Finding Text
Program Information:
See the audit finding for chart/table
Criteria or specific requirement:
The Tribe's procurement policies and procedures require at least three price quotations for purchases over $10,000.
Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. When a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the Excluded Parties List System (EPLS) maintained by the General Services Administration (GSA) and available at https://www.sam.gov/portal/public/SAM/, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180.300).
Condition/Context:
AL #15.033
Procurement:
• 2 of 12 IIIs and 2 of 2 samples did not have documentation that bids/quotes were received prior to payment.
Debarment:
• 11 of 12 IIIs did not have support to verify suspension and debarment searches were done and reviewed/approved.
AL #93.441
Debarment:
• 2 of 2 samples did not have support to verify suspension and debarment searches were done and reviewed/approved.
AL #21.027
Procurement:
• 1 of 1 sample did not have documentation that bids/quotes were received prior to payment.
[X] Compliance Finding [ ] Significant Deficiency [X] Material Weakness
Cause:
Lack of sufficient oversight may have led to procurement and suspension and debarment policies not being followed.
Effect:
The Tribe could be subject to questioned costs or other sanctions from funding agencies if they determine that programs did not assure full and open competition for the procurements or that suspension and debarment searches are not occurring.
Questioned Costs:
Procurement:
Due to lack of sufficient documentation, we were unable to determine questioned costs.
Debarment:
Due to lack of sufficient documentation, we were unable to determine questioned costs.
Repeat Finding:
Yes – 2020-012 (AL #’s 15.033 and 93.441).
Recommendation:
Established procurement, suspension and debarment policies and procedures should be enforced requiring bid documentation and suspension and debarment documentation be retained.
Views of Responsible Officials and Planned Corrective Action:
Management agrees with the finding and has prepared corrective action as detailed in its Corrective Action Plan.