2023-002: Lack of Documentation for Procurement, Suspension and Debarment Testing Federal Department: Department of Labor Assistance Listing #: 17.274 Material Weakness in Internal Controls and Noncompliance Category of Finding – Procurement, Suspension, and Debarment Criteria - Uniform Guidance and 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 depending on the amount of the transaction. Condition - There was no documentation maintained related to the search for price comparisons or suspension and debarment testing performed on vendors. Context – It was communicated by management during audit fieldwork that there was no documentation maintained related to the search for price comparisons or suspension and debarment testing performed on vendors. Cause – Lack of oversight, awareness, or understanding of all of the specific requirements under the Uniform Guidance and applicable CFR sections, therefore controls were not adequately designed to ensure compliance with all of these requirements. Effect - Increased overall risk that Change Inc. is contracting and awarding contracts to suspended or debarred vendors or is not obtaining the best possible prices for goods or services. Recommendation - We recommend that management implement a process to perform price comparisons and suspension and debarment testing as required by their procurement policy, and that as part of this process they maintain adequate supporting documentation and records to document history and methods of procurement, suspension, and debarment and the procedures performed to comply with these CFR sections. This could include the use of standard forms and templates for purchase orders, contracts, cost/price analyses, bid evaluation, and suspension & debarment testing. Auditee’s comments and response – Management is in agreement with this finding. Management is in the process of obtaining additional training and updating processes to comply with these requirements. Responsible party for corrective action: Jill Johnson, Associate Director Repeat Finding: 2022-003
2023-002: Lack of Documentation for Procurement, Suspension and Debarment Testing Federal Department: Department of Labor Assistance Listing #: 17.274 Material Weakness in Internal Controls and Noncompliance Category of Finding – Procurement, Suspension, and Debarment Criteria - Uniform Guidance and 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 depending on the amount of the transaction. Condition - There was no documentation maintained related to the search for price comparisons or suspension and debarment testing performed on vendors. Context – It was communicated by management during audit fieldwork that there was no documentation maintained related to the search for price comparisons or suspension and debarment testing performed on vendors. Cause – Lack of oversight, awareness, or understanding of all of the specific requirements under the Uniform Guidance and applicable CFR sections, therefore controls were not adequately designed to ensure compliance with all of these requirements. Effect - Increased overall risk that Change Inc. is contracting and awarding contracts to suspended or debarred vendors or is not obtaining the best possible prices for goods or services. Recommendation - We recommend that management implement a process to perform price comparisons and suspension and debarment testing as required by their procurement policy, and that as part of this process they maintain adequate supporting documentation and records to document history and methods of procurement, suspension, and debarment and the procedures performed to comply with these CFR sections. This could include the use of standard forms and templates for purchase orders, contracts, cost/price analyses, bid evaluation, and suspension & debarment testing. Auditee’s comments and response – Management is in agreement with this finding. Management is in the process of obtaining additional training and updating processes to comply with these requirements. Responsible party for corrective action: Jill Johnson, Associate Director Repeat Finding: 2022-003
Finding 2023-002 Program Name: WIC Special Supplemental Nutrition Program for Women,Infants, and Children and Grants for Capital Development in Health Centers Federal Assistance Listing Number: 10.557 and 93.526 Federal Agencies: United States Department of Agriculture (USDA) and and U.S. Department of Health and Human Services Finding Type: Material Weakness Compliance Requirement: Procurement Condition: Ampla Health did not have adequate procurement policies in place that meet the minimum federal requirements for procurement standards. We examined the procurement records for nine vendors where Ampla Health expended federal funds. For all four sole source procurement records reviewed, Ampla Health did not retain documentation of the sole source determination or have an approved sole source vendor list. For two of three vendors selected in the small acquisition threshold, Ampla Health could not provide competing quotes or sufficient evidence to demonstrate procurement was performed. For one of three vendors selected in the small acquisition threshold, Ampla Health was only able to provide procurement support for a portion of the funds expended. Criteria: Under 2 CFR sections 200.318 through 200.326 and 45 CFR 75.327 Ampla Health is required to implement certain written procurement policies and procedures that adhere to the minimum Federal Procurement standards. Ampla Health must use its 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 and maintain sufficient records to detail the history of procurements. Cause: Ampla Health did not have a policy in place that meets the minimum federal requirements under Uniform Guidance. In addition, Ampla Health could not provide support to demonstrate that it performed the necessary procurement steps or retained documentation demonstrating compliance with Uniform Guidance for purchases made with federal funds. Effect: Ampla Health was not in compliance with federal regulations or their own policies. Recommendation: Ampla Health should update their procurement policy to meet the minimum federal requirements and ensure procurement policies are being followed for all procurement levels with written documentation. Additionally, management should ensure individuals participating in the procurement process receive adequate training and guidance on procurement rules under the Uniform Guidance. View of Responsible Officials: Management will review the procurement policy and make necessary changes to ensure the policy meets all federal requirements.
Finding 2023-002 Program Name: WIC Special Supplemental Nutrition Program for Women,Infants, and Children and Grants for Capital Development in Health Centers Federal Assistance Listing Number: 10.557 and 93.526 Federal Agencies: United States Department of Agriculture (USDA) and and U.S. Department of Health and Human Services Finding Type: Material Weakness Compliance Requirement: Procurement Condition: Ampla Health did not have adequate procurement policies in place that meet the minimum federal requirements for procurement standards. We examined the procurement records for nine vendors where Ampla Health expended federal funds. For all four sole source procurement records reviewed, Ampla Health did not retain documentation of the sole source determination or have an approved sole source vendor list. For two of three vendors selected in the small acquisition threshold, Ampla Health could not provide competing quotes or sufficient evidence to demonstrate procurement was performed. For one of three vendors selected in the small acquisition threshold, Ampla Health was only able to provide procurement support for a portion of the funds expended. Criteria: Under 2 CFR sections 200.318 through 200.326 and 45 CFR 75.327 Ampla Health is required to implement certain written procurement policies and procedures that adhere to the minimum Federal Procurement standards. Ampla Health must use its 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 and maintain sufficient records to detail the history of procurements. Cause: Ampla Health did not have a policy in place that meets the minimum federal requirements under Uniform Guidance. In addition, Ampla Health could not provide support to demonstrate that it performed the necessary procurement steps or retained documentation demonstrating compliance with Uniform Guidance for purchases made with federal funds. Effect: Ampla Health was not in compliance with federal regulations or their own policies. Recommendation: Ampla Health should update their procurement policy to meet the minimum federal requirements and ensure procurement policies are being followed for all procurement levels with written documentation. Additionally, management should ensure individuals participating in the procurement process receive adequate training and guidance on procurement rules under the Uniform Guidance. View of Responsible Officials: Management will review the procurement policy and make necessary changes to ensure the policy meets all federal requirements.
Findings and Questioned Costs Related to Federal Awards Finding Number: 2023‐002 Repeat Finding: No Program Names/Assistance Listing Titles: Assistance Listing Numbers: Federal Award Numbers: Questioned Costs: Indian School Equalization 15.042 A22AV00871 N/A Indian School Student Transportation 15.044 A22AV00871 N/A Federal Agency: U.S. Department of the Interior Pass‐Through Agency: Bureau of Indian Affairs Type of Finding: Noncompliance, Significant Deficiency Compliance Requirements: 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 §§200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable State and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR part 200. Condition Documentation for procurement performed for purchases below the Simplified Acquisition threshold of $250,000 was not maintained. Cause School and federal policies to obtain three quotes for purchases between $10,000 and $249,000 were not followed. Effect The School was not in compliance with federal regulations and guidelines or school policy. Context The sample was not intended to be, and was not, a statistically valid sample. For all five disbursements reviewed, the School did not obtain three quotes in accordance School or federal policy. Recommendation The School should adhere to its Board adopted policies and federal regulations. The School should implement stronger controls to ensure procurement guidelines are followed. Views of Responsible Officials See Corrective Action Plan.
