Finding Text
2022-002 Department of the Treasury, Passed through Utah Department of Workforce Services Federal Assistance Listing 21.027 Coronavirus State and Local Fiscal Recovery Funds Procurement, Suspension, and Debarment Material Weakness in Internal Control over Compliance and Noncompliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The Organization?s written procurement policies did not include all of the elements required by the Code of Federal Regulations 2 CFR 200.318-200.325, including monitoring that contractors are not suspended, debarred, or otherwise excluded pursuant to 31 CFR 19.300 and retaining documentation thereof. In addition, two construction contracts did not include all of the provisions required by Appendix II of 2 CFR Part 200. Cause: The Organization did not have internal controls in place to document procurement policies, to document monitoring contractors for suspension and debarment, or to ensure contracts with contractors included the required elements. Effect: The risk is increased that a procurement noncompliance could occur. Questioned Costs: None reported. Context/Sampling: Nonstatistical sampling was used. Sample size was 4 of 10 procurement transactions above the micro-purchase threshold and included $551,791 of federal awards. Repeat Finding from Prior Year(s): No. Recommendation: We recommend the Organization implement additional internal controls over procurement policies and procedures. Views of Responsible Officials: Management agrees with this finding.