Finding Text
2023-006 – WRITTEN PROCUREMENT POLICIES AND PROCEDURES DO NOT CONFORM TO THE UNIFORM GUIDANCE PROCUREMENT STANDARDS Federal Program: Assistance Listing Number 17.258 and 17.278 – WIOA Adult & Dislocated Worker Grant Cluster. Federal awarding agency: U.S. Department of Labor, Employment and Training Administration. Pass-through entity: Eastern Kentucky Concentrated Employment Program, Inc. and Kentucky Education and Labor Cabinet. Type of Finding: Significant deficiency in internal control over compliance; Allowable Costs. Repeat finding – reported in the prior year as finding 2022-005. Criteria: Uniform Guidance at 2 CFR 200.318 requires non-Federal entities to maintain and use documented procurement procedures that are consistent with applicable state and local laws and regulations and conform to Federal procurement standards. Written policies should address matters including conflicts of interest, methods of procurement, contractor oversight, and full and open competition. Condition: During our review of procurement policies and procedures, we noted that the Institute had not adopted written procurement policies and procedures that conform to the procurement requirements of Uniform Guidance. Specifically, the Institute's policies did not adequately address the Federal procurement standards contained in 2 CFR Part 200. Cause: The Institute has not completed the revision of its written procurement policies and procedures to conform to the Uniform Guidance, and personnel responsible for grant administration have not been trained on the Uniform Guidance procurement standards. Effect: Without conforming written procurement policies, the Institute may not consistently apply Federal procurement requirements when expending Federal funds. This increases the risk of noncompliance and the use of procurement methods that do not meet Federal requirements. Questioned Costs: None Recommendation: We recommend that management adopt and implement written procurement policies and procedures that comply with 2 CFR 200.317 through 200.327. The policies should address procurement methods, conflicts of interest, contractor selection, suspension and debarment, required cost or price analyses, contractor oversight, full and open competition, and documentation of procurement decisions. Management's Views and Response: The Institute will adopt written procurement policies and procedures that conform to the Uniform Guidance procurement standards, present them to the Board of Directors for approval, and train the personnel responsible for procurement on their use.