Findings and Questioned Costs Related to Federal Awards Finding Number: 2023‐002 Repeat Finding: No Program Names/Assistance Listing Titles: Assistance Listing Numbers: Federal Award Numbers: Questioned Costs: Indian School Equalization 15.042 A22AV00871 N/A Indian School Student Transportation 15.044 A22AV00871 N/A Federal Agency: U.S. Department of the Interior Pass‐Through Agency: Bureau of Indian Affairs Type of Finding: Noncompliance, Significant Deficiency Compliance Requirements: 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 §§200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable State and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR part 200. Condition Documentation for procurement performed for purchases below the Simplified Acquisition threshold of $250,000 was not maintained. Cause School and federal policies to obtain three quotes for purchases between $10,000 and $249,000 were not followed. Effect The School was not in compliance with federal regulations and guidelines or school policy. Context The sample was not intended to be, and was not, a statistically valid sample. For all five disbursements reviewed, the School did not obtain three quotes in accordance School or federal policy. Recommendation The School should adhere to its Board adopted policies and federal regulations. The School should implement stronger controls to ensure procurement guidelines are followed. Views of Responsible Officials See Corrective Action Plan.
Findings and Questioned Costs Related to Federal Awards Finding Number: 2023‐002 Repeat Finding: No Program Names/Assistance Listing Titles: Assistance Listing Numbers: Federal Award Numbers: Questioned Costs: Indian School Equalization 15.042 A22AV00871 N/A Indian School Student Transportation 15.044 A22AV00871 N/A Federal Agency: U.S. Department of the Interior Pass‐Through Agency: Bureau of Indian Affairs Type of Finding: Noncompliance, Significant Deficiency Compliance Requirements: 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 §§200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable State and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR part 200. Condition Documentation for procurement performed for purchases below the Simplified Acquisition threshold of $250,000 was not maintained. Cause School and federal policies to obtain three quotes for purchases between $10,000 and $249,000 were not followed. Effect The School was not in compliance with federal regulations and guidelines or school policy. Context The sample was not intended to be, and was not, a statistically valid sample. For all five disbursements reviewed, the School did not obtain three quotes in accordance School or federal policy. Recommendation The School should adhere to its Board adopted policies and federal regulations. The School should implement stronger controls to ensure procurement guidelines are followed. Views of Responsible Officials See Corrective Action Plan.
Finding Number: 2023‐001 Repeat Finding: Yes, 2022‐001 Program Name/Assistance Listing Title: Indian School Equalization Assistance Listing Number: 15.042 Federal Agency: U.S. Department of the Interior Federal Award Number: A22AV00856 Pass‐Through Agency: Bureau of Indian Affairs Questioned Costs: N/A Type of Finding: Noncompliance, Material Weakness Compliance Requirement: Procurement, 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 §§200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable State and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR part 200. Condition Adequate internal controls over its procurement procedures to ensure compliance with federal regulations and guidelines and School policies were not in place. The School did not establish complete written procurement standards. In addition, the School did not follow federal guidelines for purchases exceeding the small purchases threshold. Cause The School’s internal controls over procurement of goods and services were not adequate. Effect The School was not in compliance with Federal regulations and guidelines related to procurement. Context During our review of purchasing, we noted the following: - Sealed bids were not performed in accordance with School policies. However, these purchases did not rise above the Simplified Acquisition Threshold. - For eight of 10 vendors reviewed with total expenditures below the Simplified Acquisition threshold, no documentation of quotes was maintained. - The School's policy did not include any language regarding quotes and thresholds. The sample was not intended to be, and was not, a statistically valid sample. Recommendation The School should develop and implement policies and procedures to ensure compliance with federal procurement requirements. Views of Responsible Officials See Corrective Action Plan.
Small Business Administration Financial Assistance Listing #59.008 COVID‐19 Disaster Assistance Loans Procurement Material Noncompliance and Material Weakness in Internal Control over Compliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (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 depending on the amount of the transaction. The Organization is required to create a written procurement, suspension, and debarment policy that complies with applicable federal requirements and to follow this policy when procuring goods and services. The Organization is also required to retain documentation supporting performance of a price analysis, open competition, and review for suspension and debarment. Condition: The Organization does not have a written procurement policy. Additionally, there was no documentation to support a price analysis over the transactions tested or documentation supporting that vendors were reviewed for suspension and debarment. There was also no documentation for review of the procurement transactions tested. Cause: The Organization had turnover and limited staffing available. Effect: The Organization did not ensure that the procurement policy was complete and accurate. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of 4 transactions out of 9 procurement transactions were selected for testing, which accounted for $156,353 of $297,188 of federal program expenditures. Repeat Finding from Prior Year(s): No Recommendation: We recommend the Organization’s management implement a written procurement policy to follow and documenting the performance of required procurement procedures. Views of Responsible Officials: Management agrees with the finding.
PROCUREMENT--Questioned Costs: None How the questioned costs were computed: N/A Condition: Wipfli obtained the supporting documentation for purchases of client furnishings, food, a vehicle, and lawn care services. The documentation indicated these vendors were selected based on best price. Turning Point of Central California, Inc. was able to provide explanations for why the vendors were selected, but procurement records supporting the explanations were not available. In addition, Wipfli noted Turning Point of Central California, Inc.’s procurement policy included references to outdated federal regulations and did not comply with all of the procurement requirements in the Uniform Guidance (2 CFR Part 200). This is a repeat finding from the June 30, 2021 and 2022 audits. Criteria: The Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, 2 CFR Part 200, section 318(i) (Uniform Guidance) states that the non-Federal entity must maintain records sufficient to detail the history of procurement. The records will include, but are not necessarily limited to, the following: rationale for the method of procurement, selection of contractor type, contractor selection or rejection, and the basis for the contract price. In addition, the Uniform Guidance, 2 CFR Part 200, section 200.118 states that the non-Federal entity must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326 and must use their own documented procurement procedures that must conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. Section III - Federal Award Findings and Questioned Costs (Continued) Finding 2023-002: Procurement (Continued) Cause: Turning Point of Central California, Inc. did not retain procurement records to support its assertion that it is contracting with vendors that provide the best prices. Turning Point of Central California, Inc. has not updated its procurement policy to comply with the Uniform Guidance (2 CFR Part 200). This finding was first reported in the June 30, 2021 and 2022 audits, issued in June 2022 and June 2023, respectively, and Turning Point of Central California, Inc. did not have adequate time to implement its corrective action plan during the year ended June 30, 2023. Effect: Due to the conditions noted above, Turning Point of Central California, Inc. was not in compliance with the procurement regulations and there exists a material weakness in internal controls over the procurement compliance requirement. Recommendation: We recommend Turning Point of Central California, Inc. implement controls to ensure the procurement decisions are properly documented in accordance with updated internal policies and procedures that conform to the Uniform Guidance (2 CFR Part 200). View of responsible officials: Management agrees with the finding and has submitted a corrective action plan.
Finding 2023-001: Paper/Chemical Product Contract Federal Agency: U.S. Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.559/10.582 Compliance Requirement: Procurement, Suspension and Debarment Award Period: Fiscal Year 2023 Criteria or specific requirement: Non-federal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. Condition/Context: The Board did not follow the established procurement policy for their paper/chemical contract. Questioned Costs: Undetermined Cause: The Board allowed prior bid contract to expire. Effect: The Board did not have a competitively bid contract in place during fiscal year 2023 for paper/chemical products. Repeat Finding: No Recommendation: We recommend following the Board’s established procurement policy providing for competitive bid. Views of Responsible Officials: The Board has addressed this finding. Beginning in December 2023, the Board has entered into a contract with a vendor that was awarded the competitive bid for paper/chemical products.
