Item 2022-001 Special Tests and Provisions ? Wage Rate Requirements Education Stabilization Fund (ESF) ALN# 84.425 U.S. Department of Education Passed through the State Department of Education Grant period ? Years ended September 30, 2021 (84.425U) and September 30, 2020 (84.425D) Criteria ? Grantees should have controls in place to ensure that contractors and subcontractors are notified of the requirement to pay prevailing wage rates to all laborers and mechanics employed on construction contracts in excess of $2,000 financed by federal assistance funds and to submit weekly certified payrolls for each week in which contract work is performed. 2 CFR 200.303 requires the non-Federal entity to ?(a) establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal statutes, regulations, and the terms and conditions of the Federal award.? 2 CFR 200.326 and 29 CFR Part 5, Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction (DOL Regulations) require 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). Condition ? Adequate controls were not in place to ensure that contractors and subcontractors were notified of the requirements to comply with the wage rate requirements and provided timely certified payrolls throughout the construction projects. Cause ? A clause describing the Wage Rate Requirements was not added to the construction contracts. There was a lack of sufficient controls over the communication of this requirement to ensure the accuracy and completeness of the certified payrolls being provided to the Board. Effect ? Lack of notification of the wage rate requirements to the contractors and subcontractors could lead to disallowed costs. We noted that 5 out of the 9 payments to contractors selected for testing did not have supporting documentation of certified payrolls. However, our audit disclosed no instances of unallowable costs. Questioned Costs ? Not determinable. Recommendation ? We recommend the strengthening of controls to ensure the prevailing wage rate clauses are included in the contracts and that certified payrolls are received for each week in which construction work is performed. Management?s Response ? The Board will strengthen the controls in place to provide assurance that proper prevailing wage rate clauses are added to construction contracts and certified payrolls are received from each week in which construction work is performed.
Item 2022-001 Special Tests and Provisions ? Wage Rate Requirements Education Stabilization Fund (ESF) ALN# 84.425 U.S. Department of Education Passed through the State Department of Education Grant period ? Years ended September 30, 2021 (84.425U) and September 30, 2020 (84.425C & 84.425D) Criteria ? Grantees should have controls in place to ensure that contractors and subcontractors are notified of the requirement to pay prevailing wage rates to all laborers and mechanics employed on construction contracts in excess of $2,000 financed by federal assistance funds and to submit weekly certified payrolls for each week in which contract work is performed. 2 CFR 200.303 requires the non-Federal entity to ?(a) establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal statutes, regulations, and the terms and conditions of the Federal award.? 2 CFR 200.326 and 29 CFR Part 5, Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction (DOL Regulations) require 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). Condition ? Adequate controls were not in place to ensure that contractors and subcontractors were notified of the requirements to comply with the wage rate requirements and provided timely certified payrolls throughout the construction projects. Cause ? A clause describing the Wage Rate Requirements was not added to the construction contracts. There was a lack of sufficient controls over the communication of this requirement to ensure the accuracy and completeness of the certified payrolls being provided to the Board. Effect ? Lack of notification of the wage rate requirements to the contractors and subcontractors could lead to disallowed costs. We noted that payments to contractors did not have supporting documentation of certified payrolls. Questioned Costs ? Not determinable. Recommendation ? We recommend the strengthening of controls to ensure the prevailing wage rate clauses are included in the contracts and that certified payrolls are received for each week in which construction work is performed. Management?s Response ? The Board will strengthen the controls in place to provide assurance that proper prevailing wage rate clauses are added to construction contracts and certified payrolls are received from each week in which construction work is performed.
Item 2022-001 Special Tests and Provisions ? Wage Rate Requirements Education Stabilization Fund (ESF) ALN# 84.425 U.S. Department of Education Passed through the State Department of Education Grant period ? Years ended September 30, 2021 (84.425U) and September 30, 2020 (84.425C & 84.425D) Criteria ? Grantees should have controls in place to ensure that contractors and subcontractors are notified of the requirement to pay prevailing wage rates to all laborers and mechanics employed on construction contracts in excess of $2,000 financed by federal assistance funds and to submit weekly certified payrolls for each week in which contract work is performed. 2 CFR 200.303 requires the non-Federal entity to ?(a) establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal statutes, regulations, and the terms and conditions of the Federal award.? 2 CFR 200.326 and 29 CFR Part 5, Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction (DOL Regulations) require 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). Condition ? Adequate controls were not in place to ensure that contractors and subcontractors were notified of the requirements to comply with the wage rate requirements and provided timely certified payrolls throughout the construction projects. Cause ? A clause describing the Wage Rate Requirements was not added to the construction contracts. There was a lack of sufficient controls over the communication of this requirement to ensure the accuracy and completeness of the certified payrolls being provided to the Board. Effect ? Lack of notification of the wage rate requirements to the contractors and subcontractors could lead to disallowed costs. We noted that payments to contractors did not have supporting documentation of certified payrolls. Questioned Costs ? Not determinable. Recommendation ? We recommend the strengthening of controls to ensure the prevailing wage rate clauses are included in the contracts and that certified payrolls are received for each week in which construction work is performed. Management?s Response ? The Board will strengthen the controls in place to provide assurance that proper prevailing wage rate clauses are added to construction contracts and certified payrolls are received from each week in which construction work is performed.
Item 2022-001 Special Tests and Provisions ? Wage Rate Requirements Education Stabilization Fund (ESF) ALN# 84.425 U.S. Department of Education Passed through the State Department of Education Grant period ? Years ended September 30, 2021 (84.425U) and September 30, 2020 (84.425C & 84.425D) Criteria ? Grantees should have controls in place to ensure that contractors and subcontractors are notified of the requirement to pay prevailing wage rates to all laborers and mechanics employed on construction contracts in excess of $2,000 financed by federal assistance funds and to submit weekly certified payrolls for each week in which contract work is performed. 2 CFR 200.303 requires the non-Federal entity to ?(a) establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal statutes, regulations, and the terms and conditions of the Federal award.? 2 CFR 200.326 and 29 CFR Part 5, Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction (DOL Regulations) require 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). Condition ? Adequate controls were not in place to ensure that contractors and subcontractors were notified of the requirements to comply with the wage rate requirements and provided timely certified payrolls throughout the construction projects. Cause ? A clause describing the Wage Rate Requirements was not added to the construction contracts. There was a lack of sufficient controls over the communication of this requirement to ensure the accuracy and completeness of the certified payrolls being provided to the Board. Effect ? Lack of notification of the wage rate requirements to the contractors and subcontractors could lead to disallowed costs. We noted that payments to contractors did not have supporting documentation of certified payrolls. Questioned Costs ? Not determinable. Recommendation ? We recommend the strengthening of controls to ensure the prevailing wage rate clauses are included in the contracts and that certified payrolls are received for each week in which construction work is performed. Management?s Response ? The Board will strengthen the controls in place to provide assurance that proper prevailing wage rate clauses are added to construction contracts and certified payrolls are received from each week in which construction work is performed.
Item 2022-001 Special Tests and Provisions ? Wage Rate Requirements Education Stabilization Fund (ESF) ALN# 84.425 U.S. Department of Education Passed through the State Department of Education Grant period ? Years ended September 30, 2021 (84.425U) and September 30, 2020 (84.425C & 84.425D) Criteria ? Grantees should have controls in place to ensure that contractors and subcontractors are notified of the requirement to pay prevailing wage rates to all laborers and mechanics employed on construction contracts in excess of $2,000 financed by federal assistance funds and to submit weekly certified payrolls for each week in which contract work is performed. 2 CFR 200.303 requires the non-Federal entity to ?(a) establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal statutes, regulations, and the terms and conditions of the Federal award.? 2 CFR 200.326 and 29 CFR Part 5, Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction (DOL Regulations) require 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). Condition ? Adequate controls were not in place to ensure that contractors and subcontractors were notified of the requirements to comply with the wage rate requirements and provided timely certified payrolls throughout the construction projects. Cause ? A clause describing the Wage Rate Requirements was not added to the construction contracts. There was a lack of sufficient controls over the communication of this requirement to ensure the accuracy and completeness of the certified payrolls being provided to the Board. Effect ? Lack of notification of the wage rate requirements to the contractors and subcontractors could lead to disallowed costs. We noted that payments to contractors did not have supporting documentation of certified payrolls. Questioned Costs ? Not determinable. Recommendation ? We recommend the strengthening of controls to ensure the prevailing wage rate clauses are included in the contracts and that certified payrolls are received for each week in which construction work is performed. Management?s Response ? The Board will strengthen the controls in place to provide assurance that proper prevailing wage rate clauses are added to construction contracts and certified payrolls are received from each week in which construction work is performed.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Public and Indian Housing Assistance Listing Number: 14.850 Federal Award Identification Number and Year: LA003, 2022 Award Period: 10/1/21-9/30/22 Type of Finding: Significant Deficiency in Internal Control over Compliance, 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. A non-federal entity must: 1. Meet the general procurement standards in 2 CFR section 200.318, which include oversight of contractors? performance, maintaining written standards of conduct for employees involved in contracting, awarding contracts only to responsible contractors, and maintaining records to document history of procurements. 2. Conduct all procurement transactions in a manner providing full and open competition, in accordance with 2 CFR section 200.319. Use the micro-purchase and small purchase methods only for procurements that meet the applicable criteria under 2 CFR sections 200.320(a) (1) and (2). Under the micropurchase 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). Micropurchases may be awarded without soliciting competitive quotations if the non-federal entity considers the price to be reasonable (2 CFR section 200.320(a)). If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources (2 CFR section 200.320(b)). 3. For acquisitions exceeding the simplified acquisition threshold, the non-federal entity must use one of the following procurement methods: the sealed bid method if the acquisition meets the criteria in 2 CFR section 200.320(b); the competitive proposals method under the conditions specified in 2 CFR section 200.320((b) (2); or the noncompetitive proposals method (i.e., solicit a proposal from only one source) but only when one or more of four circumstances are met, in accordance with 2 CFR section 200.320(c)). 4. Perform a cost or price analysis in connection with every procurement action in excess of the simplified acquisition threshold, including contract modifications (2 CFR section 200.323(a)). The cost plus a percentage of cost and percentage of construction cost methods of contracting must not be used (2 CFR section 200.323(b)). 5. Ensure that every purchase order or other contract includes applicable provisions required by 2 CFR section 200.326. These provisions are described in Appendix II to 2 CFR Part 200, ?Contract Provisions for Non-Federal Entity Contracts Under Federal Awards.? When a non-federal entity enters into a covered transaction with an entity at a lower tier, the nonfederal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at SAM.gov Home (click on Search Record, then click on Advanced Search Exclusions) (Note: The OMB guidance at 2 CFR Part 180 and agency implementing regulations still refer to the SAM Exclusions as the Excluded Parties List System (EPLS)), (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180.300). Condition: During testing, it was noted that the Authority did not have adequate internal controls over procurement and suspension and debarment requirements. Questioned Costs: $135,749 Context: During testing of a sample of 7 contracts, it was noted that 7 contracts did not comply with compliance requirements. The sample was a statistically valid sample. ? For 2 contracts tested, the Authority was unable to provide a copy of the contract, or documentation to support the contract was properly procured. ? For 3 contracts tested, the Authority was unable to provide documentation to support that a cost analysis was performed prior to entering the contract. ? For all 7 contracts tested, the Authority was unable to provide documentation that it ensured the vendor was not suspended or debarred before entering into the contract. Cause: The Authority failed to maintain proper documentation of contracts and procurement procedures to evidence compliance. Effect: The Authority is not in compliance with federal regulations regarding procurement of contracts, which could lead to vendors receiving funds that are not properly vetted. Recommendation: We recommend that the Authority reviews it?s procurement policy and active contracts and future contracts to ensure that all policies and procedures regarding procurement of contracts are properly followed and documented. Views of Responsible Officials: There is no disagreement with the audit finding.
