Finding Text
Federal Agency: Department of Justice
Federal Assistance Listing Numbers: 16.756
Program: Court Appointed Special Advocates
Award/Pass-Through Entity Identifying Numbers: 2018-CH-BX-K001, 15PJDP-21-GK-02762-CASA
Criteria: In accordance with §200.318, the non-federal entity must use its own documented procurement procedures which reflect applicable laws and regulations, provided that the procurements conform to applicable federal law and the standards identified. Additionally, the non federal entity must maintain records sufficient to detail the history of the procurement. These records are required to 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. All procurement transactions must be conducted in in accordance with §200.317 through §200.327.
Condition: During our testing of Court Appointed Special Advocates of eight procurement transactions that exceeded the micro-purchase threshold (National CASA/GAL threshold is $10,000) totaling $374,153 in expenditures charged to the program in 2022, and one procurement transaction that exceeded the simplified acquisition threshold (National CASA/GAL threshold is $250,000) for $2,581,125, we noted that National CASA/GAL did not maintain documentation to support the vendor selection processes and compliance with its policies and procedures for one out of nine transactions tested. For two others, National CASA/GAL had previously contracted with the vendors and performed the required procurement analysis in a prior fiscal year, but did not document that the nature of the addendums did not warrant a new procurement process. National CASA/GAL provided its rationale for each of the procurements as part of the audit sample and testing process. In addition, evidence of verification of the review of suspension and debarment before entering into a contract with the vendor was not maintained for one out of nine vendors selected.
Cause: National CASA/GAL personnel did not adhere to internal documented policies and procedures for ensuring complete documentation of the history of the procurement for contracts procured with the intention to utilize federal funding.
Effect or Potential Effect: Failure to maintain proper documentation for vendor selection process and failure to obtain vendor solicitation for procurements is noncompliance with federal regulations and National CASA/GAL’s policy.
Known Questioned Costs: $79,204
Likely Questioned Costs: $301,657
Context: This is a condition identified per review of National CASA/GAL’s compliance with specified requirements using a non-statistically valid sample. The total population of procurements exceeding the micro-purchase threshold was 26 procurements and equal to $1,153,011 in expenditures incurred in 2022, from which a sample of eight procurements was tested. The total population of procurements exceeding the simplified acquisition purchase threshold was two procurements and equal to $2,853,125 in expenditures incurred in 2022, from which a sample of one procurement was tested. The total expenditures during 2022 subject to procurement testing were $4,006,136 for Court Appointed Special Advocates.
Identification as a Repeat Finding: Not a repeat finding.
Recommendation: We recommend management and those charged with governance continue to review and improve its internal controls over procurement to ensure compliance with National CASA/GAL’s procurement policy and federal regulations in §200.318.
Views of Responsible Officials: Management concurs with the finding that personnel did not consistently adhere to internal documented procurement policies and procedures. Management has updated the policies and procedures over procurement to ensure compliance with federal regulations.