made with federal awards so that these required federal procurement regulations are followed. We recommend that the School Board include Appendix II to Part II Summary as applicable in their future contracts. Repeat Finding: No.
2023-002 Procurement U.S. DEPARTMENT OF EDUCATION passed through the Louisiana Department of Education 84.027A, 84.173A Special Education Cluster 2022-2023 Award Year Grant No. 28-22-2C-39 Criteria: The Uniform Guidance federal regulations (200.320) require, among other things, that procedure for small purchases of goods and services in an amount between $10,000 to $250,000 follow the small purchase procedures and obtain an adequate number of prices/quotes. The Uniform Guidance federal regulations require when a non-Federal entity enters into a covered transaction, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.955, is not suspended or debarred or otherwise excluded from participating in covered transactions. This verification may be accomplished by (1) checking the Excluded Parties List System (EPLS), (2) collecting certification from entity, (3) adding a clause or condition within the contract with the entity. In addition to other provisions required by the Federal agency or non-Federal entity, all contracts made by the non-Federal award entity must contain provisions that are outlined in Appendix II to Part 200, namely: A.) All contracts > $10,000 must address termination for cause and convenience by the nonfederal entity including the manner by which it will be affected and the basis for settlement. B.) Equal Employment Opportunity. Except as otherwise provided under 41 CFR Part 60, all contracts that meet the definition of "federally assisted construction contract" in 41 CFR Part 60-1.3 must include the equal opportunity clause provided under 41 CFR 60-1.4(b ), in accordance with Executive Order 11246, "Equal Employment Opportunity" (30 FR 12319, 12935, 3 CFR Part, 1964-1965 Comp., p. 339), as amended by Executive Order 11375, "'Amending Executive Order 11246 Relating to Equal Employment Opportunity," and implementing regulations at 41 CFR part 60, '"Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor." C.) Debarment and Suspension (Executive Orders 12549 and 12689)-A contract award (see 2 CFR 180.220) must not be made to parties listed on the government wide Excluded Parties List System in the System for Award Management (SAM), in accordance with the 0MB guidelines at 2 CFR 180 that implement Executive Orders 12549 (3 CFR Part 1986 Comp., p. 189) and 12689 (3 CFR Part 1989 Comp., p. 235), "Debarment and Suspension." The Excluded Parties List System in SAM contains the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority other than Executive Order 12549. Condition: While testing compliance with the federal procurement regulations, 3 vendors were identified with expenditures greater than $10,000 and less than $250,000 and testing was performed relating to the documentation to support the procurement process. Of the 3 vendors, 1 provided professional services and 2 provided equipment and materials and supplies during the year ended June 30, 2023. Compliance testing focused on the proper renewing and awarding of the contracts to determine compliance with the procurement regulations. The 3 contracts totaled $62,620. There was no evidence provided to demonstrate that quotes and prices were obtained for 1 of the 3 vendors or providers as required by Federal procurement regulations. Also, no evidence was provided to demonstrate that 3 of the 3 vendors were appropriately checked for suspension and debarment. Lastly, provisions of Appendix II of the Uniform Guidance were not included in 3 of the 3 contracts with federal dollars. Cause: Personnel administering the grants and those in the School Board purchasing department did not execute and enforce the revised purchasing policy containing the Uniform Guidance requirements. Effect: The School Board is not in compliance with the requirements of the Uniform Guidance Procurement regulations with respect to these purchases. Questioned Costs: None. Recommendation: We recommend for the School Board to more fully implement and follow its revised policies and procedures for purchases made with federal awards so that these required federal procurement regulations are followed. We recommend that the School Board include Appendix II to Part II Summary as applicable in their future contracts. Repeat Finding: No.