2022-001 ALN 14.850 ? Public & Indian Housing ? Special Tests & Provisions ? Wage Rate Requirements Criteria: The wage rate requirements (also known as the Davis-Bacon Act) apply to construction activities over $2,000 within public housing. As part of these requirements, non-federal entities are required to include in any applicable contracts, a provision that the contractor or subcontractor shall comply with the wage rate requirements and the Department of Labor (DOL) regulations (29 CFR Part 5, Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction). The requirements include a provision requiring contractors and subcontractors submit to the non-federal entity weekly, for each week where any contract work has been 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). Condition: For the fiscal year ended September 30, 2022, we tested wage rate requirements within the Authority?s Public and Indian Housing Program and were unable to obtain the necessary documentation for the one and only ongoing contract where wage rate requirements were required. Cause: Internal controls over wage rate requirements compliance are weak. No procedure exists for Public and Indian Housing Program projects to follow up on stipulations within the contract requiring contractors to submit weekly wage reports, nor does a procedure exist whereby the Authority interviews contracted employees to ensure they are being paid fairly. Effect or Potential Effect: Contractors and subcontractors who are providing construction-related services to the Authority could be paying their employees below the local prevailing wages and fringe benefits paid on projects of a similar character, as defined by the Department of Labor. Questioned Costs: N/A Context: As a result of only one Public and Indian Housing Program contract being required to comply with wage rate requirements during the year-end September 30, 2022, 100% of the population had control deficiencies and a compliance exception, and no additional opportunities for sampling were available. Auditor?s Recommendation: We recommend that the Authority implement procedures to follow up on the obligations of contractors to produce weekly wage reports and compare them with prevailing wage rates. Also, make physical inspections and interview employees to ascertain that the information is accurate. Grantee Response: Management acknowledges the finding and will follow the auditor?s recommendation.
2022-002: Material Weakness ? Repeat Finding: Davis-Bacon Act Federal Assistance Listing Number 20.106 ? Airport Improvement Program 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). Non-Federal 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. This includes a requirement for the contractor or subcontractor to submit to the Non-Federal 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). In addition, according to 2 CFR Part 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: Proper documentation is not maintained by the Authority to verify compliance with Davis-Bacon. There were nine grant draws during fiscal year 2023, which were subject to Davis-Bacon requirements. We selected all nine payments for testing. The Authority was unable to provide the required payroll certifications for three of the nine selections, resulting in an error rate of 33%. Effect: The Authority is not in compliance with Davis-Bacon requirements. Questioned Costs: N/A Cause: Lack of centralized storage/ filing. There was also employee turnover and transfers from the contract compliance department. As a result, controls and procedures were not consistently applied. Repeat Finding: 2021-003 Recommendation: We recommend the Authority implement controls to improve monitoring of contractor compliance and records retention to demonstrate compliance with these requirements. Management?s response: See Corrective Action Plan
Item 2022-001 Special Tests and Provisions ? Wage Rate Requirements Education Stabilization Fund (ESF) ALN# 84.425 U.S. Department of Education Passed through the State Department of Education Grant period ? Years ended September 30, 2021 (84.425U) (84.425C) and September 30, 2020 (84.425D) Criteria ? Grantees should have controls in place to ensure that contractors and subcontractors are notified of the requirement to pay prevailing wage rates to all laborers and mechanics employed on construction contracts in excess of $2,000 financed by federal assistance funds and to submit weekly certified payrolls for each week in which contract work is performed. 2 CFR 200.303 requires the non-Federal entity to ?(a) establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal statutes, regulations, and the terms and conditions of the Federal award.? 2 CFR 200.326 and 29 CFR Part 5, Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction (DOL Regulations) require 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). Condition ? Adequate controls were not in place to ensure that contractors and subcontractors were notified of the requirements to comply with the wage rate requirements and provided timely certified payrolls throughout the construction projects. Cause ? A clause describing the Wage Rate Requirements was not added to the construction contracts. There was a lack of sufficient controls over the communication of this requirement to ensure that accurate and complete certified payrolls were provided to the Board. Effect ? Lack of notification of the wage rate requirements to the contractors and subcontractors could lead to disallowed costs. We noted that payments to contractors did not have supporting documentation of certified payrolls. However, our audit disclosed no instances of unallowable costs. Questioned Costs ? Not determinable. Recommendation ? We recommend the strengthening of controls to ensure the prevailing wage rate clauses are included in the contracts and that certified payrolls are received for each week in which construction work is performed. Management?s Response ? The Board will strengthen the controls in place to provide assurance that proper prevailing wage rate clauses are added to construction contracts and certified payrolls are received from each week in which construction work is performed.
Item 2022-001 Special Tests and Provisions ? Wage Rate Requirements Education Stabilization Fund (ESF) ALN# 84.425 U.S. Department of Education Passed through the State Department of Education Grant period ? Years ended September 30, 2021 (84.425U) (84.425C) and September 30, 2020 (84.425D) Criteria ? Grantees should have controls in place to ensure that contractors and subcontractors are notified of the requirement to pay prevailing wage rates to all laborers and mechanics employed on construction contracts in excess of $2,000 financed by federal assistance funds and to submit weekly certified payrolls for each week in which contract work is performed. 2 CFR 200.303 requires the non-Federal entity to ?(a) establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal statutes, regulations, and the terms and conditions of the Federal award.? 2 CFR 200.326 and 29 CFR Part 5, Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction (DOL Regulations) require 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). Condition ? Adequate controls were not in place to ensure that contractors and subcontractors were notified of the requirements to comply with the wage rate requirements and provided timely certified payrolls throughout the construction projects. Cause ? A clause describing the Wage Rate Requirements was not added to the construction contracts. There was a lack of sufficient controls over the communication of this requirement to ensure that accurate and complete certified payrolls were provided to the Board. Effect ? Lack of notification of the wage rate requirements to the contractors and subcontractors could lead to disallowed costs. We noted that payments to contractors did not have supporting documentation of certified payrolls. However, our audit disclosed no instances of unallowable costs. Questioned Costs ? Not determinable. Recommendation ? We recommend the strengthening of controls to ensure the prevailing wage rate clauses are included in the contracts and that certified payrolls are received for each week in which construction work is performed. Management?s Response ? The Board will strengthen the controls in place to provide assurance that proper prevailing wage rate clauses are added to construction contracts and certified payrolls are received from each week in which construction work is performed.
Item 2022-001 Special Tests and Provisions ? Wage Rate Requirements Education Stabilization Fund (ESF) ALN# 84.425 U.S. Department of Education Passed through the State Department of Education Grant period ? Years ended September 30, 2021 (84.425U) (84.425C) and September 30, 2020 (84.425D) Criteria ? Grantees should have controls in place to ensure that contractors and subcontractors are notified of the requirement to pay prevailing wage rates to all laborers and mechanics employed on construction contracts in excess of $2,000 financed by federal assistance funds and to submit weekly certified payrolls for each week in which contract work is performed. 2 CFR 200.303 requires the non-Federal entity to ?(a) establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal statutes, regulations, and the terms and conditions of the Federal award.? 2 CFR 200.326 and 29 CFR Part 5, Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction (DOL Regulations) require 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). Condition ? Adequate controls were not in place to ensure that contractors and subcontractors were notified of the requirements to comply with the wage rate requirements and provided timely certified payrolls throughout the construction projects. Cause ? A clause describing the Wage Rate Requirements was not added to the construction contracts. There was a lack of sufficient controls over the communication of this requirement to ensure that accurate and complete certified payrolls were provided to the Board. Effect ? Lack of notification of the wage rate requirements to the contractors and subcontractors could lead to disallowed costs. We noted that payments to contractors did not have supporting documentation of certified payrolls. However, our audit disclosed no instances of unallowable costs. Questioned Costs ? Not determinable. Recommendation ? We recommend the strengthening of controls to ensure the prevailing wage rate clauses are included in the contracts and that certified payrolls are received for each week in which construction work is performed. Management?s Response ? The Board will strengthen the controls in place to provide assurance that proper prevailing wage rate clauses are added to construction contracts and certified payrolls are received from each week in which construction work is performed.
