Finding Text
Finding 2022-009 Lack of Internal Controls and Noncompliance with Procurement Requirements Federal Agencies: U.S. Department of Health and Human Services and U.S. Department of the Treasury, respectively Federal Programs: Tribal Self-Governance and Determination Cluster (TSGDC) and Coronavirus State and Local Fiscal Recovery Funds (CSLFRF), respectively CFDA Numbers: 93.441 (TSGDC) and 21.027 (CSLFRF), respectively Award Number: 0243-12-0006 (TSGDC) and SLFRP2520/4754 (CSLFRF), respectively Award Year: 2020, 2021, 2022 (TSGDC) and 2021 (CSLFRF), respectively Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: In accordance with 2 CFR sections 200.318 to 200.325, procurement policies must be in place to ensure the Tribe is promoting full and open competition consistent with the standards of these sections. In order to ensure objective contractor performance and eliminate unfair competitive advantage, contractors that develop or draft specifications, requirements, statements of work, or invitations for bids or requests for proposals must be excluded from competing for such procurements. Condition and Context: During our testing of allowable costs charged to the TSGDC program, management could not provide adequate procurement documentation related to the clinic construction project. During our testing of allowable costs charged to the CSLFRF program, management could not provide adequate procurement documentation related to a construction project and supplies related to the water treatment system. Cause: Lack of internal controls over procurement requirements. Effect: Failure to follow compliance requirements could result in loss of federal funding or questioned costs being incurred. Questioned costs: Undetermined. Due to the lack of procurement documentation, we were unable to determine if the Community received the lowest price possible. Repeat finding: No. Recommendation: We recommend that management establish a procurement policy and ensure that the policy is followed. Management Response: Management agrees with this finding, see Corrective Action Plan.