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: Material Weakness in Internal Control Over Compliance. Criteria: Internal controls should be in place to provide reasonable assurance that procurement of goods and services are made in compliance with federal regulations and other procurement requirements, as applicable. Condition: The County lacks sufficient controls over procurement to ensure compliance with federal regulations and other procurement requirements, as applicable. Cause: The County did not design and implement controls over compliance with procurement. Effect or Potential Effect: Failure to have adequate internal controls over compliance with procurement could result in the acquisition of goods or services in violation with administrative requirements, federal regulations, and other procurement requirements. Questioned Costs: There are no questioned costs. Recommendation: We recommend that the County create and adopt an official written policy for procurement and contracts establishing contract files that document significant procurement history; methods of procurement authorized including selection of contract type, contractor selection or rejection, and the basis of contract price; verification that procurements provide full and open competition; requirements for cost or price analysis, including for contract modifications; obtaining and reacting to suspension and debarment certifications; and other applicable requirements for procurements under federal awards are followed. We also recommend that personnel with adequate knowledge and experience of responsibilities for procurements for federal awards review procurement and contracting decisions for compliance with federal procurement policies. Views of Responsible Officials and Planned Corrective Action: Management concurs with the audit finding. The County will develop written policies and procedures for procurement, including the relevant provisions required by 2 CFR § 200.318 through 2 CFR § 200.326 Contract provisions. Management will evaluate the need to contract with local government consultants to perform control procedures where County personnel are not available or qualified to perform.
2022-001 Department of State ? Bureau of Population, Refugees, and MigrationFederal Financial Assistance Listing #19.517, Overseas Refugee Assistance Programs for AfricaAgency for International DevelopmentDepartment of State - Federal Financial Assistance Listing # 98.001, USAID Foreign Assistance for Programs OverseasProcurement, Suspension and DebarmentType of Finding: Significant Deficiency in Internal Control over ComplianceGrant Award Number: Affects all grant awards included under Federal Financial Assistance Listing #19.517 and #98.001 on the Schedule.Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities, other than states, must follow when operating federal programs and the required procurement procedures based on the amount of the transaction.Condition: CVT has documented procurement procedures that conform to applicable federal standards; however, the procedures were not followed regarding maintaining documentation of obtaining quotes for simplified acquisition small purchases and the conclusion as to which item was selected. In addition, CVT was not testing vendors for suspension and debarment.Cause: Controls were not adequately designed due to lack of oversight, awareness, or understanding of all of the specific requirements under the Uniform Guidance and applicable CFR sections.Effect: The best price for the purchase may not have been obtained and payments could be made to recipients who were suspended or debarred.Questioned Costs: None reported.Context/Sampling: For Federal Financial Assistance Listing #19.517, a nonstatistical sample of 60 transactions out of 2,935 total transactions was selected for testing. Required documentation related to procurement was not maintained for 13 of the items selected, and 13 of the items selected did not have support for suspension and debarment. For Federal Financial Assistance Listing #98.001, a nonstatistical sample of 60 transactions out of 1,594 total transactions were selected for testing. Required documentation related to procurement was not maintained for six of the items selected, and seven of the items selected did not have support for suspension, and debarment.Repeat Finding from Prior Year: Yes, prior year finding 2021-001.Recommendation: We recommend that management maintain adequate supporting documentation and records to document history, methods of procurement, and documentation to support check for suspension and debarment to comply with these CFR sections.Views of Responsible Officials: Management agrees with this finding.
