Finding 44352 — 2022-002

AI Summary

Core Issue: SCRRA failed to verify that entities were not suspended or debarred before entering contracts, violating internal control requirements.
Impacted Requirements: Non-compliance with 2 CFR Sections 200.303(a) and 200.214, which mandate effective internal controls and verification of eligibility for federal assistance.
Recommended Follow-Up: Ensure SCRRA strictly follows procurement procedures for suspension and debarment verification prior to contract execution.

Finding Text

Program Name: Federal Transit Cluster CFDA No.: 20.500/20.507/20.525 Federal Grantor: U.S. Department of Transportation Award No. and Year: Various Program Name: Consolidated Rail Infrastructure and Safety Improvements Program CFDA No.: 20.325 Federal Grantor: U.S. Department of Transportation Award No. and Year: Various Compliance Requirement: Procurement and Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control Criteria: 2 CFR Section 200.303(a), Internal Controls, states that the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Title 2 CFR Section 200.214 of the Uniform Guidance states that SCRRA must comply with 2 CFR part 180, which implements Executive Orders 12549 and 12689. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. The 2022 Compliance Supplement states: Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a passthrough entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. When a non-Federal entity enters into a covered transaction with an entity at a lower tier, 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. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at https://www.sam.gov/SAM/, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180.300). Condition: During our testing of SCRRA?s provisions for procurement requirements for the FTA program, we noted six (6) of the fourteen (14) contracts selected for testing where there was no evidence that SCRRA verified the entity was not suspended or debarred or otherwise excluded from participating in the transaction, prior to entering the contract, in accordance with SCRRA?s policy. During our testing of SCRRA?s provisions for procurement requirements for the CRISI program, we noted four (4) of the four (4) contracts selected for testing where there was no evidence that SCRRA verified the entity was not suspended or debarred or otherwise excluded from participating in the transaction, prior to entering the contract, in accordance with SCRRA?s policy. Cause: SCRRA did not adhere to established policies and procedures to verify the information described in the condition prior to entering the transactions. Effect: SCRRA?s control was not consistently applied, which required verification of suspension or debarment prior to entering the contract. However, the verification of suspension and debarment was subsequently performed and documented by SCRRA. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: A nonstatistical sample of fourteen (14) out of seventy-two (72) procurement contracts were selected for procurement and suspension and debarment testing for the FTA program. A nonstatistical sample of four (4) out of (4) procurement contracts were selected for procurement and suspension and debarment testing for the CRISI program. Repeat Finding from Prior Year(s): Yes Southern California Regional Rail Authority Schedule of Findings and Questioned Costs Year Ended June 30, 2022 Recommendation: We recommend SCRRA adhere to their procurement procedures requiring the suspension or debarment verification is performed prior to entering into a covered transaction. Views of Responsible Officials: Management Agrees. See separate corrective action plan.

