Finding Text
Procurement Process
COVID-19 – Epidemiology and Laboratory Capacity for Infectious Diseases (ELC),
Assistance Listing #93.323; Passed through the Oklahoma State Department of
Education (Fund 723)
Compliance Requirement: Procurement, Suspension, and Debarment
Material Weakness in Internal Control over Compliance; Material Noncompliance
Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective
internal control over the federal award the provides assurance that the entity is
managing the federal award in compliance with federal statutes, regulations and
conditions of the federal award.
Non-federal entities other than states, including those operating federal programs as
subrecipients of states, must follow the procurement standards set out at 2 CFR sections
200.318 through 200.326. They must use their own documented procurement
procedures, which reflect applicable state and local laws and regulations, provided that
the procurements conform to applicable federal statutes and the procurement
requirements identified in 2 CFR Part 200.
Effective May 14, 2022, the non-Federal entity must ensure that all applicable programs
comply with section 70914 of the Build America, Buy America (BABA) Act, including
through incorporation of a Buy America preference in the terms and conditions of each
award with an infrastructure project.
Condition: A vendor that was funded by the ELC program had not gone through the procurement
process as required by applicable federal statutes and the procurement requirements
identified in 2 CFR Part 200. Cause: The District has previously funded the vendor using state and local funds rather than
federal funds for the past several years. The vendor’s service was identified that the use
of the funds was an allowable activity and cost, but the vendor had not gone through the
required procurement process for federally funded programs.
Effect: The District is out of compliance with federal requirements regarding procurement and
could be contracting with vendors that are not the most practical for the District.
Context/Sampling: Both of the two vendors that met this scope in this program was tested so no sampling
was necessary.
Repeat Finding
From Prior Year: No
Questioned costs: Funds spent with this vendor in this program were $486,260.
Recommendation: Control procedures should be implemented to ensure that all vendors that are paid with
federal funds following the required procurement regulations and ensure federal
updates are regularly made to ensure continued compliance with procurement
requirements.
Views of
Responsible
Officials: The District understands the importance of complying with federal procurement
requirements and will ensure all staff involved with federal funds are informed of the
procurement rules with the addition of the federal compliance procedures to our Fiscal
Management Policy.