THE SALVATION ARMY USA, WESTERN TERRITORY, DEL ORO DIVISION SCHEDULE OF FINDINGS AND QUESTIONED COSTS SEPTEMBER 30, 2022 Reference Number: 2022-001 Prior Year Finding: No Federal Agency: U.S. Department of Housing and Urban Development State Agency: State of California- Department of Housing and Community Development 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. (b) Non-Federal entities must maintain oversight to ensure that contractors perform in accordance with the terms, conditions, and specifications of their contracts or purchase orders. (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 two (2) vendors for procurement Suspension and Debarment compliance testing of total population of 2 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: (1) document 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. (2) The Division?s documented procurement procedures must conform to the procurement standards identified in ?? 200.318 through 200.327. Views of responsible officials: The Division will work with Territorial Headquarters to document procedures as outlined in the Recommendations above. See corrective action plan.
THE SALVATION ARMY USA, WESTERN TERRITORY, DEL ORO DIVISION SCHEDULE OF FINDINGS AND QUESTIONED COSTS SEPTEMBER 30, 2022 Reference Number: 2022-001 Prior Year Finding: No Federal Agency: U.S. Department of Housing and Urban Development State Agency: State of California- Department of Housing and Community Development 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. (b) Non-Federal entities must maintain oversight to ensure that contractors perform in accordance with the terms, conditions, and specifications of their contracts or purchase orders. (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 two (2) vendors for procurement Suspension and Debarment compliance testing of total population of 2 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: (1) document 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. (2) The Division?s documented procurement procedures must conform to the procurement standards identified in ?? 200.318 through 200.327. Views of responsible officials: The Division will work with Territorial Headquarters to document procedures as outlined in the Recommendations above. See corrective action plan.
Criteria - Per 2 CFR section 200.320 of the Uniform Guidance, the School must obtain price or rate quotations from an adequate number of qualified sources for purchases that exceed $10,000. Condition - During the audit, we noted an instance in which a purchase exceeding $10,000 for which the School did not obtain price quotations from multiple sources. Cause - The conditions mentioned above were due to violation of the requirements of 2 CFR section 200.320 of the Uniform Guidance. Effect - The conditions mentioned above resulted in a violation of the requirements to comply with 2 CFR section 200.320 of the Uniform Guidance. Questioned costs - $61,821 Recommendation - We recommend that the School review its procurement policies to ensure that it obtains price or rate quotations from an adequate number of qualified sources for purchases that exceed $10,000. Management response - See corrective action plan provided by the Head of School.
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.
THE SALVATION ARMY USA, WESTERN TERRITORY, DEL ORO DIVISION SCHEDULE OF FINDINGS AND QUESTIONED COSTS SEPTEMBER 30, 2022 Reference Number: 2022-001 Prior Year Finding: No Federal Agency: U.S. Department of Housing and Urban Development State Agency: State of California- Department of Housing and Community Development 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. (b) Non-Federal entities must maintain oversight to ensure that contractors perform in accordance with the terms, conditions, and specifications of their contracts or purchase orders. (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 two (2) vendors for procurement Suspension and Debarment compliance testing of total population of 2 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: (1) document 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. (2) The Division?s documented procurement procedures must conform to the procurement standards identified in ?? 200.318 through 200.327. Views of responsible officials: The Division will work with Territorial Headquarters to document procedures as outlined in the Recommendations above. See corrective action plan.
THE SALVATION ARMY USA, WESTERN TERRITORY, DEL ORO DIVISION SCHEDULE OF FINDINGS AND QUESTIONED COSTS SEPTEMBER 30, 2022 Reference Number: 2022-001 Prior Year Finding: No Federal Agency: U.S. Department of Housing and Urban Development State Agency: State of California- Department of Housing and Community Development 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. (b) Non-Federal entities must maintain oversight to ensure that contractors perform in accordance with the terms, conditions, and specifications of their contracts or purchase orders. (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 two (2) vendors for procurement Suspension and Debarment compliance testing of total population of 2 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: (1) document 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. (2) The Division?s documented procurement procedures must conform to the procurement standards identified in ?? 200.318 through 200.327. Views of responsible officials: The Division will work with Territorial Headquarters to document procedures as outlined in the Recommendations above. See corrective action plan.
Criteria - Per 2 CFR section 200.320 of the Uniform Guidance, the School must obtain price or rate quotations from an adequate number of qualified sources for purchases that exceed $10,000. Condition - During the audit, we noted an instance in which a purchase exceeding $10,000 for which the School did not obtain price quotations from multiple sources. Cause - The conditions mentioned above were due to violation of the requirements of 2 CFR section 200.320 of the Uniform Guidance. Effect - The conditions mentioned above resulted in a violation of the requirements to comply with 2 CFR section 200.320 of the Uniform Guidance. Questioned costs - $61,821 Recommendation - We recommend that the School review its procurement policies to ensure that it obtains price or rate quotations from an adequate number of qualified sources for purchases that exceed $10,000. Management response - See corrective action plan provided by the Head of School.
Finding No.: 2022-008 Federal Agency: U.S. Department of Health and Human Services AL Program: 93.069 Public Health Emergency Preparedness Federal Award No.: 5 NU90TP922038-02-00, 5 NU90TP922038-03-00, 5 NU90TP922038-04-00 Area: Procurement, Suspension and Debarment Questioned Costs: $35,267 Criteria: In accordance with 2 CFR 200.320(a)(1)(i) and (ii), to the maximum extent practicable, non-Federal entities should distribute micro-purchases equitably among qualified suppliers. Additionally, micro-purchases may be awarded without soliciting competitive price or rate quotations if the non-Federal entity considers the price to be reasonable based on research, experience, purchase history, or other relevant information and maintains documents to support its conclusion in the procurement files accordingly. Condition: The Republic’s procurement policy, 40 Palau National Code Annotated (PNCA) §625(c)(2), states that small purchases under two thousand five hundred dollars ($2,500) may be made after receiving one (1) written price quotation. However, the Republic’s procurement policy on small purchases does not meet the federal procurement requirement on micro-purchases as stated in the above criteria. As a result, for 33 (or 48%) of the 69 procurement transactions tested, no documentation was maintained to substantiate that the small purchases were distributed equitably among qualified suppliers as follows: No. No. of transactions GL Account Name Amount 1 12 General Supplies $22,146 2 11 Vehicle Cycle Repair 5,371 3 2 Conference 4,113 4 1 Equipment Rentals 1,600 5 5 All Other Purchased Serv 1,333 6 1 All Other Rentals 605 7 1 Fuel & Other Pol Products 99 Total: 33 $35,267 Cause: The Republic did not include documentation in the procurement file to evidence that the program made effort to distribute small purchases equitably among qualified vendorsdid not effectively monitor compliance with applicable procurement requirements. In addition, the Republic’s procurement policy does not address micro-purchases distribution to meet the federal requirements.. Effect: The Republic is in noncompliance with applicable procurement requirements. The reportable questioned cost is $35,267. Recommendation: We recommend that the Republic update its procurement policies and procedures to include specific guidance on equitably distributing micro-purchase procurements among qualified suppliers. Additionally, management should ensure that documentation supporting the basis for supplier selection is consistently maintained in the procurement files. Views of Responsible Officials: The Republic’s Corrective Action Plan does not indicate disagreement and provides planned corrective action.
