Federal Agency: All Federal Agencies Federal Program Name: All Federal Programs Assistance Listing Number: All Assistance Listing Numbers Federal Award Identification Number and Year: N/A – applies to all Federal Programs Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters (Noncompliance) Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) requires compliance with the provisions of procurement, suspension, and debarment. Condition: The City’s procurement standards do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned costs: None noted. Context: Although the City did not have a policy in place in conformity with the federal uniform guidance criteria, the City did follow its procedures as they relate to the contracts under the procurements applicable to the City’s major program. Cause: The City did not have the resources necessary to implement a conforming policy during the fiscal year under audit. Effect: With the absence of a compliant policy, the City is at risk for noncompliance as it relates to federal procurement. Repeat Finding: Yes, repeat of finding 2022-001. Recommendation: We recommend that the City review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of responsible officials: Management agrees with this finding.
Federal Agency: All Federal Agencies Federal Program Name: All Federal Programs Assistance Listing Number: All Assistance Listing Numbers Federal Award Identification Number and Year: N/A – applies to all Federal Programs Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters (Noncompliance) Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) requires compliance with the provisions of procurement, suspension, and debarment. Condition: The City’s procurement standards do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned costs: None noted. Context: Although the City did not have a policy in place in conformity with the federal uniform guidance criteria, the City did follow its procedures as they relate to the contracts under the procurements applicable to the City’s major program. Cause: The City did not have the resources necessary to implement a conforming policy during the fiscal year under audit. Effect: With the absence of a compliant policy, the City is at risk for noncompliance as it relates to federal procurement. Repeat Finding: Yes, repeat of finding 2022-001. Recommendation: We recommend that the City review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of responsible officials: Management agrees with this finding.
Federal Agency: All Federal Agencies Federal Program Name: All Federal Programs Assistance Listing Number: All Assistance Listing Numbers Federal Award Identification Number and Year: N/A – applies to all Federal Programs Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters (Noncompliance) Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) requires compliance with the provisions of procurement, suspension, and debarment. Condition: The City’s procurement standards do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned costs: None noted. Context: Although the City did not have a policy in place in conformity with the federal uniform guidance criteria, the City did follow its procedures as they relate to the contracts under the procurements applicable to the City’s major program. Cause: The City did not have the resources necessary to implement a conforming policy during the fiscal year under audit. Effect: With the absence of a compliant policy, the City is at risk for noncompliance as it relates to federal procurement. Repeat Finding: Yes, repeat of finding 2022-001. Recommendation: We recommend that the City review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of responsible officials: Management agrees with this finding.
Federal Agency: All Federal Agencies Federal Program Name: All Federal Programs Assistance Listing Number: All Assistance Listing Numbers Federal Award Identification Number and Year: N/A – applies to all Federal Programs Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters (Noncompliance) Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) requires compliance with the provisions of procurement, suspension, and debarment. Condition: The City’s procurement standards do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned costs: None noted. Context: Although the City did not have a policy in place in conformity with the federal uniform guidance criteria, the City did follow its procedures as they relate to the contracts under the procurements applicable to the City’s major program. Cause: The City did not have the resources necessary to implement a conforming policy during the fiscal year under audit. Effect: With the absence of a compliant policy, the City is at risk for noncompliance as it relates to federal procurement. Repeat Finding: Yes, repeat of finding 2022-001. Recommendation: We recommend that the City review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of responsible officials: Management agrees with this finding.
Federal Agency: All Federal Agencies Federal Program Name: All Federal Programs Assistance Listing Number: All Assistance Listing Numbers Federal Award Identification Number and Year: N/A – applies to all Federal Programs Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters (Noncompliance) Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) requires compliance with the provisions of procurement, suspension, and debarment. Condition: The City’s procurement standards do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned costs: None noted. Context: Although the City did not have a policy in place in conformity with the federal uniform guidance criteria, the City did follow its procedures as they relate to the contracts under the procurements applicable to the City’s major program. Cause: The City did not have the resources necessary to implement a conforming policy during the fiscal year under audit. Effect: With the absence of a compliant policy, the City is at risk for noncompliance as it relates to federal procurement. Repeat Finding: Yes, repeat of finding 2022-001. Recommendation: We recommend that the City review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of responsible officials: Management agrees with this finding.
Federal Agency: All Federal Agencies Federal Program Name: All Federal Programs Assistance Listing Number: All Assistance Listing Numbers Federal Award Identification Number and Year: N/A – applies to all Federal Programs Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters (Noncompliance) Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) requires compliance with the provisions of procurement, suspension, and debarment. Condition: The City’s procurement standards do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned costs: None noted. Context: Although the City did not have a policy in place in conformity with the federal uniform guidance criteria, the City did follow its procedures as they relate to the contracts under the procurements applicable to the City’s major program. Cause: The City did not have the resources necessary to implement a conforming policy during the fiscal year under audit. Effect: With the absence of a compliant policy, the City is at risk for noncompliance as it relates to federal procurement. Repeat Finding: Yes, repeat of finding 2022-001. Recommendation: We recommend that the City review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of responsible officials: Management agrees with this finding.
Federal Agency: All Federal Agencies Federal Program Name: All Federal Programs Assistance Listing Number: All Assistance Listing Numbers Federal Award Identification Number and Year: N/A – applies to all Federal Programs Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters (Noncompliance) Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) requires compliance with the provisions of procurement, suspension, and debarment. Condition: The City’s procurement standards do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned costs: None noted. Context: Although the City did not have a policy in place in conformity with the federal uniform guidance criteria, the City did follow its procedures as they relate to the contracts under the procurements applicable to the City’s major program. Cause: The City did not have the resources necessary to implement a conforming policy during the fiscal year under audit. Effect: With the absence of a compliant policy, the City is at risk for noncompliance as it relates to federal procurement. Repeat Finding: Yes, repeat of finding 2022-001. Recommendation: We recommend that the City review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of responsible officials: Management agrees with this finding.
Federal Agency: All Federal Agencies Federal Program Name: All Federal Programs Assistance Listing Number: All Assistance Listing Numbers Federal Award Identification Number and Year: N/A – applies to all Federal Programs Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters (Noncompliance) Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) requires compliance with the provisions of procurement, suspension, and debarment. Condition: The City’s procurement standards do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned costs: None noted. Context: Although the City did not have a policy in place in conformity with the federal uniform guidance criteria, the City did follow its procedures as they relate to the contracts under the procurements applicable to the City’s major program. Cause: The City did not have the resources necessary to implement a conforming policy during the fiscal year under audit. Effect: With the absence of a compliant policy, the City is at risk for noncompliance as it relates to federal procurement. Repeat Finding: Yes, repeat of finding 2022-001. Recommendation: We recommend that the City review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of responsible officials: Management agrees with this finding.
Federal Agency: All Federal Agencies Federal Program Name: All Federal Programs Assistance Listing Number: All Assistance Listing Numbers Federal Award Identification Number and Year: N/A – applies to all Federal Programs Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters (Noncompliance) Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) requires compliance with the provisions of procurement, suspension, and debarment. Condition: The City’s procurement standards do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned costs: None noted. Context: Although the City did not have a policy in place in conformity with the federal uniform guidance criteria, the City did follow its procedures as they relate to the contracts under the procurements applicable to the City’s major program. Cause: The City did not have the resources necessary to implement a conforming policy during the fiscal year under audit. Effect: With the absence of a compliant policy, the City is at risk for noncompliance as it relates to federal procurement. Repeat Finding: Yes, repeat of finding 2022-001. Recommendation: We recommend that the City review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of responsible officials: Management agrees with this finding.
Federal Agency: All Federal Agencies Federal Program Name: All Federal Programs Assistance Listing Number: All Assistance Listing Numbers Federal Award Identification Number and Year: N/A – applies to all Federal Programs Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters (Noncompliance) Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) requires compliance with the provisions of procurement, suspension, and debarment. Condition: The City’s procurement standards do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned costs: None noted. Context: Although the City did not have a policy in place in conformity with the federal uniform guidance criteria, the City did follow its procedures as they relate to the contracts under the procurements applicable to the City’s major program. Cause: The City did not have the resources necessary to implement a conforming policy during the fiscal year under audit. Effect: With the absence of a compliant policy, the City is at risk for noncompliance as it relates to federal procurement. Repeat Finding: Yes, repeat of finding 2022-001. Recommendation: We recommend that the City review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of responsible officials: Management agrees with this finding.
Federal Agency: All Federal Agencies Federal Program Name: All Federal Programs Assistance Listing Number: All Assistance Listing Numbers Federal Award Identification Number and Year: N/A – applies to all Federal Programs Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters (Noncompliance) Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) requires compliance with the provisions of procurement, suspension, and debarment. Condition: The City’s procurement standards do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned costs: None noted. Context: Although the City did not have a policy in place in conformity with the federal uniform guidance criteria, the City did follow its procedures as they relate to the contracts under the procurements applicable to the City’s major program. Cause: The City did not have the resources necessary to implement a conforming policy during the fiscal year under audit. Effect: With the absence of a compliant policy, the City is at risk for noncompliance as it relates to federal procurement. Repeat Finding: Yes, repeat of finding 2022-001. Recommendation: We recommend that the City review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of responsible officials: Management agrees with this finding.
