Non-Federal entities other than States, including those operating Federal programs as subrecipients of States, must follow the procurement standards set out at 2 CFR 200.317 - 200.327. They must use their own documented procurement procedures, which reflect applicable State and local laws and regulations, provided that the procurements conform to applicable Federal statutes and the procurement requirements identified in 2 CFR Part 200. A non-Federal entity must: 1. Meet the general procurement standards in 2 CFR 200.318, which include oversight of contractors’ performance, maintaining written standards of conduct for employees involved in contracting, awarding contracts only to responsible contractors, and maintaining records to document history of procurements. 2. Conduct all procurement transactions in a manner providing full and open competition, in accordance with 2 CFR 200.319. 3. Use the micro-purchase and small purchase methods only for procurements that meet the applicable criteria under 2 CFR 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 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 200.320(b)). 4. 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 200.320(b); the competitive proposals method under the conditions specified in 2 CFR 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 200.320(c). 5. Perform a cost or price analysis in connection with every procurement action in excess of the simplified acquisition threshold, including contract modifications (2 CFR 200.323(a)). The cost plus a percentage of cost and percentage of construction cost methods of contracting must not be used (2 CFR 200.323(b)). 6. Ensure that every purchase order or other contract includes applicable provisions required by 2 CFR 200.326. These provisions are described in Appendix II to 2 CFR Part 200, “Contract Provisions for Non-Federal Entity Contracts Under Federal Awards.” Although the Village contracted with a consultant to assist the Village with compliance with various procurement compliance requirements, the Village does not have any formal policies in place regarding procurement requirements. We recommend that the Village adopt formal policies and procedures that address procurement requirements.
2022 – 003 Procurement and Suspension and Debarment Federal Agency: U.S. Department Treasury Federal Program Name: Coronavirus State & Local Fiscal Recovery Fund Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP3738 11/30/2021 Award Period: March 3, 2021 through December 31, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matter Criteria or specific requirement: Uniform Grant Guidance (2 CFR 200.318, 2 CFR 200.319, 2 CFR 200.324, 2 CFR 180.220, and 2 CFR 200.320,) requires a non-federal entity to maintain records sufficient to detail the history of procurement, the providing of full and open competition, the performing of cost or price analysis, and prohibits the non-federal entity to contract or make subawards to parties that are suspended or debarred (covered transactions over $25,000). These records will include the rationale for the method of procurement, selection of contract type, contractor selection or rejection, the basis for the contract price, how full and open competition was provided, the cost or price analysis performed, and verification the vendor is not suspended or debarred through the SAMs exclusion list, collecting of certification from the entity, or by adding a clause or condition to the covered transaction with the entity. Procurement methods used must be appropriate based on the dollar amount and conditions specified. Condition: Procurement methods for certain federal award purchases were not adequately documented or appropriately selected in accordance with the County’s procurement policy. In addition, the County did not maintain records the vendor was not suspended or debarred prior to entering into the transactions. Questioned costs: Unknown Context: 3 of 6 tested for procurement documentation and 5 of 5 tested for suspension and debarment documentation. Cause: With new federal funding opportunities due to the pandemic, and new guidance related to those grants, proper documentation was not retained. Effect: May result in a disallowed cost if grant requirements are not followed. Repeat Finding: This is a repeat finding. Prior year finding numbers were 2021-004 and 2021-005. Recommendation: We recommend the County carefully review federal procurement requirements for proper documentation needed. The County should consider use of a Federal procurement checklist. Views of responsible officials: There is no disagreement with the audit finding.
ederal Program Information: Funding agency: U.S. Department of the Treasury Title: COVID-19 - State and Local Fiscal Recovery Funds ALN number: 21.027 Criteria or Specific Requirement: In accordance with 2 CFR ?200.320, the auditee is responsible for following its procurement procedures provided that the procedures conform to applicable Federal Statutes and the procurement requirements identified in 2 CFR ?200.320. Condition: During major program testing, auditors inquired about the County?s procurement procedures. The County does not have a written procurement policy, and therefore is not in compliance with Uniform Guidance. Context: There is no written procurement policy in accordance with Uniform Guidance being followed. Questioned Costs: None Effect: The County could expend federal funds on equipment or capital assets without getting the proper quotes or approvals. Cause: There is no written procurement policy in accordance with Uniform Guidance being followed. Repeat: No Auditor's Recommendation: We recommend the County adopt a written procurement policy in accordance with the Uniform Guidance and provide the policy to each department that expends federal awards. View of Responsible Officials: We agree with the finding and have developed a corrective action plan.
2022-003 Procurement in Compliance with Uniform Guidance Federal Program Information: Funding agency: U.S. Department of the Treasury Title: COVID-19 - State and Local Fiscal Recovery Funds ALN number: 21.027 Criteria or Specific Requirement: In accordance with 2 CFR ?200.320, the auditee is responsible for following its procurement procedures provided that the procedures conform to applicable Federal Statutes and the procurement requirements identified in 2 CFR ?200.320. Condition: During major program testing, auditors inquired about the County?s procurement procedures. The County does not have a written procurement policy, and therefore is not in compliance with Uniform Guidance. Context: There is no written procurement policy in accordance with Uniform Guidance being followed. Questioned Costs: None Effect: The County could expend federal funds on equipment or capital assets without getting the proper quotes or approvals. Cause: There is no written procurement policy in accordance with Uniform Guidance being followed. Repeat: Yes - Years as Repeat Finding: 2021 Auditor's Recommendation: We recommend the County adopt a written procurement policy in accordance with the Uniform Guidance and provide the policy to each department that expends federal awards. View of Responsible Officials: We agree with the finding and have developed a corrective action plan.
2022-002 Procurement in Compliance with Uniform Guidance Federal Program Information: Funding agency: U.S. Department of the Treasury Title: COVID-19 - State and Local Fiscal Recovery Funds ALN number: 21.027 Criteria or Specific Requirement: In accordance with 2 CFR ?200.320, the auditee is responsible for following its procurement procedures provided that the procedures conform to applicable Federal Statutes and the procurement requirements identified in 2 CFR ?200.320. Condition: During major program testing, auditors inquired about the County?s procurement procedures. The County does not have a written procurement policy, and therefore is not in compliance with Uniform Guidance. Context: There is no written procurement policy in accordance with Uniform Guidance being followed. Questioned Costs: None Effect: The County could expend federal funds on equipment or capital assets without getting the proper quotes or approvals. Cause: There is no written procurement policy in accordance with Uniform Guidance being followed. Repeat: No Auditor's Recommendation: We recommend the County adopt a written procurement policy in accordance with the Uniform Guidance and provide the policy to each department that expends federal awards. View of Responsible Officials: We agree with the finding and have developed a corrective action plan.
2022-002 Procurement in Compliance with Uniform Guidance Federal Program Information: Funding agency: U.S. Department of the Treasury Title: COVID-19 - State and Local Fiscal Recovery Funds ALN number: 21.027 Criteria or Specific Requirement: In accordance with 2 CFR ?200.320, the auditee is responsible for following its procurement procedures provided that the procedures conform to applicable Federal Statutes and the procurement requirements identified in 2 CFR ?200.320. Condition: During major program testing, auditors inquired about the County?s procurement procedures. The County does not have a written procurement policy, and therefore is not in compliance with Uniform Guidance. Context: There is no written procurement policy in accordance with Uniform Guidance being followed. Questioned Costs: None Effect: The County could expend federal funds on equipment or capital assets without getting the proper quotes or approvals. Cause: There is no written procurement policy in accordance with Uniform Guidance being followed. Repeat: No Auditor's Recommendation: We recommend the County adopt a written procurement policy in accordance with the Uniform Guidance and provide the policy to each department that expends federal awards. View of Responsible Officials: We agree with the finding and have developed a corrective action plan.
Procurement in Compliance with Uniform Guidance Federal Program Information: Funding agency: U.S. Department of the Treasury Title: COVID-19 - State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Criteria or Specific Requirement: In accordance with 2 CFR §200.320, the auditee is responsible for following its procurement procedures provided that the procedures conform to applicable Federal Statutes and the procurement requirements identified in 2 CFR §200.320. Condition: During major program testing, auditors inquired about the County’s procurement procedures. The County does not have a written procurement policy, and therefore is not in compliance with Uniform Guidance. Context: There is no written procurement policy in accordance with Uniform Guidance being followed. Questioned Costs: None Effect: The County could expend federal funds on equipment or capital assets without getting the proper quotes or approvals. Cause: There is no written procurement policy in accordance with Uniform Guidance being followed. Repeat: No Auditor's Recommendation: We recommend the County adopt a written procurement policy in accordance with the Uniform Guidance and provide the policy to each department that expends federal awards. View of Responsible Officials: We agree with the finding and have developed a corrective action plan. 13
2022 – 003 Procurement and Suspension and Debarment Federal Agency: U.S. Department Treasury Federal Program Name: Coronavirus State & Local Fiscal Recovery Fund Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP3738 11/30/2021 Award Period: March 3, 2021 through December 31, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matter Criteria or specific requirement: Uniform Grant Guidance (2 CFR 200.318, 2 CFR 200.319, 2 CFR 200.324, 2 CFR 180.220, and 2 CFR 200.320,) requires a non-federal entity to maintain records sufficient to detail the history of procurement, the providing of full and open competition, the performing of cost or price analysis, and prohibits the non-federal entity to contract or make subawards to parties that are suspended or debarred (covered transactions over $25,000). These records will include the rationale for the method of procurement, selection of contract type, contractor selection or rejection, the basis for the contract price, how full and open competition was provided, the cost or price analysis performed, and verification the vendor is not suspended or debarred through the SAMs exclusion list, collecting of certification from the entity, or by adding a clause or condition to the covered transaction with the entity. Procurement methods used must be appropriate based on the dollar amount and conditions specified. Condition: Procurement methods for certain federal award purchases were not adequately documented or appropriately selected in accordance with the County’s procurement policy. In addition, the County did not maintain records the vendor was not suspended or debarred prior to entering into the transactions. Questioned costs: Unknown Context: 3 of 6 tested for procurement documentation and 5 of 5 tested for suspension and debarment documentation. Cause: With new federal funding opportunities due to the pandemic, and new guidance related to those grants, proper documentation was not retained. Effect: May result in a disallowed cost if grant requirements are not followed. Repeat Finding: This is a repeat finding. Prior year finding numbers were 2021-004 and 2021-005. Recommendation: We recommend the County carefully review federal procurement requirements for proper documentation needed. The County should consider use of a Federal procurement checklist. Views of responsible officials: There is no disagreement with the audit finding.
ederal Program Information: Funding agency: U.S. Department of the Treasury Title: COVID-19 - State and Local Fiscal Recovery Funds ALN number: 21.027 Criteria or Specific Requirement: In accordance with 2 CFR ?200.320, the auditee is responsible for following its procurement procedures provided that the procedures conform to applicable Federal Statutes and the procurement requirements identified in 2 CFR ?200.320. Condition: During major program testing, auditors inquired about the County?s procurement procedures. The County does not have a written procurement policy, and therefore is not in compliance with Uniform Guidance. Context: There is no written procurement policy in accordance with Uniform Guidance being followed. Questioned Costs: None Effect: The County could expend federal funds on equipment or capital assets without getting the proper quotes or approvals. Cause: There is no written procurement policy in accordance with Uniform Guidance being followed. Repeat: No Auditor's Recommendation: We recommend the County adopt a written procurement policy in accordance with the Uniform Guidance and provide the policy to each department that expends federal awards. View of Responsible Officials: We agree with the finding and have developed a corrective action plan.
