Finding 3638 (2022-008)

Material Weakness
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-12-06
Audit: 5640
Organization: Guam Department of Education (GU)

AI Summary

  • Core Issue: GDOE failed to obtain Byrd Anti-Lobbying certifications for 60% of purchase orders, violating procurement requirements.
  • Impacted Requirements: Noncompliance with federal procurement and suspension and debarment regulations related to contractor certifications.
  • Recommended Follow-Up: Implement controls to ensure all contractors provide the required Byrd Anti-Lobbying certifications before issuing purchase orders.

Finding Text

Finding No.: 2022-008 Federal Agency: U.S. Department of Education AL Program: 84.403 Consolidated Grant to the Outlying Areas Area: Procurement and Suspension and Debarment Questioned Costs: $0 Criteria: In accordance with applicable procurement and suspension and debarment requirements, all contracts made by the non-Federal entity under the Federal award must contain applicable provisions. Contractors that apply or bid for an award exceeding $100,000 must file the required certification under the Byrd Anti-Lobbying Amendment (31 U.S.C. 1352). Each such contractor certifies that it will not and has not used Federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, among others. Condition: For 15 (or 60%) of 25 purchase orders (POs), no Byrd Anti-Lobbying certification was provided, as follows: Cause: GDOE did not establish and implement controls over compliance with applicable procurement and suspension and debarment requirements relative to Byrd Anti-Lobbying certifications. Effect: GDOE is in noncompliance with applicable procurement and suspension and debarment requirements relative to Byrd Anti-Lobbying certifications. No questioned cost is presented as we are unable to quantify the extent of noncompliance. Subsequently, from 10/13/2023 through 10/18/2023, GDOE effected partial corrective action by obtaining the required certifications from contractors for item numbers 5 through 15. Recommendation: Responsible personnel should establish and implement controls over compliance with applicable procurement and suspension and debarment requirements relative to Byrd Anti-Lobbying certifications. Prior to providing a signed purchase order to the selected contractor, responsible personnel should verify that the contractor has provided the required Byrd Anti-Lobbying certification. Views of Responsible Officials: GDOE agrees with the finding. GDOE included Byrd Anti-Lobbying Amendment as a provision of certain contracts, however the records were absent the required certification per 2 CFR Appendix-II-to-Part-200(I). GDOE’s Corrective Action Plan includes additional details.

Corrective Action Plan

Finding No.: 2022-008 Federal Agency: U.S. Department of Education AL Program: 84.403 Consolidated Grant to the Outlying Areas Area: Procurement and Suspension and Debarment Questioned Costs: $0 Views of Auditee and Corrective Actions: GDOE agrees with the finding. GDOE included Byrd Anti-Lobbying Amendment as a provision of certain contracts, however the records were absent the required certification per 2 CFR Appendix_x0002_II-to-Part-200(I). GDOE’s Supply Management Office, with the guidance of GDOE IAO, was able to subsequently confirm that vendors for 14 out of the 15 purchase orders complied with the anti-lobbying provision, therefore the finding was reduced. Plan of action and completion date: GDOE will update its SOPs and immediately require the Byrd Anti-Lobbying Amendment certification as part of vendor bid packets that are expected to exceed $100,000. Plan to monitor and responsible officials: GDOE Supply Management Administrator, Carmen Charfauros, will assign a Buyer to monitor the procurement records to ensure all applicable provisions are adhered to. Additionally, the IAO will audit formal procurements to determine that the required documents are included in the records.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 3632 2022-004
    Significant Deficiency
  • 3633 2022-005
    Significant Deficiency
  • 3634 2022-004
    Significant Deficiency
  • 3635 2022-005
    Significant Deficiency
  • 3636 2022-006
    Significant Deficiency
  • 3637 2022-007
    Significant Deficiency
  • 3639 2022-009
    Significant Deficiency Repeat
  • 3640 2022-010
    Significant Deficiency
  • 3641 2022-009
    Significant Deficiency
  • 3642 2022-010
    Significant Deficiency
  • 3643 2022-009
    Significant Deficiency
  • 3644 2022-010
    Significant Deficiency
  • 580074 2022-004
    Significant Deficiency
  • 580075 2022-005
    Significant Deficiency
  • 580076 2022-004
    Significant Deficiency
  • 580077 2022-005
    Significant Deficiency
  • 580078 2022-006
    Significant Deficiency
  • 580079 2022-007
    Significant Deficiency
  • 580080 2022-008
    Material Weakness
  • 580081 2022-009
    Significant Deficiency Repeat
  • 580082 2022-010
    Significant Deficiency
  • 580083 2022-009
    Significant Deficiency
  • 580084 2022-010
    Significant Deficiency
  • 580085 2022-009
    Significant Deficiency
  • 580086 2022-010
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.403 Consolidated Grant to the Outlying Areas $29.12M
10.555 National School Lunch Program $14.22M
15.875 Economic, Social, and Political Development of the Territories $5.74M
84.181 Special Education-Grants for Infants and Families $1.47M
12.U01 Army Jrotc $306,137
84.372 Statewide Longitudinal Data Systems $295,823
84.323 Special Education - State Personnel Development $282,177
84.371 Striving Readers $248,220
12.U02 Air Force Jrotc $237,290
93.092 Affordable Care Act (aca) Personal Responsibility Education Program $196,814
93.600 Head Start $195,216
84.425 Education Stabilization Fund $181,866
10.541 Child Nutrition-Technology Innovation Grant $131,428
10.560 State Administrative Expenses for Child Nutrition $93,913
10.568 Emergency Food Assistance Program (administrative Costs) $43,844
10.575 Farm to School Grant Program $42,690
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $36,971
10.558 Child and Adult Care Food Program $32,401
10.574 Team Nutrition Grants $19,946
84.027 Special Education_grants to States $2,014
12.U03 Marine Jrotc $1,285