Finding Text
2022-002 Procurement Federal Agency: U.S. Department of Health and Human Services Federal Program Name: COVID-19 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Assistance Listing Number: 93.323 Pass-Through Agency: Wisconsin Department of Health Services Pass-Through Number: 155802 Federal Award Identification Number and Year: NU50CK000534 and 2020 Award Period: October 1, 2020 ? October 31, 2022 Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirement: 2 CFR 200 requires that all procurement transactions for the acquisition of property or services required under a Federal award must be conducted in a manner providing full and open competition consistent with the standards of this section and ?200.320. The nonFederal 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. Further, the method of procurement, whether informal or formal, must follow the County's written procurement policy on approval thresholds and controls. Condition: The County did not follow their established controls related to ensuring procurement policies were followed. Questioned Costs: $231,169 Context: While performing compliance procedures, it was noted that the County did not follow their policy to ensure compliance with procurement requirements. Cause: The Human Services department at the County does not have established procedures to verify procurement policies are followed prior to entering into a procurement transaction with a vendor in which federal funds are going to be used. Effect: The County is not in compliance with procurement requirements. Contracts for construction, nonconstruction related procurements, and those over the simplified acquisition threshold may not be in compliance with the Uniform Guidance. Repeat Finding: No Recommendation: We recommend the County review and update procurement policies for the entire County to ensure it meets the minimum requirements of 2 CFR 200 for all federal grants and establish a procurement process in order to ensure this policy is followed. View of Responsible Officials: There is no disagreement with the finding.