Finding 44279 (2022-004)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-02-27
Audit: 48653
Organization: La Salle University (PA)

AI Summary

  • Core Issue: The University has formal policies for procurement and suspension/debarment but failed to keep necessary documentation to prove compliance.
  • Impacted Requirements: Compliance with 2 CFR 200.218-200.327, which mandates detailed records of procurement processes and verification against suspension/debarment lists.
  • Recommended Follow-Up: Implement a system to ensure proper documentation is maintained to demonstrate adherence to procurement and suspension/debarment policies.

Finding Text

2022 ? 004 ? Procurement and Suspension and Debarment Policy Federal Agency: U.S. Department of Education Federal Program Name: Education Stabilization Fund ? Higher Education Emergency Relief Fund ? Institutional Portion Federal Assistance Listing Number: 84.425F Award Period: 7/1/21-6/30/22 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: When procuring property and services under a Federal award, entities must follow the procurement standards outlined in 2 CFR 200.218 through 200.327. Included in these requirements, a non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. When a non-federal entity enters into a covered transaction, the non-federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. Condition: The University has implemented formal, written policies and procedures to align with the requirements for procurement and suspension and debarment but did not maintain documentation that these policies were followed during the year. Questioned costs: Unknown. Context: We selected a sample of 5 transactions for procurement and suspension and debarment testing and noted the University did not maintain any documentation to support adherence to the University?s procurement and suspension and debarment policies. Cause: The University experienced turnover during the year and documentation could not be located. Effect: Supporting documentation could not be located to support required procurement and suspension and debarment standards were followed. Repeat Finding: No. Recommendation: We recommend the University ensure a process is put in place to maintain appropriate supporting documentation as evidence that the University?s procurement, suspension and debarment policies were followed. Views of responsible officials: Management agrees with the finding.

Corrective Action Plan

Student Financial Assistance Cluster ? CFDA No. 84.268 Recommendation: We recommend the University ensure a process is put in place to maintain appropriate supporting documentation as evidence that the University?s procurement, suspension and debarment policies were followed. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Procurement Department will offer training and reference materials to each Spend Coordinator and Grant personnel in Advancement and Accounting personnel regarding University Policy on Federal Awards. This will ensure that policy is understood and adhered to at the Department level. Communication of this training and the related policy will be sent to each Dean and the Provost. Deans will be requested to disseminate the policy and processes to Department Chairs and faculty. Internal procedures for reviewing new vendors will now include an assessment whether the purchase is grant related. The identification of a request for a purchase order for a federal grant will ensure that Procurement personnel can research, determine and document that the vendor has not been suspended or debarred. This will be documented and saved electronically. Additionally, this review process will enable Procurement personnel to advise the respective departments of adherence to the University Policy and federal regulations. In the instance where a purchase exceeds $10,000, Procurement personnel will be responsible for requesting and retaining the bidding documents from the departments. These documents will be filed electronically. Name(s) of the contact person(s) responsible for corrective action: Kyle Chapla, Director Financial Planning & Analysis and Derek Smith, Sr. Specialist, Procurement Planned completion date for corrective action plan: April 28, 2023

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 44275 2022-003
    Significant Deficiency Repeat
  • 44276 2022-002
    Significant Deficiency Repeat
  • 44277 2022-002
    Significant Deficiency Repeat
  • 44278 2022-001
    Significant Deficiency Repeat
  • 620717 2022-003
    Significant Deficiency Repeat
  • 620718 2022-002
    Significant Deficiency Repeat
  • 620719 2022-002
    Significant Deficiency Repeat
  • 620720 2022-001
    Significant Deficiency Repeat
  • 620721 2022-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $29.23M
84.063 Federal Pell Grant Program $5.09M
84.038 Federal Perkins Loan $2.95M
84.425 Education Stabilization Fund $530,653
84.007 Federal Supplemental Educational Opportunity Grants $506,341
84.033 Federal Work-Study Program $190,271
47.076 Education and Human Resources $55,639
93.124 Nurse Anesthetist Traineeships $9,405