2022-001 Department of State ? Bureau of Population, Refugees, and MigrationFederal Financial Assistance Listing #19.517, Overseas Refugee Assistance Programs for AfricaAgency for International DevelopmentDepartment of State - Federal Financial Assistance Listing # 98.001, USAID Foreign Assistance for Programs OverseasProcurement, Suspension and DebarmentType of Finding: Significant Deficiency in Internal Control over ComplianceGrant Award Number: Affects all grant awards included under Federal Financial Assistance Listing #19.517 and #98.001 on the Schedule.Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities, other than states, must follow when operating federal programs and the required procurement procedures based on the amount of the transaction.Condition: CVT has documented procurement procedures that conform to applicable federal standards; however, the procedures were not followed regarding maintaining documentation of obtaining quotes for simplified acquisition small purchases and the conclusion as to which item was selected. In addition, CVT was not testing vendors for suspension and debarment.Cause: Controls were not adequately designed due to lack of oversight, awareness, or understanding of all of the specific requirements under the Uniform Guidance and applicable CFR sections.Effect: The best price for the purchase may not have been obtained and payments could be made to recipients who were suspended or debarred.Questioned Costs: None reported.Context/Sampling: For Federal Financial Assistance Listing #19.517, a nonstatistical sample of 60 transactions out of 2,935 total transactions was selected for testing. Required documentation related to procurement was not maintained for 13 of the items selected, and 13 of the items selected did not have support for suspension and debarment. For Federal Financial Assistance Listing #98.001, a nonstatistical sample of 60 transactions out of 1,594 total transactions were selected for testing. Required documentation related to procurement was not maintained for six of the items selected, and seven of the items selected did not have support for suspension, and debarment.Repeat Finding from Prior Year: Yes, prior year finding 2021-001.Recommendation: We recommend that management maintain adequate supporting documentation and records to document history, methods of procurement, and documentation to support check for suspension and debarment to comply with these CFR sections.Views of Responsible Officials: Management agrees with this finding.
2022-001 Department of State ? Bureau of Population, Refugees, and MigrationFederal Financial Assistance Listing #19.517, Overseas Refugee Assistance Programs for AfricaAgency for International DevelopmentDepartment of State - Federal Financial Assistance Listing # 98.001, USAID Foreign Assistance for Programs OverseasProcurement, Suspension and DebarmentType of Finding: Significant Deficiency in Internal Control over ComplianceGrant Award Number: Affects all grant awards included under Federal Financial Assistance Listing #19.517 and #98.001 on the Schedule.Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities, other than states, must follow when operating federal programs and the required procurement procedures based on the amount of the transaction.Condition: CVT has documented procurement procedures that conform to applicable federal standards; however, the procedures were not followed regarding maintaining documentation of obtaining quotes for simplified acquisition small purchases and the conclusion as to which item was selected. In addition, CVT was not testing vendors for suspension and debarment.Cause: Controls were not adequately designed due to lack of oversight, awareness, or understanding of all of the specific requirements under the Uniform Guidance and applicable CFR sections.Effect: The best price for the purchase may not have been obtained and payments could be made to recipients who were suspended or debarred.Questioned Costs: None reported.Context/Sampling: For Federal Financial Assistance Listing #19.517, a nonstatistical sample of 60 transactions out of 2,935 total transactions was selected for testing. Required documentation related to procurement was not maintained for 13 of the items selected, and 13 of the items selected did not have support for suspension and debarment. For Federal Financial Assistance Listing #98.001, a nonstatistical sample of 60 transactions out of 1,594 total transactions were selected for testing. Required documentation related to procurement was not maintained for six of the items selected, and seven of the items selected did not have support for suspension, and debarment.Repeat Finding from Prior Year: Yes, prior year finding 2021-001.Recommendation: We recommend that management maintain adequate supporting documentation and records to document history, methods of procurement, and documentation to support check for suspension and debarment to comply with these CFR sections.Views of Responsible Officials: Management agrees with this finding.
