Program Information: U.S. Department of Transportation AL Number Award Number Award Period Grant Name 20.205 A18AV01093/A17AV00612 1/1/2018-12/31/2022 Highway Planning and Construction Cluster AL Number Award Number Award Period Grant Name 20.509 A18AV01093/218AV00785 1/1/2018-9/30/2023 Road Maintenance Programs Criteria: Per 2 CFR § 200.303 Internal controls, the non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). 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) and (b). Under the micro-purchase method, the aggregate dollar amount does not exceed $10,000 ($2,000 in the case of acquisition for construction subject to the Wage Rate Requirements (Davis-Bacon Act)). Small purchase procedures are used for purchases that exceed the micro-purchase amount but do not exceed the simplified acquisition threshold. Micro-purchases may be awarded without soliciting competitive quotations if the non-federal entity considers the price to be reasonable (2 CFR section 200.320(a)). If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources (2 CFR section 200.320(b)). 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 passthrough 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. When a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR Section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the Excluded Parties List System (EPLS) maintained by the General Services Administration (GSA) and available at https://www.sam.gov, (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/Context: 20.205 – Highway Planning and Construction Cluster • 1 of 8 Individually Important Items (IIIs) had bidding/solicitation documentation but did not have proper approval. • 2 of 8 IIIs had documentation of one quote obtained but no further documentation. • 5 of 8 IIIs and 2 of 2 procurement samples had no bidding/solicitation support provided. • 8 of 8 IIIs and 2 of 2 suspension and debarment samples did not have documentation of a suspension and debarment search prior to payment. 20.509 – Road Maintenance Programs • 3 of 3 IIIs and 7 of 7 procurement samples had no bidding/solicitation support provided. • 3 of 3 IIIs and 2 of 2 suspension and debarment samples did not have proper documentation provided. [X] Compliance Finding [ ] Significant Deficiency [X] Material Weakness Cause: Due to turnover in key personnel, Joint Programs had a breakdown in internal controls during 2022. Effect: Without an effective internal control system an entity’s objective: operations, reporting, and compliance cannot be achieved. In addition, Joint Programs could be subject to questioned costs or other sanctions from funding agencies if they determine that Joint Programs did not assure full and open competition for the procurements and/or if vendors retained and paid from federal funds and are later found to be suspended or debarred. Questioned Costs: Known – $971,925 AL# 20.205 Known – $563,676 AL# 20.509 Repeat Finding: Yes – 2021-005. Recommendation: We recommend that Joint Programs use the Green Book to design, implement, and operate internal controls to achieve its objectives related to operations, reporting, and compliance. We also recommend that Joint Programs conduct training for staff to review procurement and suspension and debarment policies and procedures and maintain all records in a way that allows them to be located and reviewed at any point in time. View of Responsible Officials and Planned Corrective Action: Management agrees with the finding and has prepared corrective action as detailed in its Corrective Action Plan.
Program Information: U.S. Department of Transportation AL Number Award Number Award Period Grant Name 20.205 A18AV01093/A17AV00612 1/1/2018-12/31/2022 Highway Planning and Construction Cluster AL Number Award Number Award Period Grant Name 20.509 A18AV01093/218AV00785 1/1/2018-9/30/2023 Road Maintenance Programs Criteria: Per 2 CFR § 200.303 Internal controls, the non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). 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) and (b). Under the micro-purchase method, the aggregate dollar amount does not exceed $10,000 ($2,000 in the case of acquisition for construction subject to the Wage Rate Requirements (Davis-Bacon Act)). Small purchase procedures are used for purchases that exceed the micro-purchase amount but do not exceed the simplified acquisition threshold. Micro-purchases may be awarded without soliciting competitive quotations if the non-federal entity considers the price to be reasonable (2 CFR section 200.320(a)). If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources (2 CFR section 200.320(b)). 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 passthrough 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. When a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR Section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the Excluded Parties List System (EPLS) maintained by the General Services Administration (GSA) and available at https://www.sam.gov, (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/Context: 20.205 – Highway Planning and Construction Cluster • 1 of 8 Individually Important Items (IIIs) had bidding/solicitation documentation but did not have proper approval. • 2 of 8 IIIs had documentation of one quote obtained but no further documentation. • 5 of 8 IIIs and 2 of 2 procurement samples had no bidding/solicitation support provided. • 8 of 8 IIIs and 2 of 2 suspension and debarment samples did not have documentation of a suspension and debarment search prior to payment. 20.509 – Road Maintenance Programs • 3 of 3 IIIs and 7 of 7 procurement samples had no bidding/solicitation support provided. • 3 of 3 IIIs and 2 of 2 suspension and debarment samples did not have proper documentation provided. [X] Compliance Finding [ ] Significant Deficiency [X] Material Weakness Cause: Due to turnover in key personnel, Joint Programs had a breakdown in internal controls during 2022. Effect: Without an effective internal control system an entity’s objective: operations, reporting, and compliance cannot be achieved. In addition, Joint Programs could be subject to questioned costs or other sanctions from funding agencies if they determine that Joint Programs did not assure full and open competition for the procurements and/or if vendors retained and paid from federal funds and are later found to be suspended or debarred. Questioned Costs: Known – $971,925 AL# 20.205 Known – $563,676 AL# 20.509 Repeat Finding: Yes – 2021-005. Recommendation: We recommend that Joint Programs use the Green Book to design, implement, and operate internal controls to achieve its objectives related to operations, reporting, and compliance. We also recommend that Joint Programs conduct training for staff to review procurement and suspension and debarment policies and procedures and maintain all records in a way that allows them to be located and reviewed at any point in time. View of Responsible Officials and Planned Corrective Action: Management agrees with the finding and has prepared corrective action as detailed in its Corrective Action Plan.
Program Information: U.S. Department of Transportation AL Number Award Number Award Period Grant Name 20.205 A18AV01093/A17AV00612 1/1/2018-12/31/2022 Highway Planning and Construction Cluster AL Number Award Number Award Period Grant Name 20.509 A18AV01093/218AV00785 1/1/2018-9/30/2023 Road Maintenance Programs Criteria: Per 2 CFR § 200.303 Internal controls, the non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). 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) and (b). Under the micro-purchase method, the aggregate dollar amount does not exceed $10,000 ($2,000 in the case of acquisition for construction subject to the Wage Rate Requirements (Davis-Bacon Act)). Small purchase procedures are used for purchases that exceed the micro-purchase amount but do not exceed the simplified acquisition threshold. Micro-purchases may be awarded without soliciting competitive quotations if the non-federal entity considers the price to be reasonable (2 CFR section 200.320(a)). If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources (2 CFR section 200.320(b)). 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 passthrough 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. When a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR Section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the Excluded Parties List System (EPLS) maintained by the General Services Administration (GSA) and available at https://www.sam.gov, (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/Context: 20.205 – Highway Planning and Construction Cluster • 1 of 8 Individually Important Items (IIIs) had bidding/solicitation documentation but did not have proper approval. • 2 of 8 IIIs had documentation of one quote obtained but no further documentation. • 5 of 8 IIIs and 2 of 2 procurement samples had no bidding/solicitation support provided. • 8 of 8 IIIs and 2 of 2 suspension and debarment samples did not have documentation of a suspension and debarment search prior to payment. 20.509 – Road Maintenance Programs • 3 of 3 IIIs and 7 of 7 procurement samples had no bidding/solicitation support provided. • 3 of 3 IIIs and 2 of 2 suspension and debarment samples did not have proper documentation provided. [X] Compliance Finding [ ] Significant Deficiency [X] Material Weakness Cause: Due to turnover in key personnel, Joint Programs had a breakdown in internal controls during 2022. Effect: Without an effective internal control system an entity’s objective: operations, reporting, and compliance cannot be achieved. In addition, Joint Programs could be subject to questioned costs or other sanctions from funding agencies if they determine that Joint Programs did not assure full and open competition for the procurements and/or if vendors retained and paid from federal funds and are later found to be suspended or debarred. Questioned Costs: Known – $971,925 AL# 20.205 Known – $563,676 AL# 20.509 Repeat Finding: Yes – 2021-005. Recommendation: We recommend that Joint Programs use the Green Book to design, implement, and operate internal controls to achieve its objectives related to operations, reporting, and compliance. We also recommend that Joint Programs conduct training for staff to review procurement and suspension and debarment policies and procedures and maintain all records in a way that allows them to be located and reviewed at any point in time. View of Responsible Officials and Planned Corrective Action: Management agrees with the finding and has prepared corrective action as detailed in its Corrective Action Plan.
Program Information: U.S. Department of Transportation AL Number Award Number Award Period Grant Name 20.205 A18AV01093/A17AV00612 1/1/2018-12/31/2022 Highway Planning and Construction Cluster AL Number Award Number Award Period Grant Name 20.509 A18AV01093/218AV00785 1/1/2018-9/30/2023 Road Maintenance Programs Criteria: Per 2 CFR § 200.303 Internal controls, the non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). 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) and (b). Under the micro-purchase method, the aggregate dollar amount does not exceed $10,000 ($2,000 in the case of acquisition for construction subject to the Wage Rate Requirements (Davis-Bacon Act)). Small purchase procedures are used for purchases that exceed the micro-purchase amount but do not exceed the simplified acquisition threshold. Micro-purchases may be awarded without soliciting competitive quotations if the non-federal entity considers the price to be reasonable (2 CFR section 200.320(a)). If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources (2 CFR section 200.320(b)). 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 passthrough 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. When a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR Section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the Excluded Parties List System (EPLS) maintained by the General Services Administration (GSA) and available at https://www.sam.gov, (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/Context: 20.205 – Highway Planning and Construction Cluster • 1 of 8 Individually Important Items (IIIs) had bidding/solicitation documentation but did not have proper approval. • 2 of 8 IIIs had documentation of one quote obtained but no further documentation. • 5 of 8 IIIs and 2 of 2 procurement samples had no bidding/solicitation support provided. • 8 of 8 IIIs and 2 of 2 suspension and debarment samples did not have documentation of a suspension and debarment search prior to payment. 20.509 – Road Maintenance Programs • 3 of 3 IIIs and 7 of 7 procurement samples had no bidding/solicitation support provided. • 3 of 3 IIIs and 2 of 2 suspension and debarment samples did not have proper documentation provided. [X] Compliance Finding [ ] Significant Deficiency [X] Material Weakness Cause: Due to turnover in key personnel, Joint Programs had a breakdown in internal controls during 2022. Effect: Without an effective internal control system an entity’s objective: operations, reporting, and compliance cannot be achieved. In addition, Joint Programs could be subject to questioned costs or other sanctions from funding agencies if they determine that Joint Programs did not assure full and open competition for the procurements and/or if vendors retained and paid from federal funds and are later found to be suspended or debarred. Questioned Costs: Known – $971,925 AL# 20.205 Known – $563,676 AL# 20.509 Repeat Finding: Yes – 2021-005. Recommendation: We recommend that Joint Programs use the Green Book to design, implement, and operate internal controls to achieve its objectives related to operations, reporting, and compliance. We also recommend that Joint Programs conduct training for staff to review procurement and suspension and debarment policies and procedures and maintain all records in a way that allows them to be located and reviewed at any point in time. View of Responsible Officials and Planned Corrective Action: Management agrees with the finding and has prepared corrective action as detailed in its Corrective Action Plan.
