Program: COVID-19 ? Epidemiology and Laboratory Capacity for Infectious Diseases, (ELC) Federal Financial Assistance Listing No.: 93.323 Federal Agency: U.S. Department of Health and Human Services Passed-through: California Department of Public Health Award Year: 2021-2022 Compliance Requirement: Procurement and Suspension and Debarment Grant Award Number: COVID-19 ELC39 and COVID-19 ELC97 Type of Finding: Material Noncompliance, Material Weakness in Internal Control over Compliance Criteria: Procurement: Per 2 CFR part 200, subpart D, section 200.303, the nonfederal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the nonfederal entity is managing the federal award is compliance with federal statues, regulations, and the terms and conditions of the federal award. 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: ? 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. ? Conduct all procurement transactions in a manner providing full and open competition, in accordance with 2 CFR section 200.319. ? Use the micro-purchase and small purchase methods only for procurements that meet the applicable criteria under 2 CFR sections 200.320(a) (1) and (2). Under the micro-purchase method, the aggregate dollar amount does not exceed $10,000 ($2,000 in the case of acquisition for construction subject to the Wage Rate Requirements [Davis-Bacon Act]). Small purchase procedures are used for purchases that exceed the micro-purchase amount but do not exceed the simplified acquisition threshold ($250,000). Micro-purchases may be awarded without soliciting competitive quotations if the non-federal entity considers the price to be reasonable (2 CFR section 200.320(a)). If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources (2 CFR section 200.320(b)). ? For acquisitions exceeding the simplified acquisition threshold, the non-federal entity must use one of the following procurement methods: the sealed bid method if the acquisition meets the criteria in 2 CFR section 200.320(b); the competitive proposals method under the conditions specified in 2 CFR section 200.320((b) (2); or the noncompetitive proposals method (i.e., solicit a proposal from only one source) but only when one or more of four circumstances are met, in accordance with 2 CFR section 200.320(c)). ? Perform a cost or price analysis in connection with every procurement action in excess of the simplified acquisition threshold, including contract modifications (2 CFR section 200.323(a)). The cost plus a percentage of cost and percentage of construction cost methods of contracting must not be used (2 CFR section 200.323(b)). ? Ensure that every purchase order or other contract includes applicable provisions required by 2 CFR section 200.326. These provisions are described in Appendix II to 2 CFR Part 200, ?Contract Provisions for Non-Federal Entity Contracts Under Federal Awards.? Suspension and Debarment: Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. 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 System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at SAM.gov/Home, (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 Found: As a result of our audit procedures, we noted the following: Procurement: ? 4 out of 8 transactions tested did not have documentation that full and open competition, price analysis, or rationale to limit competition in those cases where competition was limited. ? 2 out of 8 transactions tested did not have documentation of the rationale for the method of procurement, selection of contract type, basis for contractor selection and the basis for the contract price in accordance with the Uniform Guidance, section 318(i) and 48 CFR part 44 and section 52.244-2. ? 8 out of 8 did not include the applicable provisions required by Appendix II to 2 CFR Part 200. Suspension and Debarment: ? 6 out of 8 covered transactions tested did not have evidence that management checked for suspension and debarment during the scope of this audit; by management either not verifying the SAM?s.gov website, not obtaining a certification, or not adding a clause or condition to the covered transaction. Cause: Not following the County?s own official policies and procedures over procurement and suspension and debarment. Effect: Not following the County?s procurement policies and procedures that are in place and required by the Uniform Guidance resulted in noncompliance with the requirements of the program. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of 8 vendor contracts from a population of 38 were tested totaling $1,670,639 out of $9,5334,251 of federal program expenditures. Repeat Finding from Prior Year(s): Yes, prior year finding 2021-009. Recommendation: We recommend that the County enforce its official policies and procedures over procurement and suspension and debarment. Views of Responsible Officials and Planned Corrective Actions: Management agrees. See separate corrective action plan.
