Finding Text
Program Information: See the Corrective Action Plan for chart/table Criteria or specific requirement: Per 2 CFR § 200.303 Internal controls, the non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The Tribe's procurement policies and procedures require at least three price quotations for purchases over $10,000. Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. When a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the Excluded Parties List System (EPLS) maintained by the General Services Administration (GSA) and available at https://www.sam.gov/portal/public/SAM/, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180.300). Condition/Context: During testing, the following was noted: Procurement: • 2 of 2 samples selected for testing did not have documentation that bids/quotes were obtained. Suspension and Debarment: • 2 of 2 samples selected for testing did not have documentation that suspension and debarment checks were performed. [X] Compliance Finding [ ] Significant Deficiency [X] Material Weakness Cause: The Department has not implemented sufficient internal controls or documentation procedures to ensure compliance with federal procurement and suspension/debarment requirements. This could be due to lack of oversight and turnover. Effect: The Department could be subject to questioned costs or other sanctions from funding agencies if they determine that programs did not assure full and open competition for the procurements or that suspension and debarment searches are not occurring. Questioned Costs: Procurement: Known - $130,995. Suspension and Debarment: Not applicable due to no vendors in the sampling being identified as being suspended or debarred. Repeat Finding: Yes – 2021-013. Recommendation: Established procurement and suspension and debarment policies and procedures should be enforced requiring bid documentation and suspension and debarment documentation be retained. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding and has prepared corrective action as detailed in its Corrective Action Plan.