Program Information: U.S. Department of Transportation AL Number Award Number Award Period Grant Name 20.205 A18AV01093/A17AV00612 1/1/2018-12/31/2022 Highway Planning and Construction Cluster AL Number Award Number Award Period Grant Name 20.509 A18AV01093/218AV00785 1/1/2018-9/30/2023 Road Maintenance Programs Criteria: Per 2 CFR § 200.303 Internal controls, the non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). 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) and (b). Under the micro-purchase method, the aggregate dollar amount does not exceed $10,000 ($2,000 in the case of acquisition for construction subject to the Wage Rate Requirements (Davis-Bacon Act)). Small purchase procedures are used for purchases that exceed the micro-purchase amount but do not exceed the simplified acquisition threshold. Micro-purchases may be awarded without soliciting competitive quotations if the non-federal entity considers the price to be reasonable (2 CFR section 200.320(a)). If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources (2 CFR section 200.320(b)). 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 passthrough 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. When a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR Section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the Excluded Parties List System (EPLS) maintained by the General Services Administration (GSA) and available at https://www.sam.gov, (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/Context: 20.205 – Highway Planning and Construction Cluster • 1 of 8 Individually Important Items (IIIs) had bidding/solicitation documentation but did not have proper approval. • 2 of 8 IIIs had documentation of one quote obtained but no further documentation. • 5 of 8 IIIs and 2 of 2 procurement samples had no bidding/solicitation support provided. • 8 of 8 IIIs and 2 of 2 suspension and debarment samples did not have documentation of a suspension and debarment search prior to payment. 20.509 – Road Maintenance Programs • 3 of 3 IIIs and 7 of 7 procurement samples had no bidding/solicitation support provided. • 3 of 3 IIIs and 2 of 2 suspension and debarment samples did not have proper documentation provided. [X] Compliance Finding [ ] Significant Deficiency [X] Material Weakness Cause: Due to turnover in key personnel, Joint Programs had a breakdown in internal controls during 2022. Effect: Without an effective internal control system an entity’s objective: operations, reporting, and compliance cannot be achieved. In addition, Joint Programs could be subject to questioned costs or other sanctions from funding agencies if they determine that Joint Programs did not assure full and open competition for the procurements and/or if vendors retained and paid from federal funds and are later found to be suspended or debarred. Questioned Costs: Known – $971,925 AL# 20.205 Known – $563,676 AL# 20.509 Repeat Finding: Yes – 2021-005. Recommendation: We recommend that Joint Programs use the Green Book to design, implement, and operate internal controls to achieve its objectives related to operations, reporting, and compliance. We also recommend that Joint Programs conduct training for staff to review procurement and suspension and debarment policies and procedures and maintain all records in a way that allows them to be located and reviewed at any point in time. View of Responsible Officials and Planned Corrective Action: Management agrees with the finding and has prepared corrective action as detailed in its Corrective Action Plan.
Program Information: U.S. Department of Transportation AL Number Award Number Award Period Grant Name 20.205 A18AV01093/A17AV00612 1/1/2018-12/31/2022 Highway Planning and Construction Cluster AL Number Award Number Award Period Grant Name 20.509 A18AV01093/218AV00785 1/1/2018-9/30/2023 Road Maintenance Programs Criteria: Per 2 CFR § 200.303 Internal controls, the non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). 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) and (b). Under the micro-purchase method, the aggregate dollar amount does not exceed $10,000 ($2,000 in the case of acquisition for construction subject to the Wage Rate Requirements (Davis-Bacon Act)). Small purchase procedures are used for purchases that exceed the micro-purchase amount but do not exceed the simplified acquisition threshold. Micro-purchases may be awarded without soliciting competitive quotations if the non-federal entity considers the price to be reasonable (2 CFR section 200.320(a)). If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources (2 CFR section 200.320(b)). 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 passthrough 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. When a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR Section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the Excluded Parties List System (EPLS) maintained by the General Services Administration (GSA) and available at https://www.sam.gov, (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/Context: 20.205 – Highway Planning and Construction Cluster • 1 of 8 Individually Important Items (IIIs) had bidding/solicitation documentation but did not have proper approval. • 2 of 8 IIIs had documentation of one quote obtained but no further documentation. • 5 of 8 IIIs and 2 of 2 procurement samples had no bidding/solicitation support provided. • 8 of 8 IIIs and 2 of 2 suspension and debarment samples did not have documentation of a suspension and debarment search prior to payment. 20.509 – Road Maintenance Programs • 3 of 3 IIIs and 7 of 7 procurement samples had no bidding/solicitation support provided. • 3 of 3 IIIs and 2 of 2 suspension and debarment samples did not have proper documentation provided. [X] Compliance Finding [ ] Significant Deficiency [X] Material Weakness Cause: Due to turnover in key personnel, Joint Programs had a breakdown in internal controls during 2022. Effect: Without an effective internal control system an entity’s objective: operations, reporting, and compliance cannot be achieved. In addition, Joint Programs could be subject to questioned costs or other sanctions from funding agencies if they determine that Joint Programs did not assure full and open competition for the procurements and/or if vendors retained and paid from federal funds and are later found to be suspended or debarred. Questioned Costs: Known – $971,925 AL# 20.205 Known – $563,676 AL# 20.509 Repeat Finding: Yes – 2021-005. Recommendation: We recommend that Joint Programs use the Green Book to design, implement, and operate internal controls to achieve its objectives related to operations, reporting, and compliance. We also recommend that Joint Programs conduct training for staff to review procurement and suspension and debarment policies and procedures and maintain all records in a way that allows them to be located and reviewed at any point in time. View of Responsible Officials and Planned Corrective Action: Management agrees with the finding and has prepared corrective action as detailed in its Corrective Action Plan.
Program Information: U.S. Department of Transportation AL Number Award Number Award Period Grant Name 20.205 A18AV01093/A17AV00612 1/1/2018-12/31/2022 Highway Planning and Construction Cluster AL Number Award Number Award Period Grant Name 20.509 A18AV01093/218AV00785 1/1/2018-9/30/2023 Road Maintenance Programs Criteria: Per 2 CFR § 200.303 Internal controls, the non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). 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) and (b). Under the micro-purchase method, the aggregate dollar amount does not exceed $10,000 ($2,000 in the case of acquisition for construction subject to the Wage Rate Requirements (Davis-Bacon Act)). Small purchase procedures are used for purchases that exceed the micro-purchase amount but do not exceed the simplified acquisition threshold. Micro-purchases may be awarded without soliciting competitive quotations if the non-federal entity considers the price to be reasonable (2 CFR section 200.320(a)). If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources (2 CFR section 200.320(b)). 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 passthrough 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. When a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR Section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the Excluded Parties List System (EPLS) maintained by the General Services Administration (GSA) and available at https://www.sam.gov, (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/Context: 20.205 – Highway Planning and Construction Cluster • 1 of 8 Individually Important Items (IIIs) had bidding/solicitation documentation but did not have proper approval. • 2 of 8 IIIs had documentation of one quote obtained but no further documentation. • 5 of 8 IIIs and 2 of 2 procurement samples had no bidding/solicitation support provided. • 8 of 8 IIIs and 2 of 2 suspension and debarment samples did not have documentation of a suspension and debarment search prior to payment. 20.509 – Road Maintenance Programs • 3 of 3 IIIs and 7 of 7 procurement samples had no bidding/solicitation support provided. • 3 of 3 IIIs and 2 of 2 suspension and debarment samples did not have proper documentation provided. [X] Compliance Finding [ ] Significant Deficiency [X] Material Weakness Cause: Due to turnover in key personnel, Joint Programs had a breakdown in internal controls during 2022. Effect: Without an effective internal control system an entity’s objective: operations, reporting, and compliance cannot be achieved. In addition, Joint Programs could be subject to questioned costs or other sanctions from funding agencies if they determine that Joint Programs did not assure full and open competition for the procurements and/or if vendors retained and paid from federal funds and are later found to be suspended or debarred. Questioned Costs: Known – $971,925 AL# 20.205 Known – $563,676 AL# 20.509 Repeat Finding: Yes – 2021-005. Recommendation: We recommend that Joint Programs use the Green Book to design, implement, and operate internal controls to achieve its objectives related to operations, reporting, and compliance. We also recommend that Joint Programs conduct training for staff to review procurement and suspension and debarment policies and procedures and maintain all records in a way that allows them to be located and reviewed at any point in time. View of Responsible Officials and Planned Corrective Action: Management agrees with the finding and has prepared corrective action as detailed in its Corrective Action Plan.
2022-003 Procurement and Suspension and Debarment Federal Organization U.S. Department of Health and Human Services Assistance Listing Number 93.493 Congressional Directives Condition The District did not maintain sufficient supporting records demonstrating that the appropriate steps were taken to meet the procurement and suspension and debarment compliance requirements. Criteria [X] Compliance Finding [ ] Significant Deficiency [X] Material Weakness Entities receiving federal awards must have and use their documented procurement and suspension and debarment policies. Title 2 CFR 200.320 outlines the acceptable methods of procurement and suspension and debarment and establishes the maximum thresholds allowed. Purchases below the simplified acquisition threshold, but above the micro-purchase threshold, require price or rate quotations to be obtained from an adequate number of qualified sources. Noncompetitive procurement can be used only in certain circumstances as allowed for in 2 CFR 200.320(c). Context This finding is a systemic problem. Cause The District’s internal controls over compliance did not include adequate controls over the retention of supporting documentation for the procurement and suspension and debarment process using federal funds. Effect We were unable to verify that federal procurement and suspension and debarmentcompliance requirements were followed. Questioned Costs None identified. Recommendation We recommend the District review, update, and follow its procurement and suspension and debarment policies in accordance with federal guidelines and maintain documentation showing evidence of the procedures completed for each expenditure using federal awards. Management’s Response Full and complete process of issuing request for proposal (RFP) and securing bids have been explained and trained for the Chief Financial Officer and Chief Executive Officer. The District will comply within the standard framework of all interested bid parties and will be provided with an RFP stating selection committee, selection criteria, and date and time of electronic bid submission. If a sole source is appropriate, then the CFO will prepare a sole source resolution for the Board of Commissioners to review and approve during an advanced notice held meeting open to the public. The sole source document will include at minimum one of the five designed sole source qualifications.
Non-Federal entities other than States, including those operating Federal programs as subrecipients of States, must follow the procurement standards set out at 2 CFR 200.317 - 200.327. They must use their own documented procurement procedures, which reflect applicable State and local laws and regulations, provided that the procurements conform to applicable Federal statutes and the procurement requirements identified in 2 CFR Part 200. A non-Federal entity must: 1. Meet the general procurement standards in 2 CFR 200.318, which include oversight of contractors’ performance, maintaining written standards of conduct for employees involved in contracting, awarding contracts only to responsible contractors, and maintaining records to document history of procurements. 2. Conduct all procurement transactions in a manner providing full and open competition, in accordance with 2 CFR 200.319. 3. Use the micro-purchase and small purchase methods only for procurements that meet the applicable criteria under 2 CFR 200.320(a)(1) and (2). Under the micro-purchase method, the aggregate dollar amount does not exceed $10,000 ($2,000 in the case of acquisition for construction subject to the Wage Rate Requirements (Davis-Bacon Act)). Small purchase procedures are used for purchases that exceed the micro-purchase amount but do not exceed the simplified acquisition threshold ($250,000). Micro-purchases may be awarded without soliciting competitive quotations if the non-Federal entity considers the price to be reasonable (2 CFR 200.320(a)). If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources (2 CFR 200.320(b)). 4. For acquisitions exceeding the simplified acquisition threshold, the non-Federal entity must use one of the following procurement methods: the sealed bid method if the acquisition meets the criteria in 2 CFR 200.320(b); the competitive proposals method under the conditions specified in 2 CFR 200.320(b)(2); or the noncompetitive proposals method (i.e., solicit a proposal from only one source) but only when one or more of four circumstances are met, in accordance with 2 CFR 200.320(c). 5. Perform a cost or price analysis in connection with every procurement action in excess of the simplified acquisition threshold, including contract modifications (2 CFR 200.323(a)). The cost plus a percentage of cost and percentage of construction cost methods of contracting must not be used (2 CFR 200.323(b)). 6. Ensure that every purchase order or other contract includes applicable provisions required by 2 CFR 200.326. These provisions are described in Appendix II to 2 CFR Part 200, “Contract Provisions for Non-Federal Entity Contracts Under Federal Awards.” Although the Village contracted with a consultant to assist the Village with compliance with various procurement compliance requirements, the Village does not have any formal policies in place regarding procurement requirements. We recommend that the Village adopt formal policies and procedures that address procurement requirements.
