Finding Text
2022-002 Procurement, Suspension, and Debarment Prior Year Finding Number: N/A Repeat Finding Since: N/A Type of Finding: Internal Control Over Compliance and Compliance Severity of Deficiency: Material Weakness and Modified Opinion Federal Agency: U.S. Department of the Treasury Program: 21.027 COVID-19 Coronavirus State and Local Recovery Funds Criteria: Title 2 U.S. Code of Federal Regulations ? 200.318(i) states that the County must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. The County must follow further guidance over full and open competition as provided in Title 2 U.S. Code of Federal Regulations ? 200.319; and performing a cost or price analysis provided in Title 2 U.S. Code of Federal Regulations ? 200.323. In addition, non-federal entities must follow federal guidance regarding verifying debarment, suspension, and exclusions, as provided in Title 2 U.S. Code of Federal Regulations ?? 180.300, 200.213, and 200.318(h), when entering into covered transactions. Condition: The County had one procurement considered a small purchase. For this procurement, the contract file did not have documentation detailing the history of procurement, supporting full and open competition, or that a cost/price analysis was performed. In addition, for three of four covered transactions tested, the verification for suspended or debarred vendors was not performed before entering into the covered transaction. Questioned Costs: None. Context: The threshold used for the procurement testing was a small purchase ($10,000 to $250,000). Only one procurement met this requirement. The suspension and debarment covered transaction threshold is $25,000. The were nine covered transactions included in the population. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing and Single Audits. Effect: The County is not in compliance with federal grant requirements. Cause: The County thought that the procurement requirements did not apply to the contractor chosen for procurement testing because they were providing consulting services. Also, vendors selected for suspension and debarment testing were school districts. County staff thought that the school districts did not have to be checked for suspension and debarment since they are government agencies. Recommendation: We recommend that the County maintain records sufficient to detail the history of procurement, provide full and open competition, and perform a cost or price analysis to support compliance with Title U.S. Code of Federal Regulations ?? 200.318, 200.319, and 200.323. In addition, we recommend the County maintain documentation to demonstrate that vendors were not debarred, suspended, or otherwise excluded from conducting business with the County; this documentation should be completed prior to entering into a covered transaction. View of Responsible Official: Acknowledge.