Finding Text
Finding 2024-003 - Procurement - Significant Deficiency
Name of Federal Agency: Department of the Treasury
Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds
Assistance Listing Number: 21.027
Federal Award Identification Number and Year: HS 2024-105, HS 2024-209 and HS 2024-202. Program year is 2024.
Name of Pass-through Entity (if applicable): Department of Housing and Community Development
Criteria: In accordance with §200.318(a), General Procurement Standards, a non-federal entity must use its own documented procurement procedures which reflect applicable State, local, and tribal laws and regulations, provided that the procurements conform to applicable federal law and the standards identified in General Procurement Standards. Additionally, §200.318(i) states that the non-federal entity must maintain records sufficient to detail the history of the procurement.
Condition: During our testing, we noticed that the Agency did not have a written procurement policy that complied with federal requirements. The Agency could not provide adequate supporting documentation which was completed at the time of the procurement transaction.
Cause: The Agency did not have adequate internal controls to ensure that they complied with federal procurement standards.
Effect or Potential Effect: Failure to perform procurement procedures in accordance with a written policy that complies with the Uniform Guidance could result in the procurement being disallowed.
Questioned Costs: Not applicable.
Context: For 100% of the procurement population (total of 3), management could not provide supporting documentation which was completed at the time of the procurement transaction.
Identification as a Repeat Finding: This is not a repeat finding.
Recommendation: We recommend that the Agency establish written procurement policies and internal controls around procurement.
Views of Responsible Officials: Management agrees with the finding and is in the process of revising internal controls to address this issue.