FAC Explorer

Finding 526936 (2024-001)

-
Requirement
I
Questioned Costs
$1
Year
2024
Accepted
2025-03-13
Audit: 346030
Organization: Town of Hull, Massachusetts (MA)
Auditor: Roselli Clark and Associates

AI Summary

  • Core Issue: A contract was awarded to one vendor without following the required competitive procurement process.
  • Impacted Requirements: This violates Federal procurement rules under 2 CFR section 200.319, which mandate full and open competition.
  • Recommended Follow-Up: The Town should establish procedures to ensure competitive procurement for all contracts related to Federal funds.

Finding Text

2024-001 U.S. Department of the Treasury Passed-through the County of Plymouth, Massachusetts COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – ALN 21.027 Criteria: Per 2 CFR section 200.319, procurements must provide for full and open competition. Condition: One vendor was awarded a contract without a competitive procurement process. Cause: The Town relied on State procurement exemptions which do not apply to Federal procurements. Effect: The Town is not in compliance with Federal procurement requirements. Questioned Costs: $80,499.51 Repeat Finding from Prior Year: No. Recommendation: The Town should implement procedures to perform competitive procurement procedures on all applicable contracts for goods and services charged to Federal awards. Views of Responsible Official: Management agrees with the finding.

Corrective Action Plan

Condition: One vendor was awarded a contract without a competitive procurement process. Corrective Action Planned: The Town will communicate to all relevant departments that State procurement exemptions do to not apply to Federal procurements. We believe this was an isolated incident based on a misinterpretation of the Federal requirements; however, we will endeavor to provide an additional level of scrutiny to the vetting of these contracts. Anticipated Completion Date: June 30, 2025 Contact: J. Michael Buckley, Town Accountant

Categories

Questioned Costs Procurement, Suspension & Debarment

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.25M
84.027 Special Education Grants to States $226,828
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $99,109
10.553 School Breakfast Program $52,138
10.555 National School Lunch Program $44,659
66.202 Congressionally Mandated Projects $30,522
97.039 Hazard Mitigation Grant $26,745
84.010 Title I Grants to Local Educational Agencies $26,172
84.425 Education Stabilization Fund $25,000
84.173 Special Education Preschool Grants $14,442
84.424 Student Support and Academic Enrichment Program $10,997
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $10,631
20.600 State and Community Highway Safety $2,297
15.616 Clean Vessel Act $709