2022-001 Department of State ? Bureau of Population, Refugees, and MigrationFederal Financial Assistance Listing #19.517, Overseas Refugee Assistance Programs for AfricaAgency for International DevelopmentDepartment of State - Federal Financial Assistance Listing # 98.001, USAID Foreign Assistance for Programs OverseasProcurement, Suspension and DebarmentType of Finding: Significant Deficiency in Internal Control over ComplianceGrant Award Number: Affects all grant awards included under Federal Financial Assistance Listing #19.517 and #98.001 on the Schedule.Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities, other than states, must follow when operating federal programs and the required procurement procedures based on the amount of the transaction.Condition: CVT has documented procurement procedures that conform to applicable federal standards; however, the procedures were not followed regarding maintaining documentation of obtaining quotes for simplified acquisition small purchases and the conclusion as to which item was selected. In addition, CVT was not testing vendors for suspension and debarment.Cause: Controls were not adequately designed due to lack of oversight, awareness, or understanding of all of the specific requirements under the Uniform Guidance and applicable CFR sections.Effect: The best price for the purchase may not have been obtained and payments could be made to recipients who were suspended or debarred.Questioned Costs: None reported.Context/Sampling: For Federal Financial Assistance Listing #19.517, a nonstatistical sample of 60 transactions out of 2,935 total transactions was selected for testing. Required documentation related to procurement was not maintained for 13 of the items selected, and 13 of the items selected did not have support for suspension and debarment. For Federal Financial Assistance Listing #98.001, a nonstatistical sample of 60 transactions out of 1,594 total transactions were selected for testing. Required documentation related to procurement was not maintained for six of the items selected, and seven of the items selected did not have support for suspension, and debarment.Repeat Finding from Prior Year: Yes, prior year finding 2021-001.Recommendation: We recommend that management maintain adequate supporting documentation and records to document history, methods of procurement, and documentation to support check for suspension and debarment to comply with these CFR sections.Views of Responsible Officials: Management agrees with this finding.
2022-001 Department of State ? Bureau of Population, Refugees, and MigrationFederal Financial Assistance Listing #19.517, Overseas Refugee Assistance Programs for AfricaAgency for International DevelopmentDepartment of State - Federal Financial Assistance Listing # 98.001, USAID Foreign Assistance for Programs OverseasProcurement, Suspension and DebarmentType of Finding: Significant Deficiency in Internal Control over ComplianceGrant Award Number: Affects all grant awards included under Federal Financial Assistance Listing #19.517 and #98.001 on the Schedule.Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities, other than states, must follow when operating federal programs and the required procurement procedures based on the amount of the transaction.Condition: CVT has documented procurement procedures that conform to applicable federal standards; however, the procedures were not followed regarding maintaining documentation of obtaining quotes for simplified acquisition small purchases and the conclusion as to which item was selected. In addition, CVT was not testing vendors for suspension and debarment.Cause: Controls were not adequately designed due to lack of oversight, awareness, or understanding of all of the specific requirements under the Uniform Guidance and applicable CFR sections.Effect: The best price for the purchase may not have been obtained and payments could be made to recipients who were suspended or debarred.Questioned Costs: None reported.Context/Sampling: For Federal Financial Assistance Listing #19.517, a nonstatistical sample of 60 transactions out of 2,935 total transactions was selected for testing. Required documentation related to procurement was not maintained for 13 of the items selected, and 13 of the items selected did not have support for suspension and debarment. For Federal Financial Assistance Listing #98.001, a nonstatistical sample of 60 transactions out of 1,594 total transactions were selected for testing. Required documentation related to procurement was not maintained for six of the items selected, and seven of the items selected did not have support for suspension, and debarment.Repeat Finding from Prior Year: Yes, prior year finding 2021-001.Recommendation: We recommend that management maintain adequate supporting documentation and records to document history, methods of procurement, and documentation to support check for suspension and debarment to comply with these CFR sections.Views of Responsible Officials: Management agrees with this finding.
