Finding Text
Program Information: Assistance Listing #: 93.445 U.S. Department of Health and Human Services I.H.S. Water Tank Replacement Award Numbers: PH12-U35, RN0222 Award Periods: 7/29/2021-7/29/2025 Assistance Listing #: 21.027 U.S. Department of the Treasury COVID-19 American Rescue Plan Act - 2021 Award Numbers: SLFRP3186, SLFRP4785 Award Periods: 8/13/2021 - 12/31/2026, 6/4/2021 - 12/31/2026 Criteria: 2 CFR § 200.303 - Internal controls states, 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, as a nonfederal entity and Indian tribe, is required to follow the same procurement laws and procedures it uses for procurements from non-federal funds, together with applicable federal statutes, the procurement standards in 2 CFR part 200 (including 2 CFR 200.317 and related provisions), and any additional procurement requirements specified in the federal award documents when expending federal award funds. In addition, under the Procurement and Suspension and Debarment compliance requirement, the Tribe must ensure that contracts and subawards under covered transactions are not made with parties that are suspended, debarred, or otherwise excluded from participation in federal assistance programs, which requires verification against the System for Award Management (SAM) Exclusions in accordance with 2 CFR 200.213 and 2 CFR part 180 (including 2 CFR 180.300). Condition/Context: During testing, we noted the following: 21.027 • 5 of 6 IIIs did not have documentation of alternate bidding or sole source justification. • 6 of 6 IIIs did not have documentation that a suspension and debarment search was performed prior to purchasing. 93.445 • 7 of 7 IIIs did not have documentation that a suspension and debarment search was performed prior to purchasing. [ X ] Compliance Finding [ ] Significant Deficiency [ X ] Material Weakness Cause: The Tribe’s procurement procedures were not consistently followed, and required documentation was not consistently prepared or retained. Staff turnover and inconsistent application of procurement requirements contributed to the lack of documentation supporting competitive procurement or sole source justification and suspension and debarment verification. Effect: Without documented verification, there is an increased risk that procurements may not be conducted in accordance with Federal requirements or that Federal funds could be paid to an ineligible vendor. Questioned Costs: Suspension and Debarment: None noted. The vendors were not found to be suspended or debarred; the issue relates solely to lack of documentation. Procurement: 21.027 • $108,943 - Known Repeat Finding: Yes for 93.445, Finding #2023-003. No for 21.027. Recommendation: We recommend the Tribe strengthen its procurement procedures to ensure Federal procurement requirements are completed and documented prior to contract award or purchase. Procurement files should include documentation supporting competitive procurement or an allowable sole source justification, when applicable, as well as evidence of suspension and debarment verification. The Tribe should also establish procedures to ensure required procurement documentation is retained and reviewed for compliance. 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.