Finding Text
Federal Agency: U.S. Department of Treasury
Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds
Assistance Listing Number: 21.027
Federal Award Identification Number and Year: MD-0044 and 2021
Award Period: March 11, 2021 through December 31, 2024, liquidated by December 31, 2026
Type of Finding: Material Weakness in Internal Control Over Compliance, Material Non-Compliance
Criteria or Specific Requirement: Per §200.319 and §200.320, all procurement transactions for the acquisition of property or services required under a Federal award must be conducted in a manner providing full and open competition. Per §200.320, there are specific circumstances in which noncompetitive procurement can be used. Per §200.320, formal procurement methods must be used on procurements exceeding $250,000.
Questioned Costs: Unknown
Condition/Context: Two of five vendors tested did not have the proper documentation maintained to support that the non-competitive procurement method used was appropriate under the circumstances. Three of five vendors tested did not follow the appropriate procurement method given the dollar value of expenditures paid to the vendor.
Cause: At the time of grant inception, the non-compliance was primarily due to a lack of awareness and training among staff regarding the procurement policy requirements.
Effect: The failure to follow proper procurement procedures increases the risk of favoritism, fraud, and inefficient use of resources.
Repeat Finding: This is not a repeat finding.
Recommendation: We recommend the Commission continue to follow the procurement policy and procedures now established and provide comprehensive training to all relevant staff on procurement policies and procedures.
Views of Responsible Officials: Management agrees with the finding.