Finding 41506 (2022-001)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-09-28

AI Summary

  • Core Issue: Klamath Watershed Partnership's procurement policy did not meet the requirements of 2 CFR 200.318, leading to potential compliance risks.
  • Impacted Requirements: Non-compliance with federal procurement procedures could result in higher costs and favoritism in vendor selection.
  • Recommended Follow-Up: Update and implement the procurement policy to align with 2 CFR 200.318 immediately after approval.

Finding Text

Finding 2022-01: 15.631 Partners for Fish and Wildlife Criteria: 2 CFR 200.318 requires entities to comply with procurement procedures within the section. Condition and Context: For the year ended December 31, 2022, Klamath Watershed Partnership?s procurement policy didn?t align with the requirements described in 2 CFR 200.318 through 2 CFR 200.327. Cause: Klamath Watershed Partnership incidentally thought the procurements for the federal funds were being performed by the oversight agency awarding the funds and their own internal procurement procedures would apply to the other purchase of goods and services. Effect or Potential Effect: The procurement procedures were not performed by Klamath Watershed Partnership. This could have resulted in paying more than ideal or resulted in contracts provided to favored vendors without an opportunity for proposals of other vendors. Questioned Costs: None Context: The procurement policy implemented did not align with the requirement of 2 CFR 200.318. This created a systemic failure to comply with 2 CFR 200.318 for all purchases that would be subject to the procurement policy. Recommendation: Klamath Watershed Partnership should update their procurement policy to align with 2 CFR 200.318 through 2 CFR 200.327. This policy should be implemented immediately after the update is approved. Views of responsible officials and planned corrective actions: Management agrees with the finding and have updated their procurement policy to align with the requirements of 2 CFR 200.318.

Corrective Action Plan

Management has updated their procurement policy to align with the requirements of 2 CFR 200.318

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 41507 2022-002
    Significant Deficiency
  • 617948 2022-001
    Significant Deficiency
  • 617949 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
15.631 Partners for Fish and Wildlife $885,465
15.608 Fish and Wildlife Management Assistance $84,012
10.665 Schools and Roads - Grants to States $48,941