2022-003 Procurement in Compliance with Uniform Guidance Federal Program Information: Funding agency: U.S. Department of the Treasury Title: COVID-19 - State and Local Fiscal Recovery Funds ALN number: 21.027 Criteria or Specific Requirement: In accordance with 2 CFR ?200.320, the auditee is responsible for following its procurement procedures provided that the procedures conform to applicable Federal Statutes and the procurement requirements identified in 2 CFR ?200.320. Condition: During major program testing, auditors inquired about the County?s procurement procedures. The County does not have a written procurement policy, and therefore is not in compliance with Uniform Guidance. Context: There is no written procurement policy in accordance with Uniform Guidance being followed. Questioned Costs: None Effect: The County could expend federal funds on equipment or capital assets without getting the proper quotes or approvals. Cause: There is no written procurement policy in accordance with Uniform Guidance being followed. Repeat: Yes - Years as Repeat Finding: 2021 Auditor's Recommendation: We recommend the County adopt a written procurement policy in accordance with the Uniform Guidance and provide the policy to each department that expends federal awards. View of Responsible Officials: We agree with the finding and have developed a corrective action plan.
2022-002 Procurement in Compliance with Uniform Guidance Federal Program Information: Funding agency: U.S. Department of the Treasury Title: COVID-19 - State and Local Fiscal Recovery Funds ALN number: 21.027 Criteria or Specific Requirement: In accordance with 2 CFR ?200.320, the auditee is responsible for following its procurement procedures provided that the procedures conform to applicable Federal Statutes and the procurement requirements identified in 2 CFR ?200.320. Condition: During major program testing, auditors inquired about the County?s procurement procedures. The County does not have a written procurement policy, and therefore is not in compliance with Uniform Guidance. Context: There is no written procurement policy in accordance with Uniform Guidance being followed. Questioned Costs: None Effect: The County could expend federal funds on equipment or capital assets without getting the proper quotes or approvals. Cause: There is no written procurement policy in accordance with Uniform Guidance being followed. Repeat: No Auditor's Recommendation: We recommend the County adopt a written procurement policy in accordance with the Uniform Guidance and provide the policy to each department that expends federal awards. View of Responsible Officials: We agree with the finding and have developed a corrective action plan.
2022-002 Procurement in Compliance with Uniform Guidance Federal Program Information: Funding agency: U.S. Department of the Treasury Title: COVID-19 - State and Local Fiscal Recovery Funds ALN number: 21.027 Criteria or Specific Requirement: In accordance with 2 CFR ?200.320, the auditee is responsible for following its procurement procedures provided that the procedures conform to applicable Federal Statutes and the procurement requirements identified in 2 CFR ?200.320. Condition: During major program testing, auditors inquired about the County?s procurement procedures. The County does not have a written procurement policy, and therefore is not in compliance with Uniform Guidance. Context: There is no written procurement policy in accordance with Uniform Guidance being followed. Questioned Costs: None Effect: The County could expend federal funds on equipment or capital assets without getting the proper quotes or approvals. Cause: There is no written procurement policy in accordance with Uniform Guidance being followed. Repeat: No Auditor's Recommendation: We recommend the County adopt a written procurement policy in accordance with the Uniform Guidance and provide the policy to each department that expends federal awards. View of Responsible Officials: We agree with the finding and have developed a corrective action plan.
Procurement in Compliance with Uniform Guidance Federal Program Information: Funding agency: U.S. Department of the Treasury Title: COVID-19 - State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Criteria or Specific Requirement: In accordance with 2 CFR §200.320, the auditee is responsible for following its procurement procedures provided that the procedures conform to applicable Federal Statutes and the procurement requirements identified in 2 CFR §200.320. Condition: During major program testing, auditors inquired about the County’s procurement procedures. The County does not have a written procurement policy, and therefore is not in compliance with Uniform Guidance. Context: There is no written procurement policy in accordance with Uniform Guidance being followed. Questioned Costs: None Effect: The County could expend federal funds on equipment or capital assets without getting the proper quotes or approvals. Cause: There is no written procurement policy in accordance with Uniform Guidance being followed. Repeat: No Auditor's Recommendation: We recommend the County adopt a written procurement policy in accordance with the Uniform Guidance and provide the policy to each department that expends federal awards. View of Responsible Officials: We agree with the finding and have developed a corrective action plan. 13
Finding 2022-002 ? Procurement and Suspension & Debarment Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Health Centers Cluster and Health Center Infrastructure Support Assistance Listing Number: 93.224 and 93.527; 93.526 Federal Award Identification Number: H8FCS40647-01; C8ECS44753-01 Award Periods: April 1, 2021 ? March 31, 2023; September 15, 2021 ? September 14, 2024, respectively Type of Finding: Compliance and significant deficiency in internal control over compliance Criteria: ? 200.320 Methods of procurement to be followed: The non-Federal entity must have and use documented procurement procedures, consistent with the standards of this section and ?? 200.317, 200.318, and 200.319 for any of the approved procurement methods used for the acquisition of property or services required under a Federal award or sub-award. ? 200.214 Suspension and debarment. Non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition: The organization did not maintain proper documentation for 1) determining the rationale of the sole-source procurement methodology that it applied and 2) that suspension and debarment was checked quarterly per the Organization's policy for vendors reimbursed by the federal grant. Questioned Costs: None. Context: Two (2) of two (2) procurement transactions; Two (2) of two (2) suspension and debarment transactions Cause: The organization did not document its rationale for choosing the noncompetitive procurement method or its quarterly review of suspension and debarment of vendors. Effect: The Organization may inadvertently select vendors without regard to fair competition and cost analysis or vendors that may be federally suspended and disbarred. Repeat Finding: No. Recommendation: Management should adhere to or revise the Organization?s existing procurement policy and implement a system of processes and internal controls to ensure that the appropriate level of documentation is maintained based on the procurement methodology selected for a transaction of contract. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2022-002 ? Procurement and Suspension & Debarment Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Health Centers Cluster and Health Center Infrastructure Support Assistance Listing Number: 93.224 and 93.527; 93.526 Federal Award Identification Number: H8FCS40647-01; C8ECS44753-01 Award Periods: April 1, 2021 ? March 31, 2023; September 15, 2021 ? September 14, 2024, respectively Type of Finding: Compliance and significant deficiency in internal control over compliance Criteria: ? 200.320 Methods of procurement to be followed: The non-Federal entity must have and use documented procurement procedures, consistent with the standards of this section and ?? 200.317, 200.318, and 200.319 for any of the approved procurement methods used for the acquisition of property or services required under a Federal award or sub-award. ? 200.214 Suspension and debarment. Non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition: The organization did not maintain proper documentation for 1) determining the rationale of the sole-source procurement methodology that it applied and 2) that suspension and debarment was checked quarterly per the Organization's policy for vendors reimbursed by the federal grant. Questioned Costs: None. Context: Two (2) of two (2) procurement transactions; Two (2) of two (2) suspension and debarment transactions Cause: The organization did not document its rationale for choosing the noncompetitive procurement method or its quarterly review of suspension and debarment of vendors. Effect: The Organization may inadvertently select vendors without regard to fair competition and cost analysis or vendors that may be federally suspended and disbarred. Repeat Finding: No. Recommendation: Management should adhere to or revise the Organization?s existing procurement policy and implement a system of processes and internal controls to ensure that the appropriate level of documentation is maintained based on the procurement methodology selected for a transaction of contract. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2022-002 ? Procurement and Suspension & Debarment Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Health Centers Cluster and Health Center Infrastructure Support Assistance Listing Number: 93.224 and 93.527; 93.526 Federal Award Identification Number: H8FCS40647-01; C8ECS44753-01 Award Periods: April 1, 2021 ? March 31, 2023; September 15, 2021 ? September 14, 2024, respectively Type of Finding: Compliance and significant deficiency in internal control over compliance Criteria: ? 200.320 Methods of procurement to be followed: The non-Federal entity must have and use documented procurement procedures, consistent with the standards of this section and ?? 200.317, 200.318, and 200.319 for any of the approved procurement methods used for the acquisition of property or services required under a Federal award or sub-award. ? 200.214 Suspension and debarment. Non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition: The organization did not maintain proper documentation for 1) determining the rationale of the sole-source procurement methodology that it applied and 2) that suspension and debarment was checked quarterly per the Organization's policy for vendors reimbursed by the federal grant. Questioned Costs: None. Context: Two (2) of two (2) procurement transactions; Two (2) of two (2) suspension and debarment transactions Cause: The organization did not document its rationale for choosing the noncompetitive procurement method or its quarterly review of suspension and debarment of vendors. Effect: The Organization may inadvertently select vendors without regard to fair competition and cost analysis or vendors that may be federally suspended and disbarred. Repeat Finding: No. Recommendation: Management should adhere to or revise the Organization?s existing procurement policy and implement a system of processes and internal controls to ensure that the appropriate level of documentation is maintained based on the procurement methodology selected for a transaction of contract. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2022-002 ? Procurement and Suspension & Debarment Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Health Centers Cluster and Health Center Infrastructure Support Assistance Listing Number: 93.224 and 93.527; 93.526 Federal Award Identification Number: H8FCS40647-01; C8ECS44753-01 Award Periods: April 1, 2021 ? March 31, 2023; September 15, 2021 ? September 14, 2024, respectively Type of Finding: Compliance and significant deficiency in internal control over compliance Criteria: ? 200.320 Methods of procurement to be followed: The non-Federal entity must have and use documented procurement procedures, consistent with the standards of this section and ?? 200.317, 200.318, and 200.319 for any of the approved procurement methods used for the acquisition of property or services required under a Federal award or sub-award. ? 200.214 Suspension and debarment. Non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition: The organization did not maintain proper documentation for 1) determining the rationale of the sole-source procurement methodology that it applied and 2) that suspension and debarment was checked quarterly per the Organization's policy for vendors reimbursed by the federal grant. Questioned Costs: None. Context: Two (2) of two (2) procurement transactions; Two (2) of two (2) suspension and debarment transactions Cause: The organization did not document its rationale for choosing the noncompetitive procurement method or its quarterly review of suspension and debarment of vendors. Effect: The Organization may inadvertently select vendors without regard to fair competition and cost analysis or vendors that may be federally suspended and disbarred. Repeat Finding: No. Recommendation: Management should adhere to or revise the Organization?s existing procurement policy and implement a system of processes and internal controls to ensure that the appropriate level of documentation is maintained based on the procurement methodology selected for a transaction of contract. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2022-002 ? Procurement and Suspension & Debarment Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Health Centers Cluster and Health Center Infrastructure Support Assistance Listing Number: 93.224 and 93.527; 93.526 Federal Award Identification Number: H8FCS40647-01; C8ECS44753-01 Award Periods: April 1, 2021 ? March 31, 2023; September 15, 2021 ? September 14, 2024, respectively Type of Finding: Compliance and significant deficiency in internal control over compliance Criteria: ? 200.320 Methods of procurement to be followed: The non-Federal entity must have and use documented procurement procedures, consistent with the standards of this section and ?? 200.317, 200.318, and 200.319 for any of the approved procurement methods used for the acquisition of property or services required under a Federal award or sub-award. ? 200.214 Suspension and debarment. Non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition: The organization did not maintain proper documentation for 1) determining the rationale of the sole-source procurement methodology that it applied and 2) that suspension and debarment was checked quarterly per the Organization's policy for vendors reimbursed by the federal grant. Questioned Costs: None. Context: Two (2) of two (2) procurement transactions; Two (2) of two (2) suspension and debarment transactions Cause: The organization did not document its rationale for choosing the noncompetitive procurement method or its quarterly review of suspension and debarment of vendors. Effect: The Organization may inadvertently select vendors without regard to fair competition and cost analysis or vendors that may be federally suspended and disbarred. Repeat Finding: No. Recommendation: Management should adhere to or revise the Organization?s existing procurement policy and implement a system of processes and internal controls to ensure that the appropriate level of documentation is maintained based on the procurement methodology selected for a transaction of contract. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2022-002 ? Procurement and Suspension & Debarment Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Health Centers Cluster and Health Center Infrastructure Support Assistance Listing Number: 93.224 and 93.527; 93.526 Federal Award Identification Number: H8FCS40647-01; C8ECS44753-01 Award Periods: April 1, 2021 ? March 31, 2023; September 15, 2021 ? September 14, 2024, respectively Type of Finding: Compliance and significant deficiency in internal control over compliance Criteria: ? 200.320 Methods of procurement to be followed: The non-Federal entity must have and use documented procurement procedures, consistent with the standards of this section and ?? 200.317, 200.318, and 200.319 for any of the approved procurement methods used for the acquisition of property or services required under a Federal award or sub-award. ? 200.214 Suspension and debarment. Non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition: The organization did not maintain proper documentation for 1) determining the rationale of the sole-source procurement methodology that it applied and 2) that suspension and debarment was checked quarterly per the Organization's policy for vendors reimbursed by the federal grant. Questioned Costs: None. Context: Two (2) of two (2) procurement transactions; Two (2) of two (2) suspension and debarment transactions Cause: The organization did not document its rationale for choosing the noncompetitive procurement method or its quarterly review of suspension and debarment of vendors. Effect: The Organization may inadvertently select vendors without regard to fair competition and cost analysis or vendors that may be federally suspended and disbarred. Repeat Finding: No. Recommendation: Management should adhere to or revise the Organization?s existing procurement policy and implement a system of processes and internal controls to ensure that the appropriate level of documentation is maintained based on the procurement methodology selected for a transaction of contract. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2022-002 ? Procurement and Suspension & Debarment Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Health Centers Cluster and Health Center Infrastructure Support Assistance Listing Number: 93.224 and 93.527; 93.526 Federal Award Identification Number: H8FCS40647-01; C8ECS44753-01 Award Periods: April 1, 2021 ? March 31, 2023; September 15, 2021 ? September 14, 2024, respectively Type of Finding: Compliance and significant deficiency in internal control over compliance Criteria: ? 200.320 Methods of procurement to be followed: The non-Federal entity must have and use documented procurement procedures, consistent with the standards of this section and ?? 200.317, 200.318, and 200.319 for any of the approved procurement methods used for the acquisition of property or services required under a Federal award or sub-award. ? 200.214 Suspension and debarment. Non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition: The organization did not maintain proper documentation for 1) determining the rationale of the sole-source procurement methodology that it applied and 2) that suspension and debarment was checked quarterly per the Organization's policy for vendors reimbursed by the federal grant. Questioned Costs: None. Context: Two (2) of two (2) procurement transactions; Two (2) of two (2) suspension and debarment transactions Cause: The organization did not document its rationale for choosing the noncompetitive procurement method or its quarterly review of suspension and debarment of vendors. Effect: The Organization may inadvertently select vendors without regard to fair competition and cost analysis or vendors that may be federally suspended and disbarred. Repeat Finding: No. Recommendation: Management should adhere to or revise the Organization?s existing procurement policy and implement a system of processes and internal controls to ensure that the appropriate level of documentation is maintained based on the procurement methodology selected for a transaction of contract. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2022-002 ? Procurement and Suspension & Debarment Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Health Centers Cluster and Health Center Infrastructure Support Assistance Listing Number: 93.224 and 93.527; 93.526 Federal Award Identification Number: H8FCS40647-01; C8ECS44753-01 Award Periods: April 1, 2021 ? March 31, 2023; September 15, 2021 ? September 14, 2024, respectively Type of Finding: Compliance and significant deficiency in internal control over compliance Criteria: ? 200.320 Methods of procurement to be followed: The non-Federal entity must have and use documented procurement procedures, consistent with the standards of this section and ?? 200.317, 200.318, and 200.319 for any of the approved procurement methods used for the acquisition of property or services required under a Federal award or sub-award. ? 200.214 Suspension and debarment. Non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition: The organization did not maintain proper documentation for 1) determining the rationale of the sole-source procurement methodology that it applied and 2) that suspension and debarment was checked quarterly per the Organization's policy for vendors reimbursed by the federal grant. Questioned Costs: None. Context: Two (2) of two (2) procurement transactions; Two (2) of two (2) suspension and debarment transactions Cause: The organization did not document its rationale for choosing the noncompetitive procurement method or its quarterly review of suspension and debarment of vendors. Effect: The Organization may inadvertently select vendors without regard to fair competition and cost analysis or vendors that may be federally suspended and disbarred. Repeat Finding: No. Recommendation: Management should adhere to or revise the Organization?s existing procurement policy and implement a system of processes and internal controls to ensure that the appropriate level of documentation is maintained based on the procurement methodology selected for a transaction of contract. Views of Responsible Officials: There is no disagreement with the audit finding.
Reference Number: 2022-001 Prior Year Finding: Yes – 2021-001 Federal Agency: U.S. Department of Housing and Urban Development Pass-through Agency: Various Federal Program: Emergency Solutions Grant Program ALN Number: 14.231 Compliance Requirement: Procurement, Suspension and Debarment Type of Finding: Material Weakness, Noncompliance Criteria or specific requirement: As per § 200.318 General procurement standards. (a) The Non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in §§ 200.317 through 200.327. (d) The Non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Condition: Based on our review of the Procurement compliance requirements, we noted that the Division has written procurement policies and competitive policies as required by CFR § 200.318 General procurement standards. We selected five (5) vendors for procurement Suspension and Debarment compliance testing of total population of 5 vendors subject to procurement and we were not provided with Procurement comparative bids therefore, we were unable: • To verify that the procurement method used was appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. • To Verify that procurements provide full and open competition (2 CFR section 200.319 and 48 CFR section 52.244-5). Cause: The Division did not ensured that as a non-Federal entity must have and must use documented procurement procedures, consistent with State, and local laws and regulations and the standards of §§ 200.318 through 200.327, for the acquisition of property or services required under a Federal award or subaward. Effect: The funding agency can reject the expenditures incurred by the Division on certain vendors where the Division must use procurement method appropriately based on the dollar amount and conditions specified in 2 CFR section 200.320. Questioned costs: Cannot be determined Recommendation: We recommend that the Division must: • Use documented procurement procedures, consistent with State, and local, laws and regulations and the standards, for the acquisition of property or services required under a federal award or subaward. • The Division must maintain records sufficient to detail the history of procurement. These records should include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Views of responsible officials: The Division will work with Territorial Headquarters to document procedures as outlined in the Recommendations above. See corrective action plan.
Reference Number: 2022-001 Prior Year Finding: Yes – 2021-001 Federal Agency: U.S. Department of Housing and Urban Development Pass-through Agency: Various Federal Program: Emergency Solutions Grant Program ALN Number: 14.231 Compliance Requirement: Procurement, Suspension and Debarment Type of Finding: Material Weakness, Noncompliance Criteria or specific requirement: As per § 200.318 General procurement standards. (a) The Non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in §§ 200.317 through 200.327. (d) The Non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Condition: Based on our review of the Procurement compliance requirements, we noted that the Division has written procurement policies and competitive policies as required by CFR § 200.318 General procurement standards. We selected five (5) vendors for procurement Suspension and Debarment compliance testing of total population of 5 vendors subject to procurement and we were not provided with Procurement comparative bids therefore, we were unable: • To verify that the procurement method used was appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. • To Verify that procurements provide full and open competition (2 CFR section 200.319 and 48 CFR section 52.244-5). Cause: The Division did not ensured that as a non-Federal entity must have and must use documented procurement procedures, consistent with State, and local laws and regulations and the standards of §§ 200.318 through 200.327, for the acquisition of property or services required under a Federal award or subaward. Effect: The funding agency can reject the expenditures incurred by the Division on certain vendors where the Division must use procurement method appropriately based on the dollar amount and conditions specified in 2 CFR section 200.320. Questioned costs: Cannot be determined Recommendation: We recommend that the Division must: • Use documented procurement procedures, consistent with State, and local, laws and regulations and the standards, for the acquisition of property or services required under a federal award or subaward. • The Division must maintain records sufficient to detail the history of procurement. These records should include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Views of responsible officials: The Division will work with Territorial Headquarters to document procedures as outlined in the Recommendations above. See corrective action plan.
Reference Number: 2022-001 Prior Year Finding: Yes – 2021-001 Federal Agency: U.S. Department of Housing and Urban Development Pass-through Agency: Various Federal Program: Emergency Solutions Grant Program ALN Number: 14.231 Compliance Requirement: Procurement, Suspension and Debarment Type of Finding: Material Weakness, Noncompliance Criteria or specific requirement: As per § 200.318 General procurement standards. (a) The Non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in §§ 200.317 through 200.327. (d) The Non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Condition: Based on our review of the Procurement compliance requirements, we noted that the Division has written procurement policies and competitive policies as required by CFR § 200.318 General procurement standards. We selected five (5) vendors for procurement Suspension and Debarment compliance testing of total population of 5 vendors subject to procurement and we were not provided with Procurement comparative bids therefore, we were unable: • To verify that the procurement method used was appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. • To Verify that procurements provide full and open competition (2 CFR section 200.319 and 48 CFR section 52.244-5). Cause: The Division did not ensured that as a non-Federal entity must have and must use documented procurement procedures, consistent with State, and local laws and regulations and the standards of §§ 200.318 through 200.327, for the acquisition of property or services required under a Federal award or subaward. Effect: The funding agency can reject the expenditures incurred by the Division on certain vendors where the Division must use procurement method appropriately based on the dollar amount and conditions specified in 2 CFR section 200.320. Questioned costs: Cannot be determined Recommendation: We recommend that the Division must: • Use documented procurement procedures, consistent with State, and local, laws and regulations and the standards, for the acquisition of property or services required under a federal award or subaward. • The Division must maintain records sufficient to detail the history of procurement. These records should include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Views of responsible officials: The Division will work with Territorial Headquarters to document procedures as outlined in the Recommendations above. See corrective action plan.
Reference Number: 2022-001 Prior Year Finding: Yes – 2021-001 Federal Agency: U.S. Department of Housing and Urban Development Pass-through Agency: Various Federal Program: Emergency Solutions Grant Program ALN Number: 14.231 Compliance Requirement: Procurement, Suspension and Debarment Type of Finding: Material Weakness, Noncompliance Criteria or specific requirement: As per § 200.318 General procurement standards. (a) The Non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in §§ 200.317 through 200.327. (d) The Non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Condition: Based on our review of the Procurement compliance requirements, we noted that the Division has written procurement policies and competitive policies as required by CFR § 200.318 General procurement standards. We selected five (5) vendors for procurement Suspension and Debarment compliance testing of total population of 5 vendors subject to procurement and we were not provided with Procurement comparative bids therefore, we were unable: • To verify that the procurement method used was appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. • To Verify that procurements provide full and open competition (2 CFR section 200.319 and 48 CFR section 52.244-5). Cause: The Division did not ensured that as a non-Federal entity must have and must use documented procurement procedures, consistent with State, and local laws and regulations and the standards of §§ 200.318 through 200.327, for the acquisition of property or services required under a Federal award or subaward. Effect: The funding agency can reject the expenditures incurred by the Division on certain vendors where the Division must use procurement method appropriately based on the dollar amount and conditions specified in 2 CFR section 200.320. Questioned costs: Cannot be determined Recommendation: We recommend that the Division must: • Use documented procurement procedures, consistent with State, and local, laws and regulations and the standards, for the acquisition of property or services required under a federal award or subaward. • The Division must maintain records sufficient to detail the history of procurement. These records should include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Views of responsible officials: The Division will work with Territorial Headquarters to document procedures as outlined in the Recommendations above. See corrective action plan.