Other Findings in this Audit

44304 2022-002

Significant Deficiency Repeat

44305 2022-003

Material Weakness

44306 2022-002

Significant Deficiency Repeat

44307 2022-003

Material Weakness

44308 2022-002

Significant Deficiency Repeat

44309 2022-003

Material Weakness

44310 2022-002

Significant Deficiency Repeat

44311 2022-003

Material Weakness

44312 2022-002

Significant Deficiency Repeat

44313 2022-003

Material Weakness

44314 2022-002

Significant Deficiency Repeat

44315 2022-003

Material Weakness

44316 2022-002

Significant Deficiency Repeat

44317 2022-003

Material Weakness

44318 2022-002

Significant Deficiency Repeat

44319 2022-003

Material Weakness

44320 2022-002

Significant Deficiency Repeat

44321 2022-003

Material Weakness

44322 2022-002

Significant Deficiency Repeat

44323 2022-003

Material Weakness

44324 2022-002

Significant Deficiency Repeat

44325 2022-003

Material Weakness

44326 2022-002

Significant Deficiency Repeat

44327 2022-003

Material Weakness

44328 2022-002

Significant Deficiency Repeat

44329 2022-003

Material Weakness

44330 2022-002

Significant Deficiency Repeat

44331 2022-003

Material Weakness

44332 2022-002

Significant Deficiency Repeat

44333 2022-003

Material Weakness

44334 2022-002

Significant Deficiency Repeat

44335 2022-003

Material Weakness

44336 2022-002

Significant Deficiency Repeat

44337 2022-003

Material Weakness

44338 2022-002

Significant Deficiency Repeat

44339 2022-003

Material Weakness

44340 2022-002

Significant Deficiency Repeat

44341 2022-003

Material Weakness

44342 2022-002

Significant Deficiency Repeat

44343 2022-003

Material Weakness

44344 2022-002

Significant Deficiency Repeat

44345 2022-003

Material Weakness

44346 2022-002

Significant Deficiency Repeat

44347 2022-003

Material Weakness

44348 2022-002

Significant Deficiency Repeat

44349 2022-003

Material Weakness

44350 2022-002

Significant Deficiency Repeat

44351 2022-003

Material Weakness

44353 2022-003

Material Weakness

44354 2022-002

Significant Deficiency Repeat

44360 2022-003

Material Weakness

44361 2022-002

Significant Deficiency Repeat

44362 2022-003

Material Weakness

44363 2022-002

Significant Deficiency Repeat

44364 2022-003

Material Weakness

44365 2022-002

Significant Deficiency

44366 2022-002

Significant Deficiency

44367 2022-002

Significant Deficiency

620746 2022-002

Significant Deficiency Repeat

620747 2022-003

Material Weakness

620748 2022-002

Significant Deficiency Repeat

620749 2022-003

Material Weakness

620750 2022-002

Significant Deficiency Repeat

620751 2022-003

Material Weakness

620752 2022-002

Significant Deficiency Repeat

620753 2022-003

Material Weakness

620754 2022-002

Significant Deficiency Repeat

620755 2022-003

Material Weakness

620756 2022-002

Significant Deficiency Repeat

620757 2022-003

Material Weakness

620758 2022-002

Significant Deficiency Repeat

620759 2022-003

Material Weakness

620760 2022-002

Significant Deficiency Repeat

620761 2022-003

Material Weakness

620762 2022-002

Significant Deficiency Repeat

620763 2022-003

Material Weakness

620764 2022-002

Significant Deficiency Repeat

620765 2022-003

Material Weakness

620766 2022-002

Significant Deficiency Repeat

620767 2022-003

Material Weakness

620768 2022-002

Significant Deficiency Repeat

620769 2022-003

Material Weakness

620770 2022-002

Significant Deficiency Repeat

620771 2022-003

Material Weakness

620772 2022-002

Significant Deficiency Repeat

620773 2022-003

Material Weakness

620774 2022-002

Significant Deficiency Repeat

620775 2022-003

Material Weakness

620776 2022-002

Significant Deficiency Repeat

620777 2022-003

Material Weakness

620778 2022-002

Significant Deficiency Repeat

620779 2022-003

Material Weakness

620780 2022-002

Significant Deficiency Repeat

620781 2022-003

Material Weakness

620782 2022-002

Significant Deficiency Repeat

620783 2022-003

Material Weakness

620784 2022-002

Significant Deficiency Repeat

620785 2022-003

Material Weakness

620786 2022-002

Significant Deficiency Repeat

620787 2022-003

Material Weakness

620788 2022-002

Significant Deficiency Repeat

620789 2022-003

Material Weakness

620790 2022-002

Significant Deficiency Repeat

620791 2022-003

Material Weakness

620792 2022-002

Significant Deficiency Repeat

620793 2022-003

Material Weakness

620794 2022-002

Significant Deficiency Repeat

620795 2022-003

Material Weakness

620796 2022-002

Significant Deficiency Repeat

620802 2022-003

Material Weakness

620803 2022-002

Significant Deficiency Repeat

620804 2022-003

Material Weakness

620805 2022-002

Significant Deficiency Repeat

620806 2022-003

Material Weakness

620807 2022-002

Significant Deficiency

620808 2022-002

Significant Deficiency

620809 2022-002

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
20.507	Covid-19 Cares Act Federal Transit_formula Grants	$21.84M
20.525	State of Good Repair Grants Program	$528,002
20.321	Railroad Safety Technology Grants	$525,000
20.500	Federal Transit_capital Investment Grants	$44,946
20.301	Railroad Safety	$13,935
20.325	Consolidated Rail Infrastructure and Safety Improvements	$5,211
20.507	Federal Transit_formula Grants	$-325

Finding 44352 (2022-002)

AI Summary

Finding Text

Categories

Other Findings in this Audit

Programs in Audit