Finding No.: 2022-009 Federal Agency: U.S. Department of Health and Human Services AL Program: 93.224 Health Center Program Federal Award No.: 1 H8DCS36516-01-00, 4 H8DCS36516‐01‐01, 6 H80CS02467-35-03, 1 H8FCS41190-01-00, 6 H80CS02467-36-08, 3 H80CS02467‐36‐01, 5 H80CS02467‐37‐00 Area: Procurement, Suspension and Debarment Questioned Costs: $187,764 Criteria: In accordance with 2 CFR 200.320(a)(1)(i) and (ii), to the maximum extent practicable, non-Federal entities should distribute micro-purchases equitably among qualified suppliers. Additionally, micro-purchases may be awarded without soliciting competitive price or rate quotations if the non-Federal entity considers the price to be reasonable based on research, experience, purchase history, or other relevant information and maintains documents to support its conclusion in the procurement files accordingly. Condition: The Republic’s procurement policy, 40 Palau National Code Annotated (PNCA) §625(c)(2), states that small purchases under two thousand five hundred dollars ($2,500) may be made after receiving one (1) written price quotation. However, the Republic’s procurement policy on small purchases does not meet the federal procurement requirement on micro-purchases as stated in the above criteria. As a result, for 260 (or 39%) of the 660 procurement transactions tested, no documentation was maintained to substantiate that the small purchases were distributed equitably among qualified suppliers as follows:For 260 (or 39%) of the 660 procurement transactions, no documentation is maintained to substantiate equitably distributing $187,764 of micro-purchase procurements among qualified suppliers as follows: No. No. of transactions GL Account Name Amount 1 109 General Supplies $101,254 2 18 Boat Rentals 30,700 3 58 Vehicle Cycle Repair 18,102 4 34 Medical Drugs 13,055 5 4 Conference 6,502 6 5 Medical Supplies 6,257 7 7 Building Rentals 3,650 8 1 Computer Software 1,999 9 4 All Other Rentals 1,985 10 9 Dues & Fees 1,500 Cause: The Republic did not effectively monitor compliance with applicable procurement requirements. Condition, continued: No. No. of transactions GL Account Name Amount 11 4 Machinery & Equip Repair 1,030 12 1 Training 700 13 1 Building/Space Rentals 575 14 4 Advertising 255 15 1 Vehicle Cycle Etc Rentl 200 Total: 260 $187,764 Cause: The Republic did not include documentation in the procurement file to evidence that the program made effort to distribute small purchases equitably among qualified vendors. In addition, the Republic’s procurement policy does not address micro-purchases distribution to meet the federal requirements. Effect: The Republic is in noncompliance with applicable procurement requirements. The reportable questioned cost is $187,764. Recommendation: We recommend that the Republic update its procurement policies and procedures to include specific guidance on equitably distributing micro-purchase procurements among qualified suppliers. Additionally, management should ensure that documentation supporting the basis for supplier selection is consistently maintained in the procurement files. Views of Responsible Officials: The Republic’s Corrective Action Plan does not indicate disagreement and provides planned corrective action.
PROCUREMENT, I NOTED THAT NVT DID NOT PROPERLY DOCUMENT THE PROCUREMENT OF SEVEN PURCHASES OVER $10,000 FOR THE DOT, COVID-19, CSLFRF PROGRAM. THE SEVEN PURCHASES TOTALED $2,644,121. PER 2 CFR, SECTION 200.320 NVT'S STAFF MUST FOLLOW PROCUREMENT POLICIES AND OBTAIN COMPETITIVE BIDS FOR SIGNIFICANT PURCHASES OF EQUIPMENT/MATERIALS/ AND/OR CONTRACTS AND DOCUMENT THE FINAL SELECTION PROCESS, INCLUDING VENDORS CONTRACTED, VARIOUS VENDOR QUOTES/BIDS, AND FINAL ANALYSIS OF WINNING BID. IN ADDITION, THE SAM WEBSITE SHOULD BE REVIEWED TO ENSURE THE WINNING VENDOR/CONTRACTOR HAS NOT BEEN SUSPENDED/DEBARRED. NO QUESTIONED COSTS DETERMINED. I TESTED THE ONLY SEVEN ITEMS IN EXCESS OF THE PROCUREMENT THRESHOLD FOR THE DOT, CSLFRF, 21.027 GRANT FOR PROPER PROCURMENT. ALL SEVEN OF THE ITEMS DID NOT CONTAIN PROPER PROCUREMENT DOCUMENTATION. THE SEVEN ITEMS TOTALED $2,644,121. INTERNAL CONTROLS WERE NOT IN PLACE TO ENSURE THAT PRIOR TO PURCHASE, PROPER PROCUREMENT PROCEDURES WERE FOLLOWED AND DOCUMENTED. MANAGEMENT SHOULD ENSURE THAT ALL STAFF KNOW THAT ALL MATERIAL PURCHASES MUST BE PROPERLY PROCURED, AND IF SOLE SOURCE, THAT MUST BE DOCUMENTED AS WELL. THIS WAS NOT A REPEAT FINDING.
