Finding Text
Department of Treasury
Federal Financial Assistance Listing/ALN 21.027
COVID‐19 Coronavirus State and Local Fiscal Recovery Funds
Procurement, Suspension, and Debarment
Material Noncompliance and Material Weakness in Internal Control over Compliance
Criteria ‐ Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires that a non‐Federal entity must follow procurement procedures which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal law and standards.
Condition ‐ Procurement policies under Uniform Guidance were not followed when obtaining bids for two contracts.
Cause ‐ Due to grant timing restraints, the Organization did not follow proper procurement procedures for obtaining bids for two contracts under Uniform Guidance.
Effect ‐ The Organization did not have proper procedures to ensure procurement compliance requirements under Uniform Guidance were followed when obtaining bids for contracts.
Questioned Costs ‐ $424,081.
Context/Sampling ‐ A nonstatistical sample of 3 contracts were selected for testing. 2 out of the 3 contracts did not follow procurement compliance requirements. These transactions totaled $424,081 of $429,181 costs tested.
Repeat Finding from Prior Year(s) ‐ No.
Recommendation ‐ We recommend the Organization follow applicable procurement policies under the requirements identified in Uniform Guidance.
Views of Responsible Officials ‐ There is no disagreement with the finding.