FAC Explorer

Finding 48313 (2022-006)

Significant Deficiency Repeat Finding
Requirement
I
Questioned Costs
$1
Year
2022
Accepted
2023-01-31
Audit: 48606
Organization: City of Albuquerque (NM)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: The City did not follow federal procurement regulations or its own policies, leading to significant deficiencies and noncompliance in procurement practices.
  • Impacted Requirements: Formal procurement methods were required for transactions over $100,000, but the City failed to provide necessary documentation for several transactions, resulting in questioned costs of $160,181.
  • Recommended Follow-Up: The City should implement stronger controls to ensure compliance with federal procurement regulations and improve documentation retention to avoid repeat findings.

Finding Text

2022 ? 006 (Previously 2021-012) Procurement (Significant Deficiency and Noncompliance) Federal Agency: U.S. Department of Treasury, U.S. Department of Transportation Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027, Multiple Federal Award Identification Number and Year: Pub. L. No. 117-2-2021, Various Award Period: 5/10/2021 - 12/31/2026 Various Type of Finding: ? Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: According to ? 200.320 Methods of procurement to be followed of 2 CFR Part 200, when the value of the procurement for property or services under a Federal financial assistance award exceeds the simplified acquisition threshold, or a lower threshold established by a non-Federal entity, formal procurement methods are required. According to the City's Federal Procurement Guidance, formal procurement methods are required when goods and services are over $100,000. Condition: During our testing, it was noted that the City did not follow federal procurement regulation nor its federal procurement policy. Questioned costs: $160,181 Context: During our testing, we noted the following exceptions, which are detailed by ALN Number. ALN 21.027 ? For 1 of 4 procurement transactions totaling approximately $160.2K, the City utilized a RFB with a closing date of 09/05/2016. ALN Multiple ? For 3 of 7 procurement transactions, the executed contract/agreement was not provided to us. ? For 2 of 7 procurement transactions, the RFP and evaluation sheets were not provided to us. ? For 1 of 7 procurement transactions, only the Cost Price Analysis, ICE, and Purchase Order Release were provided to us. No other supporting documentation. ? For 1 of 7 procurement transactions, the SPA provided to us was not current. Management?s Progress for Repeat Findings: The City plans to review the controls in place to ensure that our federal procurement guidelines are clear on City process and the need for retention of proper supporting documentation. In addition, we will also plan to have the SEFA completed well before the deadline to allow sufficient management review and major programs can be identified earlier in the audit process. The additional time will allow City departments to provide requested audit documentation within the Auditor?s deadlines. 2022 ? 006 (Previously 2021-012) Procurement (Significant Deficiency and Noncompliance) (Continued) Cause: The City failed to follow federal procurement regulation nor its federal procurement policy. Repeat Finding: 2021-012 Effect: The auditor noted instances of noncompliance. Noncompliance results in procurement transactions for the acquisition of property or services required under a federal award not conducted in a manner providing full and open competition. Recommendation: We recommend the City design controls to ensure compliance with federal procurement regulation and its federal procurement policy. Management Response: The City respectfully disagrees with the finding. The two exceptions noted above are, on the contrary, examples of good fiscal management by the City. The statewide price agreement and the cooperative education services contract were both competitive. The uniform grant guidance in to ? 200.318(e) below encourages state and local intergovernmental agreements. To foster greater economy and efficiency, and in accordance with efforts to promote cost-effective use of shared services across the Federal Government, the non-Federal entity is encouraged to enter into state and local intergovernmental agreements or inter-entity agreements where appropriate for procurement or use of common or shared goods and services. Competition requirements will be met with documented procurement actions using strategic sourcing, shared services, and other similar procurement arrangements. In addition, the City did compete the temporary employment services. The request for bids awarded contracts in October 2016. Three (3) years, three (3) months into the five (5) year term of the contract, the first COVID case was reported in the United States and the President declared a public health emergency on January 31. New Mexico and the City of Albuquerque soon followed with their declarations. The City made the decision to extend the existing contract with the existing rates. There is nothing in City policy that prevents extension of contracts for a specific length of time. Extending the contract most likely was a cost savings to the City because the rates would most likely would have increased. Auditor?s Response: We were not provided supporting documentation, as identified in management?s response, during our testwork over procurement to apply the necessary procedures to resolve this exception. Timeline and Responsible Position: June 2023 ? Chief Procurement Officer