Finding 2023-001: Paper/Chemical Product Contract Federal Agency: U.S. Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.559/10.582 Compliance Requirement: Procurement, Suspension and Debarment Award Period: Fiscal Year 2023 Criteria or specific requirement: Non-federal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. Condition/Context: The Board did not follow the established procurement policy for their paper/chemical contract. Questioned Costs: Undetermined Cause: The Board allowed prior bid contract to expire. Effect: The Board did not have a competitively bid contract in place during fiscal year 2023 for paper/chemical products. Repeat Finding: No Recommendation: We recommend following the Board’s established procurement policy providing for competitive bid. Views of Responsible Officials: The Board has addressed this finding. Beginning in December 2023, the Board has entered into a contract with a vendor that was awarded the competitive bid for paper/chemical products.
Finding 2023-001: Paper/Chemical Product Contract Federal Agency: U.S. Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.559/10.582 Compliance Requirement: Procurement, Suspension and Debarment Award Period: Fiscal Year 2023 Criteria or specific requirement: Non-federal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. Condition/Context: The Board did not follow the established procurement policy for their paper/chemical contract. Questioned Costs: Undetermined Cause: The Board allowed prior bid contract to expire. Effect: The Board did not have a competitively bid contract in place during fiscal year 2023 for paper/chemical products. Repeat Finding: No Recommendation: We recommend following the Board’s established procurement policy providing for competitive bid. Views of Responsible Officials: The Board has addressed this finding. Beginning in December 2023, the Board has entered into a contract with a vendor that was awarded the competitive bid for paper/chemical products.
Finding 2023-001: Paper/Chemical Product Contract Federal Agency: U.S. Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.559/10.582 Compliance Requirement: Procurement, Suspension and Debarment Award Period: Fiscal Year 2023 Criteria or specific requirement: Non-federal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. Condition/Context: The Board did not follow the established procurement policy for their paper/chemical contract. Questioned Costs: Undetermined Cause: The Board allowed prior bid contract to expire. Effect: The Board did not have a competitively bid contract in place during fiscal year 2023 for paper/chemical products. Repeat Finding: No Recommendation: We recommend following the Board’s established procurement policy providing for competitive bid. Views of Responsible Officials: The Board has addressed this finding. Beginning in December 2023, the Board has entered into a contract with a vendor that was awarded the competitive bid for paper/chemical products.
Assistance Listing Number 84.041 Impact Aid Department of Education North Dakota Department of Public Instruction Special Tests and Provisions 2 CFR Part 200.326 Criteria For construction contracts and subcontracts greater than $2,000 funded with federal dollars, the District should verify prevailing wage rate clauses were included in the contract or subcontract and for each week in which work was performed under the contract or subcontract the District should monitor certified payroll registers to ensure contractors and subcontractors were paying employees the prevailing wage rates. Condition The District did not provide the wage rate clauses to contractors. In addition, the District did not obtain from contractors the certified payroll registers, nor did they perform testing to ensure contractors were paying the prevailing wage rates. Cause The District was unaware of the compliance requirements regarding the construction projects. Effect The District is not in compliance with Wage Rate Requirements, a part of the Special Tests and Provisions. Questioned Costs Undeterminable. Repeat Finding This is not a repeat finding. Recommendation We recommend the District to review the wage rate compliance requirements as part of the special tests and provisions of this program in the compliance supplement and to create and implement a process of submitting prevailing wage rates to contractors as well as obtaining the certified payroll registers to determine if contractors are in compliance. Management’s Response The District will plan to get payroll registers monthly from contractors moving forward.
Assistance Listing Number 84.041 Impact Aid Department of Education North Dakota Department of Public Instruction Special Tests and Provisions 2 CFR Part 200.326 Criteria For construction contracts and subcontracts greater than $2,000 funded with federal dollars, the District should verify prevailing wage rate clauses were included in the contract or subcontract and for each week in which work was performed under the contract or subcontract the District should monitor certified payroll registers to ensure contractors and subcontractors were paying employees the prevailing wage rates. Condition The District did not provide the wage rate clauses to contractors. In addition, the District did not obtain from contractors the certified payroll registers, nor did they perform testing to ensure contractors were paying the prevailing wage rates. Cause The District was unaware of the compliance requirements regarding the construction projects. Effect The District is not in compliance with Wage Rate Requirements, a part of the Special Tests and Provisions. Questioned Costs Undeterminable. Repeat Finding This is not a repeat finding. Recommendation We recommend the District to review the wage rate compliance requirements as part of the special tests and provisions of this program in the compliance supplement and to create and implement a process of submitting prevailing wage rates to contractors as well as obtaining the certified payroll registers to determine if contractors are in compliance. Management’s Response The District will plan to get payroll registers monthly from contractors moving forward.
Assistance Listing Number 84.425 Education Stabilization Fund Department of Education North Dakota Department of Public Instruction Special Tests and Provisions 2 CFR Part 200.326 Criteria For construction contracts and subcontracts greater than $2,000 funded with federal dollars, the District should verify prevailing wage rate clauses were included in the contract or subcontract and for each week in which work was performed under the contract or subcontract the District should monitor certified payroll registers to ensure contractors and subcontractors were paying employees the prevailing wage rates. Condition The District did not provide the wage rate clauses to contractors. In addition, the District did not obtain from contractors the certified payroll registers, nor did they perform testing to ensure contractors were paying the prevailing wage rates. Cause The District was unaware of the compliance requirements regarding the construction projects. Effect The District is not in compliance with Wage Rate Requirements, a part of the Special Tests and Provisions. Questioned Costs Undeterminable. Repeat Finding This is a repeat finding of 2022-003. Recommendation We recommend the District to review the wage rate compliance requirements as part of the special tests and provisions of this program in the compliance supplement and to create and implement a process of submitting prevailing wage rates to contractors as well as obtaining the certified payroll registers to determine if contractors are in compliance. Management’s Response The District will plan to get payroll registers monthly from contractors moving forward.
Assistance Listing Number 84.425 Education Stabilization Fund Department of Education North Dakota Department of Public Instruction Special Tests and Provisions 2 CFR Part 200.326 Criteria For construction contracts and subcontracts greater than $2,000 funded with federal dollars, the District should verify prevailing wage rate clauses were included in the contract or subcontract and for each week in which work was performed under the contract or subcontract the District should monitor certified payroll registers to ensure contractors and subcontractors were paying employees the prevailing wage rates. Condition The District did not provide the wage rate clauses to contractors. In addition, the District did not obtain from contractors the certified payroll registers, nor did they perform testing to ensure contractors were paying the prevailing wage rates. Cause The District was unaware of the compliance requirements regarding the construction projects. Effect The District is not in compliance with Wage Rate Requirements, a part of the Special Tests and Provisions. Questioned Costs Undeterminable. Repeat Finding This is a repeat finding of 2022-003. Recommendation We recommend the District to review the wage rate compliance requirements as part of the special tests and provisions of this program in the compliance supplement and to create and implement a process of submitting prevailing wage rates to contractors as well as obtaining the certified payroll registers to determine if contractors are in compliance. Management’s Response The District will plan to get payroll registers monthly from contractors moving forward.
