Finding Text
Federal Agency: U.S. Department of the Treasury
Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds
Assistance Listing Number: 21.027
Pass-Through Agency: State of Arizona, the Office of the Governor
Pass-Through Number(s): GR-ARPA-HHF-030122-01 and GR-ARPA-090121-01
Award Period: January 1, 2022 – November 30, 2024
Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters
Condition/Context: The Organization did not maintain a formalized and written procurement policy.
Criteria or specific requirement: In accordance with the Compliance Supplement, Part 6 – Internal Control, 2 CFR section 200.303 requires that nonfederal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the nonfederal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards.
In accordance with 2 CFR 200.318 (a), the non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in §§ 200.317 through 200.327.
Questioned costs: None
Cause: The Organization did not have formal documented procurement policies in place.
Effect: The Organization was not in compliance with the Compliance Supplement and the Code of Federal Regulations related to procurement.
Repeat Finding: Yes
Recommendation: We recommend that the Organization adopt a formal and written procurement policy.
Views of responsible officials: Management agrees with the audit condition.