Core Issue: The Commission failed to obtain bids for construction projects funded by capital grants and did not check if contractors were suspended or debarred.
Impacted Requirements: This violates procurement guidelines under 2 CFR section 200.317 and suspension rules under 2 CFR section 180.220.
Recommended Follow-Up: The Commission should establish and enforce new policies to ensure compliance with procurement and suspension requirements.
Finding Text
Material Weakness
Finding 2023-005 (procurement portion repeated from 12/31/2022)
Statement of Condition:
Upon review of Capital Grant funds, it was noted the Commission did not obtain bids for construction projects completed utilizing capital grants. It was also noted the Commission did not verify contractors were not reported on the suspension and debarment list.
Criteria:
I. PROCUREMENT AND SUSPENSION AND DEBARMENT: 2 CFR section 200.317 outlines the procurements procedures to be followed in the administration of Capital Grant funds. 2 CFR section 180.220 states entities administering Capital Grant funds are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred.
Perspective Information:
The Commission did not have effective internal controls pertaining to procurement and suspension and debarment related to Capital Fund grants.
Questioned Costs:
None.
Effect:
The Commission is not in compliance with the procurement and suspension and debarment sections above.
Cause:
Lack of internal controls over capital grant requirements.
Recommendation:
The Commission should implement policies and procedures to ensure all federal compliances are followed pertaining to procurement and suspension and debarment.
Management’s Response:
New Management has taken over as of March 2023 and will review and implement stronger policies and procedures pertaining to capital fund grants.