Section III ? Federal Award Findings Finding 2022-002 Lack of Internal Control Over Procurement Federal Agency: U.S. Department of the Treasury Federal Programs: Coronavirus State and Local Fiscal Recovery Funds ALN: 21.027 Award Numbers: SLFRP2526 and SLFRP4713 Award Years: 2021 Type of Finding: Significant deficiency in internal control and noncompliance. Criteria: In accordance with 2 CFR sections 200.318 to 200.325, procurement policies must be in place to ensure the Tribe is promoting full and open competition consistent with the standards of these sections. In order to ensure objective contractor performance and eliminate unfair competitive advantage, contractors that develop or draft specifications, requirements, statements of work, or invitations for bids or requests for proposals must be excluded from competing for such procurements. Condition and Context: Management could not provide adequate procurement documentation for the purchase of a large piece of equipment. During our testing of allowable costs charged to the program we noted one transaction out of twenty-nine tested that lacked adequate supporting documentation related to procurement. Cause: Lack of internal controls over procurement. Effect: Failure to follow compliance requirements could result in loss of federal funding or questioned costs being incurred. Questioned Costs: None noted. The price for the piece of equipment did not seem unreasonable; however, we were unable to determine if the Tribe received the lowest price possible due to lack of procurement documentation. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that management establish a procurement policy and ensure that the policy is followed for all large purchases. Management?s Response: Management concurs with this finding. See corrective action plan.
Section III ? Federal Award Findings Finding 2022-002 Lack of Internal Control Over Procurement Federal Agency: U.S. Department of the Treasury Federal Programs: Coronavirus State and Local Fiscal Recovery Funds ALN: 21.027 Award Numbers: SLFRP2526 and SLFRP4713 Award Years: 2021 Type of Finding: Significant deficiency in internal control and noncompliance. Criteria: In accordance with 2 CFR sections 200.318 to 200.325, procurement policies must be in place to ensure the Tribe is promoting full and open competition consistent with the standards of these sections. In order to ensure objective contractor performance and eliminate unfair competitive advantage, contractors that develop or draft specifications, requirements, statements of work, or invitations for bids or requests for proposals must be excluded from competing for such procurements. Condition and Context: Management could not provide adequate procurement documentation for the purchase of a large piece of equipment. During our testing of allowable costs charged to the program we noted one transaction out of twenty-nine tested that lacked adequate supporting documentation related to procurement. Cause: Lack of internal controls over procurement. Effect: Failure to follow compliance requirements could result in loss of federal funding or questioned costs being incurred. Questioned Costs: None noted. The price for the piece of equipment did not seem unreasonable; however, we were unable to determine if the Tribe received the lowest price possible due to lack of procurement documentation. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that management establish a procurement policy and ensure that the policy is followed for all large purchases. Management?s Response: Management concurs with this finding. See corrective action plan.
Section III ? Federal Award Findings Finding 2022-002 Lack of Internal Control Over Procurement Federal Agency: U.S. Department of the Treasury Federal Programs: Coronavirus State and Local Fiscal Recovery Funds ALN: 21.027 Award Numbers: SLFRP2526 and SLFRP4713 Award Years: 2021 Type of Finding: Significant deficiency in internal control and noncompliance. Criteria: In accordance with 2 CFR sections 200.318 to 200.325, procurement policies must be in place to ensure the Tribe is promoting full and open competition consistent with the standards of these sections. In order to ensure objective contractor performance and eliminate unfair competitive advantage, contractors that develop or draft specifications, requirements, statements of work, or invitations for bids or requests for proposals must be excluded from competing for such procurements. Condition and Context: Management could not provide adequate procurement documentation for the purchase of a large piece of equipment. During our testing of allowable costs charged to the program we noted one transaction out of twenty-nine tested that lacked adequate supporting documentation related to procurement. Cause: Lack of internal controls over procurement. Effect: Failure to follow compliance requirements could result in loss of federal funding or questioned costs being incurred. Questioned Costs: None noted. The price for the piece of equipment did not seem unreasonable; however, we were unable to determine if the Tribe received the lowest price possible due to lack of procurement documentation. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that management establish a procurement policy and ensure that the policy is followed for all large purchases. Management?s Response: Management concurs with this finding. See corrective action plan.
