Finding Text
FINDING NUMBER 2024-005
FEDERAL AGENCY U.S. DEPARTMENT OF THE TREASURY
FEDERAL PROGRAM CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS (ALN 21.027)
REQUIREMENT PROCUREMENT SUSPENSION & DEBARMENT (I)
TYPE OF FINDING SIGNIFICANT DEFICIENCY (SD) / NONCOMPLIANCE (NC)
CONDITION In our Procurement Contract Provision Test, we evaluated three (3) contract agreements. We found that the Municipality did not include all contract provisions required for non-federal entity contracts under federal awards for two (2) of the three (3) contract agreements evaluated.
CRITERIA 2 CFR section 200.327 references Appendix II to Part 200, which establishes the contract provisions must be included in non-federal entity contracts under federal awards.
CAUSE There is lack of knowledge about the contract provisions required to be included in federal awards contracts. Therefore, the Municipality has been awarding contracts without the proper procurement procedure.
EFFECT The program is in noncompliance with the Procurement Suspension and Debarment requirements as established in 2 CFR section 200.327.
RECOMMENDATION We recommend the program administrators to include in the requisition for contracts a description of the requirements that need to be fulfilled to award a federal contract. Contracts should not be signed, and payments should not be disbursed without the required contract provisions.
QUESTIONED COST None.
PRIOR YEAR FINDING A similar finding was presented in prior year Schedule of Findings and Questioned Costs (2023-005 and 2022-007).
VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION We concur with the auditor’s finding. We implemented policies and procedures in accordance with Uniform Guidance 2 CFR 200.214.
Implementation Date: Fiscal Year 2024-2025.
Responsible Person: Aracelis Suárez, Finance Director