Federal Agency: All Federal Agencies Federal Program Name: All Federal Programs Assistance Listing Number: All Assistance Listing Numbers Federal Award Identification Number and Year: N/A – applies to all Federal Programs Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters (Noncompliance) Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) requires compliance with the provisions of procurement, suspension, and debarment. Condition: The City’s procurement standards do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned costs: None noted. Context: Although the City did not have a policy in place in conformity with the federal uniform guidance criteria, the City did follow its procedures as they relate to the contracts under the procurements applicable to the City’s major program. Cause: The City did not have the resources necessary to implement a conforming policy during the fiscal year under audit. Effect: With the absence of a compliant policy, the City is at risk for noncompliance as it relates to federal procurement. Repeat Finding: Yes, repeat of finding 2022-001. Recommendation: We recommend that the City review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of responsible officials: Management agrees with this finding.
Federal Agency: All Federal Agencies Federal Program Name: All Federal Programs Assistance Listing Number: All Assistance Listing Numbers Federal Award Identification Number and Year: N/A – applies to all Federal Programs Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters (Noncompliance) Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) requires compliance with the provisions of procurement, suspension, and debarment. Condition: The City’s procurement standards do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned costs: None noted. Context: Although the City did not have a policy in place in conformity with the federal uniform guidance criteria, the City did follow its procedures as they relate to the contracts under the procurements applicable to the City’s major program. Cause: The City did not have the resources necessary to implement a conforming policy during the fiscal year under audit. Effect: With the absence of a compliant policy, the City is at risk for noncompliance as it relates to federal procurement. Repeat Finding: Yes, repeat of finding 2022-001. Recommendation: We recommend that the City review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of responsible officials: Management agrees with this finding.
2023-009 Wage Rate Compliance CFDA Title: ESSER II Base CFDA Number: 84.425D Federal Award Number: 011-0206-92-2021 Federal Agency: U.S. Department of Education Pass-through Entity: Montana Office of Public Instruction Condition: The District did not comply with the wage rate compliance related to the construction and plumbing of the JES pump house project expenditures paid from ESSER monies. Context: During the testing of significant claims for the Education Stabilization Fund major program, we noted a couple claims in which the wage rate requirements would apply. Criteria: All laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL) (40 USC 3141--3144, 3146, and 3147. Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements (which still may be referenced as the Davis-Bacon Act) a provision that the contractor or subcontractor comply with those requirements and the DOL regulations (29 CFR Part 5, Labor Standards Provisions Applicable to Contacts Governing Federally Financed and Assisted Construction). This includes a requirement for the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls) (29 CFR sections 5.5 and 5.6; the A-102 Common Rule (section 36(i)(5)); OMB Circular A-110 (2 CFR Part 215, Appendix A, Contract Provisions); 2 CFR Part 176, Subpart C; and 2 CFR section 200.326). Effect: Noncompliance with the Wage Rate requirement. Cause: The District was not aware of the requirement. Recommendation: The District should implement internal controls to determine the federal compliance requirements of all federal funds received. In addition, procedures should be implemented to ensure any federal funds received in which the Wage Rate Requirement is required the following are implemented: 1. any construction vendor is by contract which includes the Prevailing Wage clauses for the contractors and subcontractors. 2. the weekly certified payrolls are submitted.
2023-009 Wage Rate Compliance CFDA Title: ESSER II Base CFDA Number: 84.425D Federal Award Number: 011-0206-92-2021 Federal Agency: U.S. Department of Education Pass-through Entity: Montana Office of Public Instruction Condition: The District did not comply with the wage rate compliance related to the construction and plumbing of the JES pump house project expenditures paid from ESSER monies. Context: During the testing of significant claims for the Education Stabilization Fund major program, we noted a couple claims in which the wage rate requirements would apply. Criteria: All laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL) (40 USC 3141--3144, 3146, and 3147. Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements (which still may be referenced as the Davis-Bacon Act) a provision that the contractor or subcontractor comply with those requirements and the DOL regulations (29 CFR Part 5, Labor Standards Provisions Applicable to Contacts Governing Federally Financed and Assisted Construction). This includes a requirement for the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls) (29 CFR sections 5.5 and 5.6; the A-102 Common Rule (section 36(i)(5)); OMB Circular A-110 (2 CFR Part 215, Appendix A, Contract Provisions); 2 CFR Part 176, Subpart C; and 2 CFR section 200.326). Effect: Noncompliance with the Wage Rate requirement. Cause: The District was not aware of the requirement. Recommendation: The District should implement internal controls to determine the federal compliance requirements of all federal funds received. In addition, procedures should be implemented to ensure any federal funds received in which the Wage Rate Requirement is required the following are implemented: 1. any construction vendor is by contract which includes the Prevailing Wage clauses for the contractors and subcontractors. 2. the weekly certified payrolls are submitted.
2023-001 Federal Program Name: COVID-19 Higher Education Emergency Relief Fund (HEERF) - COVID-19 HEERF Minority Serving Institutions (MSIs) Federal Assistance Listing Number: 84.425L Award Year: July 6, 2020 – June 30, 2023 Condition: The University's procurement policy does not contain adequate documentation to demonstrate compliance with federal procurement regulations (Deficiency). Questioned Costs: None. Context: The University's documented procurement policies do not contain all the specific requirements of 2 CFR sections 200.318 through 200.326. Effect: The risks exist that the University could follow their procurement policy and procure an item with federal funds, which would not meet the federal procurement regulations. Cause: The writing of the policy did not take into account the federal procurement regulations which are required to be incorporated for items procured with federal funds. Repeat Finding: No. Recommendation: We recommend that the University revise procurement policies to incorporate all required elements of the federal procurement regulations. Views of Responsible Officials and Planned Corrective Action: The University agrees with the comment and will revise procurement policies and incorporate all required elements of the federal procurement regulations.
Statement of Condition: Four of the ten current year ESSER construction contracts did not include the Wage Rate Requirement (Davis-Bacon Act) notification to the contractors. Criteria: 29 CFR sections 5.5 and 5.6; the A-102 Common Rule (section 36(i)(5)); OMB Circular A-110 (2 CFR Part 215, Appendix A, Contract Provisions); 2 CFR Part 176, Subpart C; and 2 CFR section 200.326 require the following for construction contracts in excess of $2,000 financed by federal assistance funds. - Construction contracts shall include a provision that contractors or subcontractors comply with the provisions of the Wage Rate Requirements (Davis-Bacon Act). - These provsions include a requirement for the contractor or subcontractor to submit to the District weekly, for each week in which any contract work is performed, a copy of certified payroll. Cause of Condition: District employees involved in the construction contract writing overlooked this requirement on four construction contracts. Effect of condition: Four of the ten construction contracts financed by the ESSER probram originated during 2023 did not include the Wage Rate Requirements provision. However, weekly certified payroll was receibed by the District from contractos and theri subcontractors in accordance with the Davis-Bacon Act. Context: All ten applicable contracts were reviewed. This finding was present in four contracts. Recommendation: To ensure that all construction contracts in excess of $2,000 that are financed by federal assisstance funds include the required Wage Rate REquirements provision, additional training in ESSER requirements should be provided for employees involved in the construction contract writing process. Further, a review process should be put in place for too such contracts written in order to ensure that they comploy with all the requirements within the Compliance Supplement.
Statement of Condition: Four of the ten current year ESSER construction contracts did not include the Wage Rate Requirement (Davis-Bacon Act) notification to the contractors. Criteria: 29 CFR sections 5.5 and 5.6; the A-102 Common Rule (section 36(i)(5)); OMB Circular A-110 (2 CFR Part 215, Appendix A, Contract Provisions); 2 CFR Part 176, Subpart C; and 2 CFR section 200.326 require the following for construction contracts in excess of $2,000 financed by federal assistance funds. - Construction contracts shall include a provision that contractors or subcontractors comply with the provisions of the Wage Rate Requirements (Davis-Bacon Act). - These provsions include a requirement for the contractor or subcontractor to submit to the District weekly, for each week in which any contract work is performed, a copy of certified payroll. Cause of Condition: District employees involved in the construction contract writing overlooked this requirement on four construction contracts. Effect of condition: Four of the ten construction contracts financed by the ESSER probram originated during 2023 did not include the Wage Rate Requirements provision. However, weekly certified payroll was receibed by the District from contractos and theri subcontractors in accordance with the Davis-Bacon Act. Context: All ten applicable contracts were reviewed. This finding was present in four contracts. Recommendation: To ensure that all construction contracts in excess of $2,000 that are financed by federal assisstance funds include the required Wage Rate REquirements provision, additional training in ESSER requirements should be provided for employees involved in the construction contract writing process. Further, a review process should be put in place for too such contracts written in order to ensure that they comploy with all the requirements within the Compliance Supplement.