SIGNIFICANT DEFICIENCY U.S. Department of Health and Human Services 2022-001 Title III Aging Cluster: Title III B Supportive Services CFDA 93.044 Title III C Nutrition Services CFDA 93.045 Title III C Nutrition Services Incentive CFDA 93.053 Grant period ? year ended September 30, 2023 Condition: The Organization did not have a written procurement policy to properly implement all the requirements of 2 CFR Section 200.318 through 200.326 of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Criteria: In accordance with 2 CFR Section 200.319(c), non-federal entities must have written procedures for procurement transactions. Such policy should incorporate all requirements within 2 CFR 200.318 through 200.326 of the Uniform Guidance. Cause: The Organization?s procurement policy does not incorporate all the requirements of 2 CFR Section 200.318 through 200.326 of the Uniform Guidance. Effect: An important component of internal controls is the existence of operating policies and procedures and that they are clearly understood and communicated. Without clear written policies and procedures, there is a higher risk of noncompliance with program compliance requirements. Recommendation: Management should continue to develop comprehensive written policies and procedures to administer all federal programs. Current written policies should be evaluated for inclusion of and compliance with Uniform Guidance requirements. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and will adopt written policies to comply with Uniform Guidance requirements.
SIGNIFICANT DEFICIENCY U.S. Department of Health and Human Services 2022-001 Title III Aging Cluster: Title III B Supportive Services CFDA 93.044 Title III C Nutrition Services CFDA 93.045 Title III C Nutrition Services Incentive CFDA 93.053 Grant period ? year ended September 30, 2023 Condition: The Organization did not have a written procurement policy to properly implement all the requirements of 2 CFR Section 200.318 through 200.326 of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Criteria: In accordance with 2 CFR Section 200.319(c), non-federal entities must have written procedures for procurement transactions. Such policy should incorporate all requirements within 2 CFR 200.318 through 200.326 of the Uniform Guidance. Cause: The Organization?s procurement policy does not incorporate all the requirements of 2 CFR Section 200.318 through 200.326 of the Uniform Guidance. Effect: An important component of internal controls is the existence of operating policies and procedures and that they are clearly understood and communicated. Without clear written policies and procedures, there is a higher risk of noncompliance with program compliance requirements. Recommendation: Management should continue to develop comprehensive written policies and procedures to administer all federal programs. Current written policies should be evaluated for inclusion of and compliance with Uniform Guidance requirements. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and will adopt written policies to comply with Uniform Guidance requirements.
SIGNIFICANT DEFICIENCY U.S. Department of Health and Human Services 2022-001 Title III Aging Cluster: Title III B Supportive Services CFDA 93.044 Title III C Nutrition Services CFDA 93.045 Title III C Nutrition Services Incentive CFDA 93.053 Grant period ? year ended September 30, 2023 Condition: The Organization did not have a written procurement policy to properly implement all the requirements of 2 CFR Section 200.318 through 200.326 of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Criteria: In accordance with 2 CFR Section 200.319(c), non-federal entities must have written procedures for procurement transactions. Such policy should incorporate all requirements within 2 CFR 200.318 through 200.326 of the Uniform Guidance. Cause: The Organization?s procurement policy does not incorporate all the requirements of 2 CFR Section 200.318 through 200.326 of the Uniform Guidance. Effect: An important component of internal controls is the existence of operating policies and procedures and that they are clearly understood and communicated. Without clear written policies and procedures, there is a higher risk of noncompliance with program compliance requirements. Recommendation: Management should continue to develop comprehensive written policies and procedures to administer all federal programs. Current written policies should be evaluated for inclusion of and compliance with Uniform Guidance requirements. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and will adopt written policies to comply with Uniform Guidance requirements.
SIGNIFICANT DEFICIENCY U.S. Department of Health and Human Services 2022-001 Title III Aging Cluster: Title III B Supportive Services CFDA 93.044 Title III C Nutrition Services CFDA 93.045 Title III C Nutrition Services Incentive CFDA 93.053 Grant period ? year ended September 30, 2023 Condition: The Organization did not have a written procurement policy to properly implement all the requirements of 2 CFR Section 200.318 through 200.326 of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Criteria: In accordance with 2 CFR Section 200.319(c), non-federal entities must have written procedures for procurement transactions. Such policy should incorporate all requirements within 2 CFR 200.318 through 200.326 of the Uniform Guidance. Cause: The Organization?s procurement policy does not incorporate all the requirements of 2 CFR Section 200.318 through 200.326 of the Uniform Guidance. Effect: An important component of internal controls is the existence of operating policies and procedures and that they are clearly understood and communicated. Without clear written policies and procedures, there is a higher risk of noncompliance with program compliance requirements. Recommendation: Management should continue to develop comprehensive written policies and procedures to administer all federal programs. Current written policies should be evaluated for inclusion of and compliance with Uniform Guidance requirements. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and will adopt written policies to comply with Uniform Guidance requirements.
SIGNIFICANT DEFICIENCY U.S. Department of Health and Human Services 2022-001 Title III Aging Cluster: Title III B Supportive Services CFDA 93.044 Title III C Nutrition Services CFDA 93.045 Title III C Nutrition Services Incentive CFDA 93.053 Grant period ? year ended September 30, 2023 Condition: The Organization did not have a written procurement policy to properly implement all the requirements of 2 CFR Section 200.318 through 200.326 of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Criteria: In accordance with 2 CFR Section 200.319(c), non-federal entities must have written procedures for procurement transactions. Such policy should incorporate all requirements within 2 CFR 200.318 through 200.326 of the Uniform Guidance. Cause: The Organization?s procurement policy does not incorporate all the requirements of 2 CFR Section 200.318 through 200.326 of the Uniform Guidance. Effect: An important component of internal controls is the existence of operating policies and procedures and that they are clearly understood and communicated. Without clear written policies and procedures, there is a higher risk of noncompliance with program compliance requirements. Recommendation: Management should continue to develop comprehensive written policies and procedures to administer all federal programs. Current written policies should be evaluated for inclusion of and compliance with Uniform Guidance requirements. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and will adopt written policies to comply with Uniform Guidance requirements.
SIGNIFICANT DEFICIENCY U.S. Department of Health and Human Services 2022-001 Title III Aging Cluster: Title III B Supportive Services CFDA 93.044 Title III C Nutrition Services CFDA 93.045 Title III C Nutrition Services Incentive CFDA 93.053 Grant period ? year ended September 30, 2023 Condition: The Organization did not have a written procurement policy to properly implement all the requirements of 2 CFR Section 200.318 through 200.326 of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Criteria: In accordance with 2 CFR Section 200.319(c), non-federal entities must have written procedures for procurement transactions. Such policy should incorporate all requirements within 2 CFR 200.318 through 200.326 of the Uniform Guidance. Cause: The Organization?s procurement policy does not incorporate all the requirements of 2 CFR Section 200.318 through 200.326 of the Uniform Guidance. Effect: An important component of internal controls is the existence of operating policies and procedures and that they are clearly understood and communicated. Without clear written policies and procedures, there is a higher risk of noncompliance with program compliance requirements. Recommendation: Management should continue to develop comprehensive written policies and procedures to administer all federal programs. Current written policies should be evaluated for inclusion of and compliance with Uniform Guidance requirements. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and will adopt written policies to comply with Uniform Guidance requirements.
SIGNIFICANT DEFICIENCY U.S. Department of Health and Human Services 2022-001 Title III Aging Cluster: Title III B Supportive Services CFDA 93.044 Title III C Nutrition Services CFDA 93.045 Title III C Nutrition Services Incentive CFDA 93.053 Grant period ? year ended September 30, 2023 Condition: The Organization did not have a written procurement policy to properly implement all the requirements of 2 CFR Section 200.318 through 200.326 of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Criteria: In accordance with 2 CFR Section 200.319(c), non-federal entities must have written procedures for procurement transactions. Such policy should incorporate all requirements within 2 CFR 200.318 through 200.326 of the Uniform Guidance. Cause: The Organization?s procurement policy does not incorporate all the requirements of 2 CFR Section 200.318 through 200.326 of the Uniform Guidance. Effect: An important component of internal controls is the existence of operating policies and procedures and that they are clearly understood and communicated. Without clear written policies and procedures, there is a higher risk of noncompliance with program compliance requirements. Recommendation: Management should continue to develop comprehensive written policies and procedures to administer all federal programs. Current written policies should be evaluated for inclusion of and compliance with Uniform Guidance requirements. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and will adopt written policies to comply with Uniform Guidance requirements.