Reference Number: 2022-001 Prior Year Finding: Yes – 2021-001 Federal Agency: U.S. Department of Housing and Urban Development Pass-through Agency: Various Federal Program: Emergency Solutions Grant Program ALN Number: 14.231 Compliance Requirement: Procurement, Suspension and Debarment Type of Finding: Material Weakness, Noncompliance Criteria or specific requirement: As per § 200.318 General procurement standards. (a) The Non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in §§ 200.317 through 200.327. (d) The Non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Condition: Based on our review of the Procurement compliance requirements, we noted that the Division has written procurement policies and competitive policies as required by CFR § 200.318 General procurement standards. We selected five (5) vendors for procurement Suspension and Debarment compliance testing of total population of 5 vendors subject to procurement and we were not provided with Procurement comparative bids therefore, we were unable: • To verify that the procurement method used was appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. • To Verify that procurements provide full and open competition (2 CFR section 200.319 and 48 CFR section 52.244-5). Cause: The Division did not ensured that as a non-Federal entity must have and must use documented procurement procedures, consistent with State, and local laws and regulations and the standards of §§ 200.318 through 200.327, for the acquisition of property or services required under a Federal award or subaward. Effect: The funding agency can reject the expenditures incurred by the Division on certain vendors where the Division must use procurement method appropriately based on the dollar amount and conditions specified in 2 CFR section 200.320. Questioned costs: Cannot be determined Recommendation: We recommend that the Division must: • Use documented procurement procedures, consistent with State, and local, laws and regulations and the standards, for the acquisition of property or services required under a federal award or subaward. • The Division must maintain records sufficient to detail the history of procurement. These records should include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Views of responsible officials: The Division will work with Territorial Headquarters to document procedures as outlined in the Recommendations above. See corrective action plan.
Reference Number: 2022-001 Prior Year Finding: Yes – 2021-001 Federal Agency: U.S. Department of Housing and Urban Development Pass-through Agency: Various Federal Program: Emergency Solutions Grant Program ALN Number: 14.231 Compliance Requirement: Procurement, Suspension and Debarment Type of Finding: Material Weakness, Noncompliance Criteria or specific requirement: As per § 200.318 General procurement standards. (a) The Non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in §§ 200.317 through 200.327. (d) The Non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Condition: Based on our review of the Procurement compliance requirements, we noted that the Division has written procurement policies and competitive policies as required by CFR § 200.318 General procurement standards. We selected five (5) vendors for procurement Suspension and Debarment compliance testing of total population of 5 vendors subject to procurement and we were not provided with Procurement comparative bids therefore, we were unable: • To verify that the procurement method used was appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. • To Verify that procurements provide full and open competition (2 CFR section 200.319 and 48 CFR section 52.244-5). Cause: The Division did not ensured that as a non-Federal entity must have and must use documented procurement procedures, consistent with State, and local laws and regulations and the standards of §§ 200.318 through 200.327, for the acquisition of property or services required under a Federal award or subaward. Effect: The funding agency can reject the expenditures incurred by the Division on certain vendors where the Division must use procurement method appropriately based on the dollar amount and conditions specified in 2 CFR section 200.320. Questioned costs: Cannot be determined Recommendation: We recommend that the Division must: • Use documented procurement procedures, consistent with State, and local, laws and regulations and the standards, for the acquisition of property or services required under a federal award or subaward. • The Division must maintain records sufficient to detail the history of procurement. These records should include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Views of responsible officials: The Division will work with Territorial Headquarters to document procedures as outlined in the Recommendations above. See corrective action plan.
Reference Number: 2022-001 Prior Year Finding: Yes – 2021-001 Federal Agency: U.S. Department of Housing and Urban Development Pass-through Agency: Various Federal Program: Emergency Solutions Grant Program ALN Number: 14.231 Compliance Requirement: Procurement, Suspension and Debarment Type of Finding: Material Weakness, Noncompliance Criteria or specific requirement: As per § 200.318 General procurement standards. (a) The Non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in §§ 200.317 through 200.327. (d) The Non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Condition: Based on our review of the Procurement compliance requirements, we noted that the Division has written procurement policies and competitive policies as required by CFR § 200.318 General procurement standards. We selected five (5) vendors for procurement Suspension and Debarment compliance testing of total population of 5 vendors subject to procurement and we were not provided with Procurement comparative bids therefore, we were unable: • To verify that the procurement method used was appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. • To Verify that procurements provide full and open competition (2 CFR section 200.319 and 48 CFR section 52.244-5). Cause: The Division did not ensured that as a non-Federal entity must have and must use documented procurement procedures, consistent with State, and local laws and regulations and the standards of §§ 200.318 through 200.327, for the acquisition of property or services required under a Federal award or subaward. Effect: The funding agency can reject the expenditures incurred by the Division on certain vendors where the Division must use procurement method appropriately based on the dollar amount and conditions specified in 2 CFR section 200.320. Questioned costs: Cannot be determined Recommendation: We recommend that the Division must: • Use documented procurement procedures, consistent with State, and local, laws and regulations and the standards, for the acquisition of property or services required under a federal award or subaward. • The Division must maintain records sufficient to detail the history of procurement. These records should include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Views of responsible officials: The Division will work with Territorial Headquarters to document procedures as outlined in the Recommendations above. See corrective action plan.
Federal Programs Information: Funding Agency: Department of Health and Human Services Title: Head Start Assistance Listing Number: 93.600 Award Period: September 1, 2021 ? August 31, 2022, September 1, 2022 ? August 31, 2023 Funding Agency: Department of Health and Human Services Title: Indian Self-Determination Assistance Listing Number: 93.441 Award Period: January 1, 2022 ? December 31, 2024 Criteria: The Office?s policies and procedures contains various requirements, including policies requiring certain levels of administrative and legal review, obtaining one or more written bids at various dollar thresholds, and requiring different levels of approval based on dollar values. Uniform Guidance regulations section CFR 200.318(a) and CFR 200.320(a) state, the non-Federal entity must use its own documented procurement procedures which reflect applicable State, local, and tribal laws and regulations, provided that the procurement conform to applicable Federal law and the standards identified. Condition: For Head Start, in our selected sample of 41 expenditures, we noted an expenditure of $208,932 that required either a sole source form or three written bids, and a legal review per the Office?s policy. These forms were not obtained. There was sole source justification; however, it was written by the vendor. The Tribal Council approved the purchase, but the resolution didn?t mention the vendor and/or the need to sole source the purchase. For Indian Self-Determination, in our selected sample of 40 expenditures, we noted an expenditure of $7,772 that did not have the required three written bids, an expenditure for $15,331 that did not have the required governor?s signature, and an expenditure that was approved for $365 but was later revised to $640 without any additional approvals. Questioned Costs: None. Context: 4 of 81 transactions tested across these two programs were missing documentation required by the Office?s procurement policy. Cause: The Office?s policies and procedures were not always being enforced or being followed. Additionally, the Office?s procurement policy requires sole source documentation for certain expenditures and contracts where the bidding process is bypassed, but the Office has not developed such a form. Effect: The Office was not in compliance with procurement standards and made payments during the year that were in violation of their policy. Auditors? Recommendation: We recommend the Office adhere to the procurement policy that it has developed, and we recommend a sole source form be generated that conforms to the requirements of the procurement policy. Management?s Response: For Head Start ? The Office?s procurement policy allows for sole source procurement if Tribal Council specifically authorizes its use. For the Head Start expenditure of $208,932, Tribal Council Resolution 08-2021-36 specifically approved this expenditure. The Office?s procurement policy does reference a sole source form. However, a sole source form was never created when the procurement policy was approved by Tribal Council. Therefore, a memo justifying the sole source procurement was accepted as sufficient documentation and justification of the sole source procurement. Because this was a sole source procurement, three written bids were not required. Also, legal review is not required for this expenditure because it is a purchase of goods. Legal review is only required for purchase of services above a certain threshold. The Office is in the process of updating its procurement policy and will create a sole source justification form in connection with the update. For Indian Self-Determination ? The Office acknowledges the lack of three written bids for a $7,772 expenditure. Only one written quote was obtained for this purchase. The Office also acknowledges the lack of Governor?s signature on a $15,331 purchase requisition. A new Administrative Assistant issued this purchase requisition and was not properly trained on obtaining Governor?s signature for all purchase requisitions greater than $5,000. It should be noted that Governor signed the check related to this expenditure so was able to see the purchase at that time. The Office also acknowledges a revision was not made to a $365 purchase requisition when an additional purchase was added to the approved purchase requisition.
Federal Programs Information: Funding Agency: Department of Health and Human Services Title: Head Start Assistance Listing Number: 93.600 Award Period: September 1, 2021 ? August 31, 2022, September 1, 2022 ? August 31, 2023 Funding Agency: Department of Health and Human Services Title: Indian Self-Determination Assistance Listing Number: 93.441 Award Period: January 1, 2022 ? December 31, 2024 Criteria: The Office?s policies and procedures contains various requirements, including policies requiring certain levels of administrative and legal review, obtaining one or more written bids at various dollar thresholds, and requiring different levels of approval based on dollar values. Uniform Guidance regulations section CFR 200.318(a) and CFR 200.320(a) state, the non-Federal entity must use its own documented procurement procedures which reflect applicable State, local, and tribal laws and regulations, provided that the procurement conform to applicable Federal law and the standards identified. Condition: For Head Start, in our selected sample of 41 expenditures, we noted an expenditure of $208,932 that required either a sole source form or three written bids, and a legal review per the Office?s policy. These forms were not obtained. There was sole source justification; however, it was written by the vendor. The Tribal Council approved the purchase, but the resolution didn?t mention the vendor and/or the need to sole source the purchase. For Indian Self-Determination, in our selected sample of 40 expenditures, we noted an expenditure of $7,772 that did not have the required three written bids, an expenditure for $15,331 that did not have the required governor?s signature, and an expenditure that was approved for $365 but was later revised to $640 without any additional approvals. Questioned Costs: None. Context: 4 of 81 transactions tested across these two programs were missing documentation required by the Office?s procurement policy. Cause: The Office?s policies and procedures were not always being enforced or being followed. Additionally, the Office?s procurement policy requires sole source documentation for certain expenditures and contracts where the bidding process is bypassed, but the Office has not developed such a form. Effect: The Office was not in compliance with procurement standards and made payments during the year that were in violation of their policy. Auditors? Recommendation: We recommend the Office adhere to the procurement policy that it has developed, and we recommend a sole source form be generated that conforms to the requirements of the procurement policy. Management?s Response: For Head Start ? The Office?s procurement policy allows for sole source procurement if Tribal Council specifically authorizes its use. For the Head Start expenditure of $208,932, Tribal Council Resolution 08-2021-36 specifically approved this expenditure. The Office?s procurement policy does reference a sole source form. However, a sole source form was never created when the procurement policy was approved by Tribal Council. Therefore, a memo justifying the sole source procurement was accepted as sufficient documentation and justification of the sole source procurement. Because this was a sole source procurement, three written bids were not required. Also, legal review is not required for this expenditure because it is a purchase of goods. Legal review is only required for purchase of services above a certain threshold. The Office is in the process of updating its procurement policy and will create a sole source justification form in connection with the update. For Indian Self-Determination ? The Office acknowledges the lack of three written bids for a $7,772 expenditure. Only one written quote was obtained for this purchase. The Office also acknowledges the lack of Governor?s signature on a $15,331 purchase requisition. A new Administrative Assistant issued this purchase requisition and was not properly trained on obtaining Governor?s signature for all purchase requisitions greater than $5,000. It should be noted that Governor signed the check related to this expenditure so was able to see the purchase at that time. The Office also acknowledges a revision was not made to a $365 purchase requisition when an additional purchase was added to the approved purchase requisition.