Statement of Condition: Four of the ten current year ESSER construction contracts did not include the Wage Rate Requirement (Davis-Bacon Act) notification to the contractors. Criteria: 29 CFR sections 5.5 and 5.6; the A-102 Common Rule (section 36(i)(5)); OMB Circular A-110 (2 CFR Part 215, Appendix A, Contract Provisions); 2 CFR Part 176, Subpart C; and 2 CFR section 200.326 require the following for construction contracts in excess of $2,000 financed by federal assistance funds. - Construction contracts shall include a provision that contractors or subcontractors comply with the provisions of the Wage Rate Requirements (Davis-Bacon Act). - These provsions include a requirement for the contractor or subcontractor to submit to the District weekly, for each week in which any contract work is performed, a copy of certified payroll. Cause of Condition: District employees involved in the construction contract writing overlooked this requirement on four construction contracts. Effect of condition: Four of the ten construction contracts financed by the ESSER probram originated during 2023 did not include the Wage Rate Requirements provision. However, weekly certified payroll was receibed by the District from contractos and theri subcontractors in accordance with the Davis-Bacon Act. Context: All ten applicable contracts were reviewed. This finding was present in four contracts. Recommendation: To ensure that all construction contracts in excess of $2,000 that are financed by federal assisstance funds include the required Wage Rate REquirements provision, additional training in ESSER requirements should be provided for employees involved in the construction contract writing process. Further, a review process should be put in place for too such contracts written in order to ensure that they comploy with all the requirements within the Compliance Supplement.
Statement of Condition: Four of the ten current year ESSER construction contracts did not include the Wage Rate Requirement (Davis-Bacon Act) notification to the contractors. Criteria: 29 CFR sections 5.5 and 5.6; the A-102 Common Rule (section 36(i)(5)); OMB Circular A-110 (2 CFR Part 215, Appendix A, Contract Provisions); 2 CFR Part 176, Subpart C; and 2 CFR section 200.326 require the following for construction contracts in excess of $2,000 financed by federal assistance funds. - Construction contracts shall include a provision that contractors or subcontractors comply with the provisions of the Wage Rate Requirements (Davis-Bacon Act). - These provsions include a requirement for the contractor or subcontractor to submit to the District weekly, for each week in which any contract work is performed, a copy of certified payroll. Cause of Condition: District employees involved in the construction contract writing overlooked this requirement on four construction contracts. Effect of condition: Four of the ten construction contracts financed by the ESSER probram originated during 2023 did not include the Wage Rate Requirements provision. However, weekly certified payroll was receibed by the District from contractos and theri subcontractors in accordance with the Davis-Bacon Act. Context: All ten applicable contracts were reviewed. This finding was present in four contracts. Recommendation: To ensure that all construction contracts in excess of $2,000 that are financed by federal assisstance funds include the required Wage Rate REquirements provision, additional training in ESSER requirements should be provided for employees involved in the construction contract writing process. Further, a review process should be put in place for too such contracts written in order to ensure that they comploy with all the requirements within the Compliance Supplement.
2023-005 – Procurement, Suspension & Debarment – Significant Deficiency in Internal Controls over Compliance Department of Education Federal Assistance Listing Number: 84.031 Federal Program Name: Higher Education Institutional Aid Federal Award Number: P031S210057, P031S170020, P031C210038 Award Year: 2022-23, 2021-22 Federal Assistance Listing Number: 84.425E, 84.425F Federal Program Name: Higher Education Emergency Relief Funds (HEERF) Institutional Portion, Federal Award Number: P425F201298 Award Year: 2022-23 Criteria – Non-federal entities, 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 the policies and procedures conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. Condition/context – A sample of 4 expenditures greater than the micropurchase threshold of $10,000 but less than the simplified acquisition threshold of $250,000 were selected from the 20 transactions that exceeded the micropurchase threshold of $10,000. For all four of the expenditures the University did not obtain the required rate quotations; per the University’s documented policy two quotes should have been obtained or have documentation supporting their conclusion to sole source the purchases. Our sample was not, and was not intended to be, statistically valid. Questioned costs – None. Cause/effect – The personnel completing purchases on behalf of the University were unaware of the internal procurement policies that are in conformance with federal statutes and 2 CFR Part 200. The lack of obtaining the required rate quotations increases the risk that the price paid was not competitive when compared to the market and that the transaction may not have been in a manner providing full and open competition. The lack of a documented standard of conduct that covers conflict of interest increases the risk that an actual or perceived conflict could occur. Repeat finding – Yes, 2022-006 Recommendation – We recommend the University implement controls to ensure all employees making federal purchases on behalf of the University are aware of the University’s documented procurement policy that is in accordance with 2 CFR Part 200. In addition, we recommend the University document its standard of conduct that covers conflicts of interest and governs the performance of its employees engaged in the selection, award, and administration of contracts. Views of responsible officials and planned corrective actions – The University puts measures in place to guarantee that every employee who makes federal purchases on the University's behalf is aware of the documented procurement policy that complies with 2 CFR Part 200. The University will formalize its code of conduct, which addresses conflicts of interest and sets performance standards for staff members who choose, award, and manage contracts.
2023-005 – Procurement, Suspension & Debarment – Significant Deficiency in Internal Controls over Compliance Department of Education Federal Assistance Listing Number: 84.031 Federal Program Name: Higher Education Institutional Aid Federal Award Number: P031S210057, P031S170020, P031C210038 Award Year: 2022-23, 2021-22 Federal Assistance Listing Number: 84.425E, 84.425F Federal Program Name: Higher Education Emergency Relief Funds (HEERF) Institutional Portion, Federal Award Number: P425F201298 Award Year: 2022-23 Criteria – Non-federal entities, 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 the policies and procedures conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. Condition/context – A sample of 4 expenditures greater than the micropurchase threshold of $10,000 but less than the simplified acquisition threshold of $250,000 were selected from the 20 transactions that exceeded the micropurchase threshold of $10,000. For all four of the expenditures the University did not obtain the required rate quotations; per the University’s documented policy two quotes should have been obtained or have documentation supporting their conclusion to sole source the purchases. Our sample was not, and was not intended to be, statistically valid. Questioned costs – None. Cause/effect – The personnel completing purchases on behalf of the University were unaware of the internal procurement policies that are in conformance with federal statutes and 2 CFR Part 200. The lack of obtaining the required rate quotations increases the risk that the price paid was not competitive when compared to the market and that the transaction may not have been in a manner providing full and open competition. The lack of a documented standard of conduct that covers conflict of interest increases the risk that an actual or perceived conflict could occur. Repeat finding – Yes, 2022-006 Recommendation – We recommend the University implement controls to ensure all employees making federal purchases on behalf of the University are aware of the University’s documented procurement policy that is in accordance with 2 CFR Part 200. In addition, we recommend the University document its standard of conduct that covers conflicts of interest and governs the performance of its employees engaged in the selection, award, and administration of contracts. Views of responsible officials and planned corrective actions – The University puts measures in place to guarantee that every employee who makes federal purchases on the University's behalf is aware of the documented procurement policy that complies with 2 CFR Part 200. The University will formalize its code of conduct, which addresses conflicts of interest and sets performance standards for staff members who choose, award, and manage contracts.
2023-005 – Procurement, Suspension & Debarment – Significant Deficiency in Internal Controls over Compliance Department of Education Federal Assistance Listing Number: 84.031 Federal Program Name: Higher Education Institutional Aid Federal Award Number: P031S210057, P031S170020, P031C210038 Award Year: 2022-23, 2021-22 Federal Assistance Listing Number: 84.425E, 84.425F Federal Program Name: Higher Education Emergency Relief Funds (HEERF) Institutional Portion, Federal Award Number: P425F201298 Award Year: 2022-23 Criteria – Non-federal entities, 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 the policies and procedures conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. Condition/context – A sample of 4 expenditures greater than the micropurchase threshold of $10,000 but less than the simplified acquisition threshold of $250,000 were selected from the 20 transactions that exceeded the micropurchase threshold of $10,000. For all four of the expenditures the University did not obtain the required rate quotations; per the University’s documented policy two quotes should have been obtained or have documentation supporting their conclusion to sole source the purchases. Our sample was not, and was not intended to be, statistically valid. Questioned costs – None. Cause/effect – The personnel completing purchases on behalf of the University were unaware of the internal procurement policies that are in conformance with federal statutes and 2 CFR Part 200. The lack of obtaining the required rate quotations increases the risk that the price paid was not competitive when compared to the market and that the transaction may not have been in a manner providing full and open competition. The lack of a documented standard of conduct that covers conflict of interest increases the risk that an actual or perceived conflict could occur. Repeat finding – Yes, 2022-006 Recommendation – We recommend the University implement controls to ensure all employees making federal purchases on behalf of the University are aware of the University’s documented procurement policy that is in accordance with 2 CFR Part 200. In addition, we recommend the University document its standard of conduct that covers conflicts of interest and governs the performance of its employees engaged in the selection, award, and administration of contracts. Views of responsible officials and planned corrective actions – The University puts measures in place to guarantee that every employee who makes federal purchases on the University's behalf is aware of the documented procurement policy that complies with 2 CFR Part 200. The University will formalize its code of conduct, which addresses conflicts of interest and sets performance standards for staff members who choose, award, and manage contracts.