2022-002?Procurement Federal program information: Funding agency: All Title: All ALN: All Award year and number: All Pass-through entity (if applicable): All Criteria: Non-federal entities other than 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. According to BRINM?s Purchasing SOP?s, project purchase requests exceeding a value of $25,000 require obtaining three bids. Purchase orders are created for approved project purchase requests and reviewed and signed by the Executive Director or Assistant Director before it can be issued to a vendor. Condition: During fiscal year 2022, BRINM paid a vendor $93,808 for services related to a project. There is no evidence that three bids were obtained for selection of this vendor. Additionally, there was not an approved purchase order for one of the three invoices paid to this vendor. Questioned Costs: None Context: One of 25 nonpayroll transactions tested. Additionally, one of four vendors/subawards tested that were paid over $25,000 during fiscal year 2022. Cause: BRINM?s Grants Manager, who was responsible for all records related to purchasing, accounts payable, and credit cards, resigned in November 2021 without filing many documents. Evidence of bids obtained for use of this vendor could not be located. Effect: Procurement of vendors does not comply with BRINM SOP?s and the procurement requirements identified in 2 CFR Part 200. Auditor?s Recommendations: BRINM should implement its approved SOP?s as referenced above to ensure that purchasing SOP?s are implemented and selection of vendors is adequately documented. Management?s Response: Current Management is not able to confirm nor deny that appropriate documentation was not collected prior to payment but highly doubts that it was not collected based on the reliability of the previous Grants Manager. Management notes that the vendor was specifically mentioned in the Grant submission. Management will ensure that purchasing SOP are implemented and selection of vendors is adequately documented. Management has secured a project management software that will retain project documentation. This should ensure appropriate documentation is collected and available to all Management for the life of the project, until date of destruction.
2022-002?Procurement Federal program information: Funding agency: All Title: All ALN: All Award year and number: All Pass-through entity (if applicable): All Criteria: Non-federal entities other than 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. According to BRINM?s Purchasing SOP?s, project purchase requests exceeding a value of $25,000 require obtaining three bids. Purchase orders are created for approved project purchase requests and reviewed and signed by the Executive Director or Assistant Director before it can be issued to a vendor. Condition: During fiscal year 2022, BRINM paid a vendor $93,808 for services related to a project. There is no evidence that three bids were obtained for selection of this vendor. Additionally, there was not an approved purchase order for one of the three invoices paid to this vendor. Questioned Costs: None Context: One of 25 nonpayroll transactions tested. Additionally, one of four vendors/subawards tested that were paid over $25,000 during fiscal year 2022. Cause: BRINM?s Grants Manager, who was responsible for all records related to purchasing, accounts payable, and credit cards, resigned in November 2021 without filing many documents. Evidence of bids obtained for use of this vendor could not be located. Effect: Procurement of vendors does not comply with BRINM SOP?s and the procurement requirements identified in 2 CFR Part 200. Auditor?s Recommendations: BRINM should implement its approved SOP?s as referenced above to ensure that purchasing SOP?s are implemented and selection of vendors is adequately documented. Management?s Response: Current Management is not able to confirm nor deny that appropriate documentation was not collected prior to payment but highly doubts that it was not collected based on the reliability of the previous Grants Manager. Management notes that the vendor was specifically mentioned in the Grant submission. Management will ensure that purchasing SOP are implemented and selection of vendors is adequately documented. Management has secured a project management software that will retain project documentation. This should ensure appropriate documentation is collected and available to all Management for the life of the project, until date of destruction.
2022-002?Procurement Federal program information: Funding agency: All Title: All ALN: All Award year and number: All Pass-through entity (if applicable): All Criteria: Non-federal entities other than 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. According to BRINM?s Purchasing SOP?s, project purchase requests exceeding a value of $25,000 require obtaining three bids. Purchase orders are created for approved project purchase requests and reviewed and signed by the Executive Director or Assistant Director before it can be issued to a vendor. Condition: During fiscal year 2022, BRINM paid a vendor $93,808 for services related to a project. There is no evidence that three bids were obtained for selection of this vendor. Additionally, there was not an approved purchase order for one of the three invoices paid to this vendor. Questioned Costs: None Context: One of 25 nonpayroll transactions tested. Additionally, one of four vendors/subawards tested that were paid over $25,000 during fiscal year 2022. Cause: BRINM?s Grants Manager, who was responsible for all records related to purchasing, accounts payable, and credit cards, resigned in November 2021 without filing many documents. Evidence of bids obtained for use of this vendor could not be located. Effect: Procurement of vendors does not comply with BRINM SOP?s and the procurement requirements identified in 2 CFR Part 200. Auditor?s Recommendations: BRINM should implement its approved SOP?s as referenced above to ensure that purchasing SOP?s are implemented and selection of vendors is adequately documented. Management?s Response: Current Management is not able to confirm nor deny that appropriate documentation was not collected prior to payment but highly doubts that it was not collected based on the reliability of the previous Grants Manager. Management notes that the vendor was specifically mentioned in the Grant submission. Management will ensure that purchasing SOP are implemented and selection of vendors is adequately documented. Management has secured a project management software that will retain project documentation. This should ensure appropriate documentation is collected and available to all Management for the life of the project, until date of destruction.
2022-002?Procurement Federal program information: Funding agency: All Title: All ALN: All Award year and number: All Pass-through entity (if applicable): All Criteria: Non-federal entities other than 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. According to BRINM?s Purchasing SOP?s, project purchase requests exceeding a value of $25,000 require obtaining three bids. Purchase orders are created for approved project purchase requests and reviewed and signed by the Executive Director or Assistant Director before it can be issued to a vendor. Condition: During fiscal year 2022, BRINM paid a vendor $93,808 for services related to a project. There is no evidence that three bids were obtained for selection of this vendor. Additionally, there was not an approved purchase order for one of the three invoices paid to this vendor. Questioned Costs: None Context: One of 25 nonpayroll transactions tested. Additionally, one of four vendors/subawards tested that were paid over $25,000 during fiscal year 2022. Cause: BRINM?s Grants Manager, who was responsible for all records related to purchasing, accounts payable, and credit cards, resigned in November 2021 without filing many documents. Evidence of bids obtained for use of this vendor could not be located. Effect: Procurement of vendors does not comply with BRINM SOP?s and the procurement requirements identified in 2 CFR Part 200. Auditor?s Recommendations: BRINM should implement its approved SOP?s as referenced above to ensure that purchasing SOP?s are implemented and selection of vendors is adequately documented. Management?s Response: Current Management is not able to confirm nor deny that appropriate documentation was not collected prior to payment but highly doubts that it was not collected based on the reliability of the previous Grants Manager. Management notes that the vendor was specifically mentioned in the Grant submission. Management will ensure that purchasing SOP are implemented and selection of vendors is adequately documented. Management has secured a project management software that will retain project documentation. This should ensure appropriate documentation is collected and available to all Management for the life of the project, until date of destruction.
2022-002?Procurement Federal program information: Funding agency: All Title: All ALN: All Award year and number: All Pass-through entity (if applicable): All Criteria: Non-federal entities other than 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. According to BRINM?s Purchasing SOP?s, project purchase requests exceeding a value of $25,000 require obtaining three bids. Purchase orders are created for approved project purchase requests and reviewed and signed by the Executive Director or Assistant Director before it can be issued to a vendor. Condition: During fiscal year 2022, BRINM paid a vendor $93,808 for services related to a project. There is no evidence that three bids were obtained for selection of this vendor. Additionally, there was not an approved purchase order for one of the three invoices paid to this vendor. Questioned Costs: None Context: One of 25 nonpayroll transactions tested. Additionally, one of four vendors/subawards tested that were paid over $25,000 during fiscal year 2022. Cause: BRINM?s Grants Manager, who was responsible for all records related to purchasing, accounts payable, and credit cards, resigned in November 2021 without filing many documents. Evidence of bids obtained for use of this vendor could not be located. Effect: Procurement of vendors does not comply with BRINM SOP?s and the procurement requirements identified in 2 CFR Part 200. Auditor?s Recommendations: BRINM should implement its approved SOP?s as referenced above to ensure that purchasing SOP?s are implemented and selection of vendors is adequately documented. Management?s Response: Current Management is not able to confirm nor deny that appropriate documentation was not collected prior to payment but highly doubts that it was not collected based on the reliability of the previous Grants Manager. Management notes that the vendor was specifically mentioned in the Grant submission. Management will ensure that purchasing SOP are implemented and selection of vendors is adequately documented. Management has secured a project management software that will retain project documentation. This should ensure appropriate documentation is collected and available to all Management for the life of the project, until date of destruction.
2022-002?Procurement Federal program information: Funding agency: All Title: All ALN: All Award year and number: All Pass-through entity (if applicable): All Criteria: Non-federal entities other than 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. According to BRINM?s Purchasing SOP?s, project purchase requests exceeding a value of $25,000 require obtaining three bids. Purchase orders are created for approved project purchase requests and reviewed and signed by the Executive Director or Assistant Director before it can be issued to a vendor. Condition: During fiscal year 2022, BRINM paid a vendor $93,808 for services related to a project. There is no evidence that three bids were obtained for selection of this vendor. Additionally, there was not an approved purchase order for one of the three invoices paid to this vendor. Questioned Costs: None Context: One of 25 nonpayroll transactions tested. Additionally, one of four vendors/subawards tested that were paid over $25,000 during fiscal year 2022. Cause: BRINM?s Grants Manager, who was responsible for all records related to purchasing, accounts payable, and credit cards, resigned in November 2021 without filing many documents. Evidence of bids obtained for use of this vendor could not be located. Effect: Procurement of vendors does not comply with BRINM SOP?s and the procurement requirements identified in 2 CFR Part 200. Auditor?s Recommendations: BRINM should implement its approved SOP?s as referenced above to ensure that purchasing SOP?s are implemented and selection of vendors is adequately documented. Management?s Response: Current Management is not able to confirm nor deny that appropriate documentation was not collected prior to payment but highly doubts that it was not collected based on the reliability of the previous Grants Manager. Management notes that the vendor was specifically mentioned in the Grant submission. Management will ensure that purchasing SOP are implemented and selection of vendors is adequately documented. Management has secured a project management software that will retain project documentation. This should ensure appropriate documentation is collected and available to all Management for the life of the project, until date of destruction.