Federal Programs Information: Funding Agency: Department of Health and Human Services Title: Head Start Assistance Listing Number: 93.600 Award Period: September 1, 2021 ? August 31, 2022, September 1, 2022 ? August 31, 2023 Funding Agency: Department of Health and Human Services Title: Indian Self-Determination Assistance Listing Number: 93.441 Award Period: January 1, 2022 ? December 31, 2024 Criteria: The Office?s policies and procedures contains various requirements, including policies requiring certain levels of administrative and legal review, obtaining one or more written bids at various dollar thresholds, and requiring different levels of approval based on dollar values. Uniform Guidance regulations section CFR 200.318(a) and CFR 200.320(a) state, the non-Federal entity must use its own documented procurement procedures which reflect applicable State, local, and tribal laws and regulations, provided that the procurement conform to applicable Federal law and the standards identified. Condition: For Head Start, in our selected sample of 41 expenditures, we noted an expenditure of $208,932 that required either a sole source form or three written bids, and a legal review per the Office?s policy. These forms were not obtained. There was sole source justification; however, it was written by the vendor. The Tribal Council approved the purchase, but the resolution didn?t mention the vendor and/or the need to sole source the purchase. For Indian Self-Determination, in our selected sample of 40 expenditures, we noted an expenditure of $7,772 that did not have the required three written bids, an expenditure for $15,331 that did not have the required governor?s signature, and an expenditure that was approved for $365 but was later revised to $640 without any additional approvals. Questioned Costs: None. Context: 4 of 81 transactions tested across these two programs were missing documentation required by the Office?s procurement policy. Cause: The Office?s policies and procedures were not always being enforced or being followed. Additionally, the Office?s procurement policy requires sole source documentation for certain expenditures and contracts where the bidding process is bypassed, but the Office has not developed such a form. Effect: The Office was not in compliance with procurement standards and made payments during the year that were in violation of their policy. Auditors? Recommendation: We recommend the Office adhere to the procurement policy that it has developed, and we recommend a sole source form be generated that conforms to the requirements of the procurement policy. Management?s Response: For Head Start ? The Office?s procurement policy allows for sole source procurement if Tribal Council specifically authorizes its use. For the Head Start expenditure of $208,932, Tribal Council Resolution 08-2021-36 specifically approved this expenditure. The Office?s procurement policy does reference a sole source form. However, a sole source form was never created when the procurement policy was approved by Tribal Council. Therefore, a memo justifying the sole source procurement was accepted as sufficient documentation and justification of the sole source procurement. Because this was a sole source procurement, three written bids were not required. Also, legal review is not required for this expenditure because it is a purchase of goods. Legal review is only required for purchase of services above a certain threshold. The Office is in the process of updating its procurement policy and will create a sole source justification form in connection with the update. For Indian Self-Determination ? The Office acknowledges the lack of three written bids for a $7,772 expenditure. Only one written quote was obtained for this purchase. The Office also acknowledges the lack of Governor?s signature on a $15,331 purchase requisition. A new Administrative Assistant issued this purchase requisition and was not properly trained on obtaining Governor?s signature for all purchase requisitions greater than $5,000. It should be noted that Governor signed the check related to this expenditure so was able to see the purchase at that time. The Office also acknowledges a revision was not made to a $365 purchase requisition when an additional purchase was added to the approved purchase requisition.
Federal Programs Information: Funding Agency: Department of Health and Human Services Title: Head Start Assistance Listing Number: 93.600 Award Period: September 1, 2021 ? August 31, 2022, September 1, 2022 ? August 31, 2023 Funding Agency: Department of Health and Human Services Title: Indian Self-Determination Assistance Listing Number: 93.441 Award Period: January 1, 2022 ? December 31, 2024 Criteria: The Office?s policies and procedures contains various requirements, including policies requiring certain levels of administrative and legal review, obtaining one or more written bids at various dollar thresholds, and requiring different levels of approval based on dollar values. Uniform Guidance regulations section CFR 200.318(a) and CFR 200.320(a) state, the non-Federal entity must use its own documented procurement procedures which reflect applicable State, local, and tribal laws and regulations, provided that the procurement conform to applicable Federal law and the standards identified. Condition: For Head Start, in our selected sample of 41 expenditures, we noted an expenditure of $208,932 that required either a sole source form or three written bids, and a legal review per the Office?s policy. These forms were not obtained. There was sole source justification; however, it was written by the vendor. The Tribal Council approved the purchase, but the resolution didn?t mention the vendor and/or the need to sole source the purchase. For Indian Self-Determination, in our selected sample of 40 expenditures, we noted an expenditure of $7,772 that did not have the required three written bids, an expenditure for $15,331 that did not have the required governor?s signature, and an expenditure that was approved for $365 but was later revised to $640 without any additional approvals. Questioned Costs: None. Context: 4 of 81 transactions tested across these two programs were missing documentation required by the Office?s procurement policy. Cause: The Office?s policies and procedures were not always being enforced or being followed. Additionally, the Office?s procurement policy requires sole source documentation for certain expenditures and contracts where the bidding process is bypassed, but the Office has not developed such a form. Effect: The Office was not in compliance with procurement standards and made payments during the year that were in violation of their policy. Auditors? Recommendation: We recommend the Office adhere to the procurement policy that it has developed, and we recommend a sole source form be generated that conforms to the requirements of the procurement policy. Management?s Response: For Head Start ? The Office?s procurement policy allows for sole source procurement if Tribal Council specifically authorizes its use. For the Head Start expenditure of $208,932, Tribal Council Resolution 08-2021-36 specifically approved this expenditure. The Office?s procurement policy does reference a sole source form. However, a sole source form was never created when the procurement policy was approved by Tribal Council. Therefore, a memo justifying the sole source procurement was accepted as sufficient documentation and justification of the sole source procurement. Because this was a sole source procurement, three written bids were not required. Also, legal review is not required for this expenditure because it is a purchase of goods. Legal review is only required for purchase of services above a certain threshold. The Office is in the process of updating its procurement policy and will create a sole source justification form in connection with the update. For Indian Self-Determination ? The Office acknowledges the lack of three written bids for a $7,772 expenditure. Only one written quote was obtained for this purchase. The Office also acknowledges the lack of Governor?s signature on a $15,331 purchase requisition. A new Administrative Assistant issued this purchase requisition and was not properly trained on obtaining Governor?s signature for all purchase requisitions greater than $5,000. It should be noted that Governor signed the check related to this expenditure so was able to see the purchase at that time. The Office also acknowledges a revision was not made to a $365 purchase requisition when an additional purchase was added to the approved purchase requisition.
Federal Programs Information: Funding Agency: Department of Health and Human Services Title: Head Start Assistance Listing Number: 93.600 Award Period: September 1, 2021 ? August 31, 2022, September 1, 2022 ? August 31, 2023 Funding Agency: Department of Health and Human Services Title: Indian Self-Determination Assistance Listing Number: 93.441 Award Period: January 1, 2022 ? December 31, 2024 Criteria: The Office?s policies and procedures contains various requirements, including policies requiring certain levels of administrative and legal review, obtaining one or more written bids at various dollar thresholds, and requiring different levels of approval based on dollar values. Uniform Guidance regulations section CFR 200.318(a) and CFR 200.320(a) state, the non-Federal entity must use its own documented procurement procedures which reflect applicable State, local, and tribal laws and regulations, provided that the procurement conform to applicable Federal law and the standards identified. Condition: For Head Start, in our selected sample of 41 expenditures, we noted an expenditure of $208,932 that required either a sole source form or three written bids, and a legal review per the Office?s policy. These forms were not obtained. There was sole source justification; however, it was written by the vendor. The Tribal Council approved the purchase, but the resolution didn?t mention the vendor and/or the need to sole source the purchase. For Indian Self-Determination, in our selected sample of 40 expenditures, we noted an expenditure of $7,772 that did not have the required three written bids, an expenditure for $15,331 that did not have the required governor?s signature, and an expenditure that was approved for $365 but was later revised to $640 without any additional approvals. Questioned Costs: None. Context: 4 of 81 transactions tested across these two programs were missing documentation required by the Office?s procurement policy. Cause: The Office?s policies and procedures were not always being enforced or being followed. Additionally, the Office?s procurement policy requires sole source documentation for certain expenditures and contracts where the bidding process is bypassed, but the Office has not developed such a form. Effect: The Office was not in compliance with procurement standards and made payments during the year that were in violation of their policy. Auditors? Recommendation: We recommend the Office adhere to the procurement policy that it has developed, and we recommend a sole source form be generated that conforms to the requirements of the procurement policy. Management?s Response: For Head Start ? The Office?s procurement policy allows for sole source procurement if Tribal Council specifically authorizes its use. For the Head Start expenditure of $208,932, Tribal Council Resolution 08-2021-36 specifically approved this expenditure. The Office?s procurement policy does reference a sole source form. However, a sole source form was never created when the procurement policy was approved by Tribal Council. Therefore, a memo justifying the sole source procurement was accepted as sufficient documentation and justification of the sole source procurement. Because this was a sole source procurement, three written bids were not required. Also, legal review is not required for this expenditure because it is a purchase of goods. Legal review is only required for purchase of services above a certain threshold. The Office is in the process of updating its procurement policy and will create a sole source justification form in connection with the update. For Indian Self-Determination ? The Office acknowledges the lack of three written bids for a $7,772 expenditure. Only one written quote was obtained for this purchase. The Office also acknowledges the lack of Governor?s signature on a $15,331 purchase requisition. A new Administrative Assistant issued this purchase requisition and was not properly trained on obtaining Governor?s signature for all purchase requisitions greater than $5,000. It should be noted that Governor signed the check related to this expenditure so was able to see the purchase at that time. The Office also acknowledges a revision was not made to a $365 purchase requisition when an additional purchase was added to the approved purchase requisition.
