Finding 499290 (2023-001)

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Requirement
I
Questioned Costs
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Year
2023
Accepted
2024-09-29

AI Summary

  • Core Issue: The Corporation's procurement standards do not meet the requirements of 2 CFR § 200.318 through § 200.326.
  • Impacted Requirements: Non-compliance with federal procurement standards affects eligibility for funding and may lead to penalties.
  • Recommended Follow-up: Revise procurement procedures to align with 2 CFR standards and ensure compliance moving forward.

Finding Text

Criteria Non-federal entities other than states are required to follow the procurement standards set out at 2 CFR § 200.318 through § 200.326. They must use their own documented procurement procedures, which conform to applicable federal statutes and the procurement requirements identified in 2 CFR 200. Condition The Corporation’s written procurement standards do not comply with all of the procurement requirements set out at 2 CFR § 200.318 through § 200.326. Effect The Corporation is not in compliance with 2 CFR § 200.318 through § 200.326.

Corrective Action Plan

Corrective Action Plan: The Corporation has reviewed the current procurement standards and has identified gaps in compliance with the federal requirements. To address this, the Corporation will adopt a Procurement Policy Addendum, based on the attached draft, which includes compliance measures for: ● Small and minority business engagement ● Domestic preferences for procurements ● Recovered materials procurement ● Cost analysis for contracts over the Simplified Acquisition Threshold ● Bonding requirements for construction contracts ● Contract provisions regarding Equal Employment Opportunity, Davis-Bacon Act, and other federal mandates The attached model policy will be presented to the Board for formal adoption and will be incorporated into the Corporation's procurement procedures to ensure full compliance with 2 CFR § 200.318-326. Responsible Individual: Joseph Ninomiya - Chief Executive Officer Planned Date of Implementation: October 23, 2024

Categories

Procurement, Suspension & Debarment Matching / Level of Effort / Earmarking

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $868,091