Finding Text
Finding 2024-004 - Procurement (Material Weakness)
CFDA Title and Number: 20.526 Grants for Buses and Bus Facilities Formula Program
Name of Federal Agency: Department of Transportation
Internal Control over Compliance: Procurement
CFDA Title and Number: 20.513 (5310) Enhanced Mobility of Seniors & Individuals with Disabilities.
Name of Federal Agency: Department of Transportation
Internal Control over Compliance: Procurement
CFDA Title and Number: 20.509 (5311) Operating Assistance. Formula Grants for Rural.
Name of Federal Agency: Department of Transportation
Internal Control over Compliance: Procurement
Criteria: 2 CFR Part 200.318(a-k) Numerous procurement regulations exist requiring federal grant awardees to
develop and implement internal control policies and procedures related to procurement activities.
Condition: The District made expenditures and engaged in contracts without following relevant procurement requirements.
Cause: Management lacked awareness of relevant procurement regulations. Consequently, no internal control policies
or procedures related to procurement existed, or policies and procedures existed but were not implemented.
Effect or Potential Effect: The lack of effective internal controls over procurement activities allowed for widespread
deficiencies and noncompliant activities, which resulted in the District’s revocation of one award.
Questioned Cost: No
Context: Without proper procurement policies and procedures, the risk of compliance requirement violations is
significant. The District failed to meet numerous procurement requirements throughout the year, and ultimately lost
a significant award for bus acquisitions.
Repeat of a Prior-Year Finding: No
Recommendation: The District should design and implement internal controls related to procurement regulations
that will reduce the risk that the District’s procurement activities are not in compliance with federal regulations.
District's Response: The District acknowledges the weaknesses and its intention of correcting weaknesses.
Corrective Action Plan: The District’s shall design and implement, or revise, policies and procedures for meeting
procurement compliance requirements. The District will work with ODOT to ensure compliance. The new procurement
policy must include not only policies for procurements, but also for documentation of solicitations, contracts
activities.
Planned Implementation Date: September 30, 2024
Responsible Persons: District Board, Umpqua Public Transit District