Finding No.: 2022-012 Pass-Through Entity: Republic of the Marshall Islands Federal Agency: U.S. Department of the Interior AL Program: 15.875 Economic, Social and Political Development of the Territories Federal Award No.: Compact of Free Association Program, As Amended Area: Procurement and Suspension and Debarment Questioned Costs: $112,538 Criteria: Under the terms of the sub-awards administered by RepMar under the Compact of Free Association grant awards, RepMar authorizes the College to use its own procedures for procurement provided they meet the RepMar Procurement Code. RepMar’s Procurement Code states the following: (a) Section 126.7 - Award shall be made to the responsible offeror whose proposal is determined in writing to be the most advantageous to the Government taking into consideration price and the evaluation factors set forth in the Request for Proposals. No other factors or criteria shall be used in the evaluation. The contract file shall contain the basis on which the award is made. (b) Section 127 - Procurement of goods and services not exceeding $25,000 may be made in accordance with small purchase procedures promulgated by RepMar’s Policy Office. Small purchase procedures are those relatively simple and informal methods for securing services, supplies, or other property that do not cost more than $25,000. RepMar’s Ministry of Finance has previously declared that if small purchase procedures are used, price or rate quotations shall be obtained from an adequate number of qualified sources. (c) Section 128 - a contract may be awarded for supply, service, or construction item without competition when it is determined in writing that there is only one source for the required supply, service, or construction item. (d) Section 129 - Notwithstanding any other provision of this Chapter, the Chief Procurement Officer, the head of a Purchasing Agency, or a designee of either officer may make or authorize others to make emergency procurement when there exists a threat to public health, welfare, or safety under emergency conditions as defined in regulations promulgated by the Policy Office; provided, that such emergency procurement shall be made with such competition as is practicable under the circumstances. 2 CFR 200.318(h) states that the recipient or subrecipient must award contracts only to responsible contractors that possess the ability to perform successfully under the terms and conditions of a proposed contract. The recipient or subrecipient must consider contractor integrity, public policy compliance, proper classification of employees, past performance record, and financial and technical resources when conducting a procurement transaction. 2 CFR 200.214 states that recipients and subrecipients are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, as well as 2 CFR part 180. The regulations in 2 CFR part 180 restrict making Federal awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from receiving or participating in Federal awards. 2 CFR 180.300 states that when an entity enters into a covered transaction with another person at the next lower tier, the entity must verify that the person with whom the entity intends to do business is not excluded or disqualified by doing the following: (a) Checking SAM.gov Exclusions; or (b) Collecting a certification from that person; or (c) Adding a clause or condition to the covered transaction with that person. 2 CFR 200.320 states that for micro-purchases, to the extent practicable, the recipient or subrecipient should distribute micro-purchases equitably among qualified suppliers. Per OMB Compliance Supplement April 2022, a non-federal entity must perform a cost or price analysis in connection with every procurement action more than the simplified acquisition threshold, including contract modifications, and that analysis supported the procurement action (2 CFR section 200.323 and 48 CFR section 15.404-3). 48 CFR section 15.404-3 states that: (a) The contracting officer is responsible for the determination of a fair and reasonable price for the prime contract, including subcontracting costs. The contracting officer should consider whether a contractor or subcontractor has an approved purchasing system, has performed cost or price analysis of proposed subcontractor prices, or has negotiated the subcontract prices before negotiation of the prime contract, in determining the reasonableness of the prime contract price. This does not relieve the contracting officer from the responsibility to analyze the contractor's submission, including subcontractor's certified cost or pricing data. (b) The prime contractor or subcontractor shall: (1) conduct appropriate cost or price analyses to establish the reasonableness of proposed subcontract prices; (2) include the results of these analyses in the price proposal; and (3) when required by paragraph (c) of this subsection, submit subcontractor certified cost or pricing data to the Government as part of its own certified cost or pricing data. 2 CFR 200.303(a) states that the subrecipient must establish, document, and maintain effective internal control over the Federal award that provides reasonable assurance that the subrecipient is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should align with the guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control-Integrated Framework” issued by the COSO. Condition: For six (or 75%) of eight items, aggregating $121,524 in total non-payroll expenditures, supporting procurement documentation was not sufficient to substantiate compliance with the procurement method, as follows: Item # PO # PO Amount Description FY 2022 Expenditures Questioned Costs 1 21-PO-1165 $6,781 Materials and supplies $ 6,781 $ 6,781 2 22-PO-2494 $3,717 Representation and entertainment 3,717 3,717 3 , 4 22-PO-2949/ 22-PO-3402 $73,063 Minor repairs and maintenance 73,063 73,063 5 22-PO-3458 $24,750 Repair – vehicles or equipment 24,750 24,750 6 22-PO-2166 $10,000 Repair – vehicles or equipment 4,227 4,227 $112,538 $112,538 For item # 1, there was no vendor quotations on file. For item #s 2, 5 and 6, there were no adequate vendor quotations on file. were no documentation on file to support compliance with 48 CFR section 15.404-3. Moreover, the College has no internal control policies and procedures over verification that an entity with which the College plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded. Cause: The College did not follow internal control policies and procedures over documentation of the procurement process to satisfy compliance with the applicable procurement requirements. Furthermore, the College lacks internal control policies and procedures over 1) verification that an entity with which the College plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded; 2) distribution of micro-purchases equitably among qualified suppliers; 3) compliance with 48 CFR section 15.404-3. Effect: The College is not in compliance with the applicable procurement requirements. The total questioned cost is $112,538. Identified as a Repeat Finding: 2021-009 Recommendation: Responsible personnel should ensure that documentation is adequate to comply with the applicable procurement requirements. Specifically, documentation should indicate the history of procurement, including the solicitation process and rationale for contractors or vendor selection. Furthermore, the College should establish internal control policies and procedures over 1) verification that an entity with which the College plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded; 2) distribution of micro-purchases equitably among qualified suppliers; 3) compliance with 48 CFR section 15.404-3. Views of Auditee and Planned Corrective Actions: The College agrees with the finding and provides details in its Corrective Action Plan.