Federal Programs Information: Funding Agency: Department of Health and Human Services Title: Head Start Assistance Listing Number: 93.600 Award Period: September 1, 2021 ? August 31, 2022, September 1, 2022 ? August 31, 2023 Funding Agency: Department of Health and Human Services Title: Indian Self-Determination Assistance Listing Number: 93.441 Award Period: January 1, 2022 ? December 31, 2024 Criteria: The Office?s policies and procedures contains various requirements, including policies requiring certain levels of administrative and legal review, obtaining one or more written bids at various dollar thresholds, and requiring different levels of approval based on dollar values. Uniform Guidance regulations section CFR 200.318(a) and CFR 200.320(a) state, the non-Federal entity must use its own documented procurement procedures which reflect applicable State, local, and tribal laws and regulations, provided that the procurement conform to applicable Federal law and the standards identified. Condition: For Head Start, in our selected sample of 41 expenditures, we noted an expenditure of $208,932 that required either a sole source form or three written bids, and a legal review per the Office?s policy. These forms were not obtained. There was sole source justification; however, it was written by the vendor. The Tribal Council approved the purchase, but the resolution didn?t mention the vendor and/or the need to sole source the purchase. For Indian Self-Determination, in our selected sample of 40 expenditures, we noted an expenditure of $7,772 that did not have the required three written bids, an expenditure for $15,331 that did not have the required governor?s signature, and an expenditure that was approved for $365 but was later revised to $640 without any additional approvals. Questioned Costs: None. Context: 4 of 81 transactions tested across these two programs were missing documentation required by the Office?s procurement policy. Cause: The Office?s policies and procedures were not always being enforced or being followed. Additionally, the Office?s procurement policy requires sole source documentation for certain expenditures and contracts where the bidding process is bypassed, but the Office has not developed such a form. Effect: The Office was not in compliance with procurement standards and made payments during the year that were in violation of their policy. Auditors? Recommendation: We recommend the Office adhere to the procurement policy that it has developed, and we recommend a sole source form be generated that conforms to the requirements of the procurement policy. Management?s Response: For Head Start ? The Office?s procurement policy allows for sole source procurement if Tribal Council specifically authorizes its use. For the Head Start expenditure of $208,932, Tribal Council Resolution 08-2021-36 specifically approved this expenditure. The Office?s procurement policy does reference a sole source form. However, a sole source form was never created when the procurement policy was approved by Tribal Council. Therefore, a memo justifying the sole source procurement was accepted as sufficient documentation and justification of the sole source procurement. Because this was a sole source procurement, three written bids were not required. Also, legal review is not required for this expenditure because it is a purchase of goods. Legal review is only required for purchase of services above a certain threshold. The Office is in the process of updating its procurement policy and will create a sole source justification form in connection with the update. For Indian Self-Determination ? The Office acknowledges the lack of three written bids for a $7,772 expenditure. Only one written quote was obtained for this purchase. The Office also acknowledges the lack of Governor?s signature on a $15,331 purchase requisition. A new Administrative Assistant issued this purchase requisition and was not properly trained on obtaining Governor?s signature for all purchase requisitions greater than $5,000. It should be noted that Governor signed the check related to this expenditure so was able to see the purchase at that time. The Office also acknowledges a revision was not made to a $365 purchase requisition when an additional purchase was added to the approved purchase requisition.
2022-001 Methods of Procurement Federal Agency: United States Department of Treasury Federal Program Name: Coronavirus State and Local Recovery Funds (CSLRF) Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLT-8694, 2021 Award Period: March 3, 2021 to December 31, 2025 Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of federal procurement guidelines. US Code ? 200.320 states that the non-Federal entity must have and use documented procurement procedures, consistent with the standards of ? 200.320 and ?? 200.317, 200.318, and 200.319 for any of the methods of procurement used for the acquisition of property or services required under a Federal award or sub-award. Condition: The County entered into a noncompetitive procurement contract with a vendor under specific circumstances for an emergency procurement. The County did not document the justification or approval of the noncompetitive emergency procurement. The County?s internal procurement policies state that deviations from standard purchasing procedures must be authorized and all such deviations will be documented and all emergency purchases shall be in a report to the Board of County Commissioners at its next regular Commission meeting. Context: One of five procurement contracts tested did not contain appropriate documentation supporting federal procurement requirements. Cause: The County did not follow their procurement policies and procedures to properly document the justification and approval of an emergency procurement transaction that was made using federal funding and requirements for noncompetitive emergency procurements. Effect: By not following federal regulations and the County?s procurement policy, the County could improperly enter into a contract that violates the requirements of CFR ? 200.320. Repeat Finding: No Recommendation: We recommend that the County review their policies and procedures to ensure that they are operating in a manner that follows federal procurement requirements and the County?s procurement policy. The creation and use of a standard procurement checklist would assist the County in documenting all requirements for each procurement that is entered into. Views of Responsible Officials: The Finance Department will work with County Management and Board Departments to ensure familiarity and understanding of the County?s procurement policies and procedures. Additionally, the County is working towards the implementation of a financial system which will improve the controls in place to help ensure compliance with procurement requirements. The Finance Department is also working on a financial policies document and will would with County Manager on a review of the County?s procurement policy.
Finding 2022-004: Use of Sole-Sourced Justification for Procurement Federal Programs: All Programs Criteria: Under Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) Section 200.320(f) ?Methods of procurement to be followed?, procurements by noncompetitive proposals (i.e. sole-sourced justification) may be used only when one or more of the following circumstances apply: ? The item is available only from a single source; ? The public exigency or emergency for the requirement will not permit a delay resulting from competitive solicitation; ? The Federal awarding agency or pass-through entity expressly authorizes noncompetitive proposals in response to a written request from the non-Federal entity; or ? After solicitation of a number of sources, competition is determined inadequate. Condition: Our audit work over various expenses disclosed instances of consultants and vendors hired under the sole-sourced justification method of procurement. Although the expenses were properly supported, the rationale for several sole-sourced selections was not properly documented and/or not always appeared to be reasonable. Cause: The Consolidated Entity was not in full compliance with sole-sourced justification requirements, as stated above, during the year ended September 30, 2022. Effect or Potential Effect: The Consolidated Entity could enter into contractual arrangements whereby they are not receiving the best value for the organization and/or in which there exists conflicts of interest. Ultimately, transparency with respect to these transactions could be compromised if the proper procurement actions are not followed. Questioned Costs: None noted. Context: The Consolidated Entity failed to consistently document its justification with respect to solesourced according to the above-noted requirements. Identification as a Repeat Finding: 2021-003 Recommendation: We recommend that the Consolidated Entity limit its use of sole-sourced justification based on the above-noted requirements. In cases where sole-sourced is appropriate, we recommend that the actions (or lack of actions) be properly and fully documented. Subsequent to the year under audit, we noted management is working on updating it?s policies and practices related to sole-source justification and has consulted with us on several matters to ensure not only compliance, but efficiencies are maintained.
Finding 2022-004: Use of Sole-Sourced Justification for Procurement Federal Programs: All Programs Criteria: Under Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) Section 200.320(f) ?Methods of procurement to be followed?, procurements by noncompetitive proposals (i.e. sole-sourced justification) may be used only when one or more of the following circumstances apply: ? The item is available only from a single source; ? The public exigency or emergency for the requirement will not permit a delay resulting from competitive solicitation; ? The Federal awarding agency or pass-through entity expressly authorizes noncompetitive proposals in response to a written request from the non-Federal entity; or ? After solicitation of a number of sources, competition is determined inadequate. Condition: Our audit work over various expenses disclosed instances of consultants and vendors hired under the sole-sourced justification method of procurement. Although the expenses were properly supported, the rationale for several sole-sourced selections was not properly documented and/or not always appeared to be reasonable. Cause: The Consolidated Entity was not in full compliance with sole-sourced justification requirements, as stated above, during the year ended September 30, 2022. Effect or Potential Effect: The Consolidated Entity could enter into contractual arrangements whereby they are not receiving the best value for the organization and/or in which there exists conflicts of interest. Ultimately, transparency with respect to these transactions could be compromised if the proper procurement actions are not followed. Questioned Costs: None noted. Context: The Consolidated Entity failed to consistently document its justification with respect to solesourced according to the above-noted requirements. Identification as a Repeat Finding: 2021-003 Recommendation: We recommend that the Consolidated Entity limit its use of sole-sourced justification based on the above-noted requirements. In cases where sole-sourced is appropriate, we recommend that the actions (or lack of actions) be properly and fully documented. Subsequent to the year under audit, we noted management is working on updating it?s policies and practices related to sole-source justification and has consulted with us on several matters to ensure not only compliance, but efficiencies are maintained.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Public and Indian Housing Assistance Listing Number: 14.850 Federal Award Identification Number and Year: LA003, 2022 Award Period: 10/1/21-9/30/22 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or Specific Requirement: Non-federal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. A non-federal entity must: 1. Meet the general procurement standards in 2 CFR section 200.318, which include oversight of contractors? performance, maintaining written standards of conduct for employees involved in contracting, awarding contracts only to responsible contractors, and maintaining records to document history of procurements. 2. Conduct all procurement transactions in a manner providing full and open competition, in accordance with 2 CFR section 200.319. 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 micropurchase 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). Micropurchases 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)). 3. 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)). 4. Perform a cost or price analysis in connection with every procurement action in excess of the simplified acquisition threshold, including contract modifications (2 CFR section 200.323(a)). The cost plus a percentage of cost and percentage of construction cost methods of contracting must not be used (2 CFR section 200.323(b)). 5. Ensure that every purchase order or other contract includes applicable provisions required by 2 CFR section 200.326. These provisions are described in Appendix II to 2 CFR Part 200, ?Contract Provisions for Non-Federal Entity Contracts Under Federal Awards.? When a non-federal entity enters into a covered transaction with an entity at a lower tier, the nonfederal 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. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at SAM.gov Home (click on Search Record, then click on Advanced Search Exclusions) (Note: The OMB guidance at 2 CFR Part 180 and agency implementing regulations still refer to the SAM Exclusions as the Excluded Parties List System (EPLS)), (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180.300). Condition: During testing, it was noted that the Authority did not have adequate internal controls over procurement and suspension and debarment requirements. Questioned Costs: $135,749 Context: During testing of a sample of 7 contracts, it was noted that 7 contracts did not comply with compliance requirements. The sample was a statistically valid sample. ? For 2 contracts tested, the Authority was unable to provide a copy of the contract, or documentation to support the contract was properly procured. ? For 3 contracts tested, the Authority was unable to provide documentation to support that a cost analysis was performed prior to entering the contract. ? For all 7 contracts tested, the Authority was unable to provide documentation that it ensured the vendor was not suspended or debarred before entering into the contract. Cause: The Authority failed to maintain proper documentation of contracts and procurement procedures to evidence compliance. Effect: The Authority is not in compliance with federal regulations regarding procurement of contracts, which could lead to vendors receiving funds that are not properly vetted. Recommendation: We recommend that the Authority reviews it?s procurement policy and active contracts and future contracts to ensure that all policies and procedures regarding procurement of contracts are properly followed and documented. Views of Responsible Officials: There is no disagreement with the audit finding.
Item 2022-001 Written policies, procedures, and standards of conduct Water and Waste Disposal Systems for Rural Communities Assistance Listing Number 10.760 U.S. Department of Agriculture Grant period: Year ended September 30, 2022 Questioned Costs ? $0 Condition ? The Board does not have all of the written policies, procedures and standards of conduct required by UG. Criteria ? Grantees should have written policies, procedures, and standards of conduct as required by 2 CFR 200, Subparts D & E of the Uniform Guidance. 2 CFR 200, Subparts D & E requires the non-Federal entity to establish and maintain written policies, procedures, and standards of conduct including internal controls over the Federal awards that provides reasonable assurance that the non-Federal entity is managing the Federal statutes, regulations, and the terms and conditions of the Federal award. Specific requirements relate to the following: ? ? 200.302 Financial management ? ? 200.305 Payment ? ? 200.319 Competition ? ? 200.320 Methods of procurement to be followed ? ? 200.430 Compensation?personal services ? ? 200.431 Compensation?fringe benefits Cause of Condition ? The Board has failed to prepare written policies, procedures, and standards of conduct as required by 2 CFR 200, Subparts D & E of the Uniform Guidance. Potential Effect of Condition ? Lack of written policies, procedures, and standards of conduct could result in noncompliance related to federal awards. Recommendation ? We recommend that the Board implement the required written policies and procedures. Audit finding 2022-001 relates to prior year 2021-001 finding. Updated reference number to current audit year 2022.
