Finding Text
2023‐010 Department of Treasury
Federal Financial Assistance Listing/ALN 21.027
COVID‐19 Coronavirus State and Local Fiscal Recovery Funds
Procurement, Suspension, and Debarment
Material Noncompliance and Material Weakness in Internal Control over Compliance
Criteria ‐ Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance)
requires that a non‐Federal entity must follow procurement procedures which reflect applicable
state and local laws and regulations, provided that the procurements conform to applicable
federal law and standards.
Condition ‐ Procurement policies under Uniform Guidance were not followed when obtaining
bids for two contracts. Cause ‐ Due to grant timing restraints, the Organization did not follow proper procurement
procedures for obtaining bids for two contracts under Uniform Guidance.
Effect ‐ The Organization did not have proper procedures to ensure procurement compliance
requirements under Uniform Guidance were followed when obtaining bids for contracts.
Questioned Costs ‐ $3,227,905
Context/Sampling ‐ A nonstatistical sample of 2 contracts were selected for testing. 2 out of the
2 contracts did not follow procurement compliance requirements. These transactions totaled
$3,227,905 of $3,274,092 costs tested.
Recommendation ‐ We recommend the Organization follow applicable procurement policies
under the requirements identified in Uniform Guidance.
Views of Responsible Officials ‐ Management is in agreement with the finding.
Repeat Finding – This is a repeat finding of 2022-008.