Section III ? Federal Award Findings Finding 2022-002 Lack of Internal Control Over Procurement Federal Agency: U.S. Department of the Treasury Federal Programs: Coronavirus State and Local Fiscal Recovery Funds ALN: 21.027 Award Numbers: SLFRP2526 and SLFRP4713 Award Years: 2021 Type of Finding: Significant deficiency in internal control and noncompliance. Criteria: In accordance with 2 CFR sections 200.318 to 200.325, procurement policies must be in place to ensure the Tribe is promoting full and open competition consistent with the standards of these sections. In order to ensure objective contractor performance and eliminate unfair competitive advantage, contractors that develop or draft specifications, requirements, statements of work, or invitations for bids or requests for proposals must be excluded from competing for such procurements. Condition and Context: Management could not provide adequate procurement documentation for the purchase of a large piece of equipment. During our testing of allowable costs charged to the program we noted one transaction out of twenty-nine tested that lacked adequate supporting documentation related to procurement. Cause: Lack of internal controls over procurement. Effect: Failure to follow compliance requirements could result in loss of federal funding or questioned costs being incurred. Questioned Costs: None noted. The price for the piece of equipment did not seem unreasonable; however, we were unable to determine if the Tribe received the lowest price possible due to lack of procurement documentation. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that management establish a procurement policy and ensure that the policy is followed for all large purchases. Management?s Response: Management concurs with this finding. See corrective action plan.
Condition: As allowed by the Compliance Supplement, alternative procedures were used to procure services to be provided under the grant. Deviation from procurement compliance provisions is allowed; however, the alternative procedures must be in writing and documented to safeguard against waste, fraud, and abuse. The Organization did not have written procedures regarding procurement of goods and services. Criteria: 2 CFR 200.317 through 200.325 requires competitive procurement to be used for purchases exceeding $250,000. Deviation is allowable (per the Compliance Supplement) when procuring goods and services to prevent, prepare for, and respond to Coronavirus. Cause: The contract to the Organization was awarded late and the funds needed to be made available to those in need on a timely basis. To eliminate the time to issue a Request for Proposal, evaluate the proposals received, and award the contracts, the Organization contacted agencies capable of providing services and negotiated contracts. Effect: The Executive Director is experienced in providing services to the homeless and preventing homelessness and was knowledgeable of the agencies which could provide the services. Consequently, the agencies had the opportunity to respond to a request for services and negotiate a contract. This procedure was deemed adequate to provide assurance that fraud, waste, and abuse was reduced. Context: Our review included all contracts awarded to subrecipients, which totaled $900.748.00. Recommendation: Required standard procurement procedures should be followed unless alternative procedures are adopted and written by the Organization.
2022-002 Department of the Treasury, Passed through Utah Department of Workforce Services Federal Assistance Listing 21.027 Coronavirus State and Local Fiscal Recovery Funds Procurement, Suspension, and Debarment Material Weakness in Internal Control over Compliance and Noncompliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The Organization?s written procurement policies did not include all of the elements required by the Code of Federal Regulations 2 CFR 200.318-200.325, including monitoring that contractors are not suspended, debarred, or otherwise excluded pursuant to 31 CFR 19.300 and retaining documentation thereof. In addition, two construction contracts did not include all of the provisions required by Appendix II of 2 CFR Part 200. Cause: The Organization did not have internal controls in place to document procurement policies, to document monitoring contractors for suspension and debarment, or to ensure contracts with contractors included the required elements. Effect: The risk is increased that a procurement noncompliance could occur. Questioned Costs: None reported. Context/Sampling: Nonstatistical sampling was used. Sample size was 4 of 10 procurement transactions above the micro-purchase threshold and included $551,791 of federal awards. Repeat Finding from Prior Year(s): No. Recommendation: We recommend the Organization implement additional internal controls over procurement policies and procedures. Views of Responsible Officials: Management agrees with this finding.