Reference No. 2022-002 Condition: The City did not obtain the required certified payrolls for contractor or subcontractor work performed during the fiscal year ended September 30, 2022. The contractor submitted payroll and timesheets, but they were not certified payroll reports. In addition, the City did not have internal controls in place to identify that these certified payrolls were not being obtained. 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). Non-Federal 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. This includes a requirement for the contractor or subcontractor to submit to the Non-Federal 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). In addition, according to 2 CFR Part 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Reference No. 2022-002 - continued Questioned Costs: Unknown Context: The City did not obain any certified payrolls for contractor or subcontractor work performed from the construction contractor for the project for this program. This contractor accounted for 61% of the construction expenditures during the fiscal year 2022. Effect: Certified payrolls were not obtained or reviewed for the project so laborers and mechanics employed by the contractor or subcontractor may not have been paid prevailing wage rates. Cause: The City did not ensure that all required certified payrolls were being obtained. There was no one person or group assigned to monitor, review and obtain certified payrolls during the year from the contractor and subcontractor. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend that the City design and implement internal controls to ensure compliance with the program's wage rates requirements. These controls should include monitoring construction contracts, tracking weekly certified payrolls or no work performed and reviewing to ensure that the payrolls are properly certified for all contractor and subcontractor work performed. Views of Responsible Officials: See Corrective Action Plan.
2022-001 - Procurement Federal Program Information: Department of Transportation ALN ? 20.507 ? Federal Transit Cluster Criteria: The following CFR(s) apply to this finding: 2 CFR section 200.318 through 200.326. Condition: During audit procedures, it was identified that the District?s procurement policy did not include some of the elements required by the above federal regulations. Cause: The District does not have the necessary language over the procurement policy in regard to federal regulations. Effect: Procurements might not conform to applicable Federal regulations. Identification of Questioned Costs: Based upon procurement items sampled, no noncompliance matters were noted. Context: A review was conducted of the District?s procurement policy and the policy was not in compliance with federal regulations. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the District adopt a procurement policy that is in compliance with federal regulations and that the District implement internal control processes and procedures to ensure that procurement policies are always in compliance with federal regulations. Views of Responsible Officials: Client agrees with finding.
2022-001 - Procurement Federal Program Information: Department of Transportation ALN ? 20.507 ? Federal Transit Cluster Criteria: The following CFR(s) apply to this finding: 2 CFR section 200.318 through 200.326. Condition: During audit procedures, it was identified that the District?s procurement policy did not include some of the elements required by the above federal regulations. Cause: The District does not have the necessary language over the procurement policy in regard to federal regulations. Effect: Procurements might not conform to applicable Federal regulations. Identification of Questioned Costs: Based upon procurement items sampled, no noncompliance matters were noted. Context: A review was conducted of the District?s procurement policy and the policy was not in compliance with federal regulations. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the District adopt a procurement policy that is in compliance with federal regulations and that the District implement internal control processes and procedures to ensure that procurement policies are always in compliance with federal regulations. Views of Responsible Officials: Client agrees with finding.
2022-001 - Procurement Federal Program Information: Department of Transportation ALN ? 20.507 ? Federal Transit Cluster Criteria: The following CFR(s) apply to this finding: 2 CFR section 200.318 through 200.326. Condition: During audit procedures, it was identified that the District?s procurement policy did not include some of the elements required by the above federal regulations. Cause: The District does not have the necessary language over the procurement policy in regard to federal regulations. Effect: Procurements might not conform to applicable Federal regulations. Identification of Questioned Costs: Based upon procurement items sampled, no noncompliance matters were noted. Context: A review was conducted of the District?s procurement policy and the policy was not in compliance with federal regulations. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the District adopt a procurement policy that is in compliance with federal regulations and that the District implement internal control processes and procedures to ensure that procurement policies are always in compliance with federal regulations. Views of Responsible Officials: Client agrees with finding.
2022-001 - Procurement Federal Program Information: Department of Transportation ALN ? 20.507 ? Federal Transit Cluster Criteria: The following CFR(s) apply to this finding: 2 CFR section 200.318 through 200.326. Condition: During audit procedures, it was identified that the District?s procurement policy did not include some of the elements required by the above federal regulations. Cause: The District does not have the necessary language over the procurement policy in regard to federal regulations. Effect: Procurements might not conform to applicable Federal regulations. Identification of Questioned Costs: Based upon procurement items sampled, no noncompliance matters were noted. Context: A review was conducted of the District?s procurement policy and the policy was not in compliance with federal regulations. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the District adopt a procurement policy that is in compliance with federal regulations and that the District implement internal control processes and procedures to ensure that procurement policies are always in compliance with federal regulations. Views of Responsible Officials: Client agrees with finding.
2022-001 - Procurement Federal Program Information: Department of Transportation ALN ? 20.507 ? Federal Transit Cluster Criteria: The following CFR(s) apply to this finding: 2 CFR section 200.318 through 200.326. Condition: During audit procedures, it was identified that the District?s procurement policy did not include some of the elements required by the above federal regulations. Cause: The District does not have the necessary language over the procurement policy in regard to federal regulations. Effect: Procurements might not conform to applicable Federal regulations. Identification of Questioned Costs: Based upon procurement items sampled, no noncompliance matters were noted. Context: A review was conducted of the District?s procurement policy and the policy was not in compliance with federal regulations. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the District adopt a procurement policy that is in compliance with federal regulations and that the District implement internal control processes and procedures to ensure that procurement policies are always in compliance with federal regulations. Views of Responsible Officials: Client agrees with finding.
Finding: Special Tests - Wage Rate Requirements Federal Program: Airport Improvement Program Assistance Listing Number: 20.106 Federal Agency: U.S. Department of Transportation Pass-Through Entity: Not Applicable 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). Non-Federal 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. This includes a requirement for the contractor or subcontractor to submit to the Non-Federal 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). In addition, according to 2 CFR Part 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: The City did not obtain all of the required certified payrolls for contractor or subcontractor work performed during the fiscal year ended September 30, 2022. In addition, the City did not have internal controls in place to identify that these certified payrolls were not being obtained. Questioned Costs: Unknown Context: The City did not obtain any certified payrolls for contractor or subcontractor work performed from one of the two construction contractors used for the projects for this program. This one contractor accounted for 94 percent of the construction expenditures during fiscal year 2022. Effect: Certified payrolls were not obtained or reviewed for the project so laborers and mechanics employed by contractors or subcontractors may not have been paid prevailing wage rates. Cause: The City did not ensure that all required certified payrolls were being obtained. There was no one person or group assigned to monitor, review, and obtain certified payrolls during the year from contractors and subcontractors. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend that the City design and implement internal controls to ensure compliance with the program?s wage rates requirements. These controls should include monitoring construction contracts, tracking weekly certified payrolls or notification of no work performed, and reviewing to ensure that the payrolls are properly certified for all contractor and subcontractor work performed. Views of Responsible Officials: See Corrective Action Plan
Finding: Special Tests - Wage Rate Requirements Federal Program: Airport Improvement Program Assistance Listing Number: 20.106 Federal Agency: U.S. Department of Transportation Pass-Through Entity: Not Applicable 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). Non-Federal 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. This includes a requirement for the contractor or subcontractor to submit to the Non-Federal 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). In addition, according to 2 CFR Part 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: The City did not obtain all of the required certified payrolls for contractor or subcontractor work performed during the fiscal year ended September 30, 2022. In addition, the City did not have internal controls in place to identify that these certified payrolls were not being obtained. Questioned Costs: Unknown Context: The City did not obtain any certified payrolls for contractor or subcontractor work performed from one of the two construction contractors used for the projects for this program. This one contractor accounted for 94 percent of the construction expenditures during fiscal year 2022. Effect: Certified payrolls were not obtained or reviewed for the project so laborers and mechanics employed by contractors or subcontractors may not have been paid prevailing wage rates. Cause: The City did not ensure that all required certified payrolls were being obtained. There was no one person or group assigned to monitor, review, and obtain certified payrolls during the year from contractors and subcontractors. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend that the City design and implement internal controls to ensure compliance with the program?s wage rates requirements. These controls should include monitoring construction contracts, tracking weekly certified payrolls or notification of no work performed, and reviewing to ensure that the payrolls are properly certified for all contractor and subcontractor work performed. Views of Responsible Officials: See Corrective Action Plan
Finding: Special Tests - Wage Rate Requirements Federal Program: Airport Improvement Program Assistance Listing Number: 20.106 Federal Agency: U.S. Department of Transportation Pass-Through Entity: Not Applicable 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). Non-Federal 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. This includes a requirement for the contractor or subcontractor to submit to the Non-Federal 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). In addition, according to 2 CFR Part 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: The City did not obtain all of the required certified payrolls for contractor or subcontractor work performed during the fiscal year ended September 30, 2022. In addition, the City did not have internal controls in place to identify that these certified payrolls were not being obtained. Questioned Costs: Unknown Context: The City did not obtain any certified payrolls for contractor or subcontractor work performed from one of the two construction contractors used for the projects for this program. This one contractor accounted for 94 percent of the construction expenditures during fiscal year 2022. Effect: Certified payrolls were not obtained or reviewed for the project so laborers and mechanics employed by contractors or subcontractors may not have been paid prevailing wage rates. Cause: The City did not ensure that all required certified payrolls were being obtained. There was no one person or group assigned to monitor, review, and obtain certified payrolls during the year from contractors and subcontractors. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend that the City design and implement internal controls to ensure compliance with the program?s wage rates requirements. These controls should include monitoring construction contracts, tracking weekly certified payrolls or notification of no work performed, and reviewing to ensure that the payrolls are properly certified for all contractor and subcontractor work performed. Views of Responsible Officials: See Corrective Action Plan
