Finding 1159983 (2022-005)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2025-10-05
Audit: 370454
Organization: Native Village of Tyonek (AK)
Auditor: Brad Cage CPA

AI Summary

  • Core Issue: NVT failed to properly document the procurement process for seven purchases over $10,000, totaling $2,644,121.
  • Impacted Requirements: Compliance with 2 CFR, Section 200.320, which mandates competitive bids and documentation of vendor selection.
  • Recommended Follow-Up: Management should train staff on procurement policies and ensure all significant purchases are documented, including sole-source justifications.

Finding Text

PROCUREMENT, I NOTED THAT NVT DID NOT PROPERLY DOCUMENT THE PROCUREMENT OF SEVEN PURCHASES OVER $10,000 FOR THE DOT, COVID-19, CSLFRF PROGRAM. THE SEVEN PURCHASES TOTALED $2,644,121. PER 2 CFR, SECTION 200.320 NVT'S STAFF MUST FOLLOW PROCUREMENT POLICIES AND OBTAIN COMPETITIVE BIDS FOR SIGNIFICANT PURCHASES OF EQUIPMENT/MATERIALS/ AND/OR CONTRACTS AND DOCUMENT THE FINAL SELECTION PROCESS, INCLUDING VENDORS CONTRACTED, VARIOUS VENDOR QUOTES/BIDS, AND FINAL ANALYSIS OF WINNING BID. IN ADDITION, THE SAM WEBSITE SHOULD BE REVIEWED TO ENSURE THE WINNING VENDOR/CONTRACTOR HAS NOT BEEN SUSPENDED/DEBARRED. NO QUESTIONED COSTS DETERMINED. I TESTED THE ONLY SEVEN ITEMS IN EXCESS OF THE PROCUREMENT THRESHOLD FOR THE DOT, CSLFRF, 21.027 GRANT FOR PROPER PROCURMENT. ALL SEVEN OF THE ITEMS DID NOT CONTAIN PROPER PROCUREMENT DOCUMENTATION. THE SEVEN ITEMS TOTALED $2,644,121. INTERNAL CONTROLS WERE NOT IN PLACE TO ENSURE THAT PRIOR TO PURCHASE, PROPER PROCUREMENT PROCEDURES WERE FOLLOWED AND DOCUMENTED. MANAGEMENT SHOULD ENSURE THAT ALL STAFF KNOW THAT ALL MATERIAL PURCHASES MUST BE PROPERLY PROCURED, AND IF SOLE SOURCE, THAT MUST BE DOCUMENTED AS WELL. THIS WAS NOT A REPEAT FINDING.

Corrective Action Plan

The Council will insure that all future procurements correctly use and retain a procurement sheet which documents the item purchased, the bids received, as well as the analysis of the reasons for the winning bid. The winning contractor/vendor will be searched on the SAM website to determine that they are not suspended/debarred.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1159979 2022-001
    Material Weakness Repeat
  • 1159980 2022-002
    Material Weakness Repeat
  • 1159981 2022-003
    Material Weakness Repeat
  • 1159982 2022-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $3.92M
93.441 Indian Self-Determination $419,262
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $323,235
14.867 Indian Housing Block Grants $138,826
15.020 Aid to Tribal Governments $138,725
15.021 Consolidated Tribal Government $138,623
20.205 Highway Planning and Construction $134,267
93.788 Opioid Str $133,172
66.926 Indian Environmental General Assistance Program (gap) $68,265
15.034 Agriculture on Indian Lands $47,352
15.141 Indian Housing Assistance $46,186
15.108 Indian Employment Assistance $26,278
81.087 Renewable Energy Research and Development $10,562
93.645 Stephanie Tubbs Jones Child Welfare Services Program $6,179
15.144 Indian Child Welfare Act Title II Grants $1,270