Federal Agency: U.S. Department of Justice Federal Program Title: Crime Victim Assistance Federal Assistance Listing Number: 16.575 Pass-Through Agency: Minnesota Office of Justice Programs Pass-Through Number(s): A-CVS-2022-AMS-157 Award Period: 10/01/2021 to 09/30/2023 Type of Finding: • Material Weakness in Internal Control over Major Federal Programs, Material Noncompliance, and Other Matters Criteria or Specific Requirement: Non-federal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. Condition: The Organization does not have a written procurement policy in accordance with Uniform Guidance. In addition, during our testing, we noted the Organization did not apply any procurement procedures for three small purchases as they did not perform appropriate procedures nor retain adequate documentation in accordance with Uniform Guidance. Questioned Costs: $46,557 Context: The Organization should develop a procurement policy that conforms with Uniform Guidance. Three out of the three procurement selections did not have procurement procedures followed. Cause: The Organization was unaware its policy was not in accordance with Uniform Guidance; thus, leading to the lack of procedures performed and documentation retained. Effect: Potential effect of noncompliance with Uniform Guidance when procuring goods and services for expenditures over federal awards. Repeat Finding: This is not a repeat finding. Recommendation: The Organization should review 2 CFR sections 200.318 through 200.326 requirements for procurement. The Organization should also provide training to the various individuals involved in the procurement process to ensure they understand the applicable requirements. Views of Responsible Officials and Planned Corrective Actions: The Organization will review the procurement standards as well as provide the necessary training to understand applicable procurement requirements.
Finding – Internal control deficiencies over procurement requirements Identification of the Federal Program: Assistance Listing Number and Title: 14.231, Emergency Solutions Grant Coronavirus Program Federal Grantor Name: U.S. Department of Housing and Urban Development Federal Award/Contract Number: NA Pass-through Entity Name: California Department of Housing and Community Development Pass-through Award/Contract Number: 20-ESGCV-3-00002 Compliance Requirement – Procurement and Suspension and Debarment Condition: The City did not comply with 2 CFR 200.320 or with City procurement policies. The City did not obtain quotes for vehicles purchased. Criteria: Grant recipients must comply with Uniform Guidance for procurement, specifically with 2 CFR sections 200.318 thru 200.326 including ensuring the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320(a)(1) and (2). Cause: The City did not have proper internal control over the procurement requirements of this federal program. Effect: The City is out of compliance with procurement requirements. Questioned Costs: $199,274 Context: A small purchase could have been applied as the total amount spent under the contract was more than the micro-purchase amount but less than the simplified acquisition threshold. Under small purchase procedures price or rate quotes must be obtained. Identification of a repeat finding: Not a repeat finding. Recommendation: We recommend that the City establish and maintain effective internal control ensuring an understanding of procurement compliance requirements prior to entering into contracts with vendors with the intention of using grant monies. Views of responsible officials: Management concurs with the finding.
2023-004: Reporting – Material Weakness Federal Programs Assistance Listing Number 84.425 Education Stabilization Fund Department of Education North Dakota Department of Public Instruction Special Test and Provisions 2 CFR Part 200.326 F84425U 2023 Grant Year Criteria For construction contracts and subcontracts greater than $2,000, the District should verify prevailing wage rate clauses were included in the contract or subcontract and for each week in which work was performed under the contract or subcontract the District should monitor certified payroll registers to ensure contractors and subcontractors were paying employees the prevailing wage rates. Condition The District did not provide wage rate clauses to contractors. In addition, the District did not obtain from contractors the certified payroll registers, nor did they perform testing to ensure contractors were paying the prevailing wage rates. Cause The District was unaware of the compliance requirements regarding the construction projects. Effect It is possible that improper wages were paid to contractor employees. Questioned Costs Undeterminable. Recommendation We recommend the District to review the wage rate compliance requirements as part of the special tests and provisions of this program in the compliance supplement and to create and implement a process of submitting prevailing wage rates to contractors as well as obtaining the certified payroll registers to determine if contractors are in compliance. Repeat Finding This is not a repeat finding. Views of Responsible Officials See corrective action plan.
2023-004: Reporting – Material Weakness Federal Programs Assistance Listing Number 84.425 Education Stabilization Fund Department of Education North Dakota Department of Public Instruction Special Test and Provisions 2 CFR Part 200.326 F84425U 2023 Grant Year Criteria For construction contracts and subcontracts greater than $2,000, the District should verify prevailing wage rate clauses were included in the contract or subcontract and for each week in which work was performed under the contract or subcontract the District should monitor certified payroll registers to ensure contractors and subcontractors were paying employees the prevailing wage rates. Condition The District did not provide wage rate clauses to contractors. In addition, the District did not obtain from contractors the certified payroll registers, nor did they perform testing to ensure contractors were paying the prevailing wage rates. Cause The District was unaware of the compliance requirements regarding the construction projects. Effect It is possible that improper wages were paid to contractor employees. Questioned Costs Undeterminable. Recommendation We recommend the District to review the wage rate compliance requirements as part of the special tests and provisions of this program in the compliance supplement and to create and implement a process of submitting prevailing wage rates to contractors as well as obtaining the certified payroll registers to determine if contractors are in compliance. Repeat Finding This is not a repeat finding. Views of Responsible Officials See corrective action plan.
U.S. Department of Housing and Urban Development ‐ CFDA #14.267 Continuum of Care Program Applicable Federal Award Number and Year – AZ0089L9T022114, AZ0170L9T022106, AZ0170L9T022005, AZ0132L9T022109, AZ0132L9T022008, AZ0192L9T022003, AZ0192L9T022104, AZ0090L9T022013 ‐ 2023 / 2022 Procurement, Suspension, and Debarment Significant Deficiency in Internal Control over Compliance Criteria: Non‐federal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. Condition: During our testing, we identified that the Organization was not following their procurement policy. The Organization’s procurement policy is to obtain a minimum of 3 written bids for purchases greater than $10,000. The Organization selected an approved GSA vendor as allowed by Uniform Guidance; however, the Organization didn’t obtain any written bids as required by their procurement policy. Cause: Due to a lack of understanding of the procurement policy, the Organization did not obtain 3 written bids. Effect: The Organization did not comply with their procurement policy. Questioned Costs: None reported. Context/Sampling: A non‐statistical sample of 2 expenditures were selected for testing. For 1 out of the 2 transactions selected, the Organization did not obtain 3 written bids as required by the procurement policy. Repeat Finding from Prior Year: No Recommendation: We recommend that the Organization implement internal controls to ensure the procurement policy is followed or update the procurement policy to follow the Organization’s current practice. Views of Responsible Officials: Management agrees with the finding.
U.S. Department of Housing and Urban Development ‐ CFDA #14.267 Continuum of Care Program Applicable Federal Award Number and Year – AZ0089L9T022114, AZ0170L9T022106, AZ0170L9T022005, AZ0132L9T022109, AZ0132L9T022008, AZ0192L9T022003, AZ0192L9T022104, AZ0090L9T022013 ‐ 2023 / 2022 Procurement, Suspension, and Debarment Significant Deficiency in Internal Control over Compliance Criteria: Non‐federal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. Condition: During our testing, we identified that the Organization was not following their procurement policy. The Organization’s procurement policy is to obtain a minimum of 3 written bids for purchases greater than $10,000. The Organization selected an approved GSA vendor as allowed by Uniform Guidance; however, the Organization didn’t obtain any written bids as required by their procurement policy. Cause: Due to a lack of understanding of the procurement policy, the Organization did not obtain 3 written bids. Effect: The Organization did not comply with their procurement policy. Questioned Costs: None reported. Context/Sampling: A non‐statistical sample of 2 expenditures were selected for testing. For 1 out of the 2 transactions selected, the Organization did not obtain 3 written bids as required by the procurement policy. Repeat Finding from Prior Year: No Recommendation: We recommend that the Organization implement internal controls to ensure the procurement policy is followed or update the procurement policy to follow the Organization’s current practice. Views of Responsible Officials: Management agrees with the finding.