Finding 2022-006: Procurement Method Requirements Federal Agency: U.S. Department of the Treasury Assistance Listing Number: 21.027 Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Pass-through Entity: Snohomish County Human Services Pass-through Award Number: EL-22-AR-11-394 Criteria: In accordance with 2 CFR 200.320, federal award recipients are required to use informal procurement methods for procurement transactions between $10,000 and $250,000 that are charged to federal award programs. Condition: Records of the procurement method used, such as price or rate quotations or justification for noncompetitive procurement, could not be located for procurement transactions. Cause: The Organization had limited management and administrative staff during the year ended December 31, 2022. Further, as described in finding 2022-001, there were no written procedures in place to assign specific tasks to separate individuals. Effect: The Organization was not in compliance with procurement requirements for the major federal award program during the year ended December 31, 2022, noncompliance with which could lead to waste of federal award funds through purchases of overpriced goods or services. Questioned Costs: Procurement documents could not be located for any of the procurement transactions or covered transactions tested, which totaled $176,381. Recommendation: We recommend that management implements and follows a formal procurement policy with requirements to obtains price or rate quotations for all purchases over $10,000 and to obtain sealed bids or competitive proposals for purchases over $250,000. Views of Responsible Officials: There is no disagreement with the finding.
Finding: 2022-003 – Procurement – Material Weakness in Internal Control over Compliance Criteria: The Organization should have and use documented procurement procedures, consistent with the standards for any method of procurement used for the acquisition of property or services required under a Federal or sub-award. Condition: During the audit, we noted that a procurement policy meeting the minimum requirements under 2 CFR 200.320 was not in place at the Organization. Cause: The Organization received a new grant in 2022 and was therefore required to have a procurement policy in place meeting the minimum standards under 2 CFR 200.320. The Organization was unaware of the requirement and did not implement a policy. Effect: Due to the condition above noted, the Organization did not follow procurement standards under 2 CFR 200.320 when acquiring services. Recommendation: The Organization should implement a procurement policy that meets the standards requirement under CFR 200.320 and ensure that all relevant personnel are aware of and follow the requirements in place View of Responsible Officials and Planned Correction Action: Management agrees with the finding presented by the audit. Management has taken corrective actions to meet this standard.
AL number: 14.231 and 21.027, AL title: Emergency Solutions Grant Program and Coronavirus State and Local Fiscal Recovery Funds Federal award identification number and year:LAHSA agreements: GT-BH-ABH-021, GT-BH-RTV-001, GT-BH-RTV-002, GT-BH-RTV-003, GT-BH-RTV-004, GT-BH-RTV-009, GT-TLS-N-013, GTRRH- RR-02, GT-CH-WS-001, GT-1878-2102-001. California Department of Housing and Community Development 21-HK-17231, 21-HK-17171, 21-HK- 17192, County of Los Angeles ARPA funds awarded in 2022. Name of federal agency: U.S. Department of Housing and Urban Development and U.S. Department of the Treasury Name of pass-through entity: County of Los Angeles, Los Angeles Homeless Services Authority, California Department of Housing and Community Development Repeat finding: No Criteria: Under 2 CFR §200.318-326, non-federal entities must adhere to procurement standards for purchases made with federal funds. Key requirements include: - Full and Open Competition: Procurement transactions must be conducted to ensure open competition and prevent practices that may unduly restrict competition (2 CFR §200.319(a)). - Documentation of Procurement History: Entities must maintain records that detail the procurement history, including the rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price (2 CFR §200.318(i)). - Use of Non-Competitive Procurement: Non-competitive procurement is only allowed under limited circumstances, such as when the item is available from a single source, there is a public emergency, or after solicitation of multiple sources, competition is deemed inadequate (2 CFR §200.320(c)). Condition: The organization incurred expenditures of approximately $52 million for the acquisition and renovation of motels into permanent housing using federal funds under the SLFRF program. However: - No documentation was available to demonstrate compliance with federal procurement standards, including the contractor solicitation process, selection method, or the basis for the contract price. - It is unclear whether the contractor was selected through a competitive process, or if justification for non-competitive procurement was appropriately documented as required by 2 CFR §200.320(c). - Contractor costs totaled approximately $7.8 million of the $52 million expended during the year. - The buyer and seller used the same real estate agent for the acquisition transactions. The organization also did not maintain documentation for vendors used in its Emergency Solutions Grant Program sites. These vendors consisted primarily of food providers and security services. Cause: The organization did not establish or follow sufficient internal controls to ensure compliance with federal procurement requirements, including maintaining the required documentation for procurement activities. Effect or potential effect: The lack of procurement documentation creates a significant risk that noncompliant practices occurred, such as non-competitive procurement or payments exceeding fair market value. Questioned cost: N/A Recommendation: Implement comprehensive procurement policies and procedures that comply with federal regulations under 2 CFR §200.318-326. Ensure all procurement transactions are documented, including evidence of competitive bidding or justification for non-competitive procurement under 2 CFR §200.320(c). Conduct staff training on procurement standards for federal awards, focusing on documentation, competition, and conflict of interest requirements. Perform periodic internal reviews to confirm compliance with procurement policies. Consult with California’s HCD regarding their expectations of contractor selection policies for the HomeKey program. Views of responsible officials: Management acknowledges this finding, which occurred during a period of rapid program expansion when procurement infrastructure had not yet been fully developed. Since the audit period, we have completely overhauled our procurement process to ensure full compliance with the Federal procurement standards. We have implemented a formal procurement policy, created a dedicated Procurement sub-department within Finance, hired a Procurement Supervisor and support team, and launched a new procurement software platform to ensure proper solicitation, documentation, approval routing, and record retention for all Federally funded programs. These upgrades establish consistent competitive bidding, justification procedures, conflict-of-interest safeguards, and transparent procurement. In addition, we have strengthened oversight, provided staff training on Federal procurement standards, and embedded monitoring practices to ensure ongoing compliance. Management is confident these substantial structural improvements have significantly reduced the risk of noncompliance and positioned the organization for full alignment with federal procurement standards going forward.
Criteria: Under 2 CFR 200.318 through 200.320, non-Federal entities must maintain effective oversight and internal controls over the procurement process, use appropriate methods of procurement, provide for full and open competition, perform cost or price analysis when required, and maintain sufficient documentation to support procurement decisions and contract pricing. Condition/Context: The District charged certain expenditures to federal funds; however, because management was not aware, at the time the purchases were made, that the expenditures would be federally funded, the District did not apply the Uniform Guidance procurement standards under 2 CFR 200 to those purchases. As a result, procurement activities were not performed in accordance with applicable federal requirements, and the related procurement files did not consistently contain documentation supporting the procurement method used, full and open competition or justification for limiting competition, required cost or price analysis, and complete procurement history. Therefore, the control activities designed to ensure compliance with federal procurement requirements did not operate effectively. Effect: Major federal programs tested required procurement policies and specific competitive bidding procedures to comply with the use of awarded federal funds to the District. However, the District did use multiple vendors for each project, spreading the cost amongst competing companies, and used vendors that are widely engaged by all irrigation and drainage districts in the State or Arizona. Cause: Management was not aware, at the time the purchases were made, that the related expenditures would be charged to federal funds; therefore, management did not identify the need to apply the Uniform Guidance procurement standards under 2 CFR 200. Consequently, internal controls did not operate effectively to ensure procurements charged to federal awards complied with applicable federal procurement requirements and were supported by complete documentation, including the procurement method used, competition requirements, cost or price analysis, and procurement history. Recommendation: We recommend that management formally adopt amendments to their existing procurement policies to conform with U.S. Code of Federal Regulations, Title 2, Part 200, Uniform Administrative Guidance CFR Section 318(a). Additionally, we recommend management perform competitive procurement on all purchases made with federal funds. Views of Responsible Officials and Planned Corrective Action: Management concurs with the finding, see corrective action plan.
Criteria: Under 2 CFR §200.303, non-Federal entities are required to establish and maintain effective internal controls over Federal awards to ensure compliance with federal statutes, regulations, and the terms and conditions of the award. In addition, 2 CFR §200.318–200.320 require entities to maintain records sufficient to detail the history of procurement transactions, including the rationale for contractor selection and the basis for contract price, and to ensure vendors are not suspended or debarred. Further, 2 CFR §200.302 requires recipients to maintain accurate and complete financial records that properly support and record federal expenditures. Condition: During our testing of expenditures charged to the Coronavirus State and Local Fiscal Recovery Fund under the American Rescue Plan Act (ARPA), we identified several instances where the City did not maintain adequate documentation and supporting records for program expenditures. Specifically: a. The City did not consistently maintain documentation supporting procurement decisions. Documentation for competitive bidding, vendor selection rationale, and price reasonableness was not consistently available. The City also did not provide evidence that vendors were verified against SAM.gov for suspension and debarment. Management indicated certain procurements were made under COVID-19 emergency conditions; however, written justification and required approvals were not consistently maintained. b. Expenditures totaling $1,070,694.56, out of $6,305,879.54 tested, were recorded in fiscal year 2022 instead of 2023. c. One disbursement had an invoice dated October 1, 2021, but was not paid until April 26, 2022, resulting in a delay of approximately seven months. d. For certain expenditures, purchase orders totaling $1,018,000 did not agree with related invoices totaling $1,410,483.81, indicating discrepancies between approved purchase amounts and billed amounts. Cause: These issues appear to be due to inadequate internal controls over procurement documentation, expenditure processing, and financial recordkeeping. The City did not consistently maintain documentation supporting procurement decisions, review supporting documentation for completeness, or ensure that expenditures were recorded in the appropriate accounting period. In addition, review procedures were not consistently performed to verify that supporting documents, purchase orders, and invoices were complete and consistent prior to processing payments. Effect: These deficiencies indicate significant weaknesses in the City’s internal controls over procurement documentation, expenditure review, and financial recordkeeping. As a result, the City cannot ensure that expenditures were properly authorized, supported by adequate documentation, recorded in the appropriate accounting period, or consistent with approved purchase amounts. These conditions increase the risk of unsupported or improperly recorded expenditures and limit the City’s ability to demonstrate compliance with federal requirements. Recommendation: The City should strengthen internal controls over procurement and expenditure processing by maintaining complete procurement documentation, including evidence of competitive bidding, vendor selection rationale, price reasonableness, and suspension and debarment verification. Management should also implement procedures to ensure expenditures are recorded in the correct fiscal period and that purchase orders, invoices, and supporting documentation are reviewed for completeness and consistency prior to payment. Questioned Cost: -0- View of Responsible Official: The City agrees with this finding. ARPA rules again were still developing during this time frame and some items were not a requirement during reporting. However, the City did require vendors to start registering with Sams.gov as well perform checking vendors for suspension and debarment after the rules changed.
Federal Program Coronavirus State and Local Fiscal Recovery Funds (AL 21.027) Procurement, Suspension, and Debarment Criteria 2 CFR sections 200.320(a) (1) and (2) states “If small purchase [$10,000] procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources. Also, vendors for whom the County enters into a covered transaction ($25,000 or higher) with needs to be ensured that they are not suspended or debarred from federal funds per 2 CFR section 180.220. Furthermore, an entity should have a procurement policy that follows Uniform Guidance. Condition One transaction was selected for testing. For that transaction, we noted the County did not review for suspension and debarment. We also noted the County’s procurement policy did not follow Uniform Guidance. Questioned Costs None Context The suspension and debarment population was one and we noted during testing that the County did not ensure the vendor was not suspended or debarred from federal funds before entering into the covered transaction. Finally, we noted during review of the County’s procurement policy, it did not follow Uniform Guidance. Cause The County does not have sufficient procedures in place to ensure all expenditures comply with Uniform Guidance. Effect The County is not in compliance with Uniform Guidance. Repeat Finding Yes. Prior year audit finding 2021-006 Recommendation The County should follow their procurement policy for procurement and should update their procurement policy for suspension and debarment. Views of Responsible Officials and Planned Corrective Actions The County agrees with the recommendation and will review its policies and procedures.