2023-005 – Procurement, Suspension & Debarment – Significant Deficiency in Internal Controls over Compliance Department of Education Federal Assistance Listing Number: 84.031 Federal Program Name: Higher Education Institutional Aid Federal Award Number: P031S210057, P031S170020, P031C210038 Award Year: 2022-23, 2021-22 Federal Assistance Listing Number: 84.425E, 84.425F Federal Program Name: Higher Education Emergency Relief Funds (HEERF) Institutional Portion, Federal Award Number: P425F201298 Award Year: 2022-23 Criteria – Non-federal entities, 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 the policies and procedures conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. Condition/context – A sample of 4 expenditures greater than the micropurchase threshold of $10,000 but less than the simplified acquisition threshold of $250,000 were selected from the 20 transactions that exceeded the micropurchase threshold of $10,000. For all four of the expenditures the University did not obtain the required rate quotations; per the University’s documented policy two quotes should have been obtained or have documentation supporting their conclusion to sole source the purchases. Our sample was not, and was not intended to be, statistically valid. Questioned costs – None. Cause/effect – The personnel completing purchases on behalf of the University were unaware of the internal procurement policies that are in conformance with federal statutes and 2 CFR Part 200. The lack of obtaining the required rate quotations increases the risk that the price paid was not competitive when compared to the market and that the transaction may not have been in a manner providing full and open competition. The lack of a documented standard of conduct that covers conflict of interest increases the risk that an actual or perceived conflict could occur. Repeat finding – Yes, 2022-006 Recommendation – We recommend the University implement controls to ensure all employees making federal purchases on behalf of the University are aware of the University’s documented procurement policy that is in accordance with 2 CFR Part 200. In addition, we recommend the University document its standard of conduct that covers conflicts of interest and governs the performance of its employees engaged in the selection, award, and administration of contracts. Views of responsible officials and planned corrective actions – The University puts measures in place to guarantee that every employee who makes federal purchases on the University's behalf is aware of the documented procurement policy that complies with 2 CFR Part 200. The University will formalize its code of conduct, which addresses conflicts of interest and sets performance standards for staff members who choose, award, and manage contracts.
2023-005 – Procurement, Suspension & Debarment – Significant Deficiency in Internal Controls over Compliance Department of Education Federal Assistance Listing Number: 84.031 Federal Program Name: Higher Education Institutional Aid Federal Award Number: P031S210057, P031S170020, P031C210038 Award Year: 2022-23, 2021-22 Federal Assistance Listing Number: 84.425E, 84.425F Federal Program Name: Higher Education Emergency Relief Funds (HEERF) Institutional Portion, Federal Award Number: P425F201298 Award Year: 2022-23 Criteria – Non-federal entities, 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 the policies and procedures conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. Condition/context – A sample of 4 expenditures greater than the micropurchase threshold of $10,000 but less than the simplified acquisition threshold of $250,000 were selected from the 20 transactions that exceeded the micropurchase threshold of $10,000. For all four of the expenditures the University did not obtain the required rate quotations; per the University’s documented policy two quotes should have been obtained or have documentation supporting their conclusion to sole source the purchases. Our sample was not, and was not intended to be, statistically valid. Questioned costs – None. Cause/effect – The personnel completing purchases on behalf of the University were unaware of the internal procurement policies that are in conformance with federal statutes and 2 CFR Part 200. The lack of obtaining the required rate quotations increases the risk that the price paid was not competitive when compared to the market and that the transaction may not have been in a manner providing full and open competition. The lack of a documented standard of conduct that covers conflict of interest increases the risk that an actual or perceived conflict could occur. Repeat finding – Yes, 2022-006 Recommendation – We recommend the University implement controls to ensure all employees making federal purchases on behalf of the University are aware of the University’s documented procurement policy that is in accordance with 2 CFR Part 200. In addition, we recommend the University document its standard of conduct that covers conflicts of interest and governs the performance of its employees engaged in the selection, award, and administration of contracts. Views of responsible officials and planned corrective actions – The University puts measures in place to guarantee that every employee who makes federal purchases on the University's behalf is aware of the documented procurement policy that complies with 2 CFR Part 200. The University will formalize its code of conduct, which addresses conflicts of interest and sets performance standards for staff members who choose, award, and manage contracts.
Criteria: Non-federal entities must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326 (the Uniform Guidance) and 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. Internal controls should be designed to ensure compliance with these federal requirements.Additionally, contracts involving federal funds must include certain provisions of Appendix II part 200. Condition: The Child Nutrition Program is administered for the School Board by the CNP department. The Department’s purchase of produce products was not subjected to bidding or other means of competitive solicitation in accordance with the Unform Guidance. Additionally, the contracts with vendors do not include the provisions contained in Appendix II part 200. Universe/ Population: Food purchases subject to the procurement regulations totaled approximately $1,000,000, among 5 vendors, of which 4 contracts totaling $800,000 were subject to audit. Of the 4 audited, 1 contract with purchases totaling $120,000 for the fiscal year was found to be non-compliant. Effect: The School Board may be non-compliant with the Uniform Guidance with respect to this contract for produce products. Cause: A shortage of suppliers in the geographic area may have led to the decision to forego the pricing and/or bidding process. Recommendation: Pricing, bidding or other forms of solicitation allowed by the Uniform Guidance should be conducted by the School Board’s Child Nutrition Department. Contracts should be standardized to include the language and provisions of Appendix II part 200. View of Responsible Official and Corrective Action Plan: The Child Nutrition Supervisor acknowledges the finding regarding the purchase of produce products for SY 2022-23. There is only one regional produce distributor that successfully delivers to the Franklin Parish area with accurate invoices and timely deliveries based on past history. Due to staff changes and re-assignment of essential job functions, the produce bid was overlooked for this this year only. Moving forward, the CNP Supervisor bas established a procurement schedule for developing and revising necessary formal bids in compliance with Federal and State requirements and all CNP central office staff. During SY 2022-23, the Franklin Parish Child Nutrition Program experienced multiple shortages of canned and frozen vegetables and fruits. This made it essential to fill in with fresh produce to meet meal pattern requirements. This created a marked increase in the cost of the fresh produce available to us and increased our reliance on fresh produce.
Criteria: Non-federal entities must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326 (the Uniform Guidance) and 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. Internal controls should be designed to ensure compliance with these federal requirements.Additionally, contracts involving federal funds must include certain provisions of Appendix II part 200. Condition: The Child Nutrition Program is administered for the School Board by the CNP department. The Department’s purchase of produce products was not subjected to bidding or other means of competitive solicitation in accordance with the Unform Guidance. Additionally, the contracts with vendors do not include the provisions contained in Appendix II part 200. Universe/ Population: Food purchases subject to the procurement regulations totaled approximately $1,000,000, among 5 vendors, of which 4 contracts totaling $800,000 were subject to audit. Of the 4 audited, 1 contract with purchases totaling $120,000 for the fiscal year was found to be non-compliant. Effect: The School Board may be non-compliant with the Uniform Guidance with respect to this contract for produce products. Cause: A shortage of suppliers in the geographic area may have led to the decision to forego the pricing and/or bidding process. Recommendation: Pricing, bidding or other forms of solicitation allowed by the Uniform Guidance should be conducted by the School Board’s Child Nutrition Department. Contracts should be standardized to include the language and provisions of Appendix II part 200. View of Responsible Official and Corrective Action Plan: The Child Nutrition Supervisor acknowledges the finding regarding the purchase of produce products for SY 2022-23. There is only one regional produce distributor that successfully delivers to the Franklin Parish area with accurate invoices and timely deliveries based on past history. Due to staff changes and re-assignment of essential job functions, the produce bid was overlooked for this this year only. Moving forward, the CNP Supervisor bas established a procurement schedule for developing and revising necessary formal bids in compliance with Federal and State requirements and all CNP central office staff. During SY 2022-23, the Franklin Parish Child Nutrition Program experienced multiple shortages of canned and frozen vegetables and fruits. This made it essential to fill in with fresh produce to meet meal pattern requirements. This created a marked increase in the cost of the fresh produce available to us and increased our reliance on fresh produce.
Criteria: Non-federal entities must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326 (the Uniform Guidance) and 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. Internal controls should be designed to ensure compliance with these federal requirements.Additionally, contracts involving federal funds must include certain provisions of Appendix II part 200. Condition: The Child Nutrition Program is administered for the School Board by the CNP department. The Department’s purchase of produce products was not subjected to bidding or other means of competitive solicitation in accordance with the Unform Guidance. Additionally, the contracts with vendors do not include the provisions contained in Appendix II part 200. Universe/ Population: Food purchases subject to the procurement regulations totaled approximately $1,000,000, among 5 vendors, of which 4 contracts totaling $800,000 were subject to audit. Of the 4 audited, 1 contract with purchases totaling $120,000 for the fiscal year was found to be non-compliant. Effect: The School Board may be non-compliant with the Uniform Guidance with respect to this contract for produce products. Cause: A shortage of suppliers in the geographic area may have led to the decision to forego the pricing and/or bidding process. Recommendation: Pricing, bidding or other forms of solicitation allowed by the Uniform Guidance should be conducted by the School Board’s Child Nutrition Department. Contracts should be standardized to include the language and provisions of Appendix II part 200. View of Responsible Official and Corrective Action Plan: The Child Nutrition Supervisor acknowledges the finding regarding the purchase of produce products for SY 2022-23. There is only one regional produce distributor that successfully delivers to the Franklin Parish area with accurate invoices and timely deliveries based on past history. Due to staff changes and re-assignment of essential job functions, the produce bid was overlooked for this this year only. Moving forward, the CNP Supervisor bas established a procurement schedule for developing and revising necessary formal bids in compliance with Federal and State requirements and all CNP central office staff. During SY 2022-23, the Franklin Parish Child Nutrition Program experienced multiple shortages of canned and frozen vegetables and fruits. This made it essential to fill in with fresh produce to meet meal pattern requirements. This created a marked increase in the cost of the fresh produce available to us and increased our reliance on fresh produce.
