Finding 46789 (2022-001)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-03-30
Audit: 40993
Organization: Washington College (MD)

AI Summary

  • Core Issue: Lack of documentation for noncompetitive procurement decisions and vendor suspension/debarment status.
  • Impacted Requirements: Noncompliance with 2 CFR 200.320 and 2 CFR 200.213 regarding procurement methods and vendor eligibility.
  • Recommended Follow-Up: Establish clear policies to document procurement processes and ensure compliance with suspension and debarment checks before vendor transactions.

Finding Text

Criteria or specific requirement: Per 2 CFR section 200.320. Noncompetitive procurement can only be awarded if one or more of the following circumstances apply: (1) The acquisition of property or services, the aggregate dollar amount of which does not exceed the micro-purchase threshold (see paragraph (a)(1) of this section); (2) The item is available only from a single source; (3) The public exigency or emergency for the requirement will not permit a delay resulting from publicizing a competitive solicitation; (4) The Federal awarding agency or pass-through entity expressly authorizes a noncompetitive procurement in response to a written request from the non-Federal entity; or (5) After solicitation of a number of sources, competition is determined inadequate. Per 2 CFR 200.213 Suspension and Debarment restricts 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. CFR 180.300 states that an entity may determine suspension and debarment status by: (a) Checking SAM Exclusions; or (b) Collecting a certification from that person; or (c) Adding a clause or condition to the covered transaction with that person. Condition: Documentation was not maintained to support why vendors were selected using noncompetitive procurement. Furthermore, the documentation to support the vendor?s suspension debarment status was not provided. Questioned costs: None Context: For 5 of 7 procurement transactions greater than $10,000, no documentation was provided to justify noncompetitive procurement method used. 3 of the 7 vendors exceeded $25,000 in procurement and further were not reviewed to ensure the vendors were not suspended or disbarred. Cause: The College used vendors that have been historically used by the institution during non-pandemic periods of time to acquire needed supplies and materials for the suppression and monitoring of COVID where possible. Several purchases that were needed for these efforts were not available from the College?s normal vendors and those costs had to be acquired from new sources. Multiple sources were investigated, but with supply chain issues, the College was unable to always find multiple vendors that could meet the needs of the institution. With changes in staffing at the institution, the records related to the processes used and vendor?s investigated have not been retained. The vendor?s used have all subsequently been checked for suspension debarment status and none where found to have any issues. Effect: Vendors may be selected in a manner that is not consistent with Federal guidelines and Federal funds may be paid to parties that are ineligible to participate in a Federal program. Repeat Finding: No Recommendation: We recommend the College establish policies and procedures to properly identify procured transactions and maintain documentation to support performance of the procurement procedures. We also recommend the College evaluate its policies procedures to ensure that suspension and debarment requirements are being met prior to entering into transactions with vendors. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

U.S. Department of Education 2022-001 Education Stabilization Fund- Procurement, Suspension & Debarment Assistance Listing No. 84.425F Recommendation: We recommend the College establish policies and procedures to properly identify procured transactions and maintain documentation to support performance of the procurement procedures. We also recommend the College evaluate its policies procedures to ensure that suspension and debarment requirements are being met prior to entering into transactions with vendors. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Training related to federal spending guidelines will be given to any staff or faculty who are responsible for spending new federal money. Name(s) of the contact person(s) responsible for corrective action: Teri Simmons Planned completion date for corrective action plan: April 2023

Categories

Procurement, Suspension & Debarment Subrecipient Monitoring

Other Findings in this Audit

  • 46787 2022-002
    Significant Deficiency Repeat
  • 46788 2022-002
    Significant Deficiency Repeat
  • 46790 2022-003
    Significant Deficiency
  • 623229 2022-002
    Significant Deficiency Repeat
  • 623230 2022-002
    Significant Deficiency Repeat
  • 623231 2022-001
    Significant Deficiency
  • 623232 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $5.36M
84.425 Education Stabilization Fund $1.35M
84.063 Federal Pell Grant Program $1.08M
45.130 Promotion of the Humanities_challenge Grants $625,000
20.600 State and Community Highway Safety $232,530
84.007 Federal Supplemental Educational Opportunity Grants $173,822
84.033 Federal Work-Study Program $167,814
16.575 Crime Victim Assistance $150,191
20.616 National Priority Safety Programs $51,935
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $48,752
12.300 Basic and Applied Scientific Research $26,336
11.017 Ocean Acidification Program (oap) $3,876
16.588 Violence Against Women Formula Grants $1,206