Federal Program Highway Planning and Construction (AL 20.205) Procurement, Suspension, and Debarment Criteria 2 CFR sections 200.320(a) (1) and (2) states “If small purchase [$10,000] procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources. Also, vendors for whom the County enters into a covered transaction ($25,000 or higher) with needs to be ensured that they are not suspended or debarred from federal funds per 2 CFR section 180.220. Furthermore, an entity should have a procurement policy that follows Uniform Guidance. Condition One transaction was selected for testing. For that transaction, we noted the County did not review for suspension and debarment. We also noted the County’s procurement policy did not follow Uniform Guidance. Questioned Costs None Context The suspension and debarment population was one and we noted during testing that the County did not ensure the vendor was not suspended or debarred from federal funds before entering into the covered transaction. Finally, we noted during review of the County’s procurement policy, it did not follow Uniform Guidance. Cause The County does not have sufficient procedures in place to ensure all expenditures comply with Uniform Guidance. Effect The County is not in compliance with Uniform Guidance. Repeat Finding Yes. Prior year audit finding 2021-006 Recommendation The County should follow their procurement policy for procurement and should updated their procurement policy for suspension and debarment. Views of Responsible Officials and Planned Corrective Actions The County agrees with the recommendation and will review its policies and procedures.
2022 – 003 Procurement and Suspension and Debarment Federal Agency: U.S. Department Treasury Federal Program Name: Coronavirus State & Local Fiscal Recovery Fund Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP3738 11/30/2021 Award Period: March 3, 2021 through December 31, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matter Criteria or specific requirement: Uniform Grant Guidance (2 CFR 200.318, 2 CFR 200.319, 2 CFR 200.324, 2 CFR 180.220, and 2 CFR 200.320,) requires a non-federal entity to maintain records sufficient to detail the history of procurement, the providing of full and open competition, the performing of cost or price analysis, and prohibits the non-federal entity to contract or make subawards to parties that are suspended or debarred (covered transactions over $25,000). These records will include the rationale for the method of procurement, selection of contract type, contractor selection or rejection, the basis for the contract price, how full and open competition was provided, the cost or price analysis performed, and verification the vendor is not suspended or debarred through the SAMs exclusion list, collecting of certification from the entity, or by adding a clause or condition to the covered transaction with the entity. Procurement methods used must be appropriate based on the dollar amount and conditions specified. Condition: Procurement methods for certain federal award purchases were not adequately documented or appropriately selected in accordance with the County’s procurement policy. In addition, the County did not maintain records the vendor was not suspended or debarred prior to entering into the transactions. Questioned costs: Unknown Context: 3 of 6 tested for procurement documentation and 5 of 5 tested for suspension and debarment documentation. Cause: With new federal funding opportunities due to the pandemic, and new guidance related to those grants, proper documentation was not retained. Effect: May result in a disallowed cost if grant requirements are not followed. Repeat Finding: This is a repeat finding. Prior year finding numbers were 2021-004 and 2021-005. Recommendation: We recommend the County carefully review federal procurement requirements for proper documentation needed. The County should consider use of a Federal procurement checklist. Views of responsible officials: There is no disagreement with the audit finding.
ederal Program Information: Funding agency: U.S. Department of the Treasury Title: COVID-19 - State and Local Fiscal Recovery Funds ALN number: 21.027 Criteria or Specific Requirement: In accordance with 2 CFR ?200.320, the auditee is responsible for following its procurement procedures provided that the procedures conform to applicable Federal Statutes and the procurement requirements identified in 2 CFR ?200.320. Condition: During major program testing, auditors inquired about the County?s procurement procedures. The County does not have a written procurement policy, and therefore is not in compliance with Uniform Guidance. Context: There is no written procurement policy in accordance with Uniform Guidance being followed. Questioned Costs: None Effect: The County could expend federal funds on equipment or capital assets without getting the proper quotes or approvals. Cause: There is no written procurement policy in accordance with Uniform Guidance being followed. Repeat: No Auditor's Recommendation: We recommend the County adopt a written procurement policy in accordance with the Uniform Guidance and provide the policy to each department that expends federal awards. View of Responsible Officials: We agree with the finding and have developed a corrective action plan.
2022-003 Procurement in Compliance with Uniform Guidance Federal Program Information: Funding agency: U.S. Department of the Treasury Title: COVID-19 - State and Local Fiscal Recovery Funds ALN number: 21.027 Criteria or Specific Requirement: In accordance with 2 CFR ?200.320, the auditee is responsible for following its procurement procedures provided that the procedures conform to applicable Federal Statutes and the procurement requirements identified in 2 CFR ?200.320. Condition: During major program testing, auditors inquired about the County?s procurement procedures. The County does not have a written procurement policy, and therefore is not in compliance with Uniform Guidance. Context: There is no written procurement policy in accordance with Uniform Guidance being followed. Questioned Costs: None Effect: The County could expend federal funds on equipment or capital assets without getting the proper quotes or approvals. Cause: There is no written procurement policy in accordance with Uniform Guidance being followed. Repeat: Yes - Years as Repeat Finding: 2021 Auditor's Recommendation: We recommend the County adopt a written procurement policy in accordance with the Uniform Guidance and provide the policy to each department that expends federal awards. View of Responsible Officials: We agree with the finding and have developed a corrective action plan.
2022-002 Procurement in Compliance with Uniform Guidance Federal Program Information: Funding agency: U.S. Department of the Treasury Title: COVID-19 - State and Local Fiscal Recovery Funds ALN number: 21.027 Criteria or Specific Requirement: In accordance with 2 CFR ?200.320, the auditee is responsible for following its procurement procedures provided that the procedures conform to applicable Federal Statutes and the procurement requirements identified in 2 CFR ?200.320. Condition: During major program testing, auditors inquired about the County?s procurement procedures. The County does not have a written procurement policy, and therefore is not in compliance with Uniform Guidance. Context: There is no written procurement policy in accordance with Uniform Guidance being followed. Questioned Costs: None Effect: The County could expend federal funds on equipment or capital assets without getting the proper quotes or approvals. Cause: There is no written procurement policy in accordance with Uniform Guidance being followed. Repeat: No Auditor's Recommendation: We recommend the County adopt a written procurement policy in accordance with the Uniform Guidance and provide the policy to each department that expends federal awards. View of Responsible Officials: We agree with the finding and have developed a corrective action plan.
2022-002 Procurement in Compliance with Uniform Guidance Federal Program Information: Funding agency: U.S. Department of the Treasury Title: COVID-19 - State and Local Fiscal Recovery Funds ALN number: 21.027 Criteria or Specific Requirement: In accordance with 2 CFR ?200.320, the auditee is responsible for following its procurement procedures provided that the procedures conform to applicable Federal Statutes and the procurement requirements identified in 2 CFR ?200.320. Condition: During major program testing, auditors inquired about the County?s procurement procedures. The County does not have a written procurement policy, and therefore is not in compliance with Uniform Guidance. Context: There is no written procurement policy in accordance with Uniform Guidance being followed. Questioned Costs: None Effect: The County could expend federal funds on equipment or capital assets without getting the proper quotes or approvals. Cause: There is no written procurement policy in accordance with Uniform Guidance being followed. Repeat: No Auditor's Recommendation: We recommend the County adopt a written procurement policy in accordance with the Uniform Guidance and provide the policy to each department that expends federal awards. View of Responsible Officials: We agree with the finding and have developed a corrective action plan.
Procurement in Compliance with Uniform Guidance Federal Program Information: Funding agency: U.S. Department of the Treasury Title: COVID-19 - State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Criteria or Specific Requirement: In accordance with 2 CFR §200.320, the auditee is responsible for following its procurement procedures provided that the procedures conform to applicable Federal Statutes and the procurement requirements identified in 2 CFR §200.320. Condition: During major program testing, auditors inquired about the County’s procurement procedures. The County does not have a written procurement policy, and therefore is not in compliance with Uniform Guidance. Context: There is no written procurement policy in accordance with Uniform Guidance being followed. Questioned Costs: None Effect: The County could expend federal funds on equipment or capital assets without getting the proper quotes or approvals. Cause: There is no written procurement policy in accordance with Uniform Guidance being followed. Repeat: No Auditor's Recommendation: We recommend the County adopt a written procurement policy in accordance with the Uniform Guidance and provide the policy to each department that expends federal awards. View of Responsible Officials: We agree with the finding and have developed a corrective action plan. 13
2022 – 003 Procurement and Suspension and Debarment Federal Agency: U.S. Department Treasury Federal Program Name: Coronavirus State & Local Fiscal Recovery Fund Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP3738 11/30/2021 Award Period: March 3, 2021 through December 31, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matter Criteria or specific requirement: Uniform Grant Guidance (2 CFR 200.318, 2 CFR 200.319, 2 CFR 200.324, 2 CFR 180.220, and 2 CFR 200.320,) requires a non-federal entity to maintain records sufficient to detail the history of procurement, the providing of full and open competition, the performing of cost or price analysis, and prohibits the non-federal entity to contract or make subawards to parties that are suspended or debarred (covered transactions over $25,000). These records will include the rationale for the method of procurement, selection of contract type, contractor selection or rejection, the basis for the contract price, how full and open competition was provided, the cost or price analysis performed, and verification the vendor is not suspended or debarred through the SAMs exclusion list, collecting of certification from the entity, or by adding a clause or condition to the covered transaction with the entity. Procurement methods used must be appropriate based on the dollar amount and conditions specified. Condition: Procurement methods for certain federal award purchases were not adequately documented or appropriately selected in accordance with the County’s procurement policy. In addition, the County did not maintain records the vendor was not suspended or debarred prior to entering into the transactions. Questioned costs: Unknown Context: 3 of 6 tested for procurement documentation and 5 of 5 tested for suspension and debarment documentation. Cause: With new federal funding opportunities due to the pandemic, and new guidance related to those grants, proper documentation was not retained. Effect: May result in a disallowed cost if grant requirements are not followed. Repeat Finding: This is a repeat finding. Prior year finding numbers were 2021-004 and 2021-005. Recommendation: We recommend the County carefully review federal procurement requirements for proper documentation needed. The County should consider use of a Federal procurement checklist. Views of responsible officials: There is no disagreement with the audit finding.
ederal Program Information: Funding agency: U.S. Department of the Treasury Title: COVID-19 - State and Local Fiscal Recovery Funds ALN number: 21.027 Criteria or Specific Requirement: In accordance with 2 CFR ?200.320, the auditee is responsible for following its procurement procedures provided that the procedures conform to applicable Federal Statutes and the procurement requirements identified in 2 CFR ?200.320. Condition: During major program testing, auditors inquired about the County?s procurement procedures. The County does not have a written procurement policy, and therefore is not in compliance with Uniform Guidance. Context: There is no written procurement policy in accordance with Uniform Guidance being followed. Questioned Costs: None Effect: The County could expend federal funds on equipment or capital assets without getting the proper quotes or approvals. Cause: There is no written procurement policy in accordance with Uniform Guidance being followed. Repeat: No Auditor's Recommendation: We recommend the County adopt a written procurement policy in accordance with the Uniform Guidance and provide the policy to each department that expends federal awards. View of Responsible Officials: We agree with the finding and have developed a corrective action plan.
2022-003 Procurement in Compliance with Uniform Guidance Federal Program Information: Funding agency: U.S. Department of the Treasury Title: COVID-19 - State and Local Fiscal Recovery Funds ALN number: 21.027 Criteria or Specific Requirement: In accordance with 2 CFR ?200.320, the auditee is responsible for following its procurement procedures provided that the procedures conform to applicable Federal Statutes and the procurement requirements identified in 2 CFR ?200.320. Condition: During major program testing, auditors inquired about the County?s procurement procedures. The County does not have a written procurement policy, and therefore is not in compliance with Uniform Guidance. Context: There is no written procurement policy in accordance with Uniform Guidance being followed. Questioned Costs: None Effect: The County could expend federal funds on equipment or capital assets without getting the proper quotes or approvals. Cause: There is no written procurement policy in accordance with Uniform Guidance being followed. Repeat: Yes - Years as Repeat Finding: 2021 Auditor's Recommendation: We recommend the County adopt a written procurement policy in accordance with the Uniform Guidance and provide the policy to each department that expends federal awards. View of Responsible Officials: We agree with the finding and have developed a corrective action plan.