U.S. Department of Housing and Urban Development ‐ CFDA #14.267 Continuum of Care Program Applicable Federal Award Number and Year – AZ0089L9T022114, AZ0170L9T022106, AZ0170L9T022005, AZ0132L9T022109, AZ0132L9T022008, AZ0192L9T022003, AZ0192L9T022104, AZ0090L9T022013 ‐ 2023 / 2022 Procurement, Suspension, and Debarment Significant Deficiency in Internal Control over Compliance Criteria: Non‐federal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. Condition: During our testing, we identified that the Organization was not following their procurement policy. The Organization’s procurement policy is to obtain a minimum of 3 written bids for purchases greater than $10,000. The Organization selected an approved GSA vendor as allowed by Uniform Guidance; however, the Organization didn’t obtain any written bids as required by their procurement policy. Cause: Due to a lack of understanding of the procurement policy, the Organization did not obtain 3 written bids. Effect: The Organization did not comply with their procurement policy. Questioned Costs: None reported. Context/Sampling: A non‐statistical sample of 2 expenditures were selected for testing. For 1 out of the 2 transactions selected, the Organization did not obtain 3 written bids as required by the procurement policy. Repeat Finding from Prior Year: No Recommendation: We recommend that the Organization implement internal controls to ensure the procurement policy is followed or update the procurement policy to follow the Organization’s current practice. Views of Responsible Officials: Management agrees with the finding.
U.S. Department of Housing and Urban Development ‐ CFDA #14.267 Continuum of Care Program Applicable Federal Award Number and Year – AZ0089L9T022114, AZ0170L9T022106, AZ0170L9T022005, AZ0132L9T022109, AZ0132L9T022008, AZ0192L9T022003, AZ0192L9T022104, AZ0090L9T022013 ‐ 2023 / 2022 Procurement, Suspension, and Debarment Significant Deficiency in Internal Control over Compliance Criteria: Non‐federal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. Condition: During our testing, we identified that the Organization was not following their procurement policy. The Organization’s procurement policy is to obtain a minimum of 3 written bids for purchases greater than $10,000. The Organization selected an approved GSA vendor as allowed by Uniform Guidance; however, the Organization didn’t obtain any written bids as required by their procurement policy. Cause: Due to a lack of understanding of the procurement policy, the Organization did not obtain 3 written bids. Effect: The Organization did not comply with their procurement policy. Questioned Costs: None reported. Context/Sampling: A non‐statistical sample of 2 expenditures were selected for testing. For 1 out of the 2 transactions selected, the Organization did not obtain 3 written bids as required by the procurement policy. Repeat Finding from Prior Year: No Recommendation: We recommend that the Organization implement internal controls to ensure the procurement policy is followed or update the procurement policy to follow the Organization’s current practice. Views of Responsible Officials: Management agrees with the finding.
U.S. Department of Housing and Urban Development ‐ CFDA #14.267 Continuum of Care Program Applicable Federal Award Number and Year – AZ0089L9T022114, AZ0170L9T022106, AZ0170L9T022005, AZ0132L9T022109, AZ0132L9T022008, AZ0192L9T022003, AZ0192L9T022104, AZ0090L9T022013 ‐ 2023 / 2022 Procurement, Suspension, and Debarment Significant Deficiency in Internal Control over Compliance Criteria: Non‐federal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. Condition: During our testing, we identified that the Organization was not following their procurement policy. The Organization’s procurement policy is to obtain a minimum of 3 written bids for purchases greater than $10,000. The Organization selected an approved GSA vendor as allowed by Uniform Guidance; however, the Organization didn’t obtain any written bids as required by their procurement policy. Cause: Due to a lack of understanding of the procurement policy, the Organization did not obtain 3 written bids. Effect: The Organization did not comply with their procurement policy. Questioned Costs: None reported. Context/Sampling: A non‐statistical sample of 2 expenditures were selected for testing. For 1 out of the 2 transactions selected, the Organization did not obtain 3 written bids as required by the procurement policy. Repeat Finding from Prior Year: No Recommendation: We recommend that the Organization implement internal controls to ensure the procurement policy is followed or update the procurement policy to follow the Organization’s current practice. Views of Responsible Officials: Management agrees with the finding.
U.S. Department of Housing and Urban Development ‐ CFDA #14.267 Continuum of Care Program Applicable Federal Award Number and Year – AZ0089L9T022114, AZ0170L9T022106, AZ0170L9T022005, AZ0132L9T022109, AZ0132L9T022008, AZ0192L9T022003, AZ0192L9T022104, AZ0090L9T022013 ‐ 2023 / 2022 Procurement, Suspension, and Debarment Significant Deficiency in Internal Control over Compliance Criteria: Non‐federal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. Condition: During our testing, we identified that the Organization was not following their procurement policy. The Organization’s procurement policy is to obtain a minimum of 3 written bids for purchases greater than $10,000. The Organization selected an approved GSA vendor as allowed by Uniform Guidance; however, the Organization didn’t obtain any written bids as required by their procurement policy. Cause: Due to a lack of understanding of the procurement policy, the Organization did not obtain 3 written bids. Effect: The Organization did not comply with their procurement policy. Questioned Costs: None reported. Context/Sampling: A non‐statistical sample of 2 expenditures were selected for testing. For 1 out of the 2 transactions selected, the Organization did not obtain 3 written bids as required by the procurement policy. Repeat Finding from Prior Year: No Recommendation: We recommend that the Organization implement internal controls to ensure the procurement policy is followed or update the procurement policy to follow the Organization’s current practice. Views of Responsible Officials: Management agrees with the finding.
U.S. Department of Housing and Urban Development ‐ CFDA #14.267 Continuum of Care Program Applicable Federal Award Number and Year – AZ0089L9T022114, AZ0170L9T022106, AZ0170L9T022005, AZ0132L9T022109, AZ0132L9T022008, AZ0192L9T022003, AZ0192L9T022104, AZ0090L9T022013 ‐ 2023 / 2022 Procurement, Suspension, and Debarment Significant Deficiency in Internal Control over Compliance Criteria: Non‐federal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. Condition: During our testing, we identified that the Organization was not following their procurement policy. The Organization’s procurement policy is to obtain a minimum of 3 written bids for purchases greater than $10,000. The Organization selected an approved GSA vendor as allowed by Uniform Guidance; however, the Organization didn’t obtain any written bids as required by their procurement policy. Cause: Due to a lack of understanding of the procurement policy, the Organization did not obtain 3 written bids. Effect: The Organization did not comply with their procurement policy. Questioned Costs: None reported. Context/Sampling: A non‐statistical sample of 2 expenditures were selected for testing. For 1 out of the 2 transactions selected, the Organization did not obtain 3 written bids as required by the procurement policy. Repeat Finding from Prior Year: No Recommendation: We recommend that the Organization implement internal controls to ensure the procurement policy is followed or update the procurement policy to follow the Organization’s current practice. Views of Responsible Officials: Management agrees with the finding.
U.S. Department of Housing and Urban Development ‐ CFDA #14.267 Continuum of Care Program Applicable Federal Award Number and Year – AZ0089L9T022114, AZ0170L9T022106, AZ0170L9T022005, AZ0132L9T022109, AZ0132L9T022008, AZ0192L9T022003, AZ0192L9T022104, AZ0090L9T022013 ‐ 2023 / 2022 Procurement, Suspension, and Debarment Significant Deficiency in Internal Control over Compliance Criteria: Non‐federal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. Condition: During our testing, we identified that the Organization was not following their procurement policy. The Organization’s procurement policy is to obtain a minimum of 3 written bids for purchases greater than $10,000. The Organization selected an approved GSA vendor as allowed by Uniform Guidance; however, the Organization didn’t obtain any written bids as required by their procurement policy. Cause: Due to a lack of understanding of the procurement policy, the Organization did not obtain 3 written bids. Effect: The Organization did not comply with their procurement policy. Questioned Costs: None reported. Context/Sampling: A non‐statistical sample of 2 expenditures were selected for testing. For 1 out of the 2 transactions selected, the Organization did not obtain 3 written bids as required by the procurement policy. Repeat Finding from Prior Year: No Recommendation: We recommend that the Organization implement internal controls to ensure the procurement policy is followed or update the procurement policy to follow the Organization’s current practice. Views of Responsible Officials: Management agrees with the finding.