Finding 2022-011 - Noncompliance Over Procurement and Suspension and Debarment – Coronavirus State and Local Fiscal Recovery Funds PASS THROUGH GRANTOR: Direct Grant FEDERAL AGENCY: U.S. Department of Treasury ASSISTANCE LISTING: 21.027 FEDERAL PROGRAM NAME: Coronavirus State and Local Fiscal Recovery Funds (SLFRF) FEDERAL AWARD NUMBER: SLFRP3720 FEDERAL AWARD YEAR: 2022 CONTROL CATEGORY: Procurement and Suspension and Debarment QUESTIONED COSTS: $203,000 Condition: During our review of the disbursement data from Muskogee County regarding procurement and suspension and debarment as per the Uniform Guidance 2 CFR 200.317 through 200.327, we identified the following: • One (1) ambulance was purchased in the amount of $203,000 for the Muskogee County EMS. There were no bids or quotes provide by the County or found in the BOCC meeting minutes supporting expenditure documentation. • There were six (6) vendors, in which the County did not check the www.SAM.gov website to review if the vendor had been suspended or debarred for those disbursements that warranted a bid, on the 6-month bid list, or received quotes. Cause of Condition: Policies and procedures have not been designed and implemented to ensure compliance of expenditures for all federal awards. Effect of Condition: This condition resulted in noncompliance to grant requirements and could lead to a loss of federal funds to the County. Recommendation: OSAI recommends county officials and department heads gain an understanding of federal programs awarded to Muskogee County. Internal control procedures should be designed and implemented to ensure accurate procurement and suspension and debarment and to ensure compliance with federal requirements. Management Response: Chairman of the Board of County Commissioners: Muskogee County has hired an internal grant administrator to assist in keeping the county compliant with all local, state, and federal requirements. Efforts will be made going forward to ensure that all grant funds are properly expended. This includes that all expenditures are properly documented and that all vendors are federally eligible to perform services. Criteria: 2 CFR § 200.317 through 200.327 General Procurement Standards reads as follows: When procuring property and services under a Federal award, a State must follow the same policies and procedures it uses for procurements from its non-Federal funds. The State will comply with §§ 200.321, 200.322, and 200.323 and ensure that every purchase order or other contract includes any clauses required by § 200.327. All other non-Federal entities, including subrecipients of a State, must follow the procurement standards in §§ 200.318 through 200.327. The non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non- Federal entity's documented procurement procedures must conform to the procurement standards identified in §§ 200.317 through 200.327. (b) Non-Federal entities must maintain oversight to ensure that contractors perform in accordance with the terms, conditions, and specifications of their contracts or purchase orders. 2 CFR 180.700 – 180.760 Suspension and 2 CFR 180.800 – 180.885 Debarment Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215.
Federal Assistance Listing Number: 93.224 - Health Center Program Cluster [including COVID-19 funds] Federal Agency: U.S. Department of Health and Human Services Federal Award Numbers in Cluster: 5 H80CS12855-12-00, 5 H80CS12855-12-02, 5 H80CS12855-13-00, 6-H80CS12855-11-03,1 H8ECS37915-01-00, 6 H80CS12855-10-02, 1 H8DCS36386-01-00, 1 H8FCS40527-01-00 Federal Award Year in Cluster: April 1, 2021 - March 31, 2022 Pass-Through Entity: None Criteria: Under Uniform Guidance purchases must be in compliance with procurement methods using appropriate dollar amounts and conditions specified in 2 CFR Section 200.320 and in compliance with the Center's policy. The Center must perform a cost or price analysis in connection with all procurement actions exceeding the simplified acquisition threshold, including contract modifications, and that this analysis supported the procurement action (2 CFR Section 200.323 and 48 CFR Section 15.404-3) Condition: During 2022, there was turnover in the Chief Financial Officer position, who was responsible for the bidding process at the Center, and in the transition the bidding and price analysis documentation could not be located and provided for 6 out of the 17 items sampled. Context: During our testing of procurement of expenditures, it was noted that 6 out of a sample of 17 proper documentation of the bids received and the price analysis in connection with the purchases could not be located by the Center. This is not a statistically valid sample. Effect: There is no supporting documentation to ensure that the vendors selected were incompliance with guidance of the Uniform Guidance and Center's policies. Questioned Cost: None Recommendation: The Center should maintain all support and documentation in regards to grant purchases using appropriate dollar amounts and conditions specified in 2 CFR Section 200.320 and in compliance with the Center's policy. This should include a cost or price analysis to document and support decisions made around vendor selection.