2022-002 Procurement in Compliance with Uniform Guidance Federal Program Information: Funding agency: U.S. Department of the Treasury Title: COVID-19 - State and Local Fiscal Recovery Funds ALN number: 21.027 Criteria or Specific Requirement: In accordance with 2 CFR ?200.320, the auditee is responsible for following its procurement procedures provided that the procedures conform to applicable Federal Statutes and the procurement requirements identified in 2 CFR ?200.320. Condition: During major program testing, auditors inquired about the County?s procurement procedures. The County does not have a written procurement policy, and therefore is not in compliance with Uniform Guidance. Context: There is no written procurement policy in accordance with Uniform Guidance being followed. Questioned Costs: None Effect: The County could expend federal funds on equipment or capital assets without getting the proper quotes or approvals. Cause: There is no written procurement policy in accordance with Uniform Guidance being followed. Repeat: No Auditor's Recommendation: We recommend the County adopt a written procurement policy in accordance with the Uniform Guidance and provide the policy to each department that expends federal awards. View of Responsible Officials: We agree with the finding and have developed a corrective action plan.
2022-002 Procurement in Compliance with Uniform Guidance Federal Program Information: Funding agency: U.S. Department of the Treasury Title: COVID-19 - State and Local Fiscal Recovery Funds ALN number: 21.027 Criteria or Specific Requirement: In accordance with 2 CFR ?200.320, the auditee is responsible for following its procurement procedures provided that the procedures conform to applicable Federal Statutes and the procurement requirements identified in 2 CFR ?200.320. Condition: During major program testing, auditors inquired about the County?s procurement procedures. The County does not have a written procurement policy, and therefore is not in compliance with Uniform Guidance. Context: There is no written procurement policy in accordance with Uniform Guidance being followed. Questioned Costs: None Effect: The County could expend federal funds on equipment or capital assets without getting the proper quotes or approvals. Cause: There is no written procurement policy in accordance with Uniform Guidance being followed. Repeat: No Auditor's Recommendation: We recommend the County adopt a written procurement policy in accordance with the Uniform Guidance and provide the policy to each department that expends federal awards. View of Responsible Officials: We agree with the finding and have developed a corrective action plan.
Procurement in Compliance with Uniform Guidance Federal Program Information: Funding agency: U.S. Department of the Treasury Title: COVID-19 - State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Criteria or Specific Requirement: In accordance with 2 CFR §200.320, the auditee is responsible for following its procurement procedures provided that the procedures conform to applicable Federal Statutes and the procurement requirements identified in 2 CFR §200.320. Condition: During major program testing, auditors inquired about the County’s procurement procedures. The County does not have a written procurement policy, and therefore is not in compliance with Uniform Guidance. Context: There is no written procurement policy in accordance with Uniform Guidance being followed. Questioned Costs: None Effect: The County could expend federal funds on equipment or capital assets without getting the proper quotes or approvals. Cause: There is no written procurement policy in accordance with Uniform Guidance being followed. Repeat: No Auditor's Recommendation: We recommend the County adopt a written procurement policy in accordance with the Uniform Guidance and provide the policy to each department that expends federal awards. View of Responsible Officials: We agree with the finding and have developed a corrective action plan. 13
Finding 2022-002 ? Procurement and Suspension & Debarment Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Health Centers Cluster and Health Center Infrastructure Support Assistance Listing Number: 93.224 and 93.527; 93.526 Federal Award Identification Number: H8FCS40647-01; C8ECS44753-01 Award Periods: April 1, 2021 ? March 31, 2023; September 15, 2021 ? September 14, 2024, respectively Type of Finding: Compliance and significant deficiency in internal control over compliance Criteria: ? 200.320 Methods of procurement to be followed: The non-Federal entity must have and use documented procurement procedures, consistent with the standards of this section and ?? 200.317, 200.318, and 200.319 for any of the approved procurement methods used for the acquisition of property or services required under a Federal award or sub-award. ? 200.214 Suspension and debarment. Non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition: The organization did not maintain proper documentation for 1) determining the rationale of the sole-source procurement methodology that it applied and 2) that suspension and debarment was checked quarterly per the Organization's policy for vendors reimbursed by the federal grant. Questioned Costs: None. Context: Two (2) of two (2) procurement transactions; Two (2) of two (2) suspension and debarment transactions Cause: The organization did not document its rationale for choosing the noncompetitive procurement method or its quarterly review of suspension and debarment of vendors. Effect: The Organization may inadvertently select vendors without regard to fair competition and cost analysis or vendors that may be federally suspended and disbarred. Repeat Finding: No. Recommendation: Management should adhere to or revise the Organization?s existing procurement policy and implement a system of processes and internal controls to ensure that the appropriate level of documentation is maintained based on the procurement methodology selected for a transaction of contract. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2022-002 ? Procurement and Suspension & Debarment Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Health Centers Cluster and Health Center Infrastructure Support Assistance Listing Number: 93.224 and 93.527; 93.526 Federal Award Identification Number: H8FCS40647-01; C8ECS44753-01 Award Periods: April 1, 2021 ? March 31, 2023; September 15, 2021 ? September 14, 2024, respectively Type of Finding: Compliance and significant deficiency in internal control over compliance Criteria: ? 200.320 Methods of procurement to be followed: The non-Federal entity must have and use documented procurement procedures, consistent with the standards of this section and ?? 200.317, 200.318, and 200.319 for any of the approved procurement methods used for the acquisition of property or services required under a Federal award or sub-award. ? 200.214 Suspension and debarment. Non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition: The organization did not maintain proper documentation for 1) determining the rationale of the sole-source procurement methodology that it applied and 2) that suspension and debarment was checked quarterly per the Organization's policy for vendors reimbursed by the federal grant. Questioned Costs: None. Context: Two (2) of two (2) procurement transactions; Two (2) of two (2) suspension and debarment transactions Cause: The organization did not document its rationale for choosing the noncompetitive procurement method or its quarterly review of suspension and debarment of vendors. Effect: The Organization may inadvertently select vendors without regard to fair competition and cost analysis or vendors that may be federally suspended and disbarred. Repeat Finding: No. Recommendation: Management should adhere to or revise the Organization?s existing procurement policy and implement a system of processes and internal controls to ensure that the appropriate level of documentation is maintained based on the procurement methodology selected for a transaction of contract. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2022-002 ? Procurement and Suspension & Debarment Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Health Centers Cluster and Health Center Infrastructure Support Assistance Listing Number: 93.224 and 93.527; 93.526 Federal Award Identification Number: H8FCS40647-01; C8ECS44753-01 Award Periods: April 1, 2021 ? March 31, 2023; September 15, 2021 ? September 14, 2024, respectively Type of Finding: Compliance and significant deficiency in internal control over compliance Criteria: ? 200.320 Methods of procurement to be followed: The non-Federal entity must have and use documented procurement procedures, consistent with the standards of this section and ?? 200.317, 200.318, and 200.319 for any of the approved procurement methods used for the acquisition of property or services required under a Federal award or sub-award. ? 200.214 Suspension and debarment. Non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition: The organization did not maintain proper documentation for 1) determining the rationale of the sole-source procurement methodology that it applied and 2) that suspension and debarment was checked quarterly per the Organization's policy for vendors reimbursed by the federal grant. Questioned Costs: None. Context: Two (2) of two (2) procurement transactions; Two (2) of two (2) suspension and debarment transactions Cause: The organization did not document its rationale for choosing the noncompetitive procurement method or its quarterly review of suspension and debarment of vendors. Effect: The Organization may inadvertently select vendors without regard to fair competition and cost analysis or vendors that may be federally suspended and disbarred. Repeat Finding: No. Recommendation: Management should adhere to or revise the Organization?s existing procurement policy and implement a system of processes and internal controls to ensure that the appropriate level of documentation is maintained based on the procurement methodology selected for a transaction of contract. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2022-002 ? Procurement and Suspension & Debarment Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Health Centers Cluster and Health Center Infrastructure Support Assistance Listing Number: 93.224 and 93.527; 93.526 Federal Award Identification Number: H8FCS40647-01; C8ECS44753-01 Award Periods: April 1, 2021 ? March 31, 2023; September 15, 2021 ? September 14, 2024, respectively Type of Finding: Compliance and significant deficiency in internal control over compliance Criteria: ? 200.320 Methods of procurement to be followed: The non-Federal entity must have and use documented procurement procedures, consistent with the standards of this section and ?? 200.317, 200.318, and 200.319 for any of the approved procurement methods used for the acquisition of property or services required under a Federal award or sub-award. ? 200.214 Suspension and debarment. Non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition: The organization did not maintain proper documentation for 1) determining the rationale of the sole-source procurement methodology that it applied and 2) that suspension and debarment was checked quarterly per the Organization's policy for vendors reimbursed by the federal grant. Questioned Costs: None. Context: Two (2) of two (2) procurement transactions; Two (2) of two (2) suspension and debarment transactions Cause: The organization did not document its rationale for choosing the noncompetitive procurement method or its quarterly review of suspension and debarment of vendors. Effect: The Organization may inadvertently select vendors without regard to fair competition and cost analysis or vendors that may be federally suspended and disbarred. Repeat Finding: No. Recommendation: Management should adhere to or revise the Organization?s existing procurement policy and implement a system of processes and internal controls to ensure that the appropriate level of documentation is maintained based on the procurement methodology selected for a transaction of contract. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2022-002 ? Procurement and Suspension & Debarment Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Health Centers Cluster and Health Center Infrastructure Support Assistance Listing Number: 93.224 and 93.527; 93.526 Federal Award Identification Number: H8FCS40647-01; C8ECS44753-01 Award Periods: April 1, 2021 ? March 31, 2023; September 15, 2021 ? September 14, 2024, respectively Type of Finding: Compliance and significant deficiency in internal control over compliance Criteria: ? 200.320 Methods of procurement to be followed: The non-Federal entity must have and use documented procurement procedures, consistent with the standards of this section and ?? 200.317, 200.318, and 200.319 for any of the approved procurement methods used for the acquisition of property or services required under a Federal award or sub-award. ? 200.214 Suspension and debarment. Non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition: The organization did not maintain proper documentation for 1) determining the rationale of the sole-source procurement methodology that it applied and 2) that suspension and debarment was checked quarterly per the Organization's policy for vendors reimbursed by the federal grant. Questioned Costs: None. Context: Two (2) of two (2) procurement transactions; Two (2) of two (2) suspension and debarment transactions Cause: The organization did not document its rationale for choosing the noncompetitive procurement method or its quarterly review of suspension and debarment of vendors. Effect: The Organization may inadvertently select vendors without regard to fair competition and cost analysis or vendors that may be federally suspended and disbarred. Repeat Finding: No. Recommendation: Management should adhere to or revise the Organization?s existing procurement policy and implement a system of processes and internal controls to ensure that the appropriate level of documentation is maintained based on the procurement methodology selected for a transaction of contract. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2022-002 ? Procurement and Suspension & Debarment Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Health Centers Cluster and Health Center Infrastructure Support Assistance Listing Number: 93.224 and 93.527; 93.526 Federal Award Identification Number: H8FCS40647-01; C8ECS44753-01 Award Periods: April 1, 2021 ? March 31, 2023; September 15, 2021 ? September 14, 2024, respectively Type of Finding: Compliance and significant deficiency in internal control over compliance Criteria: ? 200.320 Methods of procurement to be followed: The non-Federal entity must have and use documented procurement procedures, consistent with the standards of this section and ?? 200.317, 200.318, and 200.319 for any of the approved procurement methods used for the acquisition of property or services required under a Federal award or sub-award. ? 200.214 Suspension and debarment. Non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition: The organization did not maintain proper documentation for 1) determining the rationale of the sole-source procurement methodology that it applied and 2) that suspension and debarment was checked quarterly per the Organization's policy for vendors reimbursed by the federal grant. Questioned Costs: None. Context: Two (2) of two (2) procurement transactions; Two (2) of two (2) suspension and debarment transactions Cause: The organization did not document its rationale for choosing the noncompetitive procurement method or its quarterly review of suspension and debarment of vendors. Effect: The Organization may inadvertently select vendors without regard to fair competition and cost analysis or vendors that may be federally suspended and disbarred. Repeat Finding: No. Recommendation: Management should adhere to or revise the Organization?s existing procurement policy and implement a system of processes and internal controls to ensure that the appropriate level of documentation is maintained based on the procurement methodology selected for a transaction of contract. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2022-002 ? Procurement and Suspension & Debarment Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Health Centers Cluster and Health Center Infrastructure Support Assistance Listing Number: 93.224 and 93.527; 93.526 Federal Award Identification Number: H8FCS40647-01; C8ECS44753-01 Award Periods: April 1, 2021 ? March 31, 2023; September 15, 2021 ? September 14, 2024, respectively Type of Finding: Compliance and significant deficiency in internal control over compliance Criteria: ? 200.320 Methods of procurement to be followed: The non-Federal entity must have and use documented procurement procedures, consistent with the standards of this section and ?? 200.317, 200.318, and 200.319 for any of the approved procurement methods used for the acquisition of property or services required under a Federal award or sub-award. ? 200.214 Suspension and debarment. Non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition: The organization did not maintain proper documentation for 1) determining the rationale of the sole-source procurement methodology that it applied and 2) that suspension and debarment was checked quarterly per the Organization's policy for vendors reimbursed by the federal grant. Questioned Costs: None. Context: Two (2) of two (2) procurement transactions; Two (2) of two (2) suspension and debarment transactions Cause: The organization did not document its rationale for choosing the noncompetitive procurement method or its quarterly review of suspension and debarment of vendors. Effect: The Organization may inadvertently select vendors without regard to fair competition and cost analysis or vendors that may be federally suspended and disbarred. Repeat Finding: No. Recommendation: Management should adhere to or revise the Organization?s existing procurement policy and implement a system of processes and internal controls to ensure that the appropriate level of documentation is maintained based on the procurement methodology selected for a transaction of contract. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2022-002 ? Procurement and Suspension & Debarment Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Health Centers Cluster and Health Center Infrastructure Support Assistance Listing Number: 93.224 and 93.527; 93.526 Federal Award Identification Number: H8FCS40647-01; C8ECS44753-01 Award Periods: April 1, 2021 ? March 31, 2023; September 15, 2021 ? September 14, 2024, respectively Type of Finding: Compliance and significant deficiency in internal control over compliance Criteria: ? 200.320 Methods of procurement to be followed: The non-Federal entity must have and use documented procurement procedures, consistent with the standards of this section and ?? 200.317, 200.318, and 200.319 for any of the approved procurement methods used for the acquisition of property or services required under a Federal award or sub-award. ? 200.214 Suspension and debarment. Non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition: The organization did not maintain proper documentation for 1) determining the rationale of the sole-source procurement methodology that it applied and 2) that suspension and debarment was checked quarterly per the Organization's policy for vendors reimbursed by the federal grant. Questioned Costs: None. Context: Two (2) of two (2) procurement transactions; Two (2) of two (2) suspension and debarment transactions Cause: The organization did not document its rationale for choosing the noncompetitive procurement method or its quarterly review of suspension and debarment of vendors. Effect: The Organization may inadvertently select vendors without regard to fair competition and cost analysis or vendors that may be federally suspended and disbarred. Repeat Finding: No. Recommendation: Management should adhere to or revise the Organization?s existing procurement policy and implement a system of processes and internal controls to ensure that the appropriate level of documentation is maintained based on the procurement methodology selected for a transaction of contract. Views of Responsible Officials: There is no disagreement with the audit finding.