Finding No.: 2022-022 Federal Agency: U.S. Department of Education Federal Award No.: COVID-19 P425E204126 AL Sub-Program: 84.425F HEERF - Institutional Portion Federal Award No.: COVID-19 P425F202732 AL Sub-Program: 84.425L HEERF - Minority Serving Institution Federal Award No.: COVID-19 P425L200219 Area: Procurement and Suspension and Debarment Questioned Costs: $3,318,665 Criteria: Under the terms of the sub-awards administered by RepMar under the Compact of Free Association grant awards, RepMar authorizes the College to use its own procedures for procurement provided they meet the RepMar Procurement Code. RepMar’s Procurement Code states the following: (a) Section 126.7 - Award shall be made to the responsible offeror whose proposal is determined in writing to be the most advantageous to the Government taking into consideration price and the evaluation factors set forth in the Request for Proposals. No other factors or criteria shall be used in the evaluation. The contract file shall contain the basis on which the award is made. (b) Section 127 - Procurement of goods and services not exceeding $25,000 may be made in accordance with small purchase procedures promulgated by RepMar’s Policy Office. Small purchase procedures are those relatively simple and informal methods for securing services, supplies, or other property that do not cost more than $25,000. RepMar’s Ministry of Finance has previously declared that if small purchase procedures are used, price or rate quotations shall be obtained from an adequate number of qualified sources. (c) Section 128 - a contract may be awarded for supply, service, or construction item without competition when it is determined in writing that there is only one source for the required supply, service, or construction item. (d) Section 129 - Notwithstanding any other provision of this Chapter, the Chief Procurement Officer, the head of a Purchasing Agency, or a designee of either officer may make or authorize others to make emergency procurement when there exists a threat to public health, welfare, or safety under emergency conditions as defined in regulations promulgated by the Policy Office; provided, that such emergency procurement shall be made with such competition as is practicable under the circumstances. 2 CFR 200.318(h) states that the recipient or subrecipient must award contracts only to responsible contractors that possess the ability to perform successfully under the terms and conditions of a proposed contract. The recipient or subrecipient must consider contractor integrity, public policy compliance, proper classification of employees, past performance record, and financial and technical resources when conducting a procurement transaction. 2 CFR 200.214 states that recipients and subrecipients are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, as well as 2 CFR part 180. The regulations in 2 CFR part 180 restrict making Federal awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from receiving or participating in Federal awards. 2 CFR 180.300 states that when an entity enters into a covered transaction with another person at the next lower tier, the entity must verify that the person with whom the entity intends to do business is not excluded or disqualified by doing the following: (a) Checking SAM.gov Exclusions; or (b) Collecting a certification from that person; or (c) Adding a clause or condition to the covered transaction with that person. 2 CFR 200.319 states that: (a) All procurement transactions under the Federal award must be conducted in a manner that provides full and open competition and is consistent with the standards of this section and § 200.320. (c) (6) Examples of situations that may restrict competition include specifying only a “brand name” product instead of allowing “an equal” product to be offered and describing the performance or other relevant requirements of the procurement. (d) (2) The recipient or subrecipient must have written procedures for procurement transactions. These procedures must ensure that all solicitations incorporate a clear and accurate description of the technical requirements for the property, equipment, or service being procured. The description may include a statement of the qualitative nature of the property, equipment, or service to be procured. When necessary, the description must provide minimum essential characteristics and standards to which the property, equipment, or service must conform. Detailed product specifications should be avoided if at all possible. When it is impractical or uneconomical to clearly and accurately describe the technical requirements, a “brand name or equivalent” description of features may be used to provide procurement requirements. The specific features of the named brand must be clearly stated. 2 CFR 200.320 states that there are specific circumstances in which the recipient or subrecipient may use a noncompetitive procurement method. The noncompetitive procurement method may only be used if one of the following circumstances applies: (1) The aggregate amount of the procurement transaction does not exceed the micro-purchase threshold (see paragraph (a)(1) of this section); (2) The procurement transaction can only be fulfilled by a single source; (3) The public exigency or emergency for the requirement will not permit a delay resulting from providing public notice of a competitive solicitation; (4) The recipient or subrecipient requests in writing to use a noncompetitive procurement method, and the Federal agency or pass-through entity provides written approval; or (5) After soliciting several sources, competition is determined inadequate. 2 CFR 200.320 states that for micro-purchases, to the extent practicable, the recipient or subrecipient should distribute micro-purchases equitably among qualified suppliers. Per OMB Compliance Supplement April 2022, a non-federal entity must perform a cost or price analysis in connection with every procurement action in excess of the simplified acquisition threshold, including contract modifications, and that analysis supported the procurement action (2 CFR section 200.323 and 48 CFR section 15.404-3). 48 CFR section 15.404-3 states that: (a) The contracting officer is responsible for the determination of a fair and reasonable price for the prime contract, including subcontracting costs. The contracting officer should consider whether a contractor or subcontractor has an approved purchasing system, has performed cost or price analysis of proposed subcontractor prices, or has negotiated the subcontract prices before negotiation of the prime contract, in determining the reasonableness of the prime contract price. This does not relieve the contracting officer from the responsibility to analyze the contractor's submission, including subcontractor's certified cost or pricing data. (b) The prime contractor or subcontractor shall: (1) conduct appropriate cost or price analyses to establish the reasonableness of proposed subcontract prices; (2) include the results of these analyses in the price proposal; and (3) when required by paragraph (c) of this subsection, submit subcontractor certified cost or pricing data to the Government as part of its own certified cost or pricing data. 2 CFR 200.303(a) states that the subrecipient must establish, document, and maintain effective internal control over the Federal award that provides reasonable assurance that the subrecipient is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should align with the guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control-Integrated Framework” issued by the COSO. Conditions: Of twenty-one items, aggregating $3,218,880 of $10,113,117 in total non-payroll expenditures, deficiencies were noted, as follows: 1. For 1 item (or 5%), procurement did not provide full and open competition in the solicitation process. The invitation to bid (ITB) specified particular models, including a requirement for a specific “brand name” product instead of allowing “an equal” product to be offered. Furthermore, for solicitation with brand name indicated, solicitation did not include “brand name or equivalent” description in the ITB. Furthermore, there was no documentation on file to support compliance with 48 CFR section 15.404-3. Item # PO # Contract Amount Description FY 2022 Expenditures Questioned Cost 1 No PO $1,593,397 Small tools $1,115,378 $1,115,378 2. For 1 item (or 5%), procurement was sole sourced with written justification but does not appear to be justified. Furthermore, there was no documentation on file to support compliance with 48 CFR section 15.404-3. Item # PO # PO Amount Description FY 2022 Expenditures Questioned Cost 2 21-PO-2102 $622,423 Small tools $622,423 $622,423 3. For 13 items (or 62%), supporting procurement documentation was not sufficient to substantiate compliance with procurement method: Item # PO # PO Amount Description FY 2022 Expenditures Questioned Cost 3 No PO No PO Charter $ 14,174 $ 14,174 4 21-PO-1866 $19,422 Small Tools 19,422 19,422 5 22-PO-3676 $22,984 Subscriptions/Periodicals 22,984 22,984 6 22-PO-3677 $22,440 Subscriptions/Periodicals 22,440 22,440 7 22-PO-3366 $7,390 Subscriptions/Periodicals 7,390 7,390 8 22-PO-3321 $46,179 Subscriptions/Periodicals 46,179 46,179 9 21-PO-897 $101,663 Subscriptions/Periodicals 13,175 13,175 10 22-PO-3309 $4,225 Subscriptions/Periodicals 4,225 4,225 11 22-PO-3241 $14,000 Subscriptions/Periodicals 14,000 14,000 12 22-PO-3488 $7,631 Subscriptions/Periodicals 7,631 7,631 13 22-PO-3549 $12,200 Subscriptions/Periodicals 12,200 12,200 14 22-PO-3777 $4,550 Subscriptions/Periodicals 4,550 4,550 15 22-PO-2461 $3,779 Small Tools 3,779 3,779 $192,149 $192,149 For item #s 3, 5 through 6, and 8 through 14, there were no vendor quotations on file. For item #s 7 and 15, vendor solicitation is inadequate. For item #4, selected vendor is not the lowest bidder, and no justification of vendor selection was on file. For item #8, there was no documentation on file to support compliance with 48 CFR section 15.404-3. 