Finding 1218982 (2024-005)

2024-005 – Procurement, Suspension, and Debarment – Significant Deficiency Federal program information: Funding agency: U.S. Department of Treasury Title: Coronavirus State and Local Fiscal Recovery Funds Assistance listing number: 21.027 Award year: December 31, 2024 Award number: COVID-19 Funding Criteria: In accordance with the program’s contract provisions, recipients may use award funds to enter into contracts to procure goods and services necessary to implement the eligible purposes outlined by the treasury. Recipients are expected to follow procurement policies and procedures in place that comply with the procurement standards outlined in the Uniform Guidance. Condition/Context: For two of five procurements tested, the Department could not provide evidence that procedures were performed to ensure vendors were not suspended or debarred from receiving federal funding for services rendered. In addition, for two of five procurements tested, sole source justifications were identified that did not meet the Department’s policy requirements. Cause and Effect: The Department did not have appropriate internal control policies and procedures in place to ensure selected vendors were not suspended or debarred and that sole source procurements were adequately justified in accordance with the Department’s policy. As a result, federal funding could be awarded to vendors not entitled to receive federal funds. Questioned Costs: None. Identification as a Repeat Finding: This is a repeat finding from the prior year. This finding was reported as finding 2023-005 in the 2023 report. Recommendations: We recommend revising the Department’s procedures to ensure vendors with which the Department procures goods and services are not federally suspended or debarred. We also recommend revising the Department strengthen procedures over sole source procurements to ensure justifications are prepared, reviewed, and maintained in accordance with Department policy and the Uniform Guidance.. Views of Responsible Officials: Management concurs with the finding. Procurement, Grants, and Contracts has developed updated policies and procedures intended to strengthen procurement controls and support compliance with applicable federal requirements, including vendor suspension and debarment verification. These policies and procedures have been submitted for approval but have not yet been formally adopted. In the interim, management will continue working with the responsible departments to support implementation efforts and strengthen procurement practices while formal approval is pending.