Reference Number: 2022-001 Prior Year Finding: Yes – 2021-001 Federal Agency: U.S. Department of Housing and Urban Development Pass-through Agency: Various Federal Program: Emergency Solutions Grant Program ALN Number: 14.231 Compliance Requirement: Procurement, Suspension and Debarment Type of Finding: Material Weakness, Noncompliance Criteria or specific requirement: As per § 200.318 General procurement standards. (a) The Non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in §§ 200.317 through 200.327. (d) The Non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Condition: Based on our review of the Procurement compliance requirements, we noted that the Division has written procurement policies and competitive policies as required by CFR § 200.318 General procurement standards. We selected five (5) vendors for procurement Suspension and Debarment compliance testing of total population of 5 vendors subject to procurement and we were not provided with Procurement comparative bids therefore, we were unable: • To verify that the procurement method used was appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. • To Verify that procurements provide full and open competition (2 CFR section 200.319 and 48 CFR section 52.244-5). Cause: The Division did not ensured that as a non-Federal entity must have and must use documented procurement procedures, consistent with State, and local laws and regulations and the standards of §§ 200.318 through 200.327, for the acquisition of property or services required under a Federal award or subaward. Effect: The funding agency can reject the expenditures incurred by the Division on certain vendors where the Division must use procurement method appropriately based on the dollar amount and conditions specified in 2 CFR section 200.320. Questioned costs: Cannot be determined Recommendation: We recommend that the Division must: • Use documented procurement procedures, consistent with State, and local, laws and regulations and the standards, for the acquisition of property or services required under a federal award or subaward. • The Division must maintain records sufficient to detail the history of procurement. These records should include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Views of responsible officials: The Division will work with Territorial Headquarters to document procedures as outlined in the Recommendations above. See corrective action plan.
Reference Number: 2022-001 Prior Year Finding: Yes – 2021-001 Federal Agency: U.S. Department of Housing and Urban Development Pass-through Agency: Various Federal Program: Emergency Solutions Grant Program ALN Number: 14.231 Compliance Requirement: Procurement, Suspension and Debarment Type of Finding: Material Weakness, Noncompliance Criteria or specific requirement: As per § 200.318 General procurement standards. (a) The Non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in §§ 200.317 through 200.327. (d) The Non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Condition: Based on our review of the Procurement compliance requirements, we noted that the Division has written procurement policies and competitive policies as required by CFR § 200.318 General procurement standards. We selected five (5) vendors for procurement Suspension and Debarment compliance testing of total population of 5 vendors subject to procurement and we were not provided with Procurement comparative bids therefore, we were unable: • To verify that the procurement method used was appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. • To Verify that procurements provide full and open competition (2 CFR section 200.319 and 48 CFR section 52.244-5). Cause: The Division did not ensured that as a non-Federal entity must have and must use documented procurement procedures, consistent with State, and local laws and regulations and the standards of §§ 200.318 through 200.327, for the acquisition of property or services required under a Federal award or subaward. Effect: The funding agency can reject the expenditures incurred by the Division on certain vendors where the Division must use procurement method appropriately based on the dollar amount and conditions specified in 2 CFR section 200.320. Questioned costs: Cannot be determined Recommendation: We recommend that the Division must: • Use documented procurement procedures, consistent with State, and local, laws and regulations and the standards, for the acquisition of property or services required under a federal award or subaward. • The Division must maintain records sufficient to detail the history of procurement. These records should include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Views of responsible officials: The Division will work with Territorial Headquarters to document procedures as outlined in the Recommendations above. See corrective action plan.
Reference Number: 2022-001 Prior Year Finding: Yes – 2021-001 Federal Agency: U.S. Department of Housing and Urban Development Pass-through Agency: Various Federal Program: Emergency Solutions Grant Program ALN Number: 14.231 Compliance Requirement: Procurement, Suspension and Debarment Type of Finding: Material Weakness, Noncompliance Criteria or specific requirement: As per § 200.318 General procurement standards. (a) The Non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in §§ 200.317 through 200.327. (d) The Non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Condition: Based on our review of the Procurement compliance requirements, we noted that the Division has written procurement policies and competitive policies as required by CFR § 200.318 General procurement standards. We selected five (5) vendors for procurement Suspension and Debarment compliance testing of total population of 5 vendors subject to procurement and we were not provided with Procurement comparative bids therefore, we were unable: • To verify that the procurement method used was appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. • To Verify that procurements provide full and open competition (2 CFR section 200.319 and 48 CFR section 52.244-5). Cause: The Division did not ensured that as a non-Federal entity must have and must use documented procurement procedures, consistent with State, and local laws and regulations and the standards of §§ 200.318 through 200.327, for the acquisition of property or services required under a Federal award or subaward. Effect: The funding agency can reject the expenditures incurred by the Division on certain vendors where the Division must use procurement method appropriately based on the dollar amount and conditions specified in 2 CFR section 200.320. Questioned costs: Cannot be determined Recommendation: We recommend that the Division must: • Use documented procurement procedures, consistent with State, and local, laws and regulations and the standards, for the acquisition of property or services required under a federal award or subaward. • The Division must maintain records sufficient to detail the history of procurement. These records should include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Views of responsible officials: The Division will work with Territorial Headquarters to document procedures as outlined in the Recommendations above. See corrective action plan.
Reference Number: 2022-001 Prior Year Finding: Yes – 2021-001 Federal Agency: U.S. Department of Housing and Urban Development Pass-through Agency: Various Federal Program: Emergency Solutions Grant Program ALN Number: 14.231 Compliance Requirement: Procurement, Suspension and Debarment Type of Finding: Material Weakness, Noncompliance Criteria or specific requirement: As per § 200.318 General procurement standards. (a) The Non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in §§ 200.317 through 200.327. (d) The Non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Condition: Based on our review of the Procurement compliance requirements, we noted that the Division has written procurement policies and competitive policies as required by CFR § 200.318 General procurement standards. We selected five (5) vendors for procurement Suspension and Debarment compliance testing of total population of 5 vendors subject to procurement and we were not provided with Procurement comparative bids therefore, we were unable: • To verify that the procurement method used was appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. • To Verify that procurements provide full and open competition (2 CFR section 200.319 and 48 CFR section 52.244-5). Cause: The Division did not ensured that as a non-Federal entity must have and must use documented procurement procedures, consistent with State, and local laws and regulations and the standards of §§ 200.318 through 200.327, for the acquisition of property or services required under a Federal award or subaward. Effect: The funding agency can reject the expenditures incurred by the Division on certain vendors where the Division must use procurement method appropriately based on the dollar amount and conditions specified in 2 CFR section 200.320. Questioned costs: Cannot be determined Recommendation: We recommend that the Division must: • Use documented procurement procedures, consistent with State, and local, laws and regulations and the standards, for the acquisition of property or services required under a federal award or subaward. • The Division must maintain records sufficient to detail the history of procurement. These records should include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Views of responsible officials: The Division will work with Territorial Headquarters to document procedures as outlined in the Recommendations above. See corrective action plan.
Reference Number: 2022-001 Prior Year Finding: Yes – 2021-001 Federal Agency: U.S. Department of Housing and Urban Development Pass-through Agency: Various Federal Program: Emergency Solutions Grant Program ALN Number: 14.231 Compliance Requirement: Procurement, Suspension and Debarment Type of Finding: Material Weakness, Noncompliance Criteria or specific requirement: As per § 200.318 General procurement standards. (a) The Non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in §§ 200.317 through 200.327. (d) The Non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Condition: Based on our review of the Procurement compliance requirements, we noted that the Division has written procurement policies and competitive policies as required by CFR § 200.318 General procurement standards. We selected five (5) vendors for procurement Suspension and Debarment compliance testing of total population of 5 vendors subject to procurement and we were not provided with Procurement comparative bids therefore, we were unable: • To verify that the procurement method used was appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. • To Verify that procurements provide full and open competition (2 CFR section 200.319 and 48 CFR section 52.244-5). Cause: The Division did not ensured that as a non-Federal entity must have and must use documented procurement procedures, consistent with State, and local laws and regulations and the standards of §§ 200.318 through 200.327, for the acquisition of property or services required under a Federal award or subaward. Effect: The funding agency can reject the expenditures incurred by the Division on certain vendors where the Division must use procurement method appropriately based on the dollar amount and conditions specified in 2 CFR section 200.320. Questioned costs: Cannot be determined Recommendation: We recommend that the Division must: • Use documented procurement procedures, consistent with State, and local, laws and regulations and the standards, for the acquisition of property or services required under a federal award or subaward. • The Division must maintain records sufficient to detail the history of procurement. These records should include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Views of responsible officials: The Division will work with Territorial Headquarters to document procedures as outlined in the Recommendations above. See corrective action plan.