2022-001 Department of State ? Bureau of Population, Refugees, and MigrationFederal Financial Assistance Listing #19.517, Overseas Refugee Assistance Programs for AfricaAgency for International DevelopmentDepartment of State - Federal Financial Assistance Listing # 98.001, USAID Foreign Assistance for Programs OverseasProcurement, Suspension and DebarmentType of Finding: Significant Deficiency in Internal Control over ComplianceGrant Award Number: Affects all grant awards included under Federal Financial Assistance Listing #19.517 and #98.001 on the Schedule.Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities, other than states, must follow when operating federal programs and the required procurement procedures based on the amount of the transaction.Condition: CVT has documented procurement procedures that conform to applicable federal standards; however, the procedures were not followed regarding maintaining documentation of obtaining quotes for simplified acquisition small purchases and the conclusion as to which item was selected. In addition, CVT was not testing vendors for suspension and debarment.Cause: Controls were not adequately designed due to lack of oversight, awareness, or understanding of all of the specific requirements under the Uniform Guidance and applicable CFR sections.Effect: The best price for the purchase may not have been obtained and payments could be made to recipients who were suspended or debarred.Questioned Costs: None reported.Context/Sampling: For Federal Financial Assistance Listing #19.517, a nonstatistical sample of 60 transactions out of 2,935 total transactions was selected for testing. Required documentation related to procurement was not maintained for 13 of the items selected, and 13 of the items selected did not have support for suspension and debarment. For Federal Financial Assistance Listing #98.001, a nonstatistical sample of 60 transactions out of 1,594 total transactions were selected for testing. Required documentation related to procurement was not maintained for six of the items selected, and seven of the items selected did not have support for suspension, and debarment.Repeat Finding from Prior Year: Yes, prior year finding 2021-001.Recommendation: We recommend that management maintain adequate supporting documentation and records to document history, methods of procurement, and documentation to support check for suspension and debarment to comply with these CFR sections.Views of Responsible Officials: Management agrees with this finding.
2022-001 Department of State ? Bureau of Population, Refugees, and MigrationFederal Financial Assistance Listing #19.517, Overseas Refugee Assistance Programs for AfricaAgency for International DevelopmentDepartment of State - Federal Financial Assistance Listing # 98.001, USAID Foreign Assistance for Programs OverseasProcurement, Suspension and DebarmentType of Finding: Significant Deficiency in Internal Control over ComplianceGrant Award Number: Affects all grant awards included under Federal Financial Assistance Listing #19.517 and #98.001 on the Schedule.Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities, other than states, must follow when operating federal programs and the required procurement procedures based on the amount of the transaction.Condition: CVT has documented procurement procedures that conform to applicable federal standards; however, the procedures were not followed regarding maintaining documentation of obtaining quotes for simplified acquisition small purchases and the conclusion as to which item was selected. In addition, CVT was not testing vendors for suspension and debarment.Cause: Controls were not adequately designed due to lack of oversight, awareness, or understanding of all of the specific requirements under the Uniform Guidance and applicable CFR sections.Effect: The best price for the purchase may not have been obtained and payments could be made to recipients who were suspended or debarred.Questioned Costs: None reported.Context/Sampling: For Federal Financial Assistance Listing #19.517, a nonstatistical sample of 60 transactions out of 2,935 total transactions was selected for testing. Required documentation related to procurement was not maintained for 13 of the items selected, and 13 of the items selected did not have support for suspension and debarment. For Federal Financial Assistance Listing #98.001, a nonstatistical sample of 60 transactions out of 1,594 total transactions were selected for testing. Required documentation related to procurement was not maintained for six of the items selected, and seven of the items selected did not have support for suspension, and debarment.Repeat Finding from Prior Year: Yes, prior year finding 2021-001.Recommendation: We recommend that management maintain adequate supporting documentation and records to document history, methods of procurement, and documentation to support check for suspension and debarment to comply with these CFR sections.Views of Responsible Officials: Management agrees with this finding.
