Finding Text
2023-002 U.S. Department of Transportation,
National Infrastructure Investments: Better Utilizing Investments to Leverage Development
(BUILD) Grant
Assistance Listing Number 20.933
Procurement
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 the provides assurance that the entity is managing the federal
award in compliance with federal statutes, regulations and conditions of the federal award.
Non-federal entities other than states, including those operating federal programs as
subrecipients of states, must follow the procurement standards set out at 2 CFR sections
200.318 through 200.326. They must use their own documented procurement procedures,
which reflect applicable state and local laws and regulations, provided that the procurements
conform to applicable federal statutes and the procurement requirements identified in 2 CFR
Part 200.
Effective May 14, 2022, the non-Federal entity must ensure that all applicable programs comply
with section 70914 of the Build America, Buy America (BABA) Act, including through
incorporation of a Buy America preference in the terms and conditions of each award with an
infrastructure project.
Condition: The Port Authority’s formally documented policy pre-dates Uniform Guidance and does not
include many of the necessary procurement provisions.
Cause: The Port Authority does not have a policy in place under the most current regulations for the
federal programs the Port Authority administrates.
Effect: The Port Authority does not have a policy in place and is at risk for not being in accordance with
federal regulations for the federal programs the Port Authority administrates.
However, note that the Port Authority does use an engineering firm that appears to be following
a policy that is up-to-date with federal regulations for this federal program.
Questioned costs:
None reported.Context: Procurement requirements were applicable to 1 vendor for this program in FY2023.
The vendor appears to have bidding documents in accordance with federal regulations,
including the BABA Act.
Repeat Finding
From Prior Year: No
Recommendation: The policy should be updated to include all federal requirements for
procurement and updated on a regular basis as those regulations change.
Views of
Responsible Officials: We agree with the finding