FAC Explorer

Finding 1173017 (2023-005)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2026-02-10
Audit: 386455
Organization: Yankton Sioux Tribe (SD)
Auditor: WOHLENBERG RITZMAN & CO LLC

AI Summary

  • Core Issue: The Governmental Department failed to provide necessary procurement documentation for a transaction, violating federal procurement standards.
  • Impacted Requirements: Compliance with Uniform Guidance §200.318 through §200.327, including documentation for procurement planning and vendor eligibility checks.
  • Recommended Follow-Up: Ensure the department understands and adheres to procurement regulations to avoid potential sanctions and unauthorized purchases.

Finding Text

Finding 2023 – 005: Procurement (Compliance; Internal Controls Over Compliance) (Repeat Finding: 2015-004, 2016-003, 2017-005, 2018-004, 2019-005, 2020-005, 2021-004 and 2022-006) Material Weakness ALN 20.205 Highway Planning & Construction Criteria: Uniform Guidance §200.318 through §200.327 outlines the federal procurement standards for non-federal entities (such as local governments) when using federal funds. These procurement standards should be followed for each federal program the Governmental Department expends funds on. Condition: During the testing of the Highway Planning and Construction Program (ALN 20.205), we reviewed two transactions selected to assess compliance with procurement standards. However, the Governmental Department was unable to provide procurement documentation for one of these transactions, including evidence of procurement planning, bid evaluations, or contract award decisions. Furthermore, no documentation was available to confirm that the Governmental Department had conducted searches for suspended or debarred vendors, as required under federal regulations. This lack of documentation prevented us from verifying compliance with federal procurement and vendor eligibility requirements for these transactions. Questioned Costs: $350,887 Cause: The purchasing department and program director are not following established policies and procedures for procurement and suspension and debarment as outlined in the Governmental Department’s procurement policy and Uniform Guidance §200.318 through §200.327. Effect: The Governmental Department’s procurement policy, as well as, Uniform Guidance §200.318 through §200.327 are not being followed. This could lead to sanctions by the funding agency. Recommendation: We recommend the Governmental Department become familiar with the procurement regulations and standards identified in Uniform Guidance §200.318 through §200.327 and follow established procurement policies and procedures to minimize any unauthorized or unallowable purchases as it relates to procurement. Views of Responsible Officials: See the corrective action plan that accompanies the schedule of findings and questioned costs.