2022-001 Department of State ? Bureau of Population, Refugees, and MigrationFederal Financial Assistance Listing #19.517, Overseas Refugee Assistance Programs for AfricaAgency for International DevelopmentDepartment of State - Federal Financial Assistance Listing # 98.001, USAID Foreign Assistance for Programs OverseasProcurement, Suspension and DebarmentType of Finding: Significant Deficiency in Internal Control over ComplianceGrant Award Number: Affects all grant awards included under Federal Financial Assistance Listing #19.517 and #98.001 on the Schedule.Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities, other than states, must follow when operating federal programs and the required procurement procedures based on the amount of the transaction.Condition: CVT has documented procurement procedures that conform to applicable federal standards; however, the procedures were not followed regarding maintaining documentation of obtaining quotes for simplified acquisition small purchases and the conclusion as to which item was selected. In addition, CVT was not testing vendors for suspension and debarment.Cause: Controls were not adequately designed due to lack of oversight, awareness, or understanding of all of the specific requirements under the Uniform Guidance and applicable CFR sections.Effect: The best price for the purchase may not have been obtained and payments could be made to recipients who were suspended or debarred.Questioned Costs: None reported.Context/Sampling: For Federal Financial Assistance Listing #19.517, a nonstatistical sample of 60 transactions out of 2,935 total transactions was selected for testing. Required documentation related to procurement was not maintained for 13 of the items selected, and 13 of the items selected did not have support for suspension and debarment. For Federal Financial Assistance Listing #98.001, a nonstatistical sample of 60 transactions out of 1,594 total transactions were selected for testing. Required documentation related to procurement was not maintained for six of the items selected, and seven of the items selected did not have support for suspension, and debarment.Repeat Finding from Prior Year: Yes, prior year finding 2021-001.Recommendation: We recommend that management maintain adequate supporting documentation and records to document history, methods of procurement, and documentation to support check for suspension and debarment to comply with these CFR sections.Views of Responsible Officials: Management agrees with this finding.
2022-001 Department of State ? Bureau of Population, Refugees, and MigrationFederal Financial Assistance Listing #19.517, Overseas Refugee Assistance Programs for AfricaAgency for International DevelopmentDepartment of State - Federal Financial Assistance Listing # 98.001, USAID Foreign Assistance for Programs OverseasProcurement, Suspension and DebarmentType of Finding: Significant Deficiency in Internal Control over ComplianceGrant Award Number: Affects all grant awards included under Federal Financial Assistance Listing #19.517 and #98.001 on the Schedule.Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities, other than states, must follow when operating federal programs and the required procurement procedures based on the amount of the transaction.Condition: CVT has documented procurement procedures that conform to applicable federal standards; however, the procedures were not followed regarding maintaining documentation of obtaining quotes for simplified acquisition small purchases and the conclusion as to which item was selected. In addition, CVT was not testing vendors for suspension and debarment.Cause: Controls were not adequately designed due to lack of oversight, awareness, or understanding of all of the specific requirements under the Uniform Guidance and applicable CFR sections.Effect: The best price for the purchase may not have been obtained and payments could be made to recipients who were suspended or debarred.Questioned Costs: None reported.Context/Sampling: For Federal Financial Assistance Listing #19.517, a nonstatistical sample of 60 transactions out of 2,935 total transactions was selected for testing. Required documentation related to procurement was not maintained for 13 of the items selected, and 13 of the items selected did not have support for suspension and debarment. For Federal Financial Assistance Listing #98.001, a nonstatistical sample of 60 transactions out of 1,594 total transactions were selected for testing. Required documentation related to procurement was not maintained for six of the items selected, and seven of the items selected did not have support for suspension, and debarment.Repeat Finding from Prior Year: Yes, prior year finding 2021-001.Recommendation: We recommend that management maintain adequate supporting documentation and records to document history, methods of procurement, and documentation to support check for suspension and debarment to comply with these CFR sections.Views of Responsible Officials: Management agrees with this finding.
2022-001 Department of State ? Bureau of Population, Refugees, and MigrationFederal Financial Assistance Listing #19.517, Overseas Refugee Assistance Programs for AfricaAgency for International DevelopmentDepartment of State - Federal Financial Assistance Listing # 98.001, USAID Foreign Assistance for Programs OverseasProcurement, Suspension and DebarmentType of Finding: Significant Deficiency in Internal Control over ComplianceGrant Award Number: Affects all grant awards included under Federal Financial Assistance Listing #19.517 and #98.001 on the Schedule.Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities, other than states, must follow when operating federal programs and the required procurement procedures based on the amount of the transaction.Condition: CVT has documented procurement procedures that conform to applicable federal standards; however, the procedures were not followed regarding maintaining documentation of obtaining quotes for simplified acquisition small purchases and the conclusion as to which item was selected. In addition, CVT was not testing vendors for suspension and debarment.Cause: Controls were not adequately designed due to lack of oversight, awareness, or understanding of all of the specific requirements under the Uniform Guidance and applicable CFR sections.Effect: The best price for the purchase may not have been obtained and payments could be made to recipients who were suspended or debarred.Questioned Costs: None reported.Context/Sampling: For Federal Financial Assistance Listing #19.517, a nonstatistical sample of 60 transactions out of 2,935 total transactions was selected for testing. Required documentation related to procurement was not maintained for 13 of the items selected, and 13 of the items selected did not have support for suspension and debarment. For Federal Financial Assistance Listing #98.001, a nonstatistical sample of 60 transactions out of 1,594 total transactions were selected for testing. Required documentation related to procurement was not maintained for six of the items selected, and seven of the items selected did not have support for suspension, and debarment.Repeat Finding from Prior Year: Yes, prior year finding 2021-001.Recommendation: We recommend that management maintain adequate supporting documentation and records to document history, methods of procurement, and documentation to support check for suspension and debarment to comply with these CFR sections.Views of Responsible Officials: Management agrees with this finding.