Finding 2022-001: Department of Housing and Urban Development - Continuum of Care Program - Assistance Listing No. 14.267; Grant period: Year Ended December 31, 2022. Criteria ? In accordance with 2 CFR 200.320(a)(2)(i), participants are required to perform an appropriate form of competition in their procurement process if purchases are within the small purchase threshold. Condition ? Management did not perform an appropriate form of competition for a purchase made within the small purchase threshold. Questioned costs ? There are known questioned costs of $36,990 representing the reimbursements claimed for the vendor during the audit period. No likely questioned costs are noted. Context ? Inspection of procurement documentation showed one out of two vendors subjected to sampling required an adequate number of price or rate quotations from qualified sources to be obtained and assessment to be performed in accordance with the small purchase threshold of 2 CFR 200.320(a)(2)(i). Price or rate quotations were obtained, but not formally documented and a formal assessment was not performed. Of the $1,625,075 of total Continuum of Care reimbursements claimed during the year, $96,702 of reimbursements are subject to this procurement requirement, including the known questioned costs of $36,990. Effect ? By not obtaining price or rate quotations from qualified sources, this could result in the utilization of an unqualified vendor, an overspending of grant funding, and questioned costs. Cause ? Management obtained rate quotations from an adequate number of vendors, but did not retain sufficient documentation and did not perform a formal assessment to proceed with the purchase. Repeat finding ? N/A Recommendation ? We recommend management implement a control to ensure sufficient documentation is retained during the procurement of all vendors being reimbursed by federal awards and ensure compliance with the Uniform Guidance and other applicable procurement standards. Management's response ? Management will ensure to retain sufficient documentation when obtaining quotes from similar vendors and performing a documented analysis of services and corresponding costs for the fiscal year 2022?23 and every year going forward.
Information on the Federal Program: Program Name: Congressional Appropriations Program Federal Agency: United States Department of Treasury AL Number/Name: 21.U01 NeighborWorks? System Program FY 2022 Appropriation 21.U04 COVID-19 American Rescue Plan Criteria: According to 2 CFR ? 200.318(a), General Procurement Standards, the non-Federal entity must have and use documented procurement procedures, consistent with State and local laws and regulations, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in the Uniform Guidance. In addition, 2 CFR ?200.318(i) states that the non-federal entity must maintain records sufficient to detail the history of the procurement. These records are required to include, but are not necessarily limited to the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. All procurement transactions must be conducted in a manner providing full and open competition consistent with ?200.319 and must be performed using the appropriate procurement method as outlined in ?200.320. Furthermore, 2 CFR ?200.320(c), Noncompetitive Procurement, states that there are specific circumstances in which noncompetitive procurement can be used. Noncompetitive procurement can only be awarded if one or more of the following circumstances apply: (1) The acquisition of property or services, the aggregate dollar amount of which does not exceed the micro-purchase threshold; (2) The item is available only from a single source; (3) The public exigency or emergency for the requirement will not permit a delay resulting from publicizing a competitive solicitation; (4) The Federal awarding agency or pass-through entity expressly authorizes a noncompetitive procurement in response to a written request from the non-Federal entity; or (5) After solicitation of a number of sources, competition is determined inadequate. Condition: During our review of the Corporation?s procurement policies, we noted that the Corporation?s written internal procurement policies and procedures are not in conformity with the requirements identified in the Uniform Guidance procurement requirements. During our testing of the procurement, suspension and debarment compliance requirement, we selected 54 procurement samples for testing. We noted that 12 out of the 54 procurement samples were procured by way of a noncompetitive proposal process through a solicitation from only one source under the criteria of either: (1) the item is available only from a single source or (2) there is an urgent and compelling need for the goods or services. However, based on our review of the 12 procurement files, we noted that all of the 12 procurement files do not appropriately justify the use of a noncompetitive procurement process due to the following reasons: 1. The supplies or services being procured are sold or provided by other vendors, not just by a single source. 2. Incumbency of the vendor is not a valid noncompetitive procurement justification. 3. Contracting without providing for full and open competition shall not be justified on the basis of (1) lack of advance planning by the requiring activity; or (2) concerns related to the amount of funds available for the acquisition of supplies or services. Cause: The Corporation?s personnel did not adhere to the federal requirements and the Corporation?s internal procurement policies and procedures particularly on the use of noncompetitive procurements. Effect: Failure to perform procurement procedures in accordance with the Corporation?s documented policies and the procurement procedures under the Uniform Guidance procurement requirements could result in expenditures incurred being disallowed. Questioned Costs: Not determinable. Context: This is a condition identified per review of the Corporation?s compliance with the specified requirements using a non-statistical sample. The total federal expenditures related to the 12 noncompetitive procurements is $2,786,980 for the year ended September 30, 2022. The total contract value of the 12 noncompetitive procurements is $13,507,008 with contract terms that ranges from 3 to 5 years. The total federal expenditures for all of the 54 procurement samples selected for testing is $9,409,871 from a total population of expenditures subject to procurement of $15,481,554 for the year ended September 30, 2022. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the Corporation update its current procurement policies and procedures to conform with the requirements identified in the Uniform Guidance procurement requirements. In addition, the Corporation should ensure that the use of the Noncompetitive Procurement criteria under the Uniform Guidance procurement requirements are adhered to and appropriate justifications for these contracts are used and documented appropriately. Finally, the Corporation should have a system in place to track and monitor the terms of vendor contracts in order to plan in advance if the contracts will need to be subject to a competitive procurement process providing full and open competition as required. Views of Responsible Officials: Management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.
Information on the Federal Program: Program Name: Congressional Appropriations Program Federal Agency: United States Department of Treasury AL Number/Name: 21.U01 NeighborWorks? System Program FY 2022 Appropriation 21.U04 COVID-19 American Rescue Plan Criteria: According to 2 CFR ? 200.318(a), General Procurement Standards, the non-Federal entity must have and use documented procurement procedures, consistent with State and local laws and regulations, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in the Uniform Guidance. In addition, 2 CFR ?200.318(i) states that the non-federal entity must maintain records sufficient to detail the history of the procurement. These records are required to include, but are not necessarily limited to the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. All procurement transactions must be conducted in a manner providing full and open competition consistent with ?200.319 and must be performed using the appropriate procurement method as outlined in ?200.320. Furthermore, 2 CFR ?200.320(c), Noncompetitive Procurement, states that there are specific circumstances in which noncompetitive procurement can be used. Noncompetitive procurement can only be awarded if one or more of the following circumstances apply: (1) The acquisition of property or services, the aggregate dollar amount of which does not exceed the micro-purchase threshold; (2) The item is available only from a single source; (3) The public exigency or emergency for the requirement will not permit a delay resulting from publicizing a competitive solicitation; (4) The Federal awarding agency or pass-through entity expressly authorizes a noncompetitive procurement in response to a written request from the non-Federal entity; or (5) After solicitation of a number of sources, competition is determined inadequate. Condition: During our review of the Corporation?s procurement policies, we noted that the Corporation?s written internal procurement policies and procedures are not in conformity with the requirements identified in the Uniform Guidance procurement requirements. During our testing of the procurement, suspension and debarment compliance requirement, we selected 54 procurement samples for testing. We noted that 12 out of the 54 procurement samples were procured by way of a noncompetitive proposal process through a solicitation from only one source under the criteria of either: (1) the item is available only from a single source or (2) there is an urgent and compelling need for the goods or services. However, based on our review of the 12 procurement files, we noted that all of the 12 procurement files do not appropriately justify the use of a noncompetitive procurement process due to the following reasons: 1. The supplies or services being procured are sold or provided by other vendors, not just by a single source. 2. Incumbency of the vendor is not a valid noncompetitive procurement justification. 3. Contracting without providing for full and open competition shall not be justified on the basis of (1) lack of advance planning by the requiring activity; or (2) concerns related to the amount of funds available for the acquisition of supplies or services. Cause: The Corporation?s personnel did not adhere to the federal requirements and the Corporation?s internal procurement policies and procedures particularly on the use of noncompetitive procurements. Effect: Failure to perform procurement procedures in accordance with the Corporation?s documented policies and the procurement procedures under the Uniform Guidance procurement requirements could result in expenditures incurred being disallowed. Questioned Costs: Not determinable. Context: This is a condition identified per review of the Corporation?s compliance with the specified requirements using a non-statistical sample. The total federal expenditures related to the 12 noncompetitive procurements is $2,786,980 for the year ended September 30, 2022. The total contract value of the 12 noncompetitive procurements is $13,507,008 with contract terms that ranges from 3 to 5 years. The total federal expenditures for all of the 54 procurement samples selected for testing is $9,409,871 from a total population of expenditures subject to procurement of $15,481,554 for the year ended September 30, 2022. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the Corporation update its current procurement policies and procedures to conform with the requirements identified in the Uniform Guidance procurement requirements. In addition, the Corporation should ensure that the use of the Noncompetitive Procurement criteria under the Uniform Guidance procurement requirements are adhered to and appropriate justifications for these contracts are used and documented appropriately. Finally, the Corporation should have a system in place to track and monitor the terms of vendor contracts in order to plan in advance if the contracts will need to be subject to a competitive procurement process providing full and open competition as required. Views of Responsible Officials: Management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.
Finding 2022-002 ? Procurement Type of Finding: Significant Deficiency/Non-Compliance Assistance Listing Number: 93.575 (Child Care Quality Improvement) Criteria: Uniform Guidance ECFR ?200.320 Methods of procurement to be followed, requires price or rate quotations be obtained from an adequate number of qualified sources, as determined by the non-federal entity, for the acquisition of goods or services greater than the micro-purchase threshold of $50,000 but less than the simplified acquisition threshold of $250,000. The WSMRG?s procurement policies in effect April 2022 contain similar requirements for purchases between $25,000 and $250,000. Additionally, TWC Financial Manual for Grants and Contracts (FMGC) Supplement on procurement contains similar requirements and additional guidance including purchases made through purchase Coops. Condition: The Board paid $89,469 to a vendor for educational curriculum learning materials to be used by the various child care providers. The purchase did not comply with the above-mentioned regulations/policies. As noted below: ? The Board did not utilize its fiscal agent to make the procurement but instead purchased the materials directly from the vendor. ? No written price quotes were obtained from other vendors for similar curriculum materials. ? Purchasing documentation provided referenced a BuyBoard contract. However, the purchase order was not processed through the BuyBoard as required. ? The vendor charged shipping costs of 15% of the cost of the materials. $11,670 of the total amount paid were shipping charges. These charges appear unreasonable in that the vendor charges 10% to Texas clients as per documentation submitted by the vendor to BuyBoard. ? We noted that the same products purchased appear to have been available through Amazon at lower prices and at zero shipping costs. ? Lastly, our review of the procurement noted some inconsistencies with FMGC regulations. Effect: The primary effect of the condition was that the procurement was not competitively procured and the best possible price may not have been obtained. Cause: Board established policies and internal control were not adhered to at the various stages of the procurement process. Recommendation: We recommend the Board review its current policies over procurement. Staff should be required to utilize the systems and policies in existence. The Board should monitor compliance with policies and internal control to ensure compliance. Additionally, staff responsible of the procurement function should obtain training and education on an annual basis.
