Finding 1154867 (2024-005)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2025-09-24

AI Summary

  • Core Issue: The Authority failed to verify that vendors were not suspended or debarred before entering into contracts for 18 out of 33 procurements tested.
  • Impacted Requirements: Compliance with 2 CFR Section 180.300, which mandates checks on vendor eligibility for contracts over $25,000.
  • Recommended Follow-up: Implement internal controls to ensure verification is performed and documented before contracts are signed, with supervisor review.

Finding Text

Assistance Listing, Federal Agency, and Program Name 20.500, 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year All Pass through Entity Not applicable Finding Type Material weakness and material noncompliance with laws and regulations Repeat Finding Yes 2023-006 Criteria The Authority should ensure there is a process in place prior to entering into contracts with vendors in excess of $25,000 to verify such contractors are not suspended, debarred, or otherwise excluded pursuant to 2 CFR Section 180.300. Condition There was no evidence to support that the Authority performed procedures to verify that the vendors were not suspended, debarred, or otherwise excluded prior to entering into contracts for 18 contracts within our testing population. Questioned Costs Not applicable Identification of How Questioned Costs Were Computed Not applicable Context Of the 33 procurements selected for testing, 18 procurements did not contain evidence of either (1) a search performed on Sam.gov to determine if the vendor was suspended, debarred, or otherwise excluded; (2) a certification from the contractor attesting that they are not suspended, debarred, or otherwise excluded; or (3) adding a clause or condition to the covered transaction with that vendor. Cause and Effect The Authority has experienced turnover that resulted in it being unable to locate documentation to support compliance. Recommendation We recommend that internal controls be put in place to ensure that the required verification is performed, documented, and reviewed by a supervisor prior to entering into contracts with vendors. Views of Responsible Officials and Planned Corrective Actions Effective 6/1/2025, TARTA implemented a new ERP system that will allow us to indicate and upload verification that a vendor was checked for suspension, debarment, or exclusions prior to entering into a contract in accordance with 2 CFR 180.300, going forward.

Corrective Action Plan

Condition: There was no evidence to support that the Authority performed procedures to verify that the vendors were not suspended, debarred, or otherwise excluded prior to entering into contracts for 18 contracts within our testing population. Planned Corrective Action: Effective 6/1/2025, TARTA implemented a new ERP system that will allow us to indicate and upload verification that a vendor was checked for suspension, debarment, or exclusions prior to entering into a contract in accordance with 2 CFR 180.300, going forward. Contact person responsible for corrective action: James Karasek Anticipated Completion Date: 6/1/2025

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1154862 2024-003
    Material Weakness Repeat
  • 1154863 2024-004
    Material Weakness Repeat
  • 1154864 2024-005
    Material Weakness Repeat
  • 1154865 2024-003
    Material Weakness Repeat
  • 1154866 2024-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
20.507 Federal Transit Formula Grants $10.62M
20.526 Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs $2.38M
20.513 Enhanced Mobility of Seniors and Individuals with Disabilities $84,870
20.530 Public Transportation Innovation $68,730