Finding 1145480 (2024-001)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2025-06-30
Audit: 360694
Organization: Galveston Bay Foundation, Inc. (TX)

AI Summary

  • Core Issue: Procurement procedures were not properly documented for vendors with expenditures over $10,000, risking the selection of ineligible vendors.
  • Impacted Requirements: Nonprofit organizations must follow Uniform Guidance and Texas Grant Management Standards for procurement, including suspension and debarment evaluations.
  • Recommended Follow-Up: Management should enhance training for staff involved in purchasing to ensure compliance with procurement policies.

Finding Text

Finding #2024-001 – Significant Deficiency and Other Noncompliance. Applicable programs: Federal Awards, U. S. Environmental Protection Agency, Assistance Listing #66.456, National Estuary program, Passed through Texas Commission on Environmental Quality: Contract period: 09/01/23 – 08/31/25, Contract number: 582-24-50165, Contract period: 07/19/18 – 08/31/24, Contract number: 582-18-80344, Contract period: 09/01/23 – 05/31/26, Contract number: 582-24-50138, Contract period: 09/01/24 – 08/31/26, Contract number: 582-25-00053, Contract period: 09/01/24 – 08/31/26, Contract number: 582-25-00064, Passed through Houston Advanced Research Center: Contract period: 09/01/22 – 03/31/25, Contract number: GBFO322, Passed through Lee College: Contract period: 05/30/23 – 05/31/25, Contract number: 582-23-40258. State Awards, Texas General Land Office, Coastal Erosion Planning and Response Act, Contract period: 07/09/20 – 08/31/25, Grantor number: 20-132-008-C191, Contract period: 07/07/20 – 08/31/25, Grantor number: 20-132-007-C190, Contract period: 07/07/20 – 08/31/25, Grantor number: 20-132-011-C293, Contract period: 11/10/22 – 08/31/27, Grantor number: 22-133-008-D367, Contract period: 11/29/22 – 08/31/27, Grantor number: 22-113-006-D365. Criteria: Procurement – Nonprofit organizations are required to conduct procurement transactions consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and conform to federal and state laws and regulations and other contractual requirements. This includes specific procurement, suspension and debarment evaluation requirements. Condition and context: We reviewed the procurement documentation for 3 vendors with expenditures greater than $10,000 requiring procurement, and identified that suspension and debarment procedures were not documented and retained. Effect: Failure to follow the Foundation’s procurement policy, Uniform Guidance, and TxGMS could result in the selection of ineligible vendors. Recommendation: Management should provide additional training to staff with purchasing authority on the procurement policy. View of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 569035 2024-001
    Significant Deficiency
  • 569036 2024-002
    Significant Deficiency
  • 569037 2024-001
    Significant Deficiency
  • 569038 2024-001
    Significant Deficiency
  • 569039 2024-001
    Significant Deficiency
  • 1145477 2024-001
    Significant Deficiency
  • 1145478 2024-002
    Significant Deficiency
  • 1145479 2024-001
    Significant Deficiency
  • 1145481 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
11.463 Habitat Conservation $125,192
66.130 Geographic Programs - Gulf Coast Ecosystem Restoration Council Comprehensive Plan Component $99,967
11.419 Coastal Zone Management Administration Awards $56,006
11.U01 Mmc Skin Lesions Workshop $31,589
66.475 Geographic Programs – Gulf of Mexico Program $16,378
15.630 Coastal $14,000
20.219 Recreational Trails Program $11,916
66.306 Environmental Justice Collaborative Problem-Solving Cooperative Agreement Program $7,335
11.451 Gulf Coast Ecosystem Restoration Science, Observation, Monitoring, and Technology $7,183
11.473 Office for Coastal Management $6,669
15.658 Natural Resource Damage Assessment and Restoration $6,595
15.623 North American Wetlands Conservation Fund $5,051
66.951 Environmental Education Grants Program $5,000
15.614 Coastal Wetlands Planning, Protection and Restoration $4,618
66.456 National Estuary Program $3,443
11.999 Marine Debris Program $935