Criteria: Non-federal entities must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326 (the Uniform Guidance) and 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. Internal controls should be designed to ensure compliance with these federal requirements.Additionally, contracts involving federal funds must include certain provisions of Appendix II part 200. Condition: The Child Nutrition Program is administered for the School Board by the CNP department. The Department’s purchase of produce products was not subjected to bidding or other means of competitive solicitation in accordance with the Unform Guidance. Additionally, the contracts with vendors do not include the provisions contained in Appendix II part 200. Universe/ Population: Food purchases subject to the procurement regulations totaled approximately $1,000,000, among 5 vendors, of which 4 contracts totaling $800,000 were subject to audit. Of the 4 audited, 1 contract with purchases totaling $120,000 for the fiscal year was found to be non-compliant. Effect: The School Board may be non-compliant with the Uniform Guidance with respect to this contract for produce products. Cause: A shortage of suppliers in the geographic area may have led to the decision to forego the pricing and/or bidding process. Recommendation: Pricing, bidding or other forms of solicitation allowed by the Uniform Guidance should be conducted by the School Board’s Child Nutrition Department. Contracts should be standardized to include the language and provisions of Appendix II part 200. View of Responsible Official and Corrective Action Plan: The Child Nutrition Supervisor acknowledges the finding regarding the purchase of produce products for SY 2022-23. There is only one regional produce distributor that successfully delivers to the Franklin Parish area with accurate invoices and timely deliveries based on past history. Due to staff changes and re-assignment of essential job functions, the produce bid was overlooked for this this year only. Moving forward, the CNP Supervisor bas established a procurement schedule for developing and revising necessary formal bids in compliance with Federal and State requirements and all CNP central office staff. During SY 2022-23, the Franklin Parish Child Nutrition Program experienced multiple shortages of canned and frozen vegetables and fruits. This made it essential to fill in with fresh produce to meet meal pattern requirements. This created a marked increase in the cost of the fresh produce available to us and increased our reliance on fresh produce.
Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Numbers: 10.553, 10555 Federal Award Program Year: July 1, 2022 – July 30, 2023 Pass-Through Agency: Arizona Department of Education Pass-Through Number: 07-84-09-001 Type of Finding: Other matter Compliance Requirement: Procurement and Suspension and Debarment Criteria: Non-federal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. Condition: The School’s policy governing procurement requirements for the purchase of goods or services when the aggregate dollar amount is greater than $10,000 but less than $100,000 was not followed. Questionable Costs: None reportable Context: Two vendors with purchases over $10,000 and under $100,000 were selected for testing and no price/rate quotes were obtained for one of the vendors. Effect: Purchases of goods or services were made that may not have been obtained in the most effective manner or in compliance with Uniform Guidance. Cause: The School did not adequately monitor purchases from its vendors to ensure compliance with it policies. Identification as a Repeat Finding: Not a repeat finding Recommendation: All purchases should be monitored by the purchasing and grant management departments to ensure that the purchases are in compliance with the School’s procurement policies.
Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Numbers: 10.553, 10555 Federal Award Program Year: July 1, 2022 – July 30, 2023 Pass-Through Agency: Arizona Department of Education Pass-Through Number: 07-84-09-001 Type of Finding: Other matter Compliance Requirement: Procurement and Suspension and Debarment Criteria: Non-federal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. Condition: The School’s policy governing procurement requirements for the purchase of goods or services when the aggregate dollar amount is greater than $10,000 but less than $100,000 was not followed. Questionable Costs: None reportable Context: Two vendors with purchases over $10,000 and under $100,000 were selected for testing and no price/rate quotes were obtained for one of the vendors. Effect: Purchases of goods or services were made that may not have been obtained in the most effective manner or in compliance with Uniform Guidance. Cause: The School did not adequately monitor purchases from its vendors to ensure compliance with it policies. Identification as a Repeat Finding: Not a repeat finding Recommendation: All purchases should be monitored by the purchasing and grant management departments to ensure that the purchases are in compliance with the School’s procurement policies.
2023-001 – Procurement and Suspension and Debarment Information on Federal Program Federal Grantor: U.S. Department of Education Pass-through Grantor: Pennsylvania Department of Education Program: Early Intervention (Philadelphia), Early Intervention (Chester) Assistance Listing #: 84.027, 84.173 Title: Special Education Cluster (IDEA) Audit Period: 07/01/2022 – 06/30/2023 Passthrough Numbers: 232-210026, 231-210026, 232-210035, 231-210035 Criteria or Specific Requirement - Procurement guidance is located in sections 2 CFR 200.317-200.326 of Uniform Guidance focusing on increased competition and transparency in the procurement process. There are five general procurement standards covering the purchase of property, supplies and services under the Uniform Guidance as follows: (a) Costs must be reasonable and necessary, (b) must provide for full and open competition, (c) an organization must maintain written standards of conduct covering internal and external conflicts of interest, and (d) the organization must maintain documentation addressing cost and price analysis and vendor selections where applicable based on the method of procurement used. The non-Federal entity must use one of the following methods of procurement: (a) micro-purchases, (b) small purchases, (c) sealed bids, (d) competitive proposals or (e) sole source. Condition - We noted for all of the eight procurements sampled, Elwyn did not provide a contemporaneously documented written conclusion on the method of each procurement that either demonstrated the procurements were conducted in a manner that provided full and open competition, or documented why noncompetitive procurement was appropriate. Elwyn provided their rationale for each of the procurements as part of the audit sample and testing process. Cause - Policies and procedures were not appropriately adhered to sufficiently document rationale and to ensure that procurement method selected was supported. Effect or Potential Effect - Written documentation insufficiently detailing the method and conclusions involved in procurement decisions, impacts the ability to demonstrate that full and open competition occurred, or that noncompetitive procurement was appropriate. Questioned Costs - None Context - We tested a sample of eight procurement transactions and noted that the Organization did not maintain contemporaneously written documentation and conclusions as required by its procurement policy for the selected items. Repeat Finding - No Recommendation - We recommend Elwyn enforce its existing policy and procedures to ensure compliance with procurement requirements. Elwyn should provide targeted training to members of the Organization involved in procurement processes on its existing policy and procedures to ensure understanding of the Organization’s requirements for documentation of procurement methods. Additionally, Elwyn should ensure all procurement decisions are contemporaneously documented with the information necessary to conclude on appropriateness of the procurement with respect to the procurement policy and requirements. Views of Responsible Officials - Management agrees with the finding and recommendation set forth within and has developed a corrective action plan to address the lapses in internal control.
2023-001 – Procurement and Suspension and Debarment Information on Federal Program Federal Grantor: U.S. Department of Education Pass-through Grantor: Pennsylvania Department of Education Program: Early Intervention (Philadelphia), Early Intervention (Chester) Assistance Listing #: 84.027, 84.173 Title: Special Education Cluster (IDEA) Audit Period: 07/01/2022 – 06/30/2023 Passthrough Numbers: 232-210026, 231-210026, 232-210035, 231-210035 Criteria or Specific Requirement - Procurement guidance is located in sections 2 CFR 200.317-200.326 of Uniform Guidance focusing on increased competition and transparency in the procurement process. There are five general procurement standards covering the purchase of property, supplies and services under the Uniform Guidance as follows: (a) Costs must be reasonable and necessary, (b) must provide for full and open competition, (c) an organization must maintain written standards of conduct covering internal and external conflicts of interest, and (d) the organization must maintain documentation addressing cost and price analysis and vendor selections where applicable based on the method of procurement used. The non-Federal entity must use one of the following methods of procurement: (a) micro-purchases, (b) small purchases, (c) sealed bids, (d) competitive proposals or (e) sole source. Condition - We noted for all of the eight procurements sampled, Elwyn did not provide a contemporaneously documented written conclusion on the method of each procurement that either demonstrated the procurements were conducted in a manner that provided full and open competition, or documented why noncompetitive procurement was appropriate. Elwyn provided their rationale for each of the procurements as part of the audit sample and testing process. Cause - Policies and procedures were not appropriately adhered to sufficiently document rationale and to ensure that procurement method selected was supported. Effect or Potential Effect - Written documentation insufficiently detailing the method and conclusions involved in procurement decisions, impacts the ability to demonstrate that full and open competition occurred, or that noncompetitive procurement was appropriate. Questioned Costs - None Context - We tested a sample of eight procurement transactions and noted that the Organization did not maintain contemporaneously written documentation and conclusions as required by its procurement policy for the selected items. Repeat Finding - No Recommendation - We recommend Elwyn enforce its existing policy and procedures to ensure compliance with procurement requirements. Elwyn should provide targeted training to members of the Organization involved in procurement processes on its existing policy and procedures to ensure understanding of the Organization’s requirements for documentation of procurement methods. Additionally, Elwyn should ensure all procurement decisions are contemporaneously documented with the information necessary to conclude on appropriateness of the procurement with respect to the procurement policy and requirements. Views of Responsible Officials - Management agrees with the finding and recommendation set forth within and has developed a corrective action plan to address the lapses in internal control.