Reference Number: 2022-001 Prior Year Finding: Yes – 2021-001 Federal Agency: U.S. Department of Housing and Urban Development Pass-through Agency: Various Federal Program: Emergency Solutions Grant Program ALN Number: 14.231 Compliance Requirement: Procurement, Suspension and Debarment Type of Finding: Material Weakness, Noncompliance Criteria or specific requirement: As per § 200.318 General procurement standards. (a) The Non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in §§ 200.317 through 200.327. (d) The Non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Condition: Based on our review of the Procurement compliance requirements, we noted that the Division has written procurement policies and competitive policies as required by CFR § 200.318 General procurement standards. We selected five (5) vendors for procurement Suspension and Debarment compliance testing of total population of 5 vendors subject to procurement and we were not provided with Procurement comparative bids therefore, we were unable: • To verify that the procurement method used was appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. • To Verify that procurements provide full and open competition (2 CFR section 200.319 and 48 CFR section 52.244-5). Cause: The Division did not ensured that as a non-Federal entity must have and must use documented procurement procedures, consistent with State, and local laws and regulations and the standards of §§ 200.318 through 200.327, for the acquisition of property or services required under a Federal award or subaward. Effect: The funding agency can reject the expenditures incurred by the Division on certain vendors where the Division must use procurement method appropriately based on the dollar amount and conditions specified in 2 CFR section 200.320. Questioned costs: Cannot be determined Recommendation: We recommend that the Division must: • Use documented procurement procedures, consistent with State, and local, laws and regulations and the standards, for the acquisition of property or services required under a federal award or subaward. • The Division must maintain records sufficient to detail the history of procurement. These records should include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Views of responsible officials: The Division will work with Territorial Headquarters to document procedures as outlined in the Recommendations above. See corrective action plan.
Reference Number: 2022-001 Prior Year Finding: Yes – 2021-001 Federal Agency: U.S. Department of Housing and Urban Development Pass-through Agency: Various Federal Program: Emergency Solutions Grant Program ALN Number: 14.231 Compliance Requirement: Procurement, Suspension and Debarment Type of Finding: Material Weakness, Noncompliance Criteria or specific requirement: As per § 200.318 General procurement standards. (a) The Non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in §§ 200.317 through 200.327. (d) The Non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Condition: Based on our review of the Procurement compliance requirements, we noted that the Division has written procurement policies and competitive policies as required by CFR § 200.318 General procurement standards. We selected five (5) vendors for procurement Suspension and Debarment compliance testing of total population of 5 vendors subject to procurement and we were not provided with Procurement comparative bids therefore, we were unable: • To verify that the procurement method used was appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. • To Verify that procurements provide full and open competition (2 CFR section 200.319 and 48 CFR section 52.244-5). Cause: The Division did not ensured that as a non-Federal entity must have and must use documented procurement procedures, consistent with State, and local laws and regulations and the standards of §§ 200.318 through 200.327, for the acquisition of property or services required under a Federal award or subaward. Effect: The funding agency can reject the expenditures incurred by the Division on certain vendors where the Division must use procurement method appropriately based on the dollar amount and conditions specified in 2 CFR section 200.320. Questioned costs: Cannot be determined Recommendation: We recommend that the Division must: • Use documented procurement procedures, consistent with State, and local, laws and regulations and the standards, for the acquisition of property or services required under a federal award or subaward. • The Division must maintain records sufficient to detail the history of procurement. These records should include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Views of responsible officials: The Division will work with Territorial Headquarters to document procedures as outlined in the Recommendations above. See corrective action plan.
Federal Programs Information: Funding Agency: Department of Health and Human Services Title: Head Start Assistance Listing Number: 93.600 Award Period: September 1, 2021 ? August 31, 2022, September 1, 2022 ? August 31, 2023 Funding Agency: Department of Health and Human Services Title: Indian Self-Determination Assistance Listing Number: 93.441 Award Period: January 1, 2022 ? December 31, 2024 Criteria: The Office?s policies and procedures contains various requirements, including policies requiring certain levels of administrative and legal review, obtaining one or more written bids at various dollar thresholds, and requiring different levels of approval based on dollar values. Uniform Guidance regulations section CFR 200.318(a) and CFR 200.320(a) state, the non-Federal entity must use its own documented procurement procedures which reflect applicable State, local, and tribal laws and regulations, provided that the procurement conform to applicable Federal law and the standards identified. Condition: For Head Start, in our selected sample of 41 expenditures, we noted an expenditure of $208,932 that required either a sole source form or three written bids, and a legal review per the Office?s policy. These forms were not obtained. There was sole source justification; however, it was written by the vendor. The Tribal Council approved the purchase, but the resolution didn?t mention the vendor and/or the need to sole source the purchase. For Indian Self-Determination, in our selected sample of 40 expenditures, we noted an expenditure of $7,772 that did not have the required three written bids, an expenditure for $15,331 that did not have the required governor?s signature, and an expenditure that was approved for $365 but was later revised to $640 without any additional approvals. Questioned Costs: None. Context: 4 of 81 transactions tested across these two programs were missing documentation required by the Office?s procurement policy. Cause: The Office?s policies and procedures were not always being enforced or being followed. Additionally, the Office?s procurement policy requires sole source documentation for certain expenditures and contracts where the bidding process is bypassed, but the Office has not developed such a form. Effect: The Office was not in compliance with procurement standards and made payments during the year that were in violation of their policy. Auditors? Recommendation: We recommend the Office adhere to the procurement policy that it has developed, and we recommend a sole source form be generated that conforms to the requirements of the procurement policy. Management?s Response: For Head Start ? The Office?s procurement policy allows for sole source procurement if Tribal Council specifically authorizes its use. For the Head Start expenditure of $208,932, Tribal Council Resolution 08-2021-36 specifically approved this expenditure. The Office?s procurement policy does reference a sole source form. However, a sole source form was never created when the procurement policy was approved by Tribal Council. Therefore, a memo justifying the sole source procurement was accepted as sufficient documentation and justification of the sole source procurement. Because this was a sole source procurement, three written bids were not required. Also, legal review is not required for this expenditure because it is a purchase of goods. Legal review is only required for purchase of services above a certain threshold. The Office is in the process of updating its procurement policy and will create a sole source justification form in connection with the update. For Indian Self-Determination ? The Office acknowledges the lack of three written bids for a $7,772 expenditure. Only one written quote was obtained for this purchase. The Office also acknowledges the lack of Governor?s signature on a $15,331 purchase requisition. A new Administrative Assistant issued this purchase requisition and was not properly trained on obtaining Governor?s signature for all purchase requisitions greater than $5,000. It should be noted that Governor signed the check related to this expenditure so was able to see the purchase at that time. The Office also acknowledges a revision was not made to a $365 purchase requisition when an additional purchase was added to the approved purchase requisition.
Federal Programs Information: Funding Agency: Department of Health and Human Services Title: Head Start Assistance Listing Number: 93.600 Award Period: September 1, 2021 ? August 31, 2022, September 1, 2022 ? August 31, 2023 Funding Agency: Department of Health and Human Services Title: Indian Self-Determination Assistance Listing Number: 93.441 Award Period: January 1, 2022 ? December 31, 2024 Criteria: The Office?s policies and procedures contains various requirements, including policies requiring certain levels of administrative and legal review, obtaining one or more written bids at various dollar thresholds, and requiring different levels of approval based on dollar values. Uniform Guidance regulations section CFR 200.318(a) and CFR 200.320(a) state, the non-Federal entity must use its own documented procurement procedures which reflect applicable State, local, and tribal laws and regulations, provided that the procurement conform to applicable Federal law and the standards identified. Condition: For Head Start, in our selected sample of 41 expenditures, we noted an expenditure of $208,932 that required either a sole source form or three written bids, and a legal review per the Office?s policy. These forms were not obtained. There was sole source justification; however, it was written by the vendor. The Tribal Council approved the purchase, but the resolution didn?t mention the vendor and/or the need to sole source the purchase. For Indian Self-Determination, in our selected sample of 40 expenditures, we noted an expenditure of $7,772 that did not have the required three written bids, an expenditure for $15,331 that did not have the required governor?s signature, and an expenditure that was approved for $365 but was later revised to $640 without any additional approvals. Questioned Costs: None. Context: 4 of 81 transactions tested across these two programs were missing documentation required by the Office?s procurement policy. Cause: The Office?s policies and procedures were not always being enforced or being followed. Additionally, the Office?s procurement policy requires sole source documentation for certain expenditures and contracts where the bidding process is bypassed, but the Office has not developed such a form. Effect: The Office was not in compliance with procurement standards and made payments during the year that were in violation of their policy. Auditors? Recommendation: We recommend the Office adhere to the procurement policy that it has developed, and we recommend a sole source form be generated that conforms to the requirements of the procurement policy. Management?s Response: For Head Start ? The Office?s procurement policy allows for sole source procurement if Tribal Council specifically authorizes its use. For the Head Start expenditure of $208,932, Tribal Council Resolution 08-2021-36 specifically approved this expenditure. The Office?s procurement policy does reference a sole source form. However, a sole source form was never created when the procurement policy was approved by Tribal Council. Therefore, a memo justifying the sole source procurement was accepted as sufficient documentation and justification of the sole source procurement. Because this was a sole source procurement, three written bids were not required. Also, legal review is not required for this expenditure because it is a purchase of goods. Legal review is only required for purchase of services above a certain threshold. The Office is in the process of updating its procurement policy and will create a sole source justification form in connection with the update. For Indian Self-Determination ? The Office acknowledges the lack of three written bids for a $7,772 expenditure. Only one written quote was obtained for this purchase. The Office also acknowledges the lack of Governor?s signature on a $15,331 purchase requisition. A new Administrative Assistant issued this purchase requisition and was not properly trained on obtaining Governor?s signature for all purchase requisitions greater than $5,000. It should be noted that Governor signed the check related to this expenditure so was able to see the purchase at that time. The Office also acknowledges a revision was not made to a $365 purchase requisition when an additional purchase was added to the approved purchase requisition.
Federal Programs Information: Funding Agency: Department of Health and Human Services Title: Head Start Assistance Listing Number: 93.600 Award Period: September 1, 2021 ? August 31, 2022, September 1, 2022 ? August 31, 2023 Funding Agency: Department of Health and Human Services Title: Indian Self-Determination Assistance Listing Number: 93.441 Award Period: January 1, 2022 ? December 31, 2024 Criteria: The Office?s policies and procedures contains various requirements, including policies requiring certain levels of administrative and legal review, obtaining one or more written bids at various dollar thresholds, and requiring different levels of approval based on dollar values. Uniform Guidance regulations section CFR 200.318(a) and CFR 200.320(a) state, the non-Federal entity must use its own documented procurement procedures which reflect applicable State, local, and tribal laws and regulations, provided that the procurement conform to applicable Federal law and the standards identified. Condition: For Head Start, in our selected sample of 41 expenditures, we noted an expenditure of $208,932 that required either a sole source form or three written bids, and a legal review per the Office?s policy. These forms were not obtained. There was sole source justification; however, it was written by the vendor. The Tribal Council approved the purchase, but the resolution didn?t mention the vendor and/or the need to sole source the purchase. For Indian Self-Determination, in our selected sample of 40 expenditures, we noted an expenditure of $7,772 that did not have the required three written bids, an expenditure for $15,331 that did not have the required governor?s signature, and an expenditure that was approved for $365 but was later revised to $640 without any additional approvals. Questioned Costs: None. Context: 4 of 81 transactions tested across these two programs were missing documentation required by the Office?s procurement policy. Cause: The Office?s policies and procedures were not always being enforced or being followed. Additionally, the Office?s procurement policy requires sole source documentation for certain expenditures and contracts where the bidding process is bypassed, but the Office has not developed such a form. Effect: The Office was not in compliance with procurement standards and made payments during the year that were in violation of their policy. Auditors? Recommendation: We recommend the Office adhere to the procurement policy that it has developed, and we recommend a sole source form be generated that conforms to the requirements of the procurement policy. Management?s Response: For Head Start ? The Office?s procurement policy allows for sole source procurement if Tribal Council specifically authorizes its use. For the Head Start expenditure of $208,932, Tribal Council Resolution 08-2021-36 specifically approved this expenditure. The Office?s procurement policy does reference a sole source form. However, a sole source form was never created when the procurement policy was approved by Tribal Council. Therefore, a memo justifying the sole source procurement was accepted as sufficient documentation and justification of the sole source procurement. Because this was a sole source procurement, three written bids were not required. Also, legal review is not required for this expenditure because it is a purchase of goods. Legal review is only required for purchase of services above a certain threshold. The Office is in the process of updating its procurement policy and will create a sole source justification form in connection with the update. For Indian Self-Determination ? The Office acknowledges the lack of three written bids for a $7,772 expenditure. Only one written quote was obtained for this purchase. The Office also acknowledges the lack of Governor?s signature on a $15,331 purchase requisition. A new Administrative Assistant issued this purchase requisition and was not properly trained on obtaining Governor?s signature for all purchase requisitions greater than $5,000. It should be noted that Governor signed the check related to this expenditure so was able to see the purchase at that time. The Office also acknowledges a revision was not made to a $365 purchase requisition when an additional purchase was added to the approved purchase requisition.