4. For an additional 3 items (or 14%), there was no documentation on file to support compliance with 48 CFR section 15.404-3: Item # Contract Amount Description FY 2022 Expenditures Questioned Cost 17 $958,368 Room and board $958,368 $958,368 18 $474,870 Room and board 430,347 430,347 19 $337,500 Vehicles 337,500 337,500 $1,726,215 $1,726,215 For item # 19, no questioned cost is reported at this finding as questioned cost is reported and included at finding # 2022-019. Moreover, the College has no internal control policies and procedures over verification that an entity with which the College plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded. Cause: The College did not follow internal control policies and procedures over documentation of the procurement process to satisfy compliance with the applicable procurement requirements. Furthermore, the College lacks internal control policies and procedures over 1) verification that an entity with which the College plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded; 2) distribution of micro-purchases equitably among qualified suppliers; 3) compliance with 48 CFR section 15.404-3. Effect: The College is not in compliance with the applicable procurement requirements. The total questioned cost is $3,318,665. Identified as a Repeat Finding: 2021-016 Recommendation: Responsible personnel should ensure that documentation is adequate to comply with the applicable procurement requirements. Specifically, documentation should indicate the history of procurement, including the solicitation process and rationale for contractors or vendor selection. Furthermore, the College should establish internal control policies and procedures over 1) verification that an entity with which the College plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded; 2) distribution of micro-purchases equitably among qualified suppliers; 3) compliance with 48 CFR section 15.404-3. Views of Auditee and Planned Corrective Actions: The College agrees with the finding and provides details in its Corrective Action Plan.
Criteria Non-federal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. 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. 3. 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). 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 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)). 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 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)). 6. 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.” The requirements that apply to procurement under grants and cooperative agreements are contained in 2 CFR sections 200.317 through 200.326, program legislation, federal awarding agency regulations, and the terms and conditions of the award. Criteria (continued) Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. The requirements for nonprocurement suspension and debarment are contained in OMB guidance in 2 CFR Part 180, which implements Executive Orders 12549 and 12689, “Debarment and Suspension;” federal awarding agency regulations in Title 2 of the CFR adopting/implementing the OMB guidance in 2 CFR Part 180; program legislation; and the terms and conditions of the award. Condition The Organization was unable to support adherence to procurement policies for several active contracts under the federal program for fiscal year ending August 31, 2022. Specifically, the Organization failed to maintain documentation history of procurement for four out of the twenty-six active contracts tested that were either paid in full or in part by the Unaccompanied Alien Children Program. All of these contracts were procured at least three years previous. For three of the four contracts the winning proposal and proper approval for the contact was maintained, but no other procurement documentation. For the other contract no procurement history maintained. There were no errors found in any of the contract samples that were procured under the Organization’s current procurement policies. Cause The Organization is aware they are operating under contracts that were procured in previous years that may not have all the records maintained. Reprocuring all of these contracts at once would potentially cause disruptions in operations due to the products/services related those vendors playing an important role in the Organization’s day-to-day operations. As such, the Organization still has several active contracts procured under the old policies that they are working on reprocuring as these contracts’ renewal dates arise, if not earlier. Effect or Potential Effect The Organization could potentially be under contract with vendors that are not the best value, not adequately qualified, potentially suspended or debarred, or otherwise not suitable for contract under federal procurement guidelines. No questioned costs were identified as all services/goods under these contracts were deemed to be allowable under the program, and no exceptions noted for allowable costs/activities for samples that included payment to these vendors. Recommendation The Organization should review all its “legacy” contracts that were procured under the previous procurement policies to determine if there is proper documentation maintained for compliance with applicable procurement guidelines. This includes systematically re-procuring any current contracts not in compliance as soon as feasible. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Criteria Non-federal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. 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. 3. 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). 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 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)). 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 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)). 6. 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.” The requirements that apply to procurement under grants and cooperative agreements are contained in 2 CFR sections 200.317 through 200.326, program legislation, federal awarding agency regulations, and the terms and conditions of the award. Criteria (continued) Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. The requirements for nonprocurement suspension and debarment are contained in OMB guidance in 2 CFR Part 180, which implements Executive Orders 12549 and 12689, “Debarment and Suspension;” federal awarding agency regulations in Title 2 of the CFR adopting/implementing the OMB guidance in 2 CFR Part 180; program legislation; and the terms and conditions of the award. Condition The Organization was unable to support adherence to procurement policies for several active contracts under the federal program for fiscal year ending August 31, 2022. Specifically, the Organization failed to maintain documentation history of procurement for four out of the twenty-six active contracts tested that were either paid in full or in part by the Unaccompanied Alien Children Program. All of these contracts were procured at least three years previous. For three of the four contracts the winning proposal and proper approval for the contact was maintained, but no other procurement documentation. For the other contract no procurement history maintained. There were no errors found in any of the contract samples that were procured under the Organization’s current procurement policies. Cause The Organization is aware they are operating under contracts that were procured in previous years that may not have all the records maintained. Reprocuring all of these contracts at once would potentially cause disruptions in operations due to the products/services related those vendors playing an important role in the Organization’s day-to-day operations. As such, the Organization still has several active contracts procured under the old policies that they are working on reprocuring as these contracts’ renewal dates arise, if not earlier. Effect or Potential Effect The Organization could potentially be under contract with vendors that are not the best value, not adequately qualified, potentially suspended or debarred, or otherwise not suitable for contract under federal procurement guidelines. No questioned costs were identified as all services/goods under these contracts were deemed to be allowable under the program, and no exceptions noted for allowable costs/activities for samples that included payment to these vendors. Recommendation The Organization should review all its “legacy” contracts that were procured under the previous procurement policies to determine if there is proper documentation maintained for compliance with applicable procurement guidelines. This includes systematically re-procuring any current contracts not in compliance as soon as feasible. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Criteria Non-federal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. 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. 3. 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). 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 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)). 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 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)). 6. 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.” The requirements that apply to procurement under grants and cooperative agreements are contained in 2 CFR sections 200.317 through 200.326, program legislation, federal awarding agency regulations, and the terms and conditions of the award. Criteria (continued) Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. The requirements for nonprocurement suspension and debarment are contained in OMB guidance in 2 CFR Part 180, which implements Executive Orders 12549 and 12689, “Debarment and Suspension;” federal awarding agency regulations in Title 2 of the CFR adopting/implementing the OMB guidance in 2 CFR Part 180; program legislation; and the terms and conditions of the award. Condition The Organization was unable to support adherence to procurement policies for several active contracts under the federal program for fiscal year ending August 31, 2022. Specifically, the Organization failed to maintain documentation history of procurement for four out of the twenty-six active contracts tested that were either paid in full or in part by the Unaccompanied Alien Children Program. All of these contracts were procured at least three years previous. For three of the four contracts the winning proposal and proper approval for the contact was maintained, but no other procurement documentation. For the other contract no procurement history maintained. There were no errors found in any of the contract samples that were procured under the Organization’s current procurement policies. Cause The Organization is aware they are operating under contracts that were procured in previous years that may not have all the records maintained. Reprocuring all of these contracts at once would potentially cause disruptions in operations due to the products/services related those vendors playing an important role in the Organization’s day-to-day operations. As such, the Organization still has several active contracts procured under the old policies that they are working on reprocuring as these contracts’ renewal dates arise, if not earlier. Effect or Potential Effect The Organization could potentially be under contract with vendors that are not the best value, not adequately qualified, potentially suspended or debarred, or otherwise not suitable for contract under federal procurement guidelines. No questioned costs were identified as all services/goods under these contracts were deemed to be allowable under the program, and no exceptions noted for allowable costs/activities for samples that included payment to these vendors. Recommendation The Organization should review all its “legacy” contracts that were procured under the previous procurement policies to determine if there is proper documentation maintained for compliance with applicable procurement guidelines. This includes systematically re-procuring any current contracts not in compliance as soon as feasible. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Criteria Non-federal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. 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. 3. 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). 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 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)). 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 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)). 6. 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.” The requirements that apply to procurement under grants and cooperative agreements are contained in 2 CFR sections 200.317 through 200.326, program legislation, federal awarding agency regulations, and the terms and conditions of the award. Criteria (continued) Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. The requirements for nonprocurement suspension and debarment are contained in OMB guidance in 2 CFR Part 180, which implements Executive Orders 12549 and 12689, “Debarment and Suspension;” federal awarding agency regulations in Title 2 of the CFR adopting/implementing the OMB guidance in 2 CFR Part 180; program legislation; and the terms and conditions of the award. Condition The Organization was unable to support adherence to procurement policies for several active contracts under the federal program for fiscal year ending August 31, 2022. Specifically, the Organization failed to maintain documentation history of procurement for four out of the twenty-six active contracts tested that were either paid in full or in part by the Unaccompanied Alien Children Program. All of these contracts were procured at least three years previous. For three of the four contracts the winning proposal and proper approval for the contact was maintained, but no other procurement documentation. For the other contract no procurement history maintained. There were no errors found in any of the contract samples that were procured under the Organization’s current procurement policies. Cause The Organization is aware they are operating under contracts that were procured in previous years that may not have all the records maintained. Reprocuring all of these contracts at once would potentially cause disruptions in operations due to the products/services related those vendors playing an important role in the Organization’s day-to-day operations. As such, the Organization still has several active contracts procured under the old policies that they are working on reprocuring as these contracts’ renewal dates arise, if not earlier. Effect or Potential Effect The Organization could potentially be under contract with vendors that are not the best value, not adequately qualified, potentially suspended or debarred, or otherwise not suitable for contract under federal procurement guidelines. No questioned costs were identified as all services/goods under these contracts were deemed to be allowable under the program, and no exceptions noted for allowable costs/activities for samples that included payment to these vendors. Recommendation The Organization should review all its “legacy” contracts that were procured under the previous procurement policies to determine if there is proper documentation maintained for compliance with applicable procurement guidelines. This includes systematically re-procuring any current contracts not in compliance as soon as feasible. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Criteria Non-federal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. 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. 3. 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). 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 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)). 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 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)). 6. 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.” The requirements that apply to procurement under grants and cooperative agreements are contained in 2 CFR sections 200.317 through 200.326, program legislation, federal awarding agency regulations, and the terms and conditions of the award. Criteria (continued) Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. The requirements for nonprocurement suspension and debarment are contained in OMB guidance in 2 CFR Part 180, which implements Executive Orders 12549 and 12689, “Debarment and Suspension;” federal awarding agency regulations in Title 2 of the CFR adopting/implementing the OMB guidance in 2 CFR Part 180; program legislation; and the terms and conditions of the award. Condition The Organization was unable to support adherence to procurement policies for several active contracts under the federal program for fiscal year ending August 31, 2022. Specifically, the Organization failed to maintain documentation history of procurement for four out of the twenty-six active contracts tested that were either paid in full or in part by the Unaccompanied Alien Children Program. All of these contracts were procured at least three years previous. For three of the four contracts the winning proposal and proper approval for the contact was maintained, but no other procurement documentation. For the other contract no procurement history maintained. There were no errors found in any of the contract samples that were procured under the Organization’s current procurement