2022-001 Department of State ? Bureau of Population, Refugees, and MigrationFederal Financial Assistance Listing #19.517, Overseas Refugee Assistance Programs for AfricaAgency for International DevelopmentDepartment of State - Federal Financial Assistance Listing # 98.001, USAID Foreign Assistance for Programs OverseasProcurement, Suspension and DebarmentType of Finding: Significant Deficiency in Internal Control over ComplianceGrant Award Number: Affects all grant awards included under Federal Financial Assistance Listing #19.517 and #98.001 on the Schedule.Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities, other than states, must follow when operating federal programs and the required procurement procedures based on the amount of the transaction.Condition: CVT has documented procurement procedures that conform to applicable federal standards; however, the procedures were not followed regarding maintaining documentation of obtaining quotes for simplified acquisition small purchases and the conclusion as to which item was selected. In addition, CVT was not testing vendors for suspension and debarment.Cause: Controls were not adequately designed due to lack of oversight, awareness, or understanding of all of the specific requirements under the Uniform Guidance and applicable CFR sections.Effect: The best price for the purchase may not have been obtained and payments could be made to recipients who were suspended or debarred.Questioned Costs: None reported.Context/Sampling: For Federal Financial Assistance Listing #19.517, a nonstatistical sample of 60 transactions out of 2,935 total transactions was selected for testing. Required documentation related to procurement was not maintained for 13 of the items selected, and 13 of the items selected did not have support for suspension and debarment. For Federal Financial Assistance Listing #98.001, a nonstatistical sample of 60 transactions out of 1,594 total transactions were selected for testing. Required documentation related to procurement was not maintained for six of the items selected, and seven of the items selected did not have support for suspension, and debarment.Repeat Finding from Prior Year: Yes, prior year finding 2021-001.Recommendation: We recommend that management maintain adequate supporting documentation and records to document history, methods of procurement, and documentation to support check for suspension and debarment to comply with these CFR sections.Views of Responsible Officials: Management agrees with this finding.
Finding Number: 2022‐002 Repeat Finding: Yes, 2021‐002 Federal Program Name/Assistance Listing Title: COVID‐19 Federal Transit Cluster Federal Assistance Listing Number: 20.507 Federal Agency: U.S. Department of Transportation Federal Award Number: N/A Federal Pass‐Through Agency: N/A State Program Name: State Urbanized Area Formula Program, State Formula Grants For Rural Areas State Agency: Texas Department of Transportation Questioned Costs: N/A Type of Finding: Noncompliance, Material Weakness Compliance Requirement: Procurement, Suspension and Debarment Criteria Non‐federal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR §§200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable State and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR part 200. Additionally, non‐federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. When a non‐federal entity enters into a covered transaction with an entity at a lower tier, the non‐federal entity must verify that the entity, as defined in 2 CFR §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 of Award Management (SAM) maintained by the General Services Administration (GSA) or (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR §180.300). Condition The Transit District did not meet the requirement to verify that covered transactions were only made to an entity that was not suspended or debarred or otherwise excluded. Additionally, the Transit District did not follow federal guidelines for purchases exceeding the small purchases threshold. Cause The Transit District’s internal controls over procurement of goods and services were not adequate. Effect The Transit District was not in compliance with Federal regulations and guidelines related to suspension and debarment or procurement. Context The sample was not intended to be, and was not, a statistically valid sample. During our review of purchasing, we noted the following: - For seven procurements over $25,000 reviewed, documentation demonstrating a vendor check for suspension and debarment was not retained. - For five vendors reviewed with total expenditures below the Simplified Acquisition threshold, no documentation of quotes was maintained. - For three vendors reviewed with total expenditures that exceeded the Simplified Acquisition threshold, no documentation of a sealed procurement issued in accordance with federal guidelines was maintained. Recommendation The Transit District should maintain documentation of procurement actions in the vendor file including sealed procurements issued, quotes and suspension and debarment checks. Review of procurement compliance should occur before the Transit District’s funds are obligated. Views of Responsible Officials See Corrective Action Plan.