2022/2023-004 Wage Rate Compliance CFDA Title: ESSER II Base CFDA Number: 84.425D and 84.425U Federal Award Number: 007-0127-92-2021 & 007-0127-93-2021 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 roof construction and kitchen remodel electrical 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.
2022/2023-004 Wage Rate Compliance CFDA Title: ESSER II Base CFDA Number: 84.425D and 84.425U Federal Award Number: 007-0127-92-2021 & 007-0127-93-2021 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 roof construction and kitchen remodel electrical 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.
2022/2023-004 Wage Rate Compliance CFDA Title: ESSER II Base CFDA Number: 84.425D and 84.425U Federal Award Number: 007-0127-92-2021 & 007-0127-93-2021 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 roof construction and kitchen remodel electrical 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.
2022/2023-004 Wage Rate Compliance CFDA Title: ESSER II Base CFDA Number: 84.425D and 84.425U Federal Award Number: 007-0127-92-2021 & 007-0127-93-2021 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 roof construction and kitchen remodel electrical 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.
2022/2023-004 Wage Rate Compliance CFDA Title: ESSER II Base CFDA Number: 84.425D and 84.425U Federal Award Number: 007-0127-92-2021 & 007-0127-93-2021 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 roof construction and kitchen remodel electrical 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.
Federal agency: U.S. Department of Education Federal program name: Special Education Cluster Assistance Listing Number: 84.027 and 84.173 Federal Award Identification Number and Year: H027A220087, 2023 Pass-Through Agency: Minnesota Department of Education Pass-Through Number: H027A190087 Award Period: Fiscal year 2023 Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance (Modified Opinion) Criteria or specific requirement: Non-federal entities other than states must follow the procurement standards set out at CFR sections 200.318 through 200.326. This includes utilizing one of the five allowable procurement methods, including small purchase guidelines for items over the micro-purchase threshold and sealed bids, competitive proposals, or noncompetitive proposals when items exceed the simplified acquisition threshold. In addition, the Uniform Guidance requires that the entity maintain records sufficient to detail the history of the procurement. 2 CFR 200.303 requires that the entity have sufficient controls over compliance related to federal awards. Condition: During our testing of the District’s procurements within the Special Education program, it was noted that not all procurements followed the appropriate method and history of the transaction was not sufficiently documented. Questioned Costs: ALN 84.027 - $38,869 Context: Out of five procurement which were tested, we noted two of them for which the District did not retain documentation detailing the history of the procurement, including the rationale for choosing the particular vendor. Cause: The District during the pandemic and thereafter, was not able to properly ensure all contracts has procurement documentation retained and performed as required by the Uniform Guidance. Effect: The District was not in compliance with Uniform Guidance requirements for the proper documentation of all procurement transactions. Repeat Finding: Yes, 2022-004. Recommendation: We recommend the District reviews its procedures and controls over procurement to ensure that all procurements are documented such that a third party can clearly see and understand the detailed history of the procurement. Views of responsible officials: There is no disagreement with the audit finding.
Federal agency: U.S. Department of Education Federal program name: Special Education Cluster Assistance Listing Number: 84.027 and 84.173 Federal Award Identification Number and Year: H027A220087, 2023 Pass-Through Agency: Minnesota Department of Education Pass-Through Number: H027A190087 Award Period: Fiscal year 2023 Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance (Modified Opinion) Criteria or specific requirement: Non-federal entities other than states must follow the procurement standards set out at CFR sections 200.318 through 200.326. This includes utilizing one of the five allowable procurement methods, including small purchase guidelines for items over the micro-purchase threshold and sealed bids, competitive proposals, or noncompetitive proposals when items exceed the simplified acquisition threshold. In addition, the Uniform Guidance requires that the entity maintain records sufficient to detail the history of the procurement. 2 CFR 200.303 requires that the entity have sufficient controls over compliance related to federal awards. Condition: During our testing of the District’s procurements within the Special Education program, it was noted that not all procurements followed the appropriate method and history of the transaction was not sufficiently documented. Questioned Costs: ALN 84.027 - $38,869 Context: Out of five procurement which were tested, we noted two of them for which the District did not retain documentation detailing the history of the procurement, including the rationale for choosing the particular vendor. Cause: The District during the pandemic and thereafter, was not able to properly ensure all contracts has procurement documentation retained and performed as required by the Uniform Guidance. Effect: The District was not in compliance with Uniform Guidance requirements for the proper documentation of all procurement transactions. Repeat Finding: Yes, 2022-004. Recommendation: We recommend the District reviews its procedures and controls over procurement to ensure that all procurements are documented such that a third party can clearly see and understand the detailed history of the procurement. Views of responsible officials: There is no disagreement with the audit finding.
Federal agency: U.S. Department of Education Federal program name: Special Education Cluster Assistance Listing Number: 84.027 and 84.173 Federal Award Identification Number and Year: H027A220087, 2023 Pass-Through Agency: Minnesota Department of Education Pass-Through Number: H027A190087 Award Period: Fiscal year 2023 Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance (Modified Opinion) Criteria or specific requirement: Non-federal entities other than states must follow the procurement standards set out at CFR sections 200.318 through 200.326. This includes utilizing one of the five allowable procurement methods, including small purchase guidelines for items over the micro-purchase threshold and sealed bids, competitive proposals, or noncompetitive proposals when items exceed the simplified acquisition threshold. In addition, the Uniform Guidance requires that the entity maintain records sufficient to detail the history of the procurement. 2 CFR 200.303 requires that the entity have sufficient controls over compliance related to federal awards. Condition: During our testing of the District’s procurements within the Special Education program, it was noted that not all procurements followed the appropriate method and history of the transaction was not sufficiently documented. Questioned Costs: ALN 84.027 - $38,869 Context: Out of five procurement which were tested, we noted two of them for which the District did not retain documentation detailing the history of the procurement, including the rationale for choosing the particular vendor. Cause: The District during the pandemic and thereafter, was not able to properly ensure all contracts has procurement documentation retained and performed as required by the Uniform Guidance. Effect: The District was not in compliance with Uniform Guidance requirements for the proper documentation of all procurement transactions. Repeat Finding: Yes, 2022-004. Recommendation: We recommend the District reviews its procedures and controls over procurement to ensure that all procurements are documented such that a third party can clearly see and understand the detailed history of the procurement. Views of responsible officials: There is no disagreement with the audit finding.
Federal agency: U.S. Department of Education Federal program name: Special Education Cluster Assistance Listing Number: 84.027 and 84.173 Federal Award Identification Number and Year: H027A220087, 2023 Pass-Through Agency: Minnesota Department of Education Pass-Through Number: H027A190087 Award Period: Fiscal year 2023 Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance (Modified Opinion) Criteria or specific requirement: Non-federal entities other than states must follow the procurement standards set out at CFR sections 200.318 through 200.326. This includes utilizing one of the five allowable procurement methods, including small purchase guidelines for items over the micro-purchase threshold and sealed bids, competitive proposals, or noncompetitive proposals when items exceed the simplified acquisition threshold. In addition, the Uniform Guidance requires that the entity maintain records sufficient to detail the history of the procurement. 2 CFR 200.303 requires that the entity have sufficient controls over compliance related to federal awards. Condition: During our testing of the District’s procurements within the Special Education program, it was noted that not all procurements followed the appropriate method and history of the transaction was not sufficiently documented. Questioned Costs: ALN 84.027 - $38,869 Context: Out of five procurement which were tested, we noted two of them for which the District did not retain documentation detailing the history of the procurement, including the rationale for choosing the particular vendor. Cause: The District during the pandemic and thereafter, was not able to properly ensure all contracts has procurement documentation retained and performed as required by the Uniform Guidance. Effect: The District was not in compliance with Uniform Guidance requirements for the proper documentation of all procurement transactions. Repeat Finding: Yes, 2022-004. Recommendation: We recommend the District reviews its procedures and controls over procurement to ensure that all procurements are documented such that a third party can clearly see and understand the detailed history of the procurement. Views of responsible officials: There is no disagreement with the audit finding.