Federal Programs Information: Funding Agency: Department of Health and Human Services Title: Head Start Assistance Listing Number: 93.600 Award Period: September 1, 2021 ? August 31, 2022, September 1, 2022 ? August 31, 2023 Funding Agency: Department of Health and Human Services Title: Indian Self-Determination Assistance Listing Number: 93.441 Award Period: January 1, 2022 ? December 31, 2024 Criteria: The Office?s policies and procedures contains various requirements, including policies requiring certain levels of administrative and legal review, obtaining one or more written bids at various dollar thresholds, and requiring different levels of approval based on dollar values. Uniform Guidance regulations section CFR 200.318(a) and CFR 200.320(a) state, the non-Federal entity must use its own documented procurement procedures which reflect applicable State, local, and tribal laws and regulations, provided that the procurement conform to applicable Federal law and the standards identified. Condition: For Head Start, in our selected sample of 41 expenditures, we noted an expenditure of $208,932 that required either a sole source form or three written bids, and a legal review per the Office?s policy. These forms were not obtained. There was sole source justification; however, it was written by the vendor. The Tribal Council approved the purchase, but the resolution didn?t mention the vendor and/or the need to sole source the purchase. For Indian Self-Determination, in our selected sample of 40 expenditures, we noted an expenditure of $7,772 that did not have the required three written bids, an expenditure for $15,331 that did not have the required governor?s signature, and an expenditure that was approved for $365 but was later revised to $640 without any additional approvals. Questioned Costs: None. Context: 4 of 81 transactions tested across these two programs were missing documentation required by the Office?s procurement policy. Cause: The Office?s policies and procedures were not always being enforced or being followed. Additionally, the Office?s procurement policy requires sole source documentation for certain expenditures and contracts where the bidding process is bypassed, but the Office has not developed such a form. Effect: The Office was not in compliance with procurement standards and made payments during the year that were in violation of their policy. Auditors? Recommendation: We recommend the Office adhere to the procurement policy that it has developed, and we recommend a sole source form be generated that conforms to the requirements of the procurement policy. Management?s Response: For Head Start ? The Office?s procurement policy allows for sole source procurement if Tribal Council specifically authorizes its use. For the Head Start expenditure of $208,932, Tribal Council Resolution 08-2021-36 specifically approved this expenditure. The Office?s procurement policy does reference a sole source form. However, a sole source form was never created when the procurement policy was approved by Tribal Council. Therefore, a memo justifying the sole source procurement was accepted as sufficient documentation and justification of the sole source procurement. Because this was a sole source procurement, three written bids were not required. Also, legal review is not required for this expenditure because it is a purchase of goods. Legal review is only required for purchase of services above a certain threshold. The Office is in the process of updating its procurement policy and will create a sole source justification form in connection with the update. For Indian Self-Determination ? The Office acknowledges the lack of three written bids for a $7,772 expenditure. Only one written quote was obtained for this purchase. The Office also acknowledges the lack of Governor?s signature on a $15,331 purchase requisition. A new Administrative Assistant issued this purchase requisition and was not properly trained on obtaining Governor?s signature for all purchase requisitions greater than $5,000. It should be noted that Governor signed the check related to this expenditure so was able to see the purchase at that time. The Office also acknowledges a revision was not made to a $365 purchase requisition when an additional purchase was added to the approved purchase requisition.
Federal Programs Information: Funding Agency: Department of Health and Human Services Title: Head Start Assistance Listing Number: 93.600 Award Period: September 1, 2021 ? August 31, 2022, September 1, 2022 ? August 31, 2023 Funding Agency: Department of Health and Human Services Title: Indian Self-Determination Assistance Listing Number: 93.441 Award Period: January 1, 2022 ? December 31, 2024 Criteria: The Office?s policies and procedures contains various requirements, including policies requiring certain levels of administrative and legal review, obtaining one or more written bids at various dollar thresholds, and requiring different levels of approval based on dollar values. Uniform Guidance regulations section CFR 200.318(a) and CFR 200.320(a) state, the non-Federal entity must use its own documented procurement procedures which reflect applicable State, local, and tribal laws and regulations, provided that the procurement conform to applicable Federal law and the standards identified. Condition: For Head Start, in our selected sample of 41 expenditures, we noted an expenditure of $208,932 that required either a sole source form or three written bids, and a legal review per the Office?s policy. These forms were not obtained. There was sole source justification; however, it was written by the vendor. The Tribal Council approved the purchase, but the resolution didn?t mention the vendor and/or the need to sole source the purchase. For Indian Self-Determination, in our selected sample of 40 expenditures, we noted an expenditure of $7,772 that did not have the required three written bids, an expenditure for $15,331 that did not have the required governor?s signature, and an expenditure that was approved for $365 but was later revised to $640 without any additional approvals. Questioned Costs: None. Context: 4 of 81 transactions tested across these two programs were missing documentation required by the Office?s procurement policy. Cause: The Office?s policies and procedures were not always being enforced or being followed. Additionally, the Office?s procurement policy requires sole source documentation for certain expenditures and contracts where the bidding process is bypassed, but the Office has not developed such a form. Effect: The Office was not in compliance with procurement standards and made payments during the year that were in violation of their policy. Auditors? Recommendation: We recommend the Office adhere to the procurement policy that it has developed, and we recommend a sole source form be generated that conforms to the requirements of the procurement policy. Management?s Response: For Head Start ? The Office?s procurement policy allows for sole source procurement if Tribal Council specifically authorizes its use. For the Head Start expenditure of $208,932, Tribal Council Resolution 08-2021-36 specifically approved this expenditure. The Office?s procurement policy does reference a sole source form. However, a sole source form was never created when the procurement policy was approved by Tribal Council. Therefore, a memo justifying the sole source procurement was accepted as sufficient documentation and justification of the sole source procurement. Because this was a sole source procurement, three written bids were not required. Also, legal review is not required for this expenditure because it is a purchase of goods. Legal review is only required for purchase of services above a certain threshold. The Office is in the process of updating its procurement policy and will create a sole source justification form in connection with the update. For Indian Self-Determination ? The Office acknowledges the lack of three written bids for a $7,772 expenditure. Only one written quote was obtained for this purchase. The Office also acknowledges the lack of Governor?s signature on a $15,331 purchase requisition. A new Administrative Assistant issued this purchase requisition and was not properly trained on obtaining Governor?s signature for all purchase requisitions greater than $5,000. It should be noted that Governor signed the check related to this expenditure so was able to see the purchase at that time. The Office also acknowledges a revision was not made to a $365 purchase requisition when an additional purchase was added to the approved purchase requisition.
Federal Programs Information: Funding Agency: Department of Health and Human Services Title: Head Start Assistance Listing Number: 93.600 Award Period: September 1, 2021 ? August 31, 2022, September 1, 2022 ? August 31, 2023 Funding Agency: Department of Health and Human Services Title: Indian Self-Determination Assistance Listing Number: 93.441 Award Period: January 1, 2022 ? December 31, 2024 Criteria: The Office?s policies and procedures contains various requirements, including policies requiring certain levels of administrative and legal review, obtaining one or more written bids at various dollar thresholds, and requiring different levels of approval based on dollar values. Uniform Guidance regulations section CFR 200.318(a) and CFR 200.320(a) state, the non-Federal entity must use its own documented procurement procedures which reflect applicable State, local, and tribal laws and regulations, provided that the procurement conform to applicable Federal law and the standards identified. Condition: For Head Start, in our selected sample of 41 expenditures, we noted an expenditure of $208,932 that required either a sole source form or three written bids, and a legal review per the Office?s policy. These forms were not obtained. There was sole source justification; however, it was written by the vendor. The Tribal Council approved the purchase, but the resolution didn?t mention the vendor and/or the need to sole source the purchase. For Indian Self-Determination, in our selected sample of 40 expenditures, we noted an expenditure of $7,772 that did not have the required three written bids, an expenditure for $15,331 that did not have the required governor?s signature, and an expenditure that was approved for $365 but was later revised to $640 without any additional approvals. Questioned Costs: None. Context: 4 of 81 transactions tested across these two programs were missing documentation required by the Office?s procurement policy. Cause: The Office?s policies and procedures were not always being enforced or being followed. Additionally, the Office?s procurement policy requires sole source documentation for certain expenditures and contracts where the bidding process is bypassed, but the Office has not developed such a form. Effect: The Office was not in compliance with procurement standards and made payments during the year that were in violation of their policy. Auditors? Recommendation: We recommend the Office adhere to the procurement policy that it has developed, and we recommend a sole source form be generated that conforms to the requirements of the procurement policy. Management?s Response: For Head Start ? The Office?s procurement policy allows for sole source procurement if Tribal Council specifically authorizes its use. For the Head Start expenditure of $208,932, Tribal Council Resolution 08-2021-36 specifically approved this expenditure. The Office?s procurement policy does reference a sole source form. However, a sole source form was never created when the procurement policy was approved by Tribal Council. Therefore, a memo justifying the sole source procurement was accepted as sufficient documentation and justification of the sole source procurement. Because this was a sole source procurement, three written bids were not required. Also, legal review is not required for this expenditure because it is a purchase of goods. Legal review is only required for purchase of services above a certain threshold. The Office is in the process of updating its procurement policy and will create a sole source justification form in connection with the update. For Indian Self-Determination ? The Office acknowledges the lack of three written bids for a $7,772 expenditure. Only one written quote was obtained for this purchase. The Office also acknowledges the lack of Governor?s signature on a $15,331 purchase requisition. A new Administrative Assistant issued this purchase requisition and was not properly trained on obtaining Governor?s signature for all purchase requisitions greater than $5,000. It should be noted that Governor signed the check related to this expenditure so was able to see the purchase at that time. The Office also acknowledges a revision was not made to a $365 purchase requisition when an additional purchase was added to the approved purchase requisition.
2022-001 Methods of Procurement Federal Agency: United States Department of Treasury Federal Program Name: Coronavirus State and Local Recovery Funds (CSLRF) Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLT-8694, 2021 Award Period: March 3, 2021 to December 31, 2025 Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of federal procurement guidelines. US Code ? 200.320 states that the non-Federal entity must have and use documented procurement procedures, consistent with the standards of ? 200.320 and ?? 200.317, 200.318, and 200.319 for any of the methods of procurement used for the acquisition of property or services required under a Federal award or sub-award. Condition: The County entered into a noncompetitive procurement contract with a vendor under specific circumstances for an emergency procurement. The County did not document the justification or approval of the noncompetitive emergency procurement. The County?s internal procurement policies state that deviations from standard purchasing procedures must be authorized and all such deviations will be documented and all emergency purchases shall be in a report to the Board of County Commissioners at its next regular Commission meeting. Context: One of five procurement contracts tested did not contain appropriate documentation supporting federal procurement requirements. Cause: The County did not follow their procurement policies and procedures to properly document the justification and approval of an emergency procurement transaction that was made using federal funding and requirements for noncompetitive emergency procurements. Effect: By not following federal regulations and the County?s procurement policy, the County could improperly enter into a contract that violates the requirements of CFR ? 200.320. Repeat Finding: No Recommendation: We recommend that the County review their policies and procedures to ensure that they are operating in a manner that follows federal procurement requirements and the County?s procurement policy. The creation and use of a standard procurement checklist would assist the County in documenting all requirements for each procurement that is entered into. Views of Responsible Officials: The Finance Department will work with County Management and Board Departments to ensure familiarity and understanding of the County?s procurement policies and procedures. Additionally, the County is working towards the implementation of a financial system which will improve the controls in place to help ensure compliance with procurement requirements. The Finance Department is also working on a financial policies document and will would with County Manager on a review of the County?s procurement policy.