2023-002 Procurement U.S. DEPARTMENT OF EDUCATION passed through the Louisiana Department of Education 84.027A, 84.173A Special Education Cluster 2022-2023 Award Year Grant No. 28-22-2C-39 Criteria: The Uniform Guidance federal regulations (200.320) require, among other things, that procedure for small purchases of goods and services in an amount between $10,000 to $250,000 follow the small purchase procedures and obtain an adequate number of prices/quotes. The Uniform Guidance federal regulations require when a non-Federal entity enters into a covered transaction, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.955, is not suspended or debarred or otherwise excluded from participating in covered transactions. This verification may be accomplished by (1) checking the Excluded Parties List System (EPLS), (2) collecting certification from entity, (3) adding a clause or condition within the contract with the entity. In addition to other provisions required by the Federal agency or non-Federal entity, all contracts made by the non-Federal award entity must contain provisions that are outlined in Appendix II to Part 200, namely: A.) All contracts > $10,000 must address termination for cause and convenience by the nonfederal entity including the manner by which it will be affected and the basis for settlement. B.) Equal Employment Opportunity. Except as otherwise provided under 41 CFR Part 60, all contracts that meet the definition of "federally assisted construction contract" in 41 CFR Part 60-1.3 must include the equal opportunity clause provided under 41 CFR 60-1.4(b ), in accordance with Executive Order 11246, "Equal Employment Opportunity" (30 FR 12319, 12935, 3 CFR Part, 1964-1965 Comp., p. 339), as amended by Executive Order 11375, "'Amending Executive Order 11246 Relating to Equal Employment Opportunity," and implementing regulations at 41 CFR part 60, '"Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor." C.) Debarment and Suspension (Executive Orders 12549 and 12689)-A contract award (see 2 CFR 180.220) must not be made to parties listed on the government wide Excluded Parties List System in the System for Award Management (SAM), in accordance with the 0MB guidelines at 2 CFR 180 that implement Executive Orders 12549 (3 CFR Part 1986 Comp., p. 189) and 12689 (3 CFR Part 1989 Comp., p. 235), "Debarment and Suspension." The Excluded Parties List System in SAM contains the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority other than Executive Order 12549. Condition: While testing compliance with the federal procurement regulations, 3 vendors were identified with expenditures greater than $10,000 and less than $250,000 and testing was performed relating to the documentation to support the procurement process. Of the 3 vendors, 1 provided professional services and 2 provided equipment and materials and supplies during the year ended June 30, 2023. Compliance testing focused on the proper renewing and awarding of the contracts to determine compliance with the procurement regulations. The 3 contracts totaled $62,620. There was no evidence provided to demonstrate that quotes and prices were obtained for 1 of the 3 vendors or providers as required by Federal procurement regulations. Also, no evidence was provided to demonstrate that 3 of the 3 vendors were appropriately checked for suspension and debarment. Lastly, provisions of Appendix II of the Uniform Guidance were not included in 3 of the 3 contracts with federal dollars. Cause: Personnel administering the grants and those in the School Board purchasing department did not execute and enforce the revised purchasing policy containing the Uniform Guidance requirements. Effect: The School Board is not in compliance with the requirements of the Uniform Guidance Procurement regulations with respect to these purchases. Questioned Costs: None. Recommendation: We recommend for the School Board to more fully implement and follow its revised policies and procedures for purchases made with federal awards so that these required federal procurement regulations are followed. We recommend that the School Board include Appendix II to Part II Summary as applicable in their future contracts. Repeat Finding: No.
2023-002 Procurement U.S. DEPARTMENT OF EDUCATION passed through the Louisiana Department of Education 84.027A, 84.173A Special Education Cluster 2022-2023 Award Year Grant No. 28-22-2C-39 Criteria: The Uniform Guidance federal regulations (200.320) require, among other things, that procedure for small purchases of goods and services in an amount between $10,000 to $250,000 follow the small purchase procedures and obtain an adequate number of prices/quotes. The Uniform Guidance federal regulations require when a non-Federal entity enters into a covered transaction, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.955, is not suspended or debarred or otherwise excluded from participating in covered transactions. This verification may be accomplished by (1) checking the Excluded Parties List System (EPLS), (2) collecting certification from entity, (3) adding a clause or condition within the contract with the entity. In addition to other provisions required by the Federal agency or non-Federal entity, all contracts made by the non-Federal award entity must contain provisions that are outlined in Appendix II to Part 200, namely: A.) All contracts > $10,000 must address termination for cause and convenience by the nonfederal entity including the manner by which it will be affected and the basis for settlement. B.) Equal Employment Opportunity. Except as otherwise provided under 41 CFR Part 60, all contracts that meet the definition of "federally assisted construction contract" in 41 CFR Part 60-1.3 must include the equal opportunity clause provided under 41 CFR 60-1.4(b ), in accordance with Executive Order 11246, "Equal Employment Opportunity" (30 FR 12319, 12935, 3 CFR Part, 1964-1965 Comp., p. 339), as amended by Executive Order 11375, "'Amending Executive Order 11246 Relating to Equal Employment Opportunity," and implementing regulations at 41 CFR part 60, '"Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor." C.) Debarment and Suspension (Executive Orders 12549 and 12689)-A contract award (see 2 CFR 180.220) must not be made to parties listed on the government wide Excluded Parties List System in the System for Award Management (SAM), in accordance with the 0MB guidelines at 2 CFR 180 that implement Executive Orders 12549 (3 CFR Part 1986 Comp., p. 189) and 12689 (3 CFR Part 1989 Comp., p. 235), "Debarment and Suspension." The Excluded Parties List System in SAM contains the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority other than Executive Order 12549. Condition: While testing compliance with the federal procurement regulations, 3 vendors were identified with expenditures greater than $10,000 and less than $250,000 and testing was performed relating to the documentation to support the procurement process. Of the 3 vendors, 1 provided professional services and 2 provided equipment and materials and supplies during the year ended June 30, 2023. Compliance testing focused on the proper renewing and awarding of the contracts to determine compliance with the procurement regulations. The 3 contracts totaled $62,620. There was no evidence provided to demonstrate that quotes and prices were obtained for 1 of the 3 vendors or providers as required by Federal procurement regulations. Also, no evidence was provided to demonstrate that 3 of the 3 vendors were appropriately checked for suspension and debarment. Lastly, provisions of Appendix II of the Uniform Guidance were not included in 3 of the 3 contracts with federal dollars. Cause: Personnel administering the grants and those in the School Board purchasing department did not execute and enforce the revised purchasing policy containing the Uniform Guidance requirements. Effect: The School Board is not in compliance with the requirements of the Uniform Guidance Procurement regulations with respect to these purchases. Questioned Costs: None. Recommendation: We recommend for the School Board to more fully implement and follow its revised policies and procedures for purchases made with federal awards so that these required federal procurement regulations are followed. We recommend that the School Board include Appendix II to Part II Summary as applicable in their future contracts. Repeat Finding: No.
