Finding Text
2 CFR § 1000.10 provides that, except for the deviations set forth elsewhere in this Part, the Department of Treasury adopts the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards set forth at 2 CFR Part 200. 2 CFR § 200.320(a)(2)(i) defines simplified acquisitions as purchases where the aggregate dollar amount of the procurement transaction is higher than the micro-purchase threshold but does not exceed the simplified acquisition threshold. If simplified acquisition procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources. The County did not have the proper internal controls in place to obtain sufficient quotations from qualified sources. For the State and Local Fiscal Recovery Funds (SLFRF) direct grant, one out of the two projects tested, which was for digitalization of Clerk of Courts' records in the amount of $20,804, exceeded the County's micro-purchase threshold of $10,000, but the County did not obtain and document price or rate quotations from an adequate number of qualified sources. For the State and Local Fiscal Recovery Funds passed through Ohio Department of Development, there was only one project subject to simplified acquisition testing, which was for professional engineering in the amount of $42,600. However, the County could not provide evidence that price or rate quotations were received from adequate number of qualified sources. Additionally, 31 CFR § 19.305 states that non-Federal entities are prohibited from entering into a covered transaction with parties that are suspended or debarred or whose principals are suspended or debarred, unless the Federal agency responsible for the transaction grants an exception under 31 CFR § 19.120. 31 CFR § 19.200 identifies “covered transactions” as nonprocurement or procurement transactions at the primary tier, between a Federal agency and a person; or at the lower tier, between a participant in a covered transaction and another person. Procurement contracts for goods and services awarded under a nonprocurement transaction (e.g., grant or cooperative agreement) are covered transactions if the contracts are expected to equal or exceed $25,000 or meet certain other specified criteria outlined in 31 CFR § 19.220. All nonprocurement transactions as defined in 31 CFR § 19.970 (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless exempt by 31 CFR § 19.215. When a non-Federal entity enters into a covered transaction, the non-Federal entity must verify that the entity is not suspended or debarred or otherwise excluded. This verification may be accomplished by checking SAM exclusions (https://sam.gov/content/home); collecting a certification from the entity, or adding a clause or condition to the covered transactions with that entity. The County did not have the proper internal controls in place to verify that all entities, with whom the County had entered into covered transaction, had not been suspended or debarred. Although all of the vendors tested were not suspended or debarred, the County did not have any evidence supporting that it performed a search before entering into a contract, collected certifications from the vendors, or added a clause or condition to covered transactions with the vendors to verify this information to verify this information. Failure to comply with federal procurement and suspension and debarment guidelines could result in improper spending of federal monies. The County should ensure that price or rate quotations are sought out from an adequate number of sources for procurement purchases defined as Simplified Acquisitions. In addition, the County should also develop and implement controls to verify that contractors who are taking part of a federally funded project are not suspended or debarred before entering into a contract with them.