Finding 1118448 (2024-003)

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: PA Department of Education and PA Department of Human Services Contract Number(s): 4100093269 and 4100096787 Award Period: July 1, 2023 through June 30, 2024 Type of Finding: • Material Weakness in Internal Control over Compliance of Procurement, Suspension andDebarment • Other Matter Criteria: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The Organization should have documented internal controls designed to ensure compliance with those provisions. Condition and Context: During our testing of procurement, suspension and debarment, we noted one instance where a vendor was contracted by the Organization to provide services throughout the year, however, there was no documentation of the procurement, suspension and debarment method, verification of exclusion, bidding or cost analysis procedures, or basis for contract selection. We also noted that the organization's policies do not adhere to the requirements of Uniform Grant Guidance on procurement, suspension, debarment and conflict of interest. Questioned Costs: The questioned costs are unknown. Cause: The Organization did not have adequate policies and procedures in place surrounding procurement, suspension, debarment and conflict of interest to adhere to the requirements of Uniform Grant Guidance. Effect: The lack of proper policies, procedures, and internal controls over the compliance requirements for procurement, suspension and debarment provide the opportunity for noncompliance. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that management continue to develop policies and procedures to ensure an adequate review process is in place to monitor new and potential contractors to determine whether a conflict of interest exists and that the procurement, suspension and debarment procedures are being followed in accordance to Uniform Guidance. Views of responsible officials and planned corrective actions: Please refer to Planned Parenthood Keystone's Corrective Action Plan.