Federal Agency: U.S. Department of the Treasury Federal Financial Assistance Listing: 21.027 Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement: Procurement, Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control over Compliance, Instance of Non-compliance Criteria: General procurement standards 2 CFR 200.318 require the non-Federal entity to use its own documented procurement procedures which reflect applicable State, local, and tribal laws and regulations, provided that the procurements conform to applicable Federal law and standards identified in this part. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in 2 CFR sections 200.317 through 200.326. Prior to entering into subawards and contracts with award funds, recipients must verify that such contractors and subrecipients are not suspended, debarred, or otherwise excluded pursuant to 2 CFR section 200.214. Condition: The following required procurement standards were not addressed in the City's policy: ? Conflict of interest, including disciplinary actions for failure to adhere (2 CFR 200.318) ? Avoid acquisition of duplicative items (2 CFR 200.318) ? Cost effective purchasing (2 CFR 200.318) ? Document retention (2 CFR 200.318) ? Provisions to ensure all solicitations (2 CFR 200.319): Incorporate clear and accurate descriptions of technical requirements, do not restrict competition, and identify all requirements which the offerors must fulfill and factors used in evaluation ? Disadvantaged Business Enterprise program (2 CFR 200.321) ? Recovered materials, if subject to EPA requirements (2 CFR 200.322) ? Contract price/types (2 CFR 200.323) ? Bonding requirements (2 CFR 200.325) ? Contract provisions (2 CFR 200.326) Additionally, we identified 3 instances in which the City did not verify the vendor was not suspended, debarred, or otherwise excluded before entering into a covered transaction rather, verification was performed after entering into the transaction. The City asserted that they verified the vendors were not suspended or debarred; however, no documentation of the procedure being performed prior to entering into the transaction was presented. Cause: The City?s did not ensure it?s written procedures identified all of the required federal procurement standards. Additionally, the City?s controls did not ensure the check for suspension and debarment was performed and documented prior to entering into covered transactions. Effect: The City?s documented procurement procedures do not conform to the procurement standards identified in 2 CFR sections 200. 318, 200.319, and 200.321 through 200.326. Additionally, the City did not comply with the requirements of 2 CFR 200.214. Questioned Costs: None reported. Context/Sampling: The condition noted above was identified during our procedures related to procurement, suspension, and debarment. A non-statistical sample of 4 expenditures out of a population of 12 vendors were selected for testing as a whole. Repeat Finding from Prior Year: No. Recommendation: We recommend the City modify and strengthen its policies and procedures to ensure that the required Uniform Guidance standards are addressed. Views of Responsible Officials: Management agrees. See separately issued Corrective Action Plan.
Condition: As allowed by the Compliance Supplement, alternative procedures were used to procure services to be provided under the grant. Deviation from procurement compliance provisions is allowed; however, the alternative procedures must be in writing and documented to safeguard against waste, fraud, and abuse. The Organization did not have written procedures regarding procurement of goods and services. Criteria: 2 CFR 200.317 through 200.325 requires competitive procurement to be used for purchases exceeding $250,000. Deviation is allowable (per the Compliance Supplement) when procuring goods and services to prevent, prepare for, and respond to Coronavirus. Cause: The contract to the Organization was awarded late and the funds needed to be made available to those in need on a timely basis. To eliminate the time to issue a Request for Proposal, evaluate the proposals received, and award the contracts, the Organization contacted agencies capable of providing services and negotiated contracts. Effect: The Executive Director is experienced in providing services to the homeless and preventing homelessness and was knowledgeable of the agencies which could provide the services. Consequently, the agencies had the opportunity to respond to a request for services and negotiate a contract. This procedure was deemed adequate to provide assurance that fraud, waste, and abuse was reduced. Context: Our review included all contracts awarded to subrecipients, which totaled $900.748.00. Recommendation: Required standard procurement procedures should be followed unless alternative procedures are adopted and written by the Organization.