policies. Cause The Organization is aware they are operating under contracts that were procured in previous years that may not have all the records maintained. Reprocuring all of these contracts at once would potentially cause disruptions in operations due to the products/services related those vendors playing an important role in the Organization’s day-to-day operations. As such, the Organization still has several active contracts procured under the old policies that they are working on reprocuring as these contracts’ renewal dates arise, if not earlier. Effect or Potential Effect The Organization could potentially be under contract with vendors that are not the best value, not adequately qualified, potentially suspended or debarred, or otherwise not suitable for contract under federal procurement guidelines. No questioned costs were identified as all services/goods under these contracts were deemed to be allowable under the program, and no exceptions noted for allowable costs/activities for samples that included payment to these vendors. Recommendation The Organization should review all its “legacy” contracts that were procured under the previous procurement policies to determine if there is proper documentation maintained for compliance with applicable procurement guidelines. This includes systematically re-procuring any current contracts not in compliance as soon as feasible. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Criteria Non-federal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. 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. 3. 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). 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 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)). 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 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)). 6. 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.” The requirements that apply to procurement under grants and cooperative agreements are contained in 2 CFR sections 200.317 through 200.326, program legislation, federal awarding agency regulations, and the terms and conditions of the award. Criteria (continued) Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. The requirements for nonprocurement suspension and debarment are contained in OMB guidance in 2 CFR Part 180, which implements Executive Orders 12549 and 12689, “Debarment and Suspension;” federal awarding agency regulations in Title 2 of the CFR adopting/implementing the OMB guidance in 2 CFR Part 180; program legislation; and the terms and conditions of the award. Condition The Organization was unable to support adherence to procurement policies for several active contracts under the federal program for fiscal year ending August 31, 2022. Specifically, the Organization failed to maintain documentation history of procurement for four out of the twenty-six active contracts tested that were either paid in full or in part by the Unaccompanied Alien Children Program. All of these contracts were procured at least three years previous. For three of the four contracts the winning proposal and proper approval for the contact was maintained, but no other procurement documentation. For the other contract no procurement history maintained. There were no errors found in any of the contract samples that were procured under the Organization’s current procurement policies. Cause The Organization is aware they are operating under contracts that were procured in previous years that may not have all the records maintained. Reprocuring all of these contracts at once would potentially cause disruptions in operations due to the products/services related those vendors playing an important role in the Organization’s day-to-day operations. As such, the Organization still has several active contracts procured under the old policies that they are working on reprocuring as these contracts’ renewal dates arise, if not earlier. Effect or Potential Effect The Organization could potentially be under contract with vendors that are not the best value, not adequately qualified, potentially suspended or debarred, or otherwise not suitable for contract under federal procurement guidelines. No questioned costs were identified as all services/goods under these contracts were deemed to be allowable under the program, and no exceptions noted for allowable costs/activities for samples that included payment to these vendors. Recommendation The Organization should review all its “legacy” contracts that were procured under the previous procurement policies to determine if there is proper documentation maintained for compliance with applicable procurement guidelines. This includes systematically re-procuring any current contracts not in compliance as soon as feasible. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Criteria Non-federal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. 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. 3. 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). 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 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)). 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 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)). 6. 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.” The requirements that apply to procurement under grants and cooperative agreements are contained in 2 CFR sections 200.317 through 200.326, program legislation, federal awarding agency regulations, and the terms and conditions of the award. Criteria (continued) Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. The requirements for nonprocurement suspension and debarment are contained in OMB guidance in 2 CFR Part 180, which implements Executive Orders 12549 and 12689, “Debarment and Suspension;” federal awarding agency regulations in Title 2 of the CFR adopting/implementing the OMB guidance in 2 CFR Part 180; program legislation; and the terms and conditions of the award. Condition The Organization was unable to support adherence to procurement policies for several active contracts under the federal program for fiscal year ending August 31, 2022. Specifically, the Organization failed to maintain documentation history of procurement for four out of the twenty-six active contracts tested that were either paid in full or in part by the Unaccompanied Alien Children Program. All of these contracts were procured at least three years previous. For three of the four contracts the winning proposal and proper approval for the contact was maintained, but no other procurement documentation. For the other contract no procurement history maintained. There were no errors found in any of the contract samples that were procured under the Organization’s current procurement policies. Cause The Organization is aware they are operating under contracts that were procured in previous years that may not have all the records maintained. Reprocuring all of these contracts at once would potentially cause disruptions in operations due to the products/services related those vendors playing an important role in the Organization’s day-to-day operations. As such, the Organization still has several active contracts procured under the old policies that they are working on reprocuring as these contracts’ renewal dates arise, if not earlier. Effect or Potential Effect The Organization could potentially be under contract with vendors that are not the best value, not adequately qualified, potentially suspended or debarred, or otherwise not suitable for contract under federal procurement guidelines. No questioned costs were identified as all services/goods under these contracts were deemed to be allowable under the program, and no exceptions noted for allowable costs/activities for samples that included payment to these vendors. Recommendation The Organization should review all its “legacy” contracts that were procured under the previous procurement policies to determine if there is proper documentation maintained for compliance with applicable procurement guidelines. This includes systematically re-procuring any current contracts not in compliance as soon as feasible. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Criteria Non-federal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. 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. 3. 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). 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 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)). 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 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)). 6. 