Finding Text
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
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, including procurement, suspension, and debarment requirements.
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.
Cause: The Organization did not have internal controls in place to review the procurement policy and ensure it complies with federal requirements.
Effect: The risk is increased that a procurement noncompliance could occur.
Questioned Costs: None reported. Context/Sampling: Nonstatistical sampling was used. Sample size was three of seven procurement transactions above the micro-purchase threshold and included contracts totaling $5,707,820 of federal awards.
Repeat Finding from Prior Year(s): Yes, Finding 2022-002
Recommendation: We recommend the Organization implement internal controls to review the procurement policy periodically to ensure it is consistent with federal requirements.
Views of Responsible Officials: Management agrees with this finding.