Categories

Questioned Costs Procurement, Suspension & Debarment

Other Findings in this Audit

  • 43122 2022-009
    Significant Deficiency
  • 43123 2022-009
    Significant Deficiency
  • 43124 2022-005
    Significant Deficiency
  • 43125 2022-009
    Significant Deficiency
  • 43126 2022-009
    Significant Deficiency
  • 43127 2022-009
    Significant Deficiency
  • 43128 2022-005
    Significant Deficiency
  • 43129 2022-009
    Significant Deficiency
  • 43130 2022-009
    Significant Deficiency
  • 43131 2022-009
    Significant Deficiency
  • 43132 2022-009
    Significant Deficiency
  • 43133 2022-009
    Significant Deficiency
  • 43134 2022-009
    Significant Deficiency
  • 43135 2022-009
    Significant Deficiency
  • 43136 2022-005
    Significant Deficiency
  • 48311 2022-004
    Significant Deficiency Repeat
  • 48312 2022-006
    Significant Deficiency Repeat
  • 48314 2022-006
    Significant Deficiency Repeat
  • 48315 2022-006
    Significant Deficiency Repeat
  • 48316 2022-008
    Significant Deficiency
  • 48317 2022-004
    Significant Deficiency Repeat
  • 48318 2022-005
    Significant Deficiency
  • 48319 2022-006
    Significant Deficiency Repeat
  • 48320 2022-007
    Significant Deficiency Repeat
  • 48321 2022-008
    Significant Deficiency
  • 619564 2022-009
    Significant Deficiency
  • 619565 2022-009
    Significant Deficiency
  • 619566 2022-005
    Significant Deficiency
  • 619567 2022-009
    Significant Deficiency
  • 619568 2022-009
    Significant Deficiency
  • 619569 2022-009
    Significant Deficiency
  • 619570 2022-005
    Significant Deficiency
  • 619571 2022-009
    Significant Deficiency
  • 619572 2022-009
    Significant Deficiency
  • 619573 2022-009
    Significant Deficiency
  • 619574 2022-009
    Significant Deficiency
  • 619575 2022-009
    Significant Deficiency
  • 619576 2022-009
    Significant Deficiency
  • 619577 2022-009
    Significant Deficiency
  • 619578 2022-005
    Significant Deficiency
  • 624753 2022-004
    Significant Deficiency Repeat
  • 624754 2022-006
    Significant Deficiency Repeat
  • 624755 2022-006
    Significant Deficiency Repeat
  • 624756 2022-006
    Significant Deficiency Repeat
  • 624757 2022-006
    Significant Deficiency Repeat
  • 624758 2022-008
    Significant Deficiency
  • 624759 2022-004
    Significant Deficiency Repeat
  • 624760 2022-005
    Significant Deficiency
  • 624761 2022-006
    Significant Deficiency Repeat
  • 624762 2022-007
    Significant Deficiency Repeat
  • 624763 2022-008
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $54.19M
21.023 Emergency Rental Assistance Program $19.60M
20.205 Highway Planning and Construction $4.46M
20.507 Federal Transit_formula Grants $2.99M
21.019 Coronavirus Relief Fund $2.39M
14.239 Home Investment Partnerships Program $2.34M
20.526 Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs $2.17M
11.307 Economic Adjustment Assistance $1.20M
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $1.10M
93.575 Child Care and Development Block Grant $1.02M
93.137 Community Programs to Improve Minority Health Grant Program $1.01M
97.U01 Tsa Law Enforcement Officer Reimbursement Program $682,666
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $673,670
20.106 Airport Improvement Program $637,381
10.559 Summer Food Service Program for Children $537,363
16.034 Coronavirus Emergency Supplemental Funding Program $509,513
97.067 Homeland Security Grant Program $437,844
97.083 Staffing for Adequate Fire and Emergency Response (safer) $419,435
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $396,423
93.997 Assisted Outpatient Treatment $305,689
93.052 National Family Caregiver Support, Title Iii, Part E $270,329
66.001 Air Pollution Control Program Support $250,473
97.072 National Explosives Detection Canine Team Program $211,723
93.053 Nutrition Services Incentive Program $181,544
97.U02 Tsa Law Enforcement Officer Reimbursement Program $153,300
16.738 Edward Byrne Memorial Justice Assistance Grant Program $130,768
94.011 Foster Grandparent Program $123,280
97.024 Emergency Food and Shelter National Board Program $110,839
66.034 Surveys, Studies, Research, Investigations, Demonstrations, and Special Purpose Activities Relating to the Clean Air Act $101,680
11.805 Mbda Business Center $99,476
97.042 Emergency Management Performance Grants $97,120
16.833 National Sexual Assault Kit Initiative $86,265
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $77,339
16.741 Dna Backlog Reduction Program $70,122
16.838 Comprehensive Opioid Abuse Site-Based Program $64,373
97.039 Hazard Mitigation Grant $60,673
94.016 Senior Companion Program $57,073
16.575 Crime Victim Assistance $56,207
20.215 Highway Training and Education $56,203
10.558 Child and Adult Care Food Program $55,648
93.600 Head Start $52,964
95.001 High Intensity Drug Trafficking Areas Program $52,821
94.002 Retired and Senior Volunteer Program $51,949
14.231 Emergency Solutions Grant Program $44,459
93.043 Special Programs for the Aging_title Iii, Part D_disease Prevention and Health Promotion Services $44,105
16.001 Law Enforcement Assistance_narcotics and Dangerous Drugs_laboratory Analysis $42,422
20.500 Federal Transit_capital Investment Grants $42,070
20.600 State and Community Highway Safety $38,965
14.267 Continuum of Care Program $30,132
16.734 Special Data Collections and Statistical Studies $26,018
16.710 Public Safety Partnership and Community Policing Grants $17,942
94.013 Volunteers in Service to America $15,000
16.742 Paul Coverdell Forensic Sciences Improvement Grant Program $10,015
81.106 Transport of Transuranic Wastes to the Waste Isolation Pilot Plant: States and Tribal Concerns, Proposed Solutions $7,000
93.074 Hospital Preparedness Program (hpp) and Public Health Emergency Preparedness (phep) Aligned Cooperative Agreements $6,706
66.717 Source Reduction Assistance $4,311
15.904 Historic Preservation Fund Grants-in-Aid $3,022
93.213 Research and Training in Complementary and Integrative Health $3,011
14.218 Community Development Block Grants/entitlement Grants $2,483
16.301 Law Enforcement Assistance_fbi Crime Laboratory Support $486
16.588 Violence Against Women Formula Grants $185