2023-001 – Procurement and Suspension and Debarment Information on Federal Program Federal Grantor: U.S. Department of Education Pass-through Grantor: Pennsylvania Department of Education Program: Early Intervention (Philadelphia), Early Intervention (Chester) Assistance Listing #: 84.027, 84.173 Title: Special Education Cluster (IDEA) Audit Period: 07/01/2022 – 06/30/2023 Passthrough Numbers: 232-210026, 231-210026, 232-210035, 231-210035 Criteria or Specific Requirement - Procurement guidance is located in sections 2 CFR 200.317-200.326 of Uniform Guidance focusing on increased competition and transparency in the procurement process. There are five general procurement standards covering the purchase of property, supplies and services under the Uniform Guidance as follows: (a) Costs must be reasonable and necessary, (b) must provide for full and open competition, (c) an organization must maintain written standards of conduct covering internal and external conflicts of interest, and (d) the organization must maintain documentation addressing cost and price analysis and vendor selections where applicable based on the method of procurement used. The non-Federal entity must use one of the following methods of procurement: (a) micro-purchases, (b) small purchases, (c) sealed bids, (d) competitive proposals or (e) sole source. Condition - We noted for all of the eight procurements sampled, Elwyn did not provide a contemporaneously documented written conclusion on the method of each procurement that either demonstrated the procurements were conducted in a manner that provided full and open competition, or documented why noncompetitive procurement was appropriate. Elwyn provided their rationale for each of the procurements as part of the audit sample and testing process. Cause - Policies and procedures were not appropriately adhered to sufficiently document rationale and to ensure that procurement method selected was supported. Effect or Potential Effect - Written documentation insufficiently detailing the method and conclusions involved in procurement decisions, impacts the ability to demonstrate that full and open competition occurred, or that noncompetitive procurement was appropriate. Questioned Costs - None Context - We tested a sample of eight procurement transactions and noted that the Organization did not maintain contemporaneously written documentation and conclusions as required by its procurement policy for the selected items. Repeat Finding - No Recommendation - We recommend Elwyn enforce its existing policy and procedures to ensure compliance with procurement requirements. Elwyn should provide targeted training to members of the Organization involved in procurement processes on its existing policy and procedures to ensure understanding of the Organization’s requirements for documentation of procurement methods. Additionally, Elwyn should ensure all procurement decisions are contemporaneously documented with the information necessary to conclude on appropriateness of the procurement with respect to the procurement policy and requirements. Views of Responsible Officials - Management agrees with the finding and recommendation set forth within and has developed a corrective action plan to address the lapses in internal control.
2023-001 – Procurement and Suspension and Debarment Information on Federal Program Federal Grantor: U.S. Department of Education Pass-through Grantor: Pennsylvania Department of Education Program: Early Intervention (Philadelphia), Early Intervention (Chester) Assistance Listing #: 84.027, 84.173 Title: Special Education Cluster (IDEA) Audit Period: 07/01/2022 – 06/30/2023 Passthrough Numbers: 232-210026, 231-210026, 232-210035, 231-210035 Criteria or Specific Requirement - Procurement guidance is located in sections 2 CFR 200.317-200.326 of Uniform Guidance focusing on increased competition and transparency in the procurement process. There are five general procurement standards covering the purchase of property, supplies and services under the Uniform Guidance as follows: (a) Costs must be reasonable and necessary, (b) must provide for full and open competition, (c) an organization must maintain written standards of conduct covering internal and external conflicts of interest, and (d) the organization must maintain documentation addressing cost and price analysis and vendor selections where applicable based on the method of procurement used. The non-Federal entity must use one of the following methods of procurement: (a) micro-purchases, (b) small purchases, (c) sealed bids, (d) competitive proposals or (e) sole source. Condition - We noted for all of the eight procurements sampled, Elwyn did not provide a contemporaneously documented written conclusion on the method of each procurement that either demonstrated the procurements were conducted in a manner that provided full and open competition, or documented why noncompetitive procurement was appropriate. Elwyn provided their rationale for each of the procurements as part of the audit sample and testing process. Cause - Policies and procedures were not appropriately adhered to sufficiently document rationale and to ensure that procurement method selected was supported. Effect or Potential Effect - Written documentation insufficiently detailing the method and conclusions involved in procurement decisions, impacts the ability to demonstrate that full and open competition occurred, or that noncompetitive procurement was appropriate. Questioned Costs - None Context - We tested a sample of eight procurement transactions and noted that the Organization did not maintain contemporaneously written documentation and conclusions as required by its procurement policy for the selected items. Repeat Finding - No Recommendation - We recommend Elwyn enforce its existing policy and procedures to ensure compliance with procurement requirements. Elwyn should provide targeted training to members of the Organization involved in procurement processes on its existing policy and procedures to ensure understanding of the Organization’s requirements for documentation of procurement methods. Additionally, Elwyn should ensure all procurement decisions are contemporaneously documented with the information necessary to conclude on appropriateness of the procurement with respect to the procurement policy and requirements. Views of Responsible Officials - Management agrees with the finding and recommendation set forth within and has developed a corrective action plan to address the lapses in internal control.
Procurement and Suspension and Debarment Award Information: Grantor: U.S. Department of Transportation Assistance Listing Number: 20.509, Formula Grants for Rural Areas and Tribal Transit Program. Criteria Non-federal entities other than states, including those operating federal programs as sub-recipients of states, must follow procurement standards set out at 2 CFR sections 200.318 through 200.326. They must use their own documented 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. This includes meeting 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. This also includes conducting procurement transactions in a manner providing full and open competition in accordance with 2 CFR section 200.319 including the use of micro-purchases and small purchase methods for procurements that meet the applicable criteria under 2 CFR section 200.320. Condition The District does not have documented procurement procedures in accordance with the procurement standards set out at 2 CFR sections 200.318 through 200.326. Cause Previous management did not implement and previous District policies did not include documentation of procurement procedures in accordance with federal standards. New management is in place and have commenced an ongoing project to summarize accounting related activities into an accounting procedures manual, this includes the required procurement procedures. Effect The District does not have documented procurement procedures as required by federal standards. Not having the required procurement procedures in place could lead to awarding contracts and making purchases without adequate competition. Questioned Costs No questioned costs. Recommendation We recommend that the District formally document a procurement policy in accordance with federal standards to include all general requirements such as oversight of contractors’ performance, maintaining written standards of conduct for employees involved in contracting, awarding contracts only to responsible contractors, maintaining records to document history of procurements and conducting procurement transactions in a manner providing full and open competition. Management Response and Planned Corrective Action Following these findings are management’s view and corrective action plan.
Procurement and Suspension and Debarment Award Information: Grantor: U.S. Department of Transportation Assistance Listing Number: 20.509, Formula Grants for Rural Areas and Tribal Transit Program. Criteria Non-federal entities other than states, including those operating federal programs as sub-recipients of states, must follow procurement standards set out at 2 CFR sections 200.318 through 200.326. They must use their own documented 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. This includes meeting 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. This also includes conducting procurement transactions in a manner providing full and open competition in accordance with 2 CFR section 200.319 including the use of micro-purchases and small purchase methods for procurements that meet the applicable criteria under 2 CFR section 200.320. Condition The District does not have documented procurement procedures in accordance with the procurement standards set out at 2 CFR sections 200.318 through 200.326. Cause Previous management did not implement and previous District policies did not include documentation of procurement procedures in accordance with federal standards. New management is in place and have commenced an ongoing project to summarize accounting related activities into an accounting procedures manual, this includes the required procurement procedures. Effect The District does not have documented procurement procedures as required by federal standards. Not having the required procurement procedures in place could lead to awarding contracts and making purchases without adequate competition. Questioned Costs No questioned costs. Recommendation We recommend that the District formally document a procurement policy in accordance with federal standards to include all general requirements such as oversight of contractors’ performance, maintaining written standards of conduct for employees involved in contracting, awarding contracts only to responsible contractors, maintaining records to document history of procurements and conducting procurement transactions in a manner providing full and open competition. Management Response and Planned Corrective Action Following these findings are management’s view and corrective action plan.
FINDING 2023-002 DAVIS-BACON COMPLIANCE SIGNIFICANT DEFICIENCY Federal Program: Education Stabilization Fund Assistance Listing Numbers: 84.425D, 84.425U, and 84.425W Condition The School entered into agreements with contractors for various construction projects paid with funds from the Education Stabilization Fund. The School did not obtain certified payrolls from the contractor for each week in which work was performed under the contract to document compliance with the David-Bacon Act. Criteria Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements (which still may be referenced as the Davis-Bacon Act) a provision that the contractor or subcontractor comply with those requirements and the DOL regulations (29 CFR Part 5, Labor Standards Provisions Applicable to Contacts Governing Federally Financed and Assisted Construction). This includes a requirement for the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls) (29 CFR sections 5.5 and 5.6; the A-102 Common Rule (section 36(i)(5)); OMB Circular A-110 (2 CFR Part 215, Appendix A, Contract Provisions); 2 CFR Part 176, Subpart C; and 2 CFR section 200.326). Cause The School was not aware of the requirement outlined in the Criteria section above. Effect The School was unable to document the contractors were compliant with the Davis-Bacon Act. Recommendation We recommend the School develop internal controls to ensure that certified payrolls are obtained for each week that work is performed under qualifying construction or sub-construction contracts. Views of Responsible Officials and Planned Corrective Actions The School’s Corrective Action Plan is included on page 24.
