Finding Text
2023-002 PROCUREMENT
U.S. Department of Environmental Protection
ALN 66.456 – National Estuary Program
Federal Award ID Number: 4T-02D39922
2023 Funding
Criteria: 2 CFR 200.303 requires non-federal entities to establish and maintain effective internal controls. As stated in FAR Section 5.203, Publicizing and Response Time, the Council is required to allow for at least a 30-day response time for the receipt of bids or proposals from the date of issuance of the solicitation.
Condition: The grantor identified payments made to a subrecipient for which the solicitation was held open for less than 30 days, prompting the grantor to ask the Council to replace those expenditures with other grant-eligible expenditures.
Cause: Management was not aware of this requirement.
Effect: The Council reclassified $48,120 of expenditures to be funded by other revenue sources and recorded $48,120 of deferred revenue that will be recognized in fiscal year 2024 when payments are made to the new subrecipient.
Questioned Costs: None.
Perspective: In our sample of procurements tested, we did not identify any other instances of non-compliance.
Recommendation: Management should review all procurements for compliance with award terms, Uniform Guidance, and Federal Acquisition Regulations prior to submitting issuing the purchase order or subrecipient contract.