Finding Number: 2022‐002 Repeat Finding: Yes, 2021‐002 Federal Program Name/Assistance Listing Title: COVID‐19 Federal Transit Cluster Federal Assistance Listing Number: 20.507 Federal Agency: U.S. Department of Transportation Federal Award Number: N/A Federal Pass‐Through Agency: N/A State Program Name: State Urbanized Area Formula Program, State Formula Grants For Rural Areas State Agency: Texas Department of Transportation Questioned Costs: N/A Type of Finding: Noncompliance, Material Weakness Compliance Requirement: Procurement, Suspension and Debarment Criteria Non‐federal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR §§200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable State and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR part 200. Additionally, non‐federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. When a non‐federal entity enters into a covered transaction with an entity at a lower tier, the non‐federal entity must verify that the entity, as defined in 2 CFR §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 of Award Management (SAM) maintained by the General Services Administration (GSA) or (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR §180.300). Condition The Transit District did not meet the requirement to verify that covered transactions were only made to an entity that was not suspended or debarred or otherwise excluded. Additionally, the Transit District did not follow federal guidelines for purchases exceeding the small purchases threshold. Cause The Transit District’s internal controls over procurement of goods and services were not adequate. Effect The Transit District was not in compliance with Federal regulations and guidelines related to suspension and debarment or procurement. Context The sample was not intended to be, and was not, a statistically valid sample. During our review of purchasing, we noted the following: - For seven procurements over $25,000 reviewed, documentation demonstrating a vendor check for suspension and debarment was not retained. - For five vendors reviewed with total expenditures below the Simplified Acquisition threshold, no documentation of quotes was maintained. - For three vendors reviewed with total expenditures that exceeded the Simplified Acquisition threshold, no documentation of a sealed procurement issued in accordance with federal guidelines was maintained. Recommendation The Transit District should maintain documentation of procurement actions in the vendor file including sealed procurements issued, quotes and suspension and debarment checks. Review of procurement compliance should occur before the Transit District’s funds are obligated. Views of Responsible Officials See Corrective Action Plan.
2022-004 Procurement - Material Weakness Criteria: The Town must follow the procurement standards et out at 2CFR section 200.318 through 200.326. This requires bids be placed for purchases ranging from $10,000-$250,000. The Town currently has policies in place utilizing the state library listing of approved vendors for potential purchases over $50,000. The CFR does allow an entity to increase the lower limit from $10,000 to $50,000 in certain circumstances. One of the conditions is that the entity qualifies as a low risk entity. The Town currently does not qualify as a low risk entity therefore the Town does not qualify for the increase of the lower limit. Sole source vendors are the exception to this rule. Condition: The Town did not obtained 3 bids for over $10,000 purchases. The Town did use the State's liability to identify eligible vendors but failed to get bids. Cause: The Town has had significant difficulties in retaining both a Town Clerk and Accountant who have the capacity to follow procurement policies. This caused purchases to be made without following required procurement procedures. Effect: The Town is not in compliance with the Uniform Guidance and therefore, the Town bas the possibility of not being able to renew contracts in the future. Recommendation: We recommend that the Town follow the procurement policy to comply with federal guidance. Views of Responsible Officias and Planned Corrective Actions: 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) 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 (84.425D) 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