Finding 2022-002 ? Procurement Type of Finding: Significant Deficiency/Non-Compliance Assistance Listing Number: 93.575 (Child Care Quality Improvement) Criteria: Uniform Guidance ECFR ?200.320 Methods of procurement to be followed, requires price or rate quotations be obtained from an adequate number of qualified sources, as determined by the non-federal entity, for the acquisition of goods or services greater than the micro-purchase threshold of $50,000 but less than the simplified acquisition threshold of $250,000. The WSMRG?s procurement policies in effect April 2022 contain similar requirements for purchases between $25,000 and $250,000. Additionally, TWC Financial Manual for Grants and Contracts (FMGC) Supplement on procurement contains similar requirements and additional guidance including purchases made through purchase Coops. Condition: The Board paid $89,469 to a vendor for educational curriculum learning materials to be used by the various child care providers. The purchase did not comply with the above-mentioned regulations/policies. As noted below: ? The Board did not utilize its fiscal agent to make the procurement but instead purchased the materials directly from the vendor. ? No written price quotes were obtained from other vendors for similar curriculum materials. ? Purchasing documentation provided referenced a BuyBoard contract. However, the purchase order was not processed through the BuyBoard as required. ? The vendor charged shipping costs of 15% of the cost of the materials. $11,670 of the total amount paid were shipping charges. These charges appear unreasonable in that the vendor charges 10% to Texas clients as per documentation submitted by the vendor to BuyBoard. ? We noted that the same products purchased appear to have been available through Amazon at lower prices and at zero shipping costs. ? Lastly, our review of the procurement noted some inconsistencies with FMGC regulations. Effect: The primary effect of the condition was that the procurement was not competitively procured and the best possible price may not have been obtained. Cause: Board established policies and internal control were not adhered to at the various stages of the procurement process. Recommendation: We recommend the Board review its current policies over procurement. Staff should be required to utilize the systems and policies in existence. The Board should monitor compliance with policies and internal control to ensure compliance. Additionally, staff responsible of the procurement function should obtain training and education on an annual basis.
Finding 2022-002 ? Procurement Type of Finding: Significant Deficiency/Non-Compliance Assistance Listing Number: 93.575 (Child Care Quality Improvement) Criteria: Uniform Guidance ECFR ?200.320 Methods of procurement to be followed, requires price or rate quotations be obtained from an adequate number of qualified sources, as determined by the non-federal entity, for the acquisition of goods or services greater than the micro-purchase threshold of $50,000 but less than the simplified acquisition threshold of $250,000. The WSMRG?s procurement policies in effect April 2022 contain similar requirements for purchases between $25,000 and $250,000. Additionally, TWC Financial Manual for Grants and Contracts (FMGC) Supplement on procurement contains similar requirements and additional guidance including purchases made through purchase Coops. Condition: The Board paid $89,469 to a vendor for educational curriculum learning materials to be used by the various child care providers. The purchase did not comply with the above-mentioned regulations/policies. As noted below: ? The Board did not utilize its fiscal agent to make the procurement but instead purchased the materials directly from the vendor. ? No written price quotes were obtained from other vendors for similar curriculum materials. ? Purchasing documentation provided referenced a BuyBoard contract. However, the purchase order was not processed through the BuyBoard as required. ? The vendor charged shipping costs of 15% of the cost of the materials. $11,670 of the total amount paid were shipping charges. These charges appear unreasonable in that the vendor charges 10% to Texas clients as per documentation submitted by the vendor to BuyBoard. ? We noted that the same products purchased appear to have been available through Amazon at lower prices and at zero shipping costs. ? Lastly, our review of the procurement noted some inconsistencies with FMGC regulations. Effect: The primary effect of the condition was that the procurement was not competitively procured and the best possible price may not have been obtained. Cause: Board established policies and internal control were not adhered to at the various stages of the procurement process. Recommendation: We recommend the Board review its current policies over procurement. Staff should be required to utilize the systems and policies in existence. The Board should monitor compliance with policies and internal control to ensure compliance. Additionally, staff responsible of the procurement function should obtain training and education on an annual basis.
Finding 2022-002 ? Procurement Type of Finding: Significant Deficiency/Non-Compliance Assistance Listing Number: 93.575 (Child Care Quality Improvement) Criteria: Uniform Guidance ECFR ?200.320 Methods of procurement to be followed, requires price or rate quotations be obtained from an adequate number of qualified sources, as determined by the non-federal entity, for the acquisition of goods or services greater than the micro-purchase threshold of $50,000 but less than the simplified acquisition threshold of $250,000. The WSMRG?s procurement policies in effect April 2022 contain similar requirements for purchases between $25,000 and $250,000. Additionally, TWC Financial Manual for Grants and Contracts (FMGC) Supplement on procurement contains similar requirements and additional guidance including purchases made through purchase Coops. Condition: The Board paid $89,469 to a vendor for educational curriculum learning materials to be used by the various child care providers. The purchase did not comply with the above-mentioned regulations/policies. As noted below: ? The Board did not utilize its fiscal agent to make the procurement but instead purchased the materials directly from the vendor. ? No written price quotes were obtained from other vendors for similar curriculum materials. ? Purchasing documentation provided referenced a BuyBoard contract. However, the purchase order was not processed through the BuyBoard as required. ? The vendor charged shipping costs of 15% of the cost of the materials. $11,670 of the total amount paid were shipping charges. These charges appear unreasonable in that the vendor charges 10% to Texas clients as per documentation submitted by the vendor to BuyBoard. ? We noted that the same products purchased appear to have been available through Amazon at lower prices and at zero shipping costs. ? Lastly, our review of the procurement noted some inconsistencies with FMGC regulations. Effect: The primary effect of the condition was that the procurement was not competitively procured and the best possible price may not have been obtained. Cause: Board established policies and internal control were not adhered to at the various stages of the procurement process. Recommendation: We recommend the Board review its current policies over procurement. Staff should be required to utilize the systems and policies in existence. The Board should monitor compliance with policies and internal control to ensure compliance. Additionally, staff responsible of the procurement function should obtain training and education on an annual basis.
Finding 2022-002 ? Procurement Type of Finding: Significant Deficiency/Non-Compliance Assistance Listing Number: 93.575 (Child Care Quality Improvement) Criteria: Uniform Guidance ECFR ?200.320 Methods of procurement to be followed, requires price or rate quotations be obtained from an adequate number of qualified sources, as determined by the non-federal entity, for the acquisition of goods or services greater than the micro-purchase threshold of $50,000 but less than the simplified acquisition threshold of $250,000. The WSMRG?s procurement policies in effect April 2022 contain similar requirements for purchases between $25,000 and $250,000. Additionally, TWC Financial Manual for Grants and Contracts (FMGC) Supplement on procurement contains similar requirements and additional guidance including purchases made through purchase Coops. Condition: The Board paid $89,469 to a vendor for educational curriculum learning materials to be used by the various child care providers. The purchase did not comply with the above-mentioned regulations/policies. As noted below: ? The Board did not utilize its fiscal agent to make the procurement but instead purchased the materials directly from the vendor. ? No written price quotes were obtained from other vendors for similar curriculum materials. ? Purchasing documentation provided referenced a BuyBoard contract. However, the purchase order was not processed through the BuyBoard as required. ? The vendor charged shipping costs of 15% of the cost of the materials. $11,670 of the total amount paid were shipping charges. These charges appear unreasonable in that the vendor charges 10% to Texas clients as per documentation submitted by the vendor to BuyBoard. ? We noted that the same products purchased appear to have been available through Amazon at lower prices and at zero shipping costs. ? Lastly, our review of the procurement noted some inconsistencies with FMGC regulations. Effect: The primary effect of the condition was that the procurement was not competitively procured and the best possible price may not have been obtained. Cause: Board established policies and internal control were not adhered to at the various stages of the procurement process. Recommendation: We recommend the Board review its current policies over procurement. Staff should be required to utilize the systems and policies in existence. The Board should monitor compliance with policies and internal control to ensure compliance. Additionally, staff responsible of the procurement function should obtain training and education on an annual basis.
Identification of federal program: 21.027 Coronavirus State and Local Fiscal Recovery Funds Department of the Treasury Criteria or specific requirement: 21.027 Part 4 Compliance Supplement: Procurement - Recipients may use award funds to enter into contracts to procure goods and services necessary to implement one or more of the eligible purposes outlined in sections 602(c) and 603(c) of the Act and Treasury?s Interim Final Rule. As such, recipients are expected to have procurement policies and procedures in place that comply with the procurement standards outlined in the Uniform Guidance. All other entities under the program, including subrecipients of a state, must follow the procurement standards in 2 CFR 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR 200.320. Uniform Guidance 2 C.F.R 200.318 through 2 C.F.R. 200.327 200.318(a) The non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity?s documented procurement procedures must conform to the procurement standards identified in 200.317 through 200.327.200.318(i) The non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Condition: It was noted during the audit of fiscal year 2022 that although Skagway Traditional Council (STC) has documented procurement policies consistent with Uniform Guidance. STC did not maintain evidence that it followed its own documented procurement policy for procurements greater than the micro-purchase threshold. Cause: STC does not have an administrative process to ensure that the procurement documentation supporting purchases greater than the micro-purchase threshold are maintained in accordance with STCs procurement policies. Effect or potential effect: STC is out of compliance with Uniform Guidance procurement standards in fiscal year 2022. Questioned Costs: None. Context: For this program, four procurements were greater than STC?s micro-purchase threshold and all four were tested against STC?s procurement policy, of those four, none of them had documentation supporting STC following STC?s procurement policies. Identification of Repeat Finding: Not applicable. Recommendations: We recommend that as a part of STC?s internal control structure over compliance with Uniform Guidance, that STC prepare a checklist, reflective of STC?s approved procurement policies, that must be completed before procurements can be awarded and all documents supporting that checklist be filled together. Views of Responsible Officials: See Corrective Action Plan
Finding 2022-012 ? Procurement (Significant Deficiency and Noncompliance) (Repeat finding) Information on the Federal Program: U.S. Department of Education, CFDA No. 84.425, COVID-19 Education Stabilization Fund ? Higher Education Emergency Relief Fund Criteria: 2 CFR 200.320 establishes the methods of procurement to be followed for non-federal entities when acquiring goods and services with federal awards. Aggregate purchases higher than the micro-purchase threshold must use the small purchase procedures which require price quotes be obtained from an adequate number of qualified sources. Condition: We selected a sample of six vendors to test for proper procurement procedures. Of those six, one vendor was not properly procured. Cause: The College did not obtain price quotes for a purchase which met the small purchase threshold. Effect: The College was not in compliance with federal procurement standards. Questioned Costs: None reported Recommendation: We recommend the College strengthen its policies and procedures surrounding the procurement process to ensure all purchases higher than the micro-purchase threshold are properly procured. Views of Responsible Officials: See Management?s View and Corrective Action Plan included at the end of the report.
2022-001: Federal Procurement Standards Federal agency: U.S. Environmental Protection Agency Pass-through agency: None Title: Air Pollution Control Program Support Assistance Listing Number: 66.001 Award Year: 2022 Award Number: 97412920 Criteria: 2 CFR 200.303 requires the Department to establish and maintain internal controls over compliance with federal awards. 2 CFR 200.320 identifies the methods of procurement to be followed for acquisition of property or services required under a federal award or subaward. Condition and perspective: The Department recorded $69,375 of legal services to the federal award without following an approved method of procurement under 2 CFR 200.320. Legal services are exempt from state procurement law, but they are within the scope of federal procurement standards. Cause: The vendor provides in-house legal representation and regularly assists the Department with legal matters. Due to the long-standing, existing relationship, the vendor was selected for services related to the grant without following procurement standards. Effect: The Department posted $69,375 of legal services to the federal award without following federal procurement standards. Questioned Cost: $69,375. Recommendation: Management should ensure the Department follows federal procurement standards for all vendors paid with federal funds. Management?s response: Rate quotes will be obtained from at least three (3) law firms as required for ?small purchases? by 2 C.F.R. 200.320.