2022-002 Department of the Treasury, Passed through Utah Department of Workforce Services Federal Assistance Listing 21.027 Coronavirus State and Local Fiscal Recovery Funds Procurement, Suspension, and Debarment Material Weakness in Internal Control over Compliance and Noncompliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The Organization?s written procurement policies did not include all of the elements required by the Code of Federal Regulations 2 CFR 200.318-200.325, including monitoring that contractors are not suspended, debarred, or otherwise excluded pursuant to 31 CFR 19.300 and retaining documentation thereof. In addition, two construction contracts did not include all of the provisions required by Appendix II of 2 CFR Part 200. Cause: The Organization did not have internal controls in place to document procurement policies, to document monitoring contractors for suspension and debarment, or to ensure contracts with contractors included the required elements. Effect: The risk is increased that a procurement noncompliance could occur. Questioned Costs: None reported. Context/Sampling: Nonstatistical sampling was used. Sample size was 4 of 10 procurement transactions above the micro-purchase threshold and included $551,791 of federal awards. Repeat Finding from Prior Year(s): No. Recommendation: We recommend the Organization implement additional internal controls over procurement policies and procedures. Views of Responsible Officials: Management agrees with this finding.
Federal Agency: U.S. Department of the Treasury Federal Financial Assistance Listing: 21.027 Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement: Procurement, Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control over Compliance, Instance of Non-compliance Criteria: General procurement standards 2 CFR 200.318 require the non-Federal entity to use its own documented procurement procedures which reflect applicable State, local, and tribal laws and regulations, provided that the procurements conform to applicable Federal law and standards identified in this part. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in 2 CFR sections 200.317 through 200.326. Prior to entering into subawards and contracts with award funds, recipients must verify that such contractors and subrecipients are not suspended, debarred, or otherwise excluded pursuant to 2 CFR section 200.214. Condition: The following required procurement standards were not addressed in the City's policy: ? Conflict of interest, including disciplinary actions for failure to adhere (2 CFR 200.318) ? Avoid acquisition of duplicative items (2 CFR 200.318) ? Cost effective purchasing (2 CFR 200.318) ? Document retention (2 CFR 200.318) ? Provisions to ensure all solicitations (2 CFR 200.319): Incorporate clear and accurate descriptions of technical requirements, do not restrict competition, and identify all requirements which the offerors must fulfill and factors used in evaluation ? Disadvantaged Business Enterprise program (2 CFR 200.321) ? Recovered materials, if subject to EPA requirements (2 CFR 200.322) ? Contract price/types (2 CFR 200.323) ? Bonding requirements (2 CFR 200.325) ? Contract provisions (2 CFR 200.326) Additionally, we identified 3 instances in which the City did not verify the vendor was not suspended, debarred, or otherwise excluded before entering into a covered transaction rather, verification was performed after entering into the transaction. The City asserted that they verified the vendors were not suspended or debarred; however, no documentation of the procedure being performed prior to entering into the transaction was presented. Cause: The City?s did not ensure it?s written procedures identified all of the required federal procurement standards. Additionally, the City?s controls did not ensure the check for suspension and debarment was performed and documented prior to entering into covered transactions. Effect: The City?s documented procurement procedures do not conform to the procurement standards identified in 2 CFR sections 200. 318, 200.319, and 200.321 through 200.326. Additionally, the City did not comply with the requirements of 2 CFR 200.214. Questioned Costs: None reported. Context/Sampling: The condition noted above was identified during our procedures related to procurement, suspension, and debarment. A non-statistical sample of 4 expenditures out of a population of 12 vendors were selected for testing as a whole. Repeat Finding from Prior Year: No. Recommendation: We recommend the City modify and strengthen its policies and procedures to ensure that the required Uniform Guidance standards are addressed. Views of Responsible Officials: Management agrees. See separately issued Corrective Action Plan.