Corrective Action Plan

2023 - 005 Procurement (Compliance; Internal Controls Over Compliance) (Repeat Finding: 2015-004, 2016-003, 2017 – 005, 2018-004, 2019-005,2020-005, 2021-004 and 2022-006) Material Weakness ALN 20.205 Highway Planning and Construction Condition: During the testing of the Highway Planning and Construction Program (ALN 20.205), we selected two transactions to assess compliance with procurement standards. The Governmental Department was unable to provide procurement documentation for one of these transactions, including evidence of procurement planning, bid evaluations, or contract award decisions. Furthermore, no documentation was available to confirm that the Governmental Department had conducted searches for suspended or debarred vendors, as required under federal regulations. This lack of documentation prevented us from verifying compliance with federal procurement and vendor eligibility requirements for these transactions. Corrective Action Plan: Procurement and Directors will be trained on procurement policies and procedures and followed to minimize any unauthorized or unallowable purchases. An internal audit process is being developed and personnel assigned. Forms will be developed to assist with the internal audit process to ensure a timely and consistent process will be followed.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1173010 2023-004
    Material Weakness Repeat
  • 1173011 2023-004
    Material Weakness Repeat
  • 1173012 2023-004
    Material Weakness Repeat
  • 1173013 2023-004
    Material Weakness Repeat
  • 1173014 2023-004
    Material Weakness Repeat
  • 1173015 2023-004
    Material Weakness Repeat
  • 1173016 2023-004
    Material Weakness Repeat
  • 1173018 2023-006
    Material Weakness Repeat
  • 1173019 2023-007
    Material Weakness Repeat
  • 1173020 2023-007
    Material Weakness Repeat
  • 1173021 2023-007
    Material Weakness Repeat
  • 1173022 2023-007
    Material Weakness Repeat
  • 1173023 2023-007
    Material Weakness Repeat
  • 1173024 2023-007
    Material Weakness Repeat
  • 1173025 2023-007
    Material Weakness Repeat
  • 1173026 2023-008
    Material Weakness Repeat
  • 1173027 2023-008
    Material Weakness Repeat
  • 1173028 2023-008
    Material Weakness Repeat
  • 1173029 2023-008
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $13.12M
20.205 HIGHWAY PLANNING AND CONSTRUCTION $3.05M
15.024 INDIAN SELF-DETERMINATION CONTRACT SUPPORT $2.77M
93.575 CHILD CARE AND DEVELOPMENT BLOCK GRANT $2.42M
10.760 WATER AND WASTE DISPOSAL SYSTEMS FOR RURAL COMMUNITIES $1.18M
15.030 INDIAN LAW ENFORCEMENT $1.18M
93.600 HEAD START $895,607
15.031 INDIAN COMMUNITY FIRE PROTECTION $661,757
15.029 TRIBAL COURTS $625,893
84.027 SPECIAL EDUCATION GRANTS TO STATES $427,190
93.047 SPECIAL PROGRAMS FOR THE AGING, TITLE VI, PART A, GRANTS TO INDIAN TRIBES, PART B, GRANTS TO NATIVE HAWAIIANS $345,052
15.034 AGRICULTURE ON INDIAN LANDS $301,189
15.114 INDIAN EDUCATION HIGHER EDUCATION GRANT $284,306
15.020 AID TO TRIBAL GOVERNMENTS $267,353
15.113 INDIAN SOCIAL SERVICES WELFARE ASSISTANCE $262,085
66.926 INDIAN ENVIRONMENTAL GENERAL ASSISTANCE PROGRAM (GAP) $228,659
15.025 SERVICES TO INDIAN CHILDREN, ELDERLY AND FAMILIES $222,445
10.567 FOOD DISTRIBUTION PROGRAM ON INDIAN RESERVATIONS $213,215
17.265 NATIVE AMERICAN EMPLOYMENT AND TRAINING $180,712
93.243 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $164,413
66.817 STATE AND TRIBAL RESPONSE PROGRAM GRANTS $141,181
21.019 CORONAVIRUS RELIEF FUND $128,276
93.568 LOW-INCOME HOME ENERGY ASSISTANCE $110,976
66.605 PERFORMANCE PARTNERSHIP GRANTS $76,977
15.108 INDIAN EMPLOYMENT ASSISTANCE $76,755
15.904 HISTORIC PRESERVATION FUND GRANTS-IN-AID $63,857
15.144 INDIAN CHILD WELFARE ACT TITLE II GRANTS $63,577
15.036 INDIAN RIGHTS PROTECTION $61,793
15.048 BUREAU OF INDIAN AFFAIRS FACILITIES OPERATIONS AND MAINTENANCE $51,251
15.039 FISH, WILDLIFE, AND PARKS PROGRAMS ON INDIAN LANDS $51,127
93.556 MARYLEE ALLEN PROMOTING SAFE AND STABLE FAMILIES PROGRAM $51,016
16.750 SUPPORT FOR ADAM WALSH ACT IMPLEMENTATION GRANT PROGRAM $48,565
93.092 AFFORDABLE CARE ACT (ACA) PERSONAL RESPONSIBILITY EDUCATION PROGRAM $47,214
11.302 ECONOMIC DEVELOPMENT SUPPORT FOR PLANNING ORGANIZATIONS $44,163
15.037 WATER RESOURCES ON INDIAN LANDS $34,310
10.U01 LEWIS & CLARK PROJECT EQUIPMENT $26,869
84.181 SPECIAL EDUCATION-GRANTS FOR INFANTS AND FAMILIES $22,180
45.311 NATIVE AMERICAN AND NATIVE HAWAIIAN LIBRARY SERVICES $19,590
93.658 FOSTER CARE TITLE IV-E $14,561
93.645 STEPHANIE TUBBS JONES CHILD WELFARE SERVICES PROGRAM $9,630
20.509 FORMULA GRANTS FOR RURAL AREAS AND TRIBAL TRANSIT PROGRAM $7,160
15.035 FORESTRY ON INDIAN LANDS $5,033
93.354 PUBLIC HEALTH EMERGENCY RESPONSE: COOPERATIVE AGREEMENT FOR EMERGENCY RESPONSE: PUBLIC HEALTH CRISIS RESPONSE $4,236
66.U01 PPG-IDC $831
93.441 INDIAN SELF-DETERMINATION $423
93.569 COMMUNITY SERVICES BLOCK GRANT $300
15.141 INDIAN HOUSING ASSISTANCE $119