Federal agency: U.S. Department of Education Federal program name: Special Education Cluster Assistance Listing Number: 84.027 and 84.173 Federal Award Identification Number and Year: H027A220087, 2023 Pass-Through Agency: Minnesota Department of Education Pass-Through Number: H027A190087 Award Period: Fiscal year 2023 Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance (Modified Opinion) Criteria or specific requirement: Non-federal entities other than states must follow the procurement standards set out at CFR sections 200.318 through 200.326. This includes utilizing one of the five allowable procurement methods, including small purchase guidelines for items over the micro-purchase threshold and sealed bids, competitive proposals, or noncompetitive proposals when items exceed the simplified acquisition threshold. In addition, the Uniform Guidance requires that the entity maintain records sufficient to detail the history of the procurement. 2 CFR 200.303 requires that the entity have sufficient controls over compliance related to federal awards. Condition: During our testing of the District’s procurements within the Special Education program, it was noted that not all procurements followed the appropriate method and history of the transaction was not sufficiently documented. Questioned Costs: ALN 84.027 - $38,869 Context: Out of five procurement which were tested, we noted two of them for which the District did not retain documentation detailing the history of the procurement, including the rationale for choosing the particular vendor. Cause: The District during the pandemic and thereafter, was not able to properly ensure all contracts has procurement documentation retained and performed as required by the Uniform Guidance. Effect: The District was not in compliance with Uniform Guidance requirements for the proper documentation of all procurement transactions. Repeat Finding: Yes, 2022-004. Recommendation: We recommend the District reviews its procedures and controls over procurement to ensure that all procurements are documented such that a third party can clearly see and understand the detailed history of the procurement. Views of responsible officials: There is no disagreement with the audit finding.
2023-002 U.S. Department of Transportation, National Infrastructure Investments: Better Utilizing Investments to Leverage Development (BUILD) Grant Assistance Listing Number 20.933 Procurement Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award the provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations and conditions of the federal award. Non-federal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. Effective May 14, 2022, the non-Federal entity must ensure that all applicable programs comply with section 70914 of the Build America, Buy America (BABA) Act, including through incorporation of a Buy America preference in the terms and conditions of each award with an infrastructure project. Condition: The Port Authority’s formally documented policy pre-dates Uniform Guidance and does not include many of the necessary procurement provisions. Cause: The Port Authority does not have a policy in place under the most current regulations for the federal programs the Port Authority administrates. Effect: The Port Authority does not have a policy in place and is at risk for not being in accordance with federal regulations for the federal programs the Port Authority administrates. However, note that the Port Authority does use an engineering firm that appears to be following a policy that is up-to-date with federal regulations for this federal program. Questioned costs: None reported.Context: Procurement requirements were applicable to 1 vendor for this program in FY2023. The vendor appears to have bidding documents in accordance with federal regulations, including the BABA Act. Repeat Finding From Prior Year: No Recommendation: The policy should be updated to include all federal requirements for procurement and updated on a regular basis as those regulations change. Views of Responsible Officials: We agree with the finding
2023-010 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 roofing project expenditures paid from ESSER monies. Criteria: Education Stabilization Funds used for minor remodeling, renovation or construction contracts that are over $2,000, and use laborers and mechanics must meet Davis-Bacon prevailing wage requirements. 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). Context: During the testing of significant claims for the Education Stabilization Fund major program, we noted a claim in which the wage rate requirements would apply. 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.
2023-010 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 roofing project expenditures paid from ESSER monies. Criteria: Education Stabilization Funds used for minor remodeling, renovation or construction contracts that are over $2,000, and use laborers and mechanics must meet Davis-Bacon prevailing wage requirements. 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). Context: During the testing of significant claims for the Education Stabilization Fund major program, we noted a claim in which the wage rate requirements would apply. 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.
2023-010 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 roofing project expenditures paid from ESSER monies. Criteria: Education Stabilization Funds used for minor remodeling, renovation or construction contracts that are over $2,000, and use laborers and mechanics must meet Davis-Bacon prevailing wage requirements. 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). Context: During the testing of significant claims for the Education Stabilization Fund major program, we noted a claim in which the wage rate requirements would apply. 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.
Federal Agency: United States Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: Not Available Pass-Through Agency: State of Connecticut Office of Policy and Management Pass-Through Number: 12060-OPM20600-29669 Award Period: March 3, 2021 through December 31, 2026 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters 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: There were no controls in place to review for suspension and debarment on related procurement activities. Questioned Costs: None Context: Although testing did not reveal vendors providing services under this grant that were suspended and debarred, no policy exists for the Town to analyze this requirement. Cause: The Town did not have the resources necessary to implement a conforming policy during the fiscal year. Effect: With the absence of a compliant policy, the Town is at risk for noncompliance as it relates to all federal procurement requirements. Repeat Finding: No. Recommendations: We recommend that the Town review its formal procurement policies and revise with the criteria in 2 CFR sections 200.318 and 200.326. Views of Responsible Officials: Management agrees with this finding.
Federal Agency: United States Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: Not Available Pass-Through Agency: State of Connecticut Office of Policy and Management Pass-Through Number: 12060-OPM20600-29669 Award Period: March 3, 2021 through December 31, 2026 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters 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: There were no controls in place to review for suspension and debarment on related procurement activities. Questioned Costs: None Context: Although testing did not reveal vendors providing services under this grant that were suspended and debarred, no policy exists for the Town to analyze this requirement. Cause: The Town did not have the resources necessary to implement a conforming policy during the fiscal year. Effect: With the absence of a compliant policy, the Town is at risk for noncompliance as it relates to all federal procurement requirements. Repeat Finding: No. Recommendations: We recommend that the Town review its formal procurement policies and revise with the criteria in 2 CFR sections 200.318 and 200.326. Views of Responsible Officials: Management agrees with this finding.
Federal Agency: United States Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: Not Available Pass-Through Agency: State of Connecticut Office of Policy and Management Pass-Through Number: 12060-OPM20600-29669 Award Period: March 3, 2021 through December 31, 2026 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters 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: There were no controls in place to review for suspension and debarment on related procurement activities. Questioned Costs: None Context: Although testing did not reveal vendors providing services under this grant that were suspended and debarred, no policy exists for the Town to analyze this requirement. Cause: The Town did not have the resources necessary to implement a conforming policy during the fiscal year. Effect: With the absence of a compliant policy, the Town is at risk for noncompliance as it relates to all federal procurement requirements. Repeat Finding: No. Recommendations: We recommend that the Town review its formal procurement policies and revise with the criteria in 2 CFR sections 200.318 and 200.326. Views of Responsible Officials: Management agrees with this finding.