FINDING 2023-002 DAVIS-BACON COMPLIANCE SIGNIFICANT DEFICIENCY Federal Program: Education Stabilization Fund Assistance Listing Numbers: 84.425D, 84.425U, and 84.425W Condition The School entered into agreements with contractors for various construction projects paid with funds from the Education Stabilization Fund. The School did not obtain certified payrolls from the contractor for each week in which work was performed under the contract to document compliance with the David-Bacon Act. Criteria Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements (which still may be referenced as the Davis-Bacon Act) a provision that the contractor or subcontractor comply with those requirements and the DOL regulations (29 CFR Part 5, Labor Standards Provisions Applicable to Contacts Governing Federally Financed and Assisted Construction). This includes a requirement for the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls) (29 CFR sections 5.5 and 5.6; the A-102 Common Rule (section 36(i)(5)); OMB Circular A-110 (2 CFR Part 215, Appendix A, Contract Provisions); 2 CFR Part 176, Subpart C; and 2 CFR section 200.326). Cause The School was not aware of the requirement outlined in the Criteria section above. Effect The School was unable to document the contractors were compliant with the Davis-Bacon Act. Recommendation We recommend the School develop internal controls to ensure that certified payrolls are obtained for each week that work is performed under qualifying construction or sub-construction contracts. Views of Responsible Officials and Planned Corrective Actions The School’s Corrective Action Plan is included on page 24.
FINDING 2023-002 DAVIS-BACON COMPLIANCE SIGNIFICANT DEFICIENCY Federal Program: Education Stabilization Fund Assistance Listing Numbers: 84.425D, 84.425U, and 84.425W Condition The School entered into agreements with contractors for various construction projects paid with funds from the Education Stabilization Fund. The School did not obtain certified payrolls from the contractor for each week in which work was performed under the contract to document compliance with the David-Bacon Act. Criteria Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements (which still may be referenced as the Davis-Bacon Act) a provision that the contractor or subcontractor comply with those requirements and the DOL regulations (29 CFR Part 5, Labor Standards Provisions Applicable to Contacts Governing Federally Financed and Assisted Construction). This includes a requirement for the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls) (29 CFR sections 5.5 and 5.6; the A-102 Common Rule (section 36(i)(5)); OMB Circular A-110 (2 CFR Part 215, Appendix A, Contract Provisions); 2 CFR Part 176, Subpart C; and 2 CFR section 200.326). Cause The School was not aware of the requirement outlined in the Criteria section above. Effect The School was unable to document the contractors were compliant with the Davis-Bacon Act. Recommendation We recommend the School develop internal controls to ensure that certified payrolls are obtained for each week that work is performed under qualifying construction or sub-construction contracts. Views of Responsible Officials and Planned Corrective Actions The School’s Corrective Action Plan is included on page 24.
2023-001 – Uniform Guidance Procurement Standards Criteria: One of the more significant provisions of the Uniform Guidance that affects the Town is the procurement standards under 2 CFR sections 200.318 through 200.326. Under the procurement standards, the Town is required to have a documented purchasing policy, which at a minimum, incorporates the provisions of the Uniform Guidance. Statement of Condition: The Office of Management and Budget (OMB) revised regulations applicable to federally funded programs. The regulations are contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The Uniform Guidance replaced OMB Circulars A-133, A-87, and A-110 and incorporates requirements for grant recipients. The Uniform Guidance includes not only protocols for program management and administration, but also updates compliance regulations for federal awards. Cause: The Town had not adopted a procurement policy that covered all aspects required by the Uniform Guidance. However, during our testing of procurement over federal expenditures, we did not notate any violations of the Uniform Guidance procurement standards. Effect: Items required by the Uniform Guidance procurement standards were not addressed in the policy followed by the Town during the fiscal year. Recommendation: We recommend that management review the applicable provisions of the Uniform Guidance procurement standards and update the Town’s procurement policy appropriately. This would include adding any missing components to the Town’s current procurement policy and updating definitions of types of procurement, i.e. micro-purchases, small purchases, and small acquisition threshold, to match the language used in the Uniform Guidance procurement standards.
Department of Education, Passed through North Dakota Department of Public Instruction Federal Financial Assistance Listing/CFDA Number 84.027/84.173 Special Education Cluster Procurement, Suspension, and Debarment Material Weakness in Internal Control over Compliance Criteria – Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non‐federal entities other than states must follow when operating federal programs and the procurement procedures required. Condition – In our testing of procurement, suspension and debarment it was identified that the District did not have a written policy on procurement that satisfied the requirements of 2 CFR sections 200.318 through 200.326. Cause – Lack of oversight, awareness, or understanding of all of the specific requirements under the Uniform Guidance and applicable CFR sections and controls were not adequately designed to ensure compliance with all of these requirements. Effect – A lack of documented policies increase the overall risk that employees are not aware of the specific requirements with contracting and awarding contracts to lower tier entities. Questioned Costs – None reported Context/Sampling – Overall procurement policy. Repeat Finding from Prior Years – Yes, prior year finding 2022-004 Recommendation – We recommend that management establish a written policy that addresses all of the procurement requirements for federal programs as identified in 2 CFR sections 200.318 through 200.326 and maintain adequate supporting documentation and records to document history and methods of procurement and the procedures performed to comply with these CFR sections. Views of Responsible Officials – There is no disagreement with the audit finding.
Department of Education, Passed through North Dakota Department of Public Instruction Federal Financial Assistance Listing/CFDA Number 84.027/84.173 Special Education Cluster Procurement, Suspension, and Debarment Material Weakness in Internal Control over Compliance Criteria – Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non‐federal entities other than states must follow when operating federal programs and the procurement procedures required. Condition – In our testing of procurement, suspension and debarment it was identified that the District did not have a written policy on procurement that satisfied the requirements of 2 CFR sections 200.318 through 200.326. Cause – Lack of oversight, awareness, or understanding of all of the specific requirements under the Uniform Guidance and applicable CFR sections and controls were not adequately designed to ensure compliance with all of these requirements. Effect – A lack of documented policies increase the overall risk that employees are not aware of the specific requirements with contracting and awarding contracts to lower tier entities. Questioned Costs – None reported Context/Sampling – Overall procurement policy. Repeat Finding from Prior Years – Yes, prior year finding 2022-004 Recommendation – We recommend that management establish a written policy that addresses all of the procurement requirements for federal programs as identified in 2 CFR sections 200.318 through 200.326 and maintain adequate supporting documentation and records to document history and methods of procurement and the procedures performed to comply with these CFR sections. Views of Responsible Officials – There is no disagreement with the audit finding.
Department of Education, Passed through North Dakota Department of Public Instruction Federal Financial Assistance Listing/CFDA Number 84.027/84.173 Special Education Cluster Procurement, Suspension, and Debarment Material Weakness in Internal Control over Compliance Criteria – Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non‐federal entities other than states must follow when operating federal programs and the procurement procedures required. Condition – In our testing of procurement, suspension and debarment it was identified that the District did not have a written policy on procurement that satisfied the requirements of 2 CFR sections 200.318 through 200.326. Cause – Lack of oversight, awareness, or understanding of all of the specific requirements under the Uniform Guidance and applicable CFR sections and controls were not adequately designed to ensure compliance with all of these requirements. Effect – A lack of documented policies increase the overall risk that employees are not aware of the specific requirements with contracting and awarding contracts to lower tier entities. Questioned Costs – None reported Context/Sampling – Overall procurement policy. Repeat Finding from Prior Years – Yes, prior year finding 2022-004 Recommendation – We recommend that management establish a written policy that addresses all of the procurement requirements for federal programs as identified in 2 CFR sections 200.318 through 200.326 and maintain adequate supporting documentation and records to document history and methods of procurement and the procedures performed to comply with these CFR sections. Views of Responsible Officials – There is no disagreement with the audit finding.
Department of Education, Passed through North Dakota Department of Public Instruction Federal Financial Assistance Listing/CFDA Number 84.027/84.173 Special Education Cluster Procurement, Suspension, and Debarment Material Weakness in Internal Control over Compliance Criteria – Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non‐federal entities other than states must follow when operating federal programs and the procurement procedures required. Condition – In our testing of procurement, suspension and debarment it was identified that the District did not have a written policy on procurement that satisfied the requirements of 2 CFR sections 200.318 through 200.326. Cause – Lack of oversight, awareness, or understanding of all of the specific requirements under the Uniform Guidance and applicable CFR sections and controls were not adequately designed to ensure compliance with all of these requirements. Effect – A lack of documented policies increase the overall risk that employees are not aware of the specific requirements with contracting and awarding contracts to lower tier entities. Questioned Costs – None reported Context/Sampling – Overall procurement policy. Repeat Finding from Prior Years – Yes, prior year finding 2022-004 Recommendation – We recommend that management establish a written policy that addresses all of the procurement requirements for federal programs as identified in 2 CFR sections 200.318 through 200.326 and maintain adequate supporting documentation and records to document history and methods of procurement and the procedures performed to comply with these CFR sections. Views of Responsible Officials – There is no disagreement with the audit finding.
