FAC Explorer

Finding 498456 (2023-005)

Significant Deficiency
Requirement
I
Questioned Costs
$1
Year
2023
Accepted
2024-09-26
Audit: 321162
Organization: City of Baton Rouge - Parish of East Baton Rouge (LA)
Auditor: Eisneramper

AI Summary

  • Core Issue: The City-Parish spent $729,080 on Ford Explorers without following required sealed bid procedures.
  • Impacted Requirements: Compliance with procurement standards outlined in 2 CFR sections 200.318 to 200.326 was not met.
  • Recommended Follow-Up: Strengthen procurement controls and implement routine training to ensure all purchases comply with competitive bidding requirements.

Finding Text

Procurement, Suspension and Debarment Questioned Costs: $729,080 Department of the Treasury 21.027 Coronavirus State and Local Fiscal Recovery Program (SLFR) Grant No(s): N/A Criteria: Grant recipients must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. Purchases of equipment greater than $250,000 should be made using the sealed bid method. Condition: The City-Parish purchased Ford Explorers in the amount $729,080 without undergoing the bid process. Universe/ Population: Fourteen contracts totaling $24,633,089 were subjected to compliance testing. One contract for $729,080 was found to be noncompliant. Effect: Fourteen contracts totaling $24,633,089 were subjected to compliance testing. One contract for $729,080 was found to be noncompliant. Cause: The City-Parish has experienced turnover in the purchasing division in recent years. Recommendation: The City-Parish should strengthen controls to ensure all purchases undergo the appropriate competitive procurement processes. View of Responsible Official: Purchasing Department has implemented the following corrective actions to avoid this in the future: requisition checklist outlining guideline for compliance; creating standard operating procedure for purchase of vehicles for City-Parish Agencies; conduct routine departmental training; ensure that supervisor approvals prior to bid release.

Corrective Action Plan

Management’s response and corrective action is as follows: Purchasing Department has implemented the following corrective actions to avoid this in the future: requisition checklist outlining guideline for compliance; creating standard operating procedure for purchase of vehicles for City-Parish Agencies; conduct routine departmental training; ensure that supervisor approvals prior to bid release. Expected Implementation Date: June 2024 Contact person: Paul Narcisse, Purchasing Director, Office of Purchasing

Categories

Questioned Costs Procurement, Suspension & Debarment

Other Findings in this Audit

  • 498454 2023-003
    - Repeat
  • 498455 2023-004
    Significant Deficiency
  • 498457 2023-006
    Significant Deficiency
  • 498458 2023-007
    Material Weakness Repeat
  • 498459 2023-008
    Material Weakness Repeat
  • 498460 2023-009
    Significant Deficiency
  • 498461 2023-009
    Significant Deficiency
  • 498462 2023-009
    Significant Deficiency
  • 498463 2023-010
    Significant Deficiency
  • 498464 2023-010
    Significant Deficiency
  • 498465 2023-010
    Significant Deficiency
  • 1074896 2023-003
    - Repeat
  • 1074897 2023-004
    Significant Deficiency
  • 1074898 2023-005
    Significant Deficiency
  • 1074899 2023-006
    Significant Deficiency
  • 1074900 2023-007
    Material Weakness Repeat
  • 1074901 2023-008
    Material Weakness Repeat
  • 1074902 2023-009
    Significant Deficiency
  • 1074903 2023-009
    Significant Deficiency
  • 1074904 2023-009
    Significant Deficiency
  • 1074905 2023-010
    Significant Deficiency
  • 1074906 2023-010
    Significant Deficiency
  • 1074907 2023-010
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $42.80M
21.023 Emergency Rental Assistance Program $9.04M
20.205 Highway Planning and Construction $7.79M
20.106 Airport Improvement Program, Covid-19 Airports Programs, and Infrastructure Investment and Jobs Act Programs $7.43M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $5.22M
97.039 Hazard Mitigation Grant $5.18M
97.029 Flood Mitigation Assistance $5.12M
93.914 Hiv Emergency Relief Project Grants $5.04M
93.686 Ending the Hiv Epidemic: A Plan for America � Ryan White Hiv/aids Program Parts A and B $1.97M
93.137 Community Programs to Improve Minority Health Grant Program $1.92M
17.259 Wioa Youth Activities $1.70M
93.569 Community Services Block Grant $1.38M
17.278 Wioa Dislocated Worker Formula Grants $1.19M
20.930 Payments for Small Community Air Service Development $1.00M
14.231 Emergency Solutions Grant Program $972,687
17.258 Wioa Adult Program $904,123
93.600 Head Start $674,944
10.558 Child and Adult Care Food Program $661,662
20.600 State and Community Highway Safety $639,142
14.218 Community Development Block Grants/entitlement Grants $573,380
97.067 Homeland Security Grant Program $350,265
14.239 Home Investment Partnerships Program $137,394
95.001 High Intensity Drug Trafficking Areas Program $120,643
93.658 Foster Care Title IV-E $103,567
20.607 Alcohol Open Container Requirements $86,780
20.616 National Priority Safety Programs $82,655
16.609 Project Safe Neighborhoods $75,354
93.568 Low-Income Home Energy Assistance $73,314
93.493 Congressional Directives $63,633
97.042 Emergency Management Performance Grants $61,405
97.024 Emergency Food and Shelter National Board Program $57,923
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $26,525
16.738 Edward Byrne Memorial Justice Assistance Grant Program $19,352
14.905 Lead Hazard Reduction Demonstration Grant Program $18,255
15.904 Historic Preservation Fund Grants-in-Aid $13,000
16.034 Coronavirus Emergency Supplemental Funding Program $7,205
21.009 Volunteer Income Tax Assistance (vita) Matching Grant Program $6,688
93.069 Public Health Emergency Preparedness $5,397
14.241 Housing Opportunities for Persons with Aids $1,995
66.818 Brownfields Multipurpose, Assessment, Revolving Loan Fund, and Cleanup Cooperative Agreements $1,947
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $334
17.277 Wioa National Dislocated Worker Grants / Wia National Emergency Grants $-90