Finding: Special Tests - Wage Rate Requirements Federal Program: Airport Improvement Program Assistance Listing Number: 20.106 Federal Agency: U.S. Department of Transportation Pass-Through Entity: Not Applicable 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). Non-Federal 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. This includes a requirement for the contractor or subcontractor to submit to the Non-Federal 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). In addition, according to 2 CFR Part 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: The City did not obtain all of the required certified payrolls for contractor or subcontractor work performed during the fiscal year ended September 30, 2022. In addition, the City did not have internal controls in place to identify that these certified payrolls were not being obtained. Questioned Costs: Unknown Context: The City did not obtain any certified payrolls for contractor or subcontractor work performed from one of the two construction contractors used for the projects for this program. This one contractor accounted for 94 percent of the construction expenditures during fiscal year 2022. Effect: Certified payrolls were not obtained or reviewed for the project so laborers and mechanics employed by contractors or subcontractors may not have been paid prevailing wage rates. Cause: The City did not ensure that all required certified payrolls were being obtained. There was no one person or group assigned to monitor, review, and obtain certified payrolls during the year from contractors and subcontractors. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend that the City design and implement internal controls to ensure compliance with the program?s wage rates requirements. These controls should include monitoring construction contracts, tracking weekly certified payrolls or notification of no work performed, and reviewing to ensure that the payrolls are properly certified for all contractor and subcontractor work performed. Views of Responsible Officials: See Corrective Action Plan
Finding: Special Tests - Wage Rate Requirements Federal Program: Airport Improvement Program Assistance Listing Number: 20.106 Federal Agency: U.S. Department of Transportation Pass-Through Entity: Not Applicable 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). Non-Federal 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. This includes a requirement for the contractor or subcontractor to submit to the Non-Federal 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). In addition, according to 2 CFR Part 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: The City did not obtain all of the required certified payrolls for contractor or subcontractor work performed during the fiscal year ended September 30, 2022. In addition, the City did not have internal controls in place to identify that these certified payrolls were not being obtained. Questioned Costs: Unknown Context: The City did not obtain any certified payrolls for contractor or subcontractor work performed from one of the two construction contractors used for the projects for this program. This one contractor accounted for 94 percent of the construction expenditures during fiscal year 2022. Effect: Certified payrolls were not obtained or reviewed for the project so laborers and mechanics employed by contractors or subcontractors may not have been paid prevailing wage rates. Cause: The City did not ensure that all required certified payrolls were being obtained. There was no one person or group assigned to monitor, review, and obtain certified payrolls during the year from contractors and subcontractors. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend that the City design and implement internal controls to ensure compliance with the program?s wage rates requirements. These controls should include monitoring construction contracts, tracking weekly certified payrolls or notification of no work performed, and reviewing to ensure that the payrolls are properly certified for all contractor and subcontractor work performed. Views of Responsible Officials: See Corrective Action Plan
Finding: Special Tests - Wage Rate Requirements Federal Program: Airport Improvement Program Assistance Listing Number: 20.106 Federal Agency: U.S. Department of Transportation Pass-Through Entity: Not Applicable 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). Non-Federal 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. This includes a requirement for the contractor or subcontractor to submit to the Non-Federal 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). In addition, according to 2 CFR Part 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: The City did not obtain all of the required certified payrolls for contractor or subcontractor work performed during the fiscal year ended September 30, 2022. In addition, the City did not have internal controls in place to identify that these certified payrolls were not being obtained. Questioned Costs: Unknown Context: The City did not obtain any certified payrolls for contractor or subcontractor work performed from one of the two construction contractors used for the projects for this program. This one contractor accounted for 94 percent of the construction expenditures during fiscal year 2022. Effect: Certified payrolls were not obtained or reviewed for the project so laborers and mechanics employed by contractors or subcontractors may not have been paid prevailing wage rates. Cause: The City did not ensure that all required certified payrolls were being obtained. There was no one person or group assigned to monitor, review, and obtain certified payrolls during the year from contractors and subcontractors. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend that the City design and implement internal controls to ensure compliance with the program?s wage rates requirements. These controls should include monitoring construction contracts, tracking weekly certified payrolls or notification of no work performed, and reviewing to ensure that the payrolls are properly certified for all contractor and subcontractor work performed. Views of Responsible Officials: See Corrective Action Plan
Finding: Special Tests - Wage Rate Requirements Federal Program: Airport Improvement Program Assistance Listing Number: 20.106 Federal Agency: U.S. Department of Transportation Pass-Through Entity: Not Applicable 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). Non-Federal 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. This includes a requirement for the contractor or subcontractor to submit to the Non-Federal 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). In addition, according to 2 CFR Part 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: The City did not obtain all of the required certified payrolls for contractor or subcontractor work performed during the fiscal year ended September 30, 2022. In addition, the City did not have internal controls in place to identify that these certified payrolls were not being obtained. Questioned Costs: Unknown Context: The City did not obtain any certified payrolls for contractor or subcontractor work performed from one of the two construction contractors used for the projects for this program. This one contractor accounted for 94 percent of the construction expenditures during fiscal year 2022. Effect: Certified payrolls were not obtained or reviewed for the project so laborers and mechanics employed by contractors or subcontractors may not have been paid prevailing wage rates. Cause: The City did not ensure that all required certified payrolls were being obtained. There was no one person or group assigned to monitor, review, and obtain certified payrolls during the year from contractors and subcontractors. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend that the City design and implement internal controls to ensure compliance with the program?s wage rates requirements. These controls should include monitoring construction contracts, tracking weekly certified payrolls or notification of no work performed, and reviewing to ensure that the payrolls are properly certified for all contractor and subcontractor work performed. Views of Responsible Officials: See Corrective Action Plan
Finding: Special Tests - Wage Rate Requirements Federal Program: Airport Improvement Program Assistance Listing Number: 20.106 Federal Agency: U.S. Department of Transportation Pass-Through Entity: Not Applicable 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). Non-Federal 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. This includes a requirement for the contractor or subcontractor to submit to the Non-Federal 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). In addition, according to 2 CFR Part 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: The City did not obtain all of the required certified payrolls for contractor or subcontractor work performed during the fiscal year ended September 30, 2022. In addition, the City did not have internal controls in place to identify that these certified payrolls were not being obtained. Questioned Costs: Unknown Context: The City did not obtain any certified payrolls for contractor or subcontractor work performed from one of the two construction contractors used for the projects for this program. This one contractor accounted for 94 percent of the construction expenditures during fiscal year 2022. Effect: Certified payrolls were not obtained or reviewed for the project so laborers and mechanics employed by contractors or subcontractors may not have been paid prevailing wage rates. Cause: The City did not ensure that all required certified payrolls were being obtained. There was no one person or group assigned to monitor, review, and obtain certified payrolls during the year from contractors and subcontractors. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend that the City design and implement internal controls to ensure compliance with the program?s wage rates requirements. These controls should include monitoring construction contracts, tracking weekly certified payrolls or notification of no work performed, and reviewing to ensure that the payrolls are properly certified for all contractor and subcontractor work performed. Views of Responsible Officials: See Corrective Action Plan
Finding: Special Tests - Wage Rate Requirements Federal Program: Airport Improvement Program Assistance Listing Number: 20.106 Federal Agency: U.S. Department of Transportation Pass-Through Entity: Not Applicable 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). Non-Federal 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. This includes a requirement for the contractor or subcontractor to submit to the Non-Federal 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). In addition, according to 2 CFR Part 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: The City did not obtain all of the required certified payrolls for contractor or subcontractor work performed during the fiscal year ended September 30, 2022. In addition, the City did not have internal controls in place to identify that these certified payrolls were not being obtained. Questioned Costs: Unknown Context: The City did not obtain any certified payrolls for contractor or subcontractor work performed from one of the two construction contractors used for the projects for this program. This one contractor accounted for 94 percent of the construction expenditures during fiscal year 2022. Effect: Certified payrolls were not obtained or reviewed for the project so laborers and mechanics employed by contractors or subcontractors may not have been paid prevailing wage rates. Cause: The City did not ensure that all required certified payrolls were being obtained. There was no one person or group assigned to monitor, review, and obtain certified payrolls during the year from contractors and subcontractors. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend that the City design and implement internal controls to ensure compliance with the program?s wage rates requirements. These controls should include monitoring construction contracts, tracking weekly certified payrolls or notification of no work performed, and reviewing to ensure that the payrolls are properly certified for all contractor and subcontractor work performed. Views of Responsible Officials: See Corrective Action Plan