2 CFR § 400.1 gives regulatory effect for the U.S. Department of Agriculture to the OMB guidance in 2 CFR § 200. 2 CFR § 200.317 - 200.327 requires entities to use their own documented procurement procedures, which reflect applicable State and local laws and regulations, provided that the procurements conform to applicable Federal statutes and the procurement requirements identified in 2 CFR Part 200. A non-Federal entity must: 1. Meet the general procurement standards in 2 CFR 200.318, which include oversight of contractors’ performance, maintaining written standards of conduct for employees involved in contracting, awarding contracts only to responsible contractors, and maintaining records to document history of procurements. 2. Conduct all procurement transactions in a manner providing full and open competition, in accordance with 2 CFR 200.319. 3. Use the micro-purchase and small purchase methods only for procurements that meet the applicable criteria under 2 CFR 200.320(a)(1) and (2). Under the micro-purchase method, the aggregate dollar amount does not exceed $10,000 ($2,000 in the case of acquisition for construction subject to the Wage Rate Requirements (Davis-Bacon Act)). Small purchase procedures are used for purchases that exceed the micro-purchase amount but do not exceed the simplified acquisition threshold ($250,000). Micro-purchases may be awarded without soliciting competitive quotations if the non-Federal entity considers the price to be reasonable (2 CFR 200.320(a)). If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources (2 CFR 200.320(b)). 4. For acquisitions exceeding the simplified acquisition threshold, the non-Federal entity must use one of the following procurement methods: the sealed bid method if the acquisition meets the criteria in 2 CFR 200.320(b); the competitive proposals method under the conditions specified in 2 CFR 200.320(b)(2); or the noncompetitive proposals method (i.e., solicit a proposal from only one source) but only when one or more of four circumstances are met, in accordance with 2 CFR 200.320(c). 5. Perform a cost or price analysis in connection with every procurement action in excess of the simplified acquisition threshold, including contract modifications (2 CFR 200.324(a)). The cost plus a percentage of cost and percentage of construction cost methods of contracting must not be used (2 CFR 200.324(d)). 6. Ensure that every purchase order or other contract includes applicable provisions required by 2 CFR 200.326. These provisions are described in Appendix II to 2 CFR Part 200, “Contract Provisions for Non-Federal Entity Contracts Under Federal Awards.” The School District paid more than $250,000 to Valley Wholesale during fiscal year 2023 for food products for the Child Nutrition Cluster. This amount exceeded the simplified acquisition threshold thus the District should follow a formal competitive procurement method described in 2 CFR 200.320(b). However, the School District did not follow a formal procurement method because they chose to use this local vendor (Valley Wholesale) to allow them to get their fresh produce in a timely manner to avoid food waste. The School District did not have the proper internal controls in place to ensure proper bidding procedures were followed. Failure to have the appropriate controls in place may result in vendors being used that are not providing the best possible prices. The School District should follow their established procurement policies and federal guidelines when choosing all vendors for the Child Nutrition Cluster.
2 CFR § 400.1 gives regulatory effect for the U.S. Department of Agriculture to the OMB guidance in 2 CFR § 200. 2 CFR § 200.317 - 200.327 requires entities to use their own documented procurement procedures, which reflect applicable State and local laws and regulations, provided that the procurements conform to applicable Federal statutes and the procurement requirements identified in 2 CFR Part 200. A non-Federal entity must: 1. Meet the general procurement standards in 2 CFR 200.318, which include oversight of contractors’ performance, maintaining written standards of conduct for employees involved in contracting, awarding contracts only to responsible contractors, and maintaining records to document history of procurements. 2. Conduct all procurement transactions in a manner providing full and open competition, in accordance with 2 CFR 200.319. 3. Use the micro-purchase and small purchase methods only for procurements that meet the applicable criteria under 2 CFR 200.320(a)(1) and (2). Under the micro-purchase method, the aggregate dollar amount does not exceed $10,000 ($2,000 in the case of acquisition for construction subject to the Wage Rate Requirements (Davis-Bacon Act)). Small purchase procedures are used for purchases that exceed the micro-purchase amount but do not exceed the simplified acquisition threshold ($250,000). Micro-purchases may be awarded without soliciting competitive quotations if the non-Federal entity considers the price to be reasonable (2 CFR 200.320(a)). If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources (2 CFR 200.320(b)). 4. For acquisitions exceeding the simplified acquisition threshold, the non-Federal entity must use one of the following procurement methods: the sealed bid method if the acquisition meets the criteria in 2 CFR 200.320(b); the competitive proposals method under the conditions specified in 2 CFR 200.320(b)(2); or the noncompetitive proposals method (i.e., solicit a proposal from only one source) but only when one or more of four circumstances are met, in accordance with 2 CFR 200.320(c). 5. Perform a cost or price analysis in connection with every procurement action in excess of the simplified acquisition threshold, including contract modifications (2 CFR 200.324(a)). The cost plus a percentage of cost and percentage of construction cost methods of contracting must not be used (2 CFR 200.324(d)). 6. Ensure that every purchase order or other contract includes applicable provisions required by 2 CFR 200.326. These provisions are described in Appendix II to 2 CFR Part 200, “Contract Provisions for Non-Federal Entity Contracts Under Federal Awards.” The School District paid more than $250,000 to Valley Wholesale during fiscal year 2023 for food products for the Child Nutrition Cluster. This amount exceeded the simplified acquisition threshold thus the District should follow a formal competitive procurement method described in 2 CFR 200.320(b). However, the School District did not follow a formal procurement method because they chose to use this local vendor (Valley Wholesale) to allow them to get their fresh produce in a timely manner to avoid food waste. The School District did not have the proper internal controls in place to ensure proper bidding procedures were followed. Failure to have the appropriate controls in place may result in vendors being used that are not providing the best possible prices. The School District should follow their established procurement policies and federal guidelines when choosing all vendors for the Child Nutrition Cluster.
2 CFR § 400.1 gives regulatory effect for the U.S. Department of Agriculture to the OMB guidance in 2 CFR § 200. 2 CFR § 200.317 - 200.327 requires entities to use their own documented procurement procedures, which reflect applicable State and local laws and regulations, provided that the procurements conform to applicable Federal statutes and the procurement requirements identified in 2 CFR Part 200. A non-Federal entity must: 1. Meet the general procurement standards in 2 CFR 200.318, which include oversight of contractors’ performance, maintaining written standards of conduct for employees involved in contracting, awarding contracts only to responsible contractors, and maintaining records to document history of procurements. 2. Conduct all procurement transactions in a manner providing full and open competition, in accordance with 2 CFR 200.319. 3. Use the micro-purchase and small purchase methods only for procurements that meet the applicable criteria under 2 CFR 200.320(a)(1) and (2). Under the micro-purchase method, the aggregate dollar amount does not exceed $10,000 ($2,000 in the case of acquisition for construction subject to the Wage Rate Requirements (Davis-Bacon Act)). Small purchase procedures are used for purchases that exceed the micro-purchase amount but do not exceed the simplified acquisition threshold ($250,000). Micro-purchases may be awarded without soliciting competitive quotations if the non-Federal entity considers the price to be reasonable (2 CFR 200.320(a)). If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources (2 CFR 200.320(b)). 4. For acquisitions exceeding the simplified acquisition threshold, the non-Federal entity must use one of the following procurement methods: the sealed bid method if the acquisition meets the criteria in 2 CFR 200.320(b); the competitive proposals method under the conditions specified in 2 CFR 200.320(b)(2); or the noncompetitive proposals method (i.e., solicit a proposal from only one source) but only when one or more of four circumstances are met, in accordance with 2 CFR 200.320(c). 5. Perform a cost or price analysis in connection with every procurement action in excess of the simplified acquisition threshold, including contract modifications (2 CFR 200.324(a)). The cost plus a percentage of cost and percentage of construction cost methods of contracting must not be used (2 CFR 200.324(d)). 6. Ensure that every purchase order or other contract includes applicable provisions required by 2 CFR 200.326. These provisions are described in Appendix II to 2 CFR Part 200, “Contract Provisions for Non-Federal Entity Contracts Under Federal Awards.” The School District paid more than $250,000 to Valley Wholesale during fiscal year 2023 for food products for the Child Nutrition Cluster. This amount exceeded the simplified acquisition threshold thus the District should follow a formal competitive procurement method described in 2 CFR 200.320(b). However, the School District did not follow a formal procurement method because they chose to use this local vendor (Valley Wholesale) to allow them to get their fresh produce in a timely manner to avoid food waste. The School District did not have the proper internal controls in place to ensure proper bidding procedures were followed. Failure to have the appropriate controls in place may result in vendors being used that are not providing the best possible prices. The School District should follow their established procurement policies and federal guidelines when choosing all vendors for the Child Nutrition Cluster.