Federal Program Information: Funding Agency: U.S. Department of Agriculture Title: USDA School Breakfast Program and National School Lunch Program FAL Number: 10.553 and 10.555 Passthrough: New Mexico Public Education Department Award Year: 2023 Criteria: §200.213 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. These regulations restrict awards, sub awards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. §200.317 Procurements by states. 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 §200.322 Procurement of recovered materials and ensure that every purchase order or other contract includes any clauses required by section §200.326 Contract provisions. All other non-Federal entities, including sub recipients of a state, will follow §§200.318 General procurement standards through 200.326 Contract provisions. §200.318 General procurement standards. (a) The non-Federal entity must 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 the standards identified in this part. (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. APPENDIX II TO PART 200—CONTRACT PROVISIONS FOR NON-FEDERAL ENTITY CONTRACTS UNDER FEDERAL AWARDS In addition to other provisions required by the Federal agency or non-Federal entity, all contracts made by the non-Federal entity under the Federal award must contain provisions covering the following, as applicable. (H) Debarment and Suspension (Executive Orders 12549 and 12689)—A contract award (see 2 CFR 180.220) must not be made to parties listed on the government-wide exclusions in the System for Award Management (SAM), in accordance with the OMB guidelines at 2 CFR 180 that implement Executive Orders 12549 (3 CFR part 1986 Comp., p. 189) and 12689 (3 CFR part 1989 Comp., p. 235), “Debarment and Suspension.” https://www.sam.gov/portal/public/SAM/ SAM Exclusions contains the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority other than Executive Order 12549. Condition: During our testing of single audit disbursements, we identified a vendor which would meet the requirement of verifying that the vendor was not suspended or debarred or otherwise excluded from receiving the contract which was funded through Federal dollars. The vendor received more than $25,000 in payments from the District from Federal grant sources. The vendor is not currently suspended or debarred from receiving Federal contracts; however, the District did not have proper internal controls in place to verify this prior to the purchase. The District did make improvement in this area for all new work during the year. However, these projects were completed in the year under audit before the District became aware of the requirements above and could not retroactively cure the errors. Cause: District personnel did not verify that vendors which meet the $25,000 thresholds are not suspended, debarred, or otherwise excluded from participating in contracts funded through Federal awards due to a misunderstanding of staff personnel regarding this requirement. Effect: The District is not in compliance with Federal regulations related to the grant and could put funding in jeopardy or require the District to reimburse the program for improper grant distributions. Auditor’s Recommendation: We recommend the District establish a policy and implement procedures regarding large purchases related to Federal grants to insure that no vendors who are suspended, debarred, or otherwise excluded from participating in transactions funded through Federal grants are used. As identified above, there are several methods in which the District can verify vendors are not suspended or debarred. The District may have the vendor provide an annual certification that it is not currently suspended, debarred, or otherwise prevented from receiving Federal dollars. In other occasions in which a single purchase is going to be made, the purchasing procedures should include looking up the vendor on the GSA website, printing a copy of the verification, and placing it in the file with the purchase order. The District has options, and it should establish what method is the least intrusive but also effective in complying with the requirements of the Uniform Grant Guidance. Responsible Official’s Plan: Specific corrective action plan for finding: The Grants Finance Department, Federal Grants Department, Operations Department along with the Purchasing Department will review Vendors that are issued requisitions at each approval level to assist in catching $25K or more for Suspension and Debarment. A printed document from SAM.GOV verifying eligibility for Requisitions over $25K will be attached. Infinite Visions is set up to alert originators entering requisitions over $25,000 to contact Purchasing or Grants Department to check the vendor in SAM.GOV to confirm the vendor is vetted to comply with federal regulations. At the initial setup of new vendors, the Purchasing Department will review vendors in SAM.GOV. A printed document from SAM.GOV verifying eligibility of vendor will be attached to the vendor file. Timeline for completion of corrective action plan: The process was implemented immediately upon awareness of the finding and we are hopeful that all issues have been resolved by FY24. Employee position(s) responsible for meeting the timeline: Grants Specialists, CPO, Finance Specialists, Purchasing Specialist, Federal Grants Coordinator, Federal Grants Specialist
2023-001 Federal Agency: Department of the Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Listing Number: 21.027 Federal Award Identification Number and Year: 22GOV0019AA, 2023 Pass-Through Agency: Town of East Hartford, State of Connecticut Office of Workforce Strategy Pass-Through Number: SLFRP0128 Award Period: 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: The Organization must comply with procurement standards set out at 2 CFR sections 200.318 through 200.326 within Uniform Guidance. Condition: The procurement policy of the Organization does not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned costs: None Context: We reviewed the procurement policy of the Organization and noted that the policy does not include the essential compliance elements as outlined in 2 CFR sections 200.318 through 200.326. Cause: Management was unaware of the restrictive requirements of the new procurement standards. Effect: With the absence of a compliant policy, the Organization is at risk for noncompliance as it relates to federal procurement. Repeat Finding: No Recommendation: We recommend that the Organization review its procurement policy and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of Responsible Officials: There is no disagreement with the audit finding
2023-001 Federal Agency: Department of the Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Listing Number: 21.027 Federal Award Identification Number and Year: 22GOV0019AA, 2023 Pass-Through Agency: Town of East Hartford, State of Connecticut Office of Workforce Strategy Pass-Through Number: SLFRP0128 Award Period: 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: The Organization must comply with procurement standards set out at 2 CFR sections 200.318 through 200.326 within Uniform Guidance. Condition: The procurement policy of the Organization does not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned costs: None Context: We reviewed the procurement policy of the Organization and noted that the policy does not include the essential compliance elements as outlined in 2 CFR sections 200.318 through 200.326. Cause: Management was unaware of the restrictive requirements of the new procurement standards. Effect: With the absence of a compliant policy, the Organization is at risk for noncompliance as it relates to federal procurement. Repeat Finding: No Recommendation: We recommend that the Organization review its procurement policy and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of Responsible Officials: There is no disagreement with the audit finding
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 AMERICAN RESCUE PLAN - ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBER 84.425U PASS-THROUGH NUMBER 4203 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023 2023-001. Equipment and Real Property Management / Special Tests and Provisions Criteria or specific requirement (including statutory, regulatory, or other citation): 29 CFR 5.5 (Wage Rate Requirements) requires all contractors and subcontractors performing construction contracts in excess of $2,000, financed by federal assistance funds, to pay laborers and mechanics employed by the contractor or subcontractor not less than the prevailing wage rates established by the Department of Labor for the locality of the project. Non-federal entities shall include in the applicable construction contracts a provision that the contractor or subcontractor comply with those requirements. Such requirements include the submission of weekly certified payrolls for each week in which any contract work is performed, to the non-federal entities. Additionally, 2 CFR 200.326 and Ark. Code Ann. § 18-44-503 require a non-federal entity to obtain a performance bond for the public construction contract. Condition: The District paid two contractors $153,001 and $248,750 from the Education Stabilization Fund for two roofing projects without obtaining contracts that included the prevailing wage rate provision, and weekly certified payrolls were not submitted to the District. Additionally, the District did not obtain performance bonds for the two roofing projects, as required by Ark. Code Ann. § 18-44-503. Cause: Lack of internal controls and management oversight. Effect: The District did not comply with Wage Rate Requirements or Bonding Requirements. Context: The District had two construction contracts for facility repairs and improvements paid from the Education Stabilization Fund. Examined both contracts for compliance. Recommendation: The District should ensure that all applicable construction contracts contain the Wage Rate Requirements provision, obtain weekly certified payrolls from the contractor or subcontractor, and obtain performance bonds. The District should also contact the Arkansas Division of Elementary and Secondary Education (DESE) for further directives regarding this matter. Views of responsible officials: The District will ensure contracts are obtained and all applicable construction contracts contain the required notification regarding compliance with the Davis-Bacon Act. We will make sure to get copies of the weekly certified payrolls for applicable projects. We will be in contact with DESE for guidance and implementation of program controls over program expenditures by June 30, 2024.
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 AMERICAN RESCUE PLAN - ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBER 84.425U PASS-THROUGH NUMBER 4203 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023 2023-001. Equipment and Real Property Management / Special Tests and Provisions Criteria or specific requirement (including statutory, regulatory, or other citation): 29 CFR 5.5 (Wage Rate Requirements) requires all contractors and subcontractors performing construction contracts in excess of $2,000, financed by federal assistance funds, to pay laborers and mechanics employed by the contractor or subcontractor not less than the prevailing wage rates established by the Department of Labor for the locality of the project. Non-federal entities shall include in the applicable construction contracts a provision that the contractor or subcontractor comply with those requirements. Such requirements include the submission of weekly certified payrolls for each week in which any contract work is performed, to the non-federal entities. Additionally, 2 CFR 200.326 and Ark. Code Ann. § 18-44-503 require a non-federal entity to obtain a performance bond for the public construction contract. Condition: The District paid two contractors $153,001 and $248,750 from the Education Stabilization Fund for two roofing projects without obtaining contracts that included the prevailing wage rate provision, and weekly certified payrolls were not submitted to the District. Additionally, the District did not obtain performance bonds for the two roofing projects, as required by Ark. Code Ann. § 18-44-503. Cause: Lack of internal controls and management oversight. Effect: The District did not comply with Wage Rate Requirements or Bonding Requirements. Context: The District had two construction contracts for facility repairs and improvements paid from the Education Stabilization Fund. Examined both contracts for compliance. Recommendation: The District should ensure that all applicable construction contracts contain the Wage Rate Requirements provision, obtain weekly certified payrolls from the contractor or subcontractor, and obtain performance bonds. The District should also contact the Arkansas Division of Elementary and Secondary Education (DESE) for further directives regarding this matter. Views of responsible officials: The District will ensure contracts are obtained and all applicable construction contracts contain the required notification regarding compliance with the Davis-Bacon Act. We will make sure to get copies of the weekly certified payrolls for applicable projects. We will be in contact with DESE for guidance and implementation of program controls over program expenditures by June 30, 2024.