Finding: Special Tests - Wage Rate Requirements Federal Program: Airport Improvement Program Assistance Listing Number: 20.106 Federal Agency: U.S. Department of Transportation Pass-Through Entity: Not Applicable 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). Non-Federal 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. This includes a requirement for the contractor or subcontractor to submit to the Non-Federal 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). In addition, according to 2 CFR Part 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: The City did not obtain all of the required certified payrolls for contractor or subcontractor work performed during the fiscal year ended September 30, 2022. In addition, the City did not have internal controls in place to identify that these certified payrolls were not being obtained. Questioned Costs: Unknown Context: The City did not obtain any certified payrolls for contractor or subcontractor work performed from one of the two construction contractors used for the projects for this program. This one contractor accounted for 94 percent of the construction expenditures during fiscal year 2022. Effect: Certified payrolls were not obtained or reviewed for the project so laborers and mechanics employed by contractors or subcontractors may not have been paid prevailing wage rates. Cause: The City did not ensure that all required certified payrolls were being obtained. There was no one person or group assigned to monitor, review, and obtain certified payrolls during the year from contractors and subcontractors. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend that the City design and implement internal controls to ensure compliance with the program?s wage rates requirements. These controls should include monitoring construction contracts, tracking weekly certified payrolls or notification of no work performed, and reviewing to ensure that the payrolls are properly certified for all contractor and subcontractor work performed. Views of Responsible Officials: See Corrective Action Plan
Finding: Special Tests - Wage Rate Requirements Federal Program: Airport Improvement Program Assistance Listing Number: 20.106 Federal Agency: U.S. Department of Transportation Pass-Through Entity: Not Applicable 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). Non-Federal 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. This includes a requirement for the contractor or subcontractor to submit to the Non-Federal 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). In addition, according to 2 CFR Part 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: The City did not obtain all of the required certified payrolls for contractor or subcontractor work performed during the fiscal year ended September 30, 2022. In addition, the City did not have internal controls in place to identify that these certified payrolls were not being obtained. Questioned Costs: Unknown Context: The City did not obtain any certified payrolls for contractor or subcontractor work performed from one of the two construction contractors used for the projects for this program. This one contractor accounted for 94 percent of the construction expenditures during fiscal year 2022. Effect: Certified payrolls were not obtained or reviewed for the project so laborers and mechanics employed by contractors or subcontractors may not have been paid prevailing wage rates. Cause: The City did not ensure that all required certified payrolls were being obtained. There was no one person or group assigned to monitor, review, and obtain certified payrolls during the year from contractors and subcontractors. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend that the City design and implement internal controls to ensure compliance with the program?s wage rates requirements. These controls should include monitoring construction contracts, tracking weekly certified payrolls or notification of no work performed, and reviewing to ensure that the payrolls are properly certified for all contractor and subcontractor work performed. Views of Responsible Officials: See Corrective Action Plan
Finding: Special Tests - Wage Rate Requirements Federal Program: Airport Improvement Program Assistance Listing Number: 20.106 Federal Agency: U.S. Department of Transportation Pass-Through Entity: Not Applicable 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). Non-Federal 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. This includes a requirement for the contractor or subcontractor to submit to the Non-Federal 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). In addition, according to 2 CFR Part 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: The City did not obtain all of the required certified payrolls for contractor or subcontractor work performed during the fiscal year ended September 30, 2022. In addition, the City did not have internal controls in place to identify that these certified payrolls were not being obtained. Questioned Costs: Unknown Context: The City did not obtain any certified payrolls for contractor or subcontractor work performed from one of the two construction contractors used for the projects for this program. This one contractor accounted for 94 percent of the construction expenditures during fiscal year 2022. Effect: Certified payrolls were not obtained or reviewed for the project so laborers and mechanics employed by contractors or subcontractors may not have been paid prevailing wage rates. Cause: The City did not ensure that all required certified payrolls were being obtained. There was no one person or group assigned to monitor, review, and obtain certified payrolls during the year from contractors and subcontractors. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend that the City design and implement internal controls to ensure compliance with the program?s wage rates requirements. These controls should include monitoring construction contracts, tracking weekly certified payrolls or notification of no work performed, and reviewing to ensure that the payrolls are properly certified for all contractor and subcontractor work performed. Views of Responsible Officials: See Corrective Action Plan
Finding: Special Tests - Wage Rate Requirements Federal Program: Airport Improvement Program Assistance Listing Number: 20.106 Federal Agency: U.S. Department of Transportation Pass-Through Entity: Not Applicable 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). Non-Federal 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. This includes a requirement for the contractor or subcontractor to submit to the Non-Federal 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). In addition, according to 2 CFR Part 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: The City did not obtain all of the required certified payrolls for contractor or subcontractor work performed during the fiscal year ended September 30, 2022. In addition, the City did not have internal controls in place to identify that these certified payrolls were not being obtained. Questioned Costs: Unknown Context: The City did not obtain any certified payrolls for contractor or subcontractor work performed from one of the two construction contractors used for the projects for this program. This one contractor accounted for 94 percent of the construction expenditures during fiscal year 2022. Effect: Certified payrolls were not obtained or reviewed for the project so laborers and mechanics employed by contractors or subcontractors may not have been paid prevailing wage rates. Cause: The City did not ensure that all required certified payrolls were being obtained. There was no one person or group assigned to monitor, review, and obtain certified payrolls during the year from contractors and subcontractors. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend that the City design and implement internal controls to ensure compliance with the program?s wage rates requirements. These controls should include monitoring construction contracts, tracking weekly certified payrolls or notification of no work performed, and reviewing to ensure that the payrolls are properly certified for all contractor and subcontractor work performed. Views of Responsible Officials: See Corrective Action Plan
Finding: Special Tests - Wage Rate Requirements Federal Program: Airport Improvement Program Assistance Listing Number: 20.106 Federal Agency: U.S. Department of Transportation Pass-Through Entity: Not Applicable 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). Non-Federal 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. This includes a requirement for the contractor or subcontractor to submit to the Non-Federal 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). In addition, according to 2 CFR Part 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: The City did not obtain all of the required certified payrolls for contractor or subcontractor work performed during the fiscal year ended September 30, 2022. In addition, the City did not have internal controls in place to identify that these certified payrolls were not being obtained. Questioned Costs: Unknown Context: The City did not obtain any certified payrolls for contractor or subcontractor work performed from one of the two construction contractors used for the projects for this program. This one contractor accounted for 94 percent of the construction expenditures during fiscal year 2022. Effect: Certified payrolls were not obtained or reviewed for the project so laborers and mechanics employed by contractors or subcontractors may not have been paid prevailing wage rates. Cause: The City did not ensure that all required certified payrolls were being obtained. There was no one person or group assigned to monitor, review, and obtain certified payrolls during the year from contractors and subcontractors. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend that the City design and implement internal controls to ensure compliance with the program?s wage rates requirements. These controls should include monitoring construction contracts, tracking weekly certified payrolls or notification of no work performed, and reviewing to ensure that the payrolls are properly certified for all contractor and subcontractor work performed. Views of Responsible Officials: See Corrective Action Plan
Finding: Special Tests - Wage Rate Requirements Federal Program: Airport Improvement Program Assistance Listing Number: 20.106 Federal Agency: U.S. Department of Transportation Pass-Through Entity: Not Applicable 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). Non-Federal 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. This includes a requirement for the contractor or subcontractor to submit to the Non-Federal 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). In addition, according to 2 CFR Part 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: The City did not obtain all of the required certified payrolls for contractor or subcontractor work performed during the fiscal year ended September 30, 2022. In addition, the City did not have internal controls in place to identify that these certified payrolls were not being obtained. Questioned Costs: Unknown Context: The City did not obtain any certified payrolls for contractor or subcontractor work performed from one of the two construction contractors used for the projects for this program. This one contractor accounted for 94 percent of the construction expenditures during fiscal year 2022. Effect: Certified payrolls were not obtained or reviewed for the project so laborers and mechanics employed by contractors or subcontractors may not have been paid prevailing wage rates. Cause: The City did not ensure that all required certified payrolls were being obtained. There was no one person or group assigned to monitor, review, and obtain certified payrolls during the year from contractors and subcontractors. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend that the City design and implement internal controls to ensure compliance with the program?s wage rates requirements. These controls should include monitoring construction contracts, tracking weekly certified payrolls or notification of no work performed, and reviewing to ensure that the payrolls are properly certified for all contractor and subcontractor work performed. Views of Responsible Officials: See Corrective Action Plan
Finding: Special Tests - Wage Rate Requirements Federal Program: Airport Improvement Program Assistance Listing Number: 20.106 Federal Agency: U.S. Department of Transportation Pass-Through Entity: Not Applicable 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). Non-Federal 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. This includes a requirement for the contractor or subcontractor to submit to the Non-Federal 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). In addition, according to 2 CFR Part 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: The City did not obtain all of the required certified payrolls for contractor or subcontractor work performed during the fiscal year ended September 30, 2022. In addition, the City did not have internal controls in place to identify that these certified payrolls were not being obtained. Questioned Costs: Unknown Context: The City did not obtain any certified payrolls for contractor or subcontractor work performed from one of the two construction contractors used for the projects for this program. This one contractor accounted for 94 percent of the construction expenditures during fiscal year 2022. Effect: Certified payrolls were not obtained or reviewed for the project so laborers and mechanics employed by contractors or subcontractors may not have been paid prevailing wage rates. Cause: The City did not ensure that all required certified payrolls were being obtained. There was no one person or group assigned to monitor, review, and obtain certified payrolls during the year from contractors and subcontractors. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend that the City design and implement internal controls to ensure compliance with the program?s wage rates requirements. These controls should include monitoring construction contracts, tracking weekly certified payrolls or notification of no work performed, and reviewing to ensure that the payrolls are properly certified for all contractor and subcontractor work performed. Views of Responsible Officials: See Corrective Action Plan