Federal agency: U.S. Department of Agriculture Federal program title: Special Supplemental Nutrition Program for Women, Infants, and Children Assistance Listing Number: 10.557 Pass-Through Agency: Iowa Department of Public Health, Division of Family and Community Health Pass-Through Numbers: 5883AO31 and 5881AO90E Award Period: October 1, 2017 through September 30, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award contains various requirements for procurements made under federal awards. §200.318 requires a procurement policy be in place with specific requirements. §200.320 specifies the methods of procurement to be followed, including micropurchases,small purchases, sealed bids, competitive proposals, and noncompetitive proposals. Each procurement method has a threshold where quotes or bids are required to be obtained. Condition: During our testing, we noted one purchase over the micro-purchase threshold which did not have quotes as required. Context: During our testing, we noted one vendor tested over the micro purchase threshold did not have quotes obtained as required. Cause: The Medical Center contracted with the vendor who has previously done projects and remodeling for the facility to ensure the project was completed consistently with the rest of the building. As a result, the Medical Center did not obtain a second quote for the project. Effect: The Medical Center is not in compliance with the requirements of 2 CFR Part 200 §200.320. Recommendation: We recommend the Medical Center obtain quotes or bids as necessary for purchases that exceed the micro-purchase threshold. Additionally, we recommend the Medical Center maintain documentation of all quotes and bids to support the vendor chosen. In situations where there is an alternative method utilized, we recommend clearly documenting that process to ensure compliance.
Federal Agency: United States Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.556 Pass-Through Agency: Wisconsin Department of Instruction Award Period: July 1, 2022 – June 30, 2023 Compliance Requirement Affected: Procurement, Suspension and Debarment Type of Finding: Material Weakness in Internal Control over Compliance, Qualification Criteria or specific requirement: 2 CFR 200.320 Methods of Procurement state that if the small purchases method is used, price or rate quotations must be obtained from an adequate number of qualified sources (at least 2). Requests for proposals must be publicized and identify all evaluation factors and their relative importance. Proposals must be solicited from an adequate number of qualified offerors. Any response to publicized requests for proposals must be considered to the maximum extent practical. Additionally, when a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. Condition: During our testing of procurement transactions of the program we noted that the small purchases were not supported by an adequate number of quotes (at least two) to ensure the District is prudent with the monies used towards the program. In addition during our testing of suspension and debarment, we identified one vendor contract that was entered into that did not include language related to suspension and debarment. Questioned Costs: None Cause: The District did not follow their Federal Funds Procurement policy related to the appropriate methods of procurement Effect: Obtaining price quotes or proposals from an adequate number of vendors allows the District to use federal funds in the most fiscally responsible way. The lack of quotes and proposals may cause the District to over pay for supplies or services. The lack of documentation related to suspension and debarment could result in the District doing business with a suspended or debarred vendor. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the District review their policies and procedures related to Uniform Guidance and the District's Purchasing Policy. We also recommend the District evaluate current procedures and controls to ensure that policies are consistently followed and properly documented in accordance with District policies. Views of Responsible Officials and Planned Corrective Action: No disagreement with finding.
Federal Agency: United States Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.556 Pass-Through Agency: Wisconsin Department of Instruction Award Period: July 1, 2022 – June 30, 2023 Compliance Requirement Affected: Procurement, Suspension and Debarment Type of Finding: Material Weakness in Internal Control over Compliance, Qualification Criteria or specific requirement: 2 CFR 200.320 Methods of Procurement state that if the small purchases method is used, price or rate quotations must be obtained from an adequate number of qualified sources (at least 2). Requests for proposals must be publicized and identify all evaluation factors and their relative importance. Proposals must be solicited from an adequate number of qualified offerors. Any response to publicized requests for proposals must be considered to the maximum extent practical. Additionally, when a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. Condition: During our testing of procurement transactions of the program we noted that the small purchases were not supported by an adequate number of quotes (at least two) to ensure the District is prudent with the monies used towards the program. In addition during our testing of suspension and debarment, we identified one vendor contract that was entered into that did not include language related to suspension and debarment. Questioned Costs: None Cause: The District did not follow their Federal Funds Procurement policy related to the appropriate methods of procurement Effect: Obtaining price quotes or proposals from an adequate number of vendors allows the District to use federal funds in the most fiscally responsible way. The lack of quotes and proposals may cause the District to over pay for supplies or services. The lack of documentation related to suspension and debarment could result in the District doing business with a suspended or debarred vendor. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the District review their policies and procedures related to Uniform Guidance and the District's Purchasing Policy. We also recommend the District evaluate current procedures and controls to ensure that policies are consistently followed and properly documented in accordance with District policies. Views of Responsible Officials and Planned Corrective Action: No disagreement with finding.