Finding Text
2022-003 ? Procurement, Suspension and Debarment Federal program information: Funding Agency: U.S. Departments of the Treasury and Health and Human Services Title: Coronavirus State and Local Fiscal Recovery Funds and Indian Health Services Self-Governance Assistance Listing Number: 21.027 and 93.210 Award Periods: March 3, 2021 ? December 31, 2024 Criteria: Uniform Guidance regulations section CFR 200.318(a) and CFR 200.320(a) state, the non-Federal entity must use its own documented procurement procedures which reflect applicable state, local, and tribal laws and regulations, provided that the procurement conform to applicable federal law and the standards identified. Procurement by micro-purchase is the acquisition of supplies or services, the aggregate dollar amount of which does not exceed the micro-purchase threshold. During 2022, the Tribe?s procurement policy has a micro purchase threshold of $2,000. The Tribe?s policy states ?Duckwater will conduct procurement in a manner that prohibits the use of statutorily or administratively imposed data, local, or tribal geographical preferences in the evaluation of bids or proposals?. Recipients of federal awards must not contract with or make sub-awards to parties that are suspended or debarred. Contractors receiving individual awards for $25,000 or more and all sub-recipients must certify that the organization and its principals are not suspended or debarred. This verification may be accomplished by checking the Systems for Award Management (SAM) website, collecting a certification from the entity, or adding a clause or condition to the covered transaction with that entity. Condition: The Tribe does not have a policy in place to ensure vendors are not suspended or disbarred. In addition, we found the following: ? Coronavirus State and Local Fiscal Recovery Funds: We reviewed five vendors that were paid in excess of $2,000; however, we were not provided with bids or quotes for these purchases. In addition, for two vendors that were paid over $25,000, there was no documentation verifying that the vendors were checked for suspension and debarment. ? Indian Health Services Self-Governance: We reviewed six vendors that were paid in excess of $2,000; however, we were not provided with bids or quotes. In addition, for one vendor that was paid over $25,000, there was no documentation verifying that the vendor was checked for suspension and debarment. Context: For Coronavirus State and Local Fiscal Recovery Funds, nine of forty-four expenditures tested. For Indian Health Services Self-Governance, ten of forty-four expenditures tested. Some of the expenditures mentioned above were paid to the same vendor. Questioned Costs: None. Cause: The Tribe?s procurement policies and procedures were not enforced during the year. In addition, the Tribe did not have suspension and debarment policies and procedures established during the year. Effect: The Tribe is not always ensuring that all goods and services are obtained at a fair price and the Tribe is not in compliance with their procurement policy. Lastly, the Tribe is not ensuring that vendors doing business under federal awards are properly reviewed for suspension and debarment. Auditors? Recommendation: Enforce procurement policies and procedures at all times. In addition, Tribe should consider increasing the procurement threshold to match the micro-purchase threshold of $10,000 set by the Federal Acquisition Regulation (FAR) as well as adding a number of bids or quotes to be obtained. Lastly, the Tribe should add a suspension and debarment policy to their policies and procedures. This verification may be accomplished by checking the Systems for Award Management (SAM) website, collecting a certification from the entity, or adding a clause or condition to the covered transaction with that entity. Management Response: The Tribe will amend its Financial Management System to increase the micro-purchase procurement threshold from $2,000 to $10,000, set by the Federal Acquisition Regulation. When processing purchase orders, the purchasing clerk will verify that a minimum of three bids or quotes have been submitted with the purchase order request, for those items costing $10,000 or more. This requirement will help ensure that goods and services are being obtained at a fair price. The Tribe will also amend its Financial Management System to include a policy on suspension and debarment. For purchases exceeding $25,000, the Finance Manager will perform a search of the vendor on the Systems for Award Management (SAM) website, to verify that the vendor receiving payment has not been suspended or debarred.