Finding 37255 (2022-002)

Material Weakness
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-09-29
Audit: 34952
Auditor: Uhy LLP

AI Summary

  • Core Issue: FamilyForward did not follow required procurement policies and procedures as outlined in the Uniform Guidance when receiving funds non-competitively.
  • Impacted Requirements: Compliance with procurement standards in 2 CFR sections 200.318-200.327 and verification against suspension and debarment lists were not adequately performed.
  • Recommended Follow-Up: Discuss procurement processes with the grantor for any future funding to ensure compliance with applicable guidelines.

Finding Text

Criteria: Non-federal entities are expected to have procurement policies and procedures in place that comply with the procurement standards outlined in the Uniform Guidance in 2 CFR sections 200.318 through 200.327 as well as verifying such contractors are not suspended, debarred or otherwise excluded pursuant to 31 CFR section 19.300. Condition: FamilyForward was selected to receive funds by the awarding entity in a non-competitive manner subsequent to the solicitation of bids for the construction of the campus for training and research on trauma informed care, which was the requirement per the contract. Accordingly, the procurement policies and procedures as well as the suspension and debarment procedures were not performed in accordance with Uniform Guidance. FamilyForward was determined to be uniquely qualified as a single feasible source as the only eligible entity to receive funds appropriated by the awarding entity. The construction vendor FamilyForward contracted with prior to the award of funds was not on the suspension and debarment list. FamilyForward provided a copy of the campus construction contract to the awarding entity as required prior to disbursement of funds. Effect: The competitive bidding procedures were performed at the subcontractor level by the general contractor however were not performed at the non-federal entity level. Cause: Award of funds was received after the contract agreements were solicited. Recommendation: While procurement processes appear to be completed, it does not appear procurement processes were completed was done under applicable Uniform Guidance. We recommend if grant funding is received for projects already in process, the procurement be discussed with the grantor and process/procedure be agreed upon to maintain compliance under the grant.

Corrective Action Plan

View of Responsible Officials and Planned Corrective Actions: FamilyForward was responsive and provided requested information to the awarding entity at each stage of the appropriation, single source determination, contracting, and payment process. FamilyForward relied upon the awarding entity?s single source determination that activities undertaken in our role as subrecipient were conducted in accordance with all required policies and procedures, including procurement. FamilyForward will implement procurement policies and procedures to ensure that we meet requirements of Uniform Grant Guidance in advance of soliciting or securing federal funds for projects.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 613697 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
16.575 Crime Victim Assistance $489,318
16.575 Crime Victim Assistance (covid-19) $117,772
21.027 Coronavirus State and Local Fiscal Recovery Funds $35,060
93.575 Child Care and Development Block Grant $33,280
93.558 Temporary Assistance for Needy Families $30,324
93.671 Family Violence Prevention and Services/domestic Violence Shelter and Supportive Services $3,754
16.524 Office on Violence Against Women $2,366