Finding Text
Finding #2024-002 – Material Weakness and Other Noncompliance. Applicable federal program: U. S. Department of Treasury, Passed through Harris County, COVID-19 – Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing #: 21.027, Contract Number: SLFRFP1966, Contract Year: 05/16/23 – 05/15/25. Criteria: Procurement – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, §200.318 states that agencies must maintain records sufficient to detail the history of each procurement transaction, including the rationale for the procurement method, contract type selection, contractor selection or rejection, and the basis for the contract price. Additionally, federal regulations require that agencies have controls in place to prevent contracting with parties that are suspended or debarred. Condition and context: During our testing of 4 of 12 vendors with contracts meeting the threshold for procurement, CFC was unable to provide evidence of procurement for 3 of the vendor contracts, summing to $132,300. Additionally, CFC’s procurement policy does not include procedures to verify that vendors are not suspended, debarred, or otherwise excluded. Cause: CFC staff failed to follow its written policy to obtain and retain the documentation of procurement procedures and the written policy does not include a procedure to verify vendors are not suspended or debarred. Effect: Failure to follow established procurement policies may result in CFC purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Questioned costs: None. Recommendation: Provide additional training to program and finance personnel on the required procurement processes using updated written procurement policies and procedures and emphasize adherence to these policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.