Finding 544412 (2024-002)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2025-03-31

AI Summary

  • Core Issue: YCIPTA repeatedly failed to follow its own procurement policies and federal regulations, leading to noncompliance.
  • Impacted Requirements: The procurement process for purchases over $100,000 must adhere to 2 CFR §§200.318-326 and the Board's Policies and Procedures Manual.
  • Recommended Follow-Up: YCIPTA should implement formal procurement methods for large purchases to ensure compliance and secure competitive pricing.

Finding Text

Finding Number: 2024-002 Repeat Finding: Yes – 2023-001, 2022-001 Program Names/Assistance Listing Titles: Assistance Listing Numbers: Federal Award Numbers: Questioned Costs: Federal Transit Cluster 20.507 AZ-90-X132, AZ-90-X-143, AZ-2018-003-00, AZ-2019-010-00, AZ-2019-035, AZ-2019-036 AZ-2023-001-00 N/A Formula Grants for Rural Areas and Trial Transit Program 20.509 CA-2022-231-00, GRT-22-0008862-T N/A Federal Agency: Department of Transportation Pass-Through Agencies: Arizona Department of Transportation, Quechan Indian Tribe Type of Finding: Noncompliance, Material Weakness Compliance Requirement: Procurement, Suspension, and Debarment Criteria Non-federal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR §§200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable State and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR part 200. The Board adopted a Policies and Procedures Manual that requires formal bid procedures for purchases over $100,000. Condition The Authority did not follow its Board adopted Policies and Procedures Manual or federal regulations. Cause YCIPTA was operating under an expired contract and did not follow Board-adopted policies. Effect YCIPTA was not in compliance with the Board adopted Policies and Procedures Manual and federal regulations. Context For one purchase in excess of the federal procurement threshold of $250,000, YCIPTA did not perform a sealed bid of proposal. The sample was not intended to be, and was not, a statistically valid sample. Recommendation YCIPTA should adhere to its Board adopted Policies and Procedures Manual. When purchases are expected to be in excess of $100,000, formal procurement methods should be used to ensure the best pricing possible. Views Of Responsible Officials See Corrective Action Plan.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 544406 2024-001
    Material Weakness
  • 544407 2024-002
    Material Weakness Repeat
  • 544408 2024-002
    Material Weakness Repeat
  • 544409 2024-002
    Material Weakness Repeat
  • 544410 2024-002
    Material Weakness Repeat
  • 544411 2024-002
    Material Weakness Repeat
  • 544413 2024-002
    Material Weakness Repeat
  • 544414 2024-002
    Material Weakness Repeat
  • 544415 2024-002
    Material Weakness Repeat
  • 1120848 2024-001
    Material Weakness
  • 1120849 2024-002
    Material Weakness Repeat
  • 1120850 2024-002
    Material Weakness Repeat
  • 1120851 2024-002
    Material Weakness Repeat
  • 1120852 2024-002
    Material Weakness Repeat
  • 1120853 2024-002
    Material Weakness Repeat
  • 1120854 2024-002
    Material Weakness Repeat
  • 1120855 2024-002
    Material Weakness Repeat
  • 1120856 2024-002
    Material Weakness Repeat
  • 1120857 2024-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
20.507 Federal Transit Formula Grants $1.78M
20.509 Formula Grants for Rural Areas and Tribal Transit Program $1.20M
20.205 Highway Planning and Construction $142,784