Finding 523339 (2023-002)

U.S. Department of Treasury passed through State of Utah Department of Workforce Services and through Colorado Department of Human Services 2023-002 Procurement and Suspension and Debarment Program Name of Federal Program (Assistance Listing Number): Coronavirus State and Local Fiscal Recovery Funds (21.027) Criteria - Recipients of federal awards must follow the procurement standards set out at 2 CFR section 200.317 through 200.326. They must use their own documented procurement procedures, which reflect applicable State laws and regulations, provided that the procedures conform to applicable Federal law and the procurement requirements identified in 2 CFR part 200. Recipients “must maintain records sufficient to detail the history of procurement. These records will 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” 2 CFR section 200.318(i). Context and Condition - We selected five contracts to test for compliance with procurement standards. Records for one contract lacked documentation sufficient to detail procurement history. Cause - The Academy did not follow its procurement policy for publicly soliciting bids. Effect - A potential failure to conduct procurement transactions in a manner providing full and open competition exists. Questioned Costs - No costs were questioned. Recommendation - We recommend the Academy ensure it 1) maintains documentation of the history of procurement and 2) monitors compliance with documentation requirements. Views of responsible officials - The Academy will review its procurement policies and internal controls and ensure timely action is taken when noncompliance is identified.