Finding: Special Tests - Wage Rate Requirements Federal Program: Airport Improvement Program Assistance Listing Number: 20.106 Federal Agency: U.S. Department of Transportation Pass-Through Entity: Not Applicable 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). Non-Federal 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. This includes a requirement for the contractor or subcontractor to submit to the Non-Federal 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). In addition, according to 2 CFR Part 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: The City did not obtain all of the required certified payrolls for contractor or subcontractor work performed during the fiscal year ended September 30, 2022. In addition, the City did not have internal controls in place to identify that these certified payrolls were not being obtained. Questioned Costs: Unknown Context: The City did not obtain any certified payrolls for contractor or subcontractor work performed from one of the two construction contractors used for the projects for this program. This one contractor accounted for 94 percent of the construction expenditures during fiscal year 2022. Effect: Certified payrolls were not obtained or reviewed for the project so laborers and mechanics employed by contractors or subcontractors may not have been paid prevailing wage rates. Cause: The City did not ensure that all required certified payrolls were being obtained. There was no one person or group assigned to monitor, review, and obtain certified payrolls during the year from contractors and subcontractors. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend that the City design and implement internal controls to ensure compliance with the program?s wage rates requirements. These controls should include monitoring construction contracts, tracking weekly certified payrolls or notification of no work performed, and reviewing to ensure that the payrolls are properly certified for all contractor and subcontractor work performed. Views of Responsible Officials: See Corrective Action Plan
Finding No.: 2022-001 Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Entity: Guam Housing and Urban Renewal Authority AL Program: COVID-19 14.231 Emergency Solutions Grant Program Federal Award No.: E-20-SW-66-0001 Area: Procurement and Suspension and Debarment Questioned Cost: $1,095,000 Criteria: In accordance with applicable procurement and suspension and debarment requirements, the non-Federal entity must have and use documented procurement procedures, consistent with the Procurement Standards in 2 CFR ? 200.318-327, which require formal procurement methods when the procurement of goods or services exceeds the simplified acquisition threshold (i.e., $250,000). Condition: For one (or 20%) of five procurement transactions tested, aggregating $1,512K out of $1,519K in total non-payroll program expenditures, the small purchases method was used to procure rental of 40 rooms to be used as emergency shelters with an annual contract amount of $1,095K. Based on the contract amount, a formal procurement method should have been used in performing the procurement. Cause: Catholic Social Service (CSS) lacks controls over compliance with applicable procurement requirements. The procurement policy of CSS is not prepared in accordance with the Procurement Standards in 2 CFR 200.318-327, as it does not require formal procurement procedures for any transactions. Effect: CSS is in noncompliance with applicable procurement and suspension and debarment requirements. The total questioned cost is $1,095,000. Recommendation: CSS should establish and implement controls over compliance with applicable procurement and suspension and debarment requirements. CSS management should revisit its procurement policy for alignment with the Procurement Standards in 2 CFR 200.318-327. Views of responsible officials: CSS disagrees with the finding that CSS is in noncompliance with applicable procurement requirements cited in 2 CFR 200.318-327, resulting in a questioned cost of $1,095,000. The federal ESG-CV grant awarded to Guam Housing and Urban Renewal Authority (GHURA) to respond to the impact of COVID-19 pandemic provided waivers and alternative requirements, including greater flexibility, to establish expedited response actions to mitigate the spread of the coronavirus. Exhibit D of the sub-recipient agreement (SRA) provides for this reference of waivers and alternative requirements. Specifically, page 18 of Section III.F.8 of Exhibit D of the SRA states the following: ?8. Procurement. As provided by the CARES Act, the recipient may deviate from the applicable procurement standards (e.g., 24 CFR 576.407(c) and (f) and 2 CFR 200.317-200.326) when procuring goods and services to prevent, prepare for, and respond to coronavirus. If the recipient deviates from its procurement standards, then the recipient must establish alternative written procurement standards, and maintain documentation on the alternative procurement standards used to safeguard against fraud, waste, and abuse in the procurement of goods and services to prevent, prepare for, and respond to coronavirus. This alternative requirement is necessary to ensure the funds are used efficiently and effectively to prevent, prepare for, and respond to coronavirus. Notwithstanding this flexibility, the debarment and suspension regulations at 2 CFR part 180 and 2 CFR part 2424 apply as written.? The opening of a temporary emergency shelter for families and individuals who are homeless was deemed an emergency response to the coronavirus. CSS emphasizes that the focus of GHURA was to identify readily available units and obtain price quotations to stand up an emergency homeless shelter, and the ?small purchase method? would provide that information to expedite the procurement process. This process was communicated to GHURA, as well as outcome of surveys of available units, and recommendation for selection of site. CSS agrees on the recommendation to revisit CSS? procurement policy overall that would assure objectivity and cost efficiency in the purchase of goods and services, including aligning and/or adopting verbatim procurement requirements outlined in 2 CFR 200.318-327. Auditor response: The written communications between CSS and GHURA were not provided. Also, the procurement file lacks sufficient documentation to demonstrate that the use of the small purchase method was a deviation from its procurement standards or was used to safeguard against fraud, waste, and abuse. Based on the inspected procurement file, only one out of three suppliers had provided CSS a quotation. Given the high value of the procurement, CSS should have further solicited quotations from other suppliers or documented the rationale for not pursuing additional quotations from available suppliers.
Finding No.: 2022-001 Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Entity: Guam Housing and Urban Renewal Authority AL Program: COVID-19 14.231 Emergency Solutions Grant Program Federal Award No.: E-20-SW-66-0001 Area: Procurement and Suspension and Debarment Questioned Cost: $1,095,000 Criteria: In accordance with applicable procurement and suspension and debarment requirements, the non-Federal entity must have and use documented procurement procedures, consistent with the Procurement Standards in 2 CFR ? 200.318-327, which require formal procurement methods when the procurement of goods or services exceeds the simplified acquisition threshold (i.e., $250,000). Condition: For one (or 20%) of five procurement transactions tested, aggregating $1,512K out of $1,519K in total non-payroll program expenditures, the small purchases method was used to procure rental of 40 rooms to be used as emergency shelters with an annual contract amount of $1,095K. Based on the contract amount, a formal procurement method should have been used in performing the procurement. Cause: Catholic Social Service (CSS) lacks controls over compliance with applicable procurement requirements. The procurement policy of CSS is not prepared in accordance with the Procurement Standards in 2 CFR 200.318-327, as it does not require formal procurement procedures for any transactions. Effect: CSS is in noncompliance with applicable procurement and suspension and debarment requirements. The total questioned cost is $1,095,000. Recommendation: CSS should establish and implement controls over compliance with applicable procurement and suspension and debarment requirements. CSS management should revisit its procurement policy for alignment with the Procurement Standards in 2 CFR 200.318-327. Views of responsible officials: CSS disagrees with the finding that CSS is in noncompliance with applicable procurement requirements cited in 2 CFR 200.318-327, resulting in a questioned cost of $1,095,000. The federal ESG-CV grant awarded to Guam Housing and Urban Renewal Authority (GHURA) to respond to the impact of COVID-19 pandemic provided waivers and alternative requirements, including greater flexibility, to establish expedited response actions to mitigate the spread of the coronavirus. Exhibit D of the sub-recipient agreement (SRA) provides for this reference of waivers and alternative requirements. Specifically, page 18 of Section III.F.8 of Exhibit D of the SRA states the following: ?8. Procurement. As provided by the CARES Act, the recipient may deviate from the applicable procurement standards (e.g., 24 CFR 576.407(c) and (f) and 2 CFR 200.317-200.326) when procuring goods and services to prevent, prepare for, and respond to coronavirus. If the recipient deviates from its procurement standards, then the recipient must establish alternative written procurement standards, and maintain documentation on the alternative procurement standards used to safeguard against fraud, waste, and abuse in the procurement of goods and services to prevent, prepare for, and respond to coronavirus. This alternative requirement is necessary to ensure the funds are used efficiently and effectively to prevent, prepare for, and respond to coronavirus. Notwithstanding this flexibility, the debarment and suspension regulations at 2 CFR part 180 and 2 CFR part 2424 apply as written.? The opening of a temporary emergency shelter for families and individuals who are homeless was deemed an emergency response to the coronavirus. CSS emphasizes that the focus of GHURA was to identify readily available units and obtain price quotations to stand up an emergency homeless shelter, and the ?small purchase method? would provide that information to expedite the procurement process. This process was communicated to GHURA, as well as outcome of surveys of available units, and recommendation for selection of site. CSS agrees on the recommendation to revisit CSS? procurement policy overall that would assure objectivity and cost efficiency in the purchase of goods and services, including aligning and/or adopting verbatim procurement requirements outlined in 2 CFR 200.318-327. Auditor response: The written communications between CSS and GHURA were not provided. Also, the procurement file lacks sufficient documentation to demonstrate that the use of the small purchase method was a deviation from its procurement standards or was used to safeguard against fraud, waste, and abuse. Based on the inspected procurement file, only one out of three suppliers had provided CSS a quotation. Given the high value of the procurement, CSS should have further solicited quotations from other suppliers or documented the rationale for not pursuing additional quotations from available suppliers.
Information on the Federal Program: Assistance Listing Number 21.027-Coronavirus State and Local Fiscal Recovery Funds, U.S. Department of the Treasury. Compliance Requirements: Procurement. Type of Finding: Noncompliance. Criteria: 2 CFR § 200.319(d) requires that the non-Federal entity must maintain written procedures for procurement transactions. Condition: We noted that the County did not have written procedures for procurement transactions that include the provisions required by the Procurement Standards 2 CFR § 200.318 through 2 CFR § 200.327 in fiscal year 2022. Cause: The County was not aware of the requirement to have written procedures for procurement transactions. Effect: Failure to have adequate written procedures for procurement transactions could result in the acquisition of goods or services in violation with administrative requirements, federal regulations, other procurement requirements, and Uniform Guidance requirements. Questioned Costs: There are no questioned costs. Recommendation: We recommend that the County identify grants that are subject to Uniform Guidance on a timely basis to ensure all compliance requirements are met and develop adequate written policies and procedures for procurement transactions. Views of Responsible Officials and Planned Corrective Action: The County has identified federal grants subject to the Uniform Guidance and will develop written policies and procedures which include the relevant provisions required by 2 CFR § 200.318 through 2 CFR § 200.326 Contract provisions.