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.” The requirements that apply to procurement under grants and cooperative agreements are contained in 2 CFR sections 200.317 through 200.326, program legislation, federal awarding agency regulations, and the terms and conditions of the award. Criteria (continued) Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. The requirements for nonprocurement suspension and debarment are contained in OMB guidance in 2 CFR Part 180, which implements Executive Orders 12549 and 12689, “Debarment and Suspension;” federal awarding agency regulations in Title 2 of the CFR adopting/implementing the OMB guidance in 2 CFR Part 180; program legislation; and the terms and conditions of the award. Condition The Organization was unable to support adherence to procurement policies for several active contracts under the federal program for fiscal year ending August 31, 2022. Specifically, the Organization failed to maintain documentation history of procurement for four out of the twenty-six active contracts tested that were either paid in full or in part by the Unaccompanied Alien Children Program. All of these contracts were procured at least three years previous. For three of the four contracts the winning proposal and proper approval for the contact was maintained, but no other procurement documentation. For the other contract no procurement history maintained. There were no errors found in any of the contract samples that were procured under the Organization’s current procurement policies. Cause The Organization is aware they are operating under contracts that were procured in previous years that may not have all the records maintained. Reprocuring all of these contracts at once would potentially cause disruptions in operations due to the products/services related those vendors playing an important role in the Organization’s day-to-day operations. As such, the Organization still has several active contracts procured under the old policies that they are working on reprocuring as these contracts’ renewal dates arise, if not earlier. Effect or Potential Effect The Organization could potentially be under contract with vendors that are not the best value, not adequately qualified, potentially suspended or debarred, or otherwise not suitable for contract under federal procurement guidelines. No questioned costs were identified as all services/goods under these contracts were deemed to be allowable under the program, and no exceptions noted for allowable costs/activities for samples that included payment to these vendors. Recommendation The Organization should review all its “legacy” contracts that were procured under the previous procurement policies to determine if there is proper documentation maintained for compliance with applicable procurement guidelines. This includes systematically re-procuring any current contracts not in compliance as soon as feasible. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Criteria Non-federal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. 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. 3. 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). 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 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)). 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 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)). 6. 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.” The requirements that apply to procurement under grants and cooperative agreements are contained in 2 CFR sections 200.317 through 200.326, program legislation, federal awarding agency regulations, and the terms and conditions of the award. Criteria (continued) Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. The requirements for nonprocurement suspension and debarment are contained in OMB guidance in 2 CFR Part 180, which implements Executive Orders 12549 and 12689, “Debarment and Suspension;” federal awarding agency regulations in Title 2 of the CFR adopting/implementing the OMB guidance in 2 CFR Part 180; program legislation; and the terms and conditions of the award. Condition The Organization was unable to support adherence to procurement policies for several active contracts under the federal program for fiscal year ending August 31, 2022. Specifically, the Organization failed to maintain documentation history of procurement for four out of the twenty-six active contracts tested that were either paid in full or in part by the Unaccompanied Alien Children Program. All of these contracts were procured at least three years previous. For three of the four contracts the winning proposal and proper approval for the contact was maintained, but no other procurement documentation. For the other contract no procurement history maintained. There were no errors found in any of the contract samples that were procured under the Organization’s current procurement policies. Cause The Organization is aware they are operating under contracts that were procured in previous years that may not have all the records maintained. Reprocuring all of these contracts at once would potentially cause disruptions in operations due to the products/services related those vendors playing an important role in the Organization’s day-to-day operations. As such, the Organization still has several active contracts procured under the old policies that they are working on reprocuring as these contracts’ renewal dates arise, if not earlier. Effect or Potential Effect The Organization could potentially be under contract with vendors that are not the best value, not adequately qualified, potentially suspended or debarred, or otherwise not suitable for contract under federal procurement guidelines. No questioned costs were identified as all services/goods under these contracts were deemed to be allowable under the program, and no exceptions noted for allowable costs/activities for samples that included payment to these vendors. Recommendation The Organization should review all its “legacy” contracts that were procured under the previous procurement policies to determine if there is proper documentation maintained for compliance with applicable procurement guidelines. This includes systematically re-procuring any current contracts not in compliance as soon as feasible. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Criteria Non-federal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. 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. 3. 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). 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 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)). 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 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)). 6. 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.” The requirements that apply to procurement under grants and cooperative agreements are contained in 2 CFR sections 200.317 through 200.326, program legislation, federal awarding agency regulations, and the terms and conditions of the award. Criteria (continued) Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. The requirements for nonprocurement suspension and debarment are contained in OMB guidance in 2 CFR Part 180, which implements Executive Orders 12549 and 12689, “Debarment and Suspension;” federal awarding agency regulations in Title 2 of the CFR adopting/implementing the OMB guidance in 2 CFR Part 180; program legislation; and the terms and conditions of the award. Condition The Organization was unable to support adherence to procurement policies for several active contracts under the federal program for fiscal year ending August 31, 2022. Specifically, the Organization failed to maintain documentation history of procurement for four out of the twenty-six active contracts tested that were either paid in full or in part by the Unaccompanied Alien Children Program. All of these contracts were procured at least three years previous. For three of the four contracts the winning proposal and proper approval for the contact was maintained, but no other procurement documentation. For the other contract no procurement history maintained. There were no errors found in any of the contract samples that were procured under the Organization’s current procurement policies. Cause The Organization is aware they are operating under contracts that were procured in previous years that may not have all the records maintained. Reprocuring all of these contracts at once would potentially cause disruptions in operations due to the products/services related those vendors playing an important role in the Organization’s day-to-day operations. As such, the Organization still has several active contracts procured under the old policies that they are working on reprocuring as these contracts’ renewal dates arise, if not earlier. Effect or Potential Effect The Organization could potentially be under contract with vendors that are not the best value, not adequately qualified, potentially suspended or debarred, or otherwise not suitable for contract under federal procurement guidelines. No questioned costs were identified as all services/goods under these contracts were deemed to be allowable under the program, and no exceptions noted for allowable costs/activities for samples that included payment to these vendors. Recommendation The Organization should review all its “legacy” contracts that were procured under the previous procurement policies to determine if there is proper documentation maintained for compliance with applicable procurement guidelines. This includes systematically re-procuring any current contracts not in compliance as soon as feasible. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.