Federal Assistance Listing Number: 93.224 - Health Center Program Cluster [including COVID-19 funds] Federal Agency: U.S. Department of Health and Human Services Federal Award Numbers in Cluster: 5 H80CS12855-12-00, 5 H80CS12855-12-02, 5 H80CS12855-13-00, 6-H80CS12855-11-03,1 H8ECS37915-01-00, 6 H80CS12855-10-02, 1 H8DCS36386-01-00, 1 H8FCS40527-01-00 Federal Award Year in Cluster: April 1, 2021 - March 31, 2022 Pass-Through Entity: None Criteria: Under Uniform Guidance purchases must be in compliance with procurement methods using appropriate dollar amounts and conditions specified in 2 CFR Section 200.320 and in compliance with the Center's policy. The Center must perform a cost or price analysis in connection with all procurement actions exceeding the simplified acquisition threshold, including contract modifications, and that this analysis supported the procurement action (2 CFR Section 200.323 and 48 CFR Section 15.404-3) Condition: During 2022, there was turnover in the Chief Financial Officer position, who was responsible for the bidding process at the Center, and in the transition the bidding and price analysis documentation could not be located and provided for 6 out of the 17 items sampled. Context: During our testing of procurement of expenditures, it was noted that 6 out of a sample of 17 proper documentation of the bids received and the price analysis in connection with the purchases could not be located by the Center. This is not a statistically valid sample. Effect: There is no supporting documentation to ensure that the vendors selected were incompliance with guidance of the Uniform Guidance and Center's policies. Questioned Cost: None Recommendation: The Center should maintain all support and documentation in regards to grant purchases using appropriate dollar amounts and conditions specified in 2 CFR Section 200.320 and in compliance with the Center's policy. This should include a cost or price analysis to document and support decisions made around vendor selection.
Federal Assistance Listing Number: 93.224 - Health Center Program Cluster [including COVID-19 funds] Federal Agency: U.S. Department of Health and Human Services Federal Award Numbers in Cluster: 5 H80CS12855-12-00, 5 H80CS12855-12-02, 5 H80CS12855-13-00, 6-H80CS12855-11-03,1 H8ECS37915-01-00, 6 H80CS12855-10-02, 1 H8DCS36386-01-00, 1 H8FCS40527-01-00 Federal Award Year in Cluster: April 1, 2021 - March 31, 2022 Pass-Through Entity: None Criteria: Under Uniform Guidance purchases must be in compliance with procurement methods using appropriate dollar amounts and conditions specified in 2 CFR Section 200.320 and in compliance with the Center's policy. The Center must perform a cost or price analysis in connection with all procurement actions exceeding the simplified acquisition threshold, including contract modifications, and that this analysis supported the procurement action (2 CFR Section 200.323 and 48 CFR Section 15.404-3) Condition: During 2022, there was turnover in the Chief Financial Officer position, who was responsible for the bidding process at the Center, and in the transition the bidding and price analysis documentation could not be located and provided for 6 out of the 17 items sampled. Context: During our testing of procurement of expenditures, it was noted that 6 out of a sample of 17 proper documentation of the bids received and the price analysis in connection with the purchases could not be located by the Center. This is not a statistically valid sample. Effect: There is no supporting documentation to ensure that the vendors selected were incompliance with guidance of the Uniform Guidance and Center's policies. Questioned Cost: None Recommendation: The Center should maintain all support and documentation in regards to grant purchases using appropriate dollar amounts and conditions specified in 2 CFR Section 200.320 and in compliance with the Center's policy. This should include a cost or price analysis to document and support decisions made around vendor selection.
Federal Assistance Listing Number: 93.224 - Health Center Program Cluster [including COVID-19 funds] Federal Agency: U.S. Department of Health and Human Services Federal Award Numbers in Cluster: 5 H80CS12855-12-00, 5 H80CS12855-12-02, 5 H80CS12855-13-00, 6-H80CS12855-11-03,1 H8ECS37915-01-00, 6 H80CS12855-10-02, 1 H8DCS36386-01-00, 1 H8FCS40527-01-00 Federal Award Year in Cluster: April 1, 2021 - March 31, 2022 Pass-Through Entity: None Criteria: Under Uniform Guidance purchases must be in compliance with procurement methods using appropriate dollar amounts and conditions specified in 2 CFR Section 200.320 and in compliance with the Center's policy. The Center must perform a cost or price analysis in connection with all procurement actions exceeding the simplified acquisition threshold, including contract modifications, and that this analysis supported the procurement action (2 CFR Section 200.323 and 48 CFR Section 15.404-3) Condition: During 2022, there was turnover in the Chief Financial Officer position, who was responsible for the bidding process at the Center, and in the transition the bidding and price analysis documentation could not be located and provided for 6 out of the 17 items sampled. Context: During our testing of procurement of expenditures, it was noted that 6 out of a sample of 17 proper documentation of the bids received and the price analysis in connection with the purchases could not be located by the Center. This is not a statistically valid sample. Effect: There is no supporting documentation to ensure that the vendors selected were incompliance with guidance of the Uniform Guidance and Center's policies. Questioned Cost: None Recommendation: The Center should maintain all support and documentation in regards to grant purchases using appropriate dollar amounts and conditions specified in 2 CFR Section 200.320 and in compliance with the Center's policy. This should include a cost or price analysis to document and support decisions made around vendor selection.