FAC Explorer

Finding 46847 (2022-001)

-
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-06-28
Audit: 53710
Organization: Casco Bay Island Transit District (ME)
Auditor: Rhr Smith & Company

AI Summary

  • Core Issue: The District's procurement policy lacks required elements as per federal regulations (2 CFR 200.318-326).
  • Impacted Requirements: Non-compliance with federal procurement standards could lead to improper procurements.
  • Recommended Follow-up: Update the procurement policy to meet federal standards and establish internal controls to ensure ongoing compliance.

Finding Text

2022-001 - Procurement Federal Program Information: Department of Transportation ALN ? 20.507 ? Federal Transit Cluster Criteria: The following CFR(s) apply to this finding: 2 CFR section 200.318 through 200.326. Condition: During audit procedures, it was identified that the District?s procurement policy did not include some of the elements required by the above federal regulations. Cause: The District does not have the necessary language over the procurement policy in regard to federal regulations. Effect: Procurements might not conform to applicable Federal regulations. Identification of Questioned Costs: Based upon procurement items sampled, no noncompliance matters were noted. Context: A review was conducted of the District?s procurement policy and the policy was not in compliance with federal regulations. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the District adopt a procurement policy that is in compliance with federal regulations and that the District implement internal control processes and procedures to ensure that procurement policies are always in compliance with federal regulations. Views of Responsible Officials: Client agrees with finding.

Corrective Action Plan

To: RHR Smith From: Casco Bay Islands Transit District Subj: Corrective Action Plan Date: June 1, 2023 We are aware of the Condition identified in Section Ill - Federal Awards, Other Matters regarding 2 CFR Section 200.318 through 200.327. During your audit procedures it was identified that the District's procurement policy did not include some of the elements required by the above federal regulations. In further conversations with you, as our independent auditors, it was also discussed that based upon procurement items sampled, no non-compliance matters were noted. We have amended our CBITD Procurement Policy as of June 1, 2023 to specifically include additional required elements.

Categories

Procurement, Suspension & Debarment Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
20.507 Federal Transit_formula Grants $2.21M
20.509 Formula Grants for Rural Areas and Tribal Transit Program $120,862