Finding 556007 (2024-001)

-
Requirement
I
Questioned Costs
$1
Year
2024
Accepted
2025-04-28
Audit: 354711
Organization: Town of Pembroke (MA)

AI Summary

  • Issue: One vendor received four contracts without following the required competitive procurement process.
  • Impacted Requirements: This violates Federal procurement rules outlined in 2 CFR section 200.319.
  • 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 four contracts 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: $509,016 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

RE: Corrective Action Plan Finding 2024-001 The Town awarded four contracts for engineering services for water projects funded by Federal awards without a competitive procurement process. This was due to a mistaken reliance on State procurement exemptions which do not apply to Federal procurements. Going forward, the Town will implement policies to perform competitive procurement procedures on all applicable contracts for goods and services charged to Federal awards. Sincerely, 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 $1.36M
10.555 National School Lunch Program $96,698
10.553 School Breakfast Program $89,303
66.468 Drinking Water State Revolving Fund $63,138
84.425 Education Stabilization Fund $24,214
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $18,175
84.010 Title I Grants to Local Educational Agencies $14,282
84.173 Special Education Preschool Grants $13,227
20.600 State and Community Highway Safety $8,758
16.607 Bulletproof Vest Partnership Program $5,990
10.579 Child Nutrition Discretionary Grants Limited Availability $3,223
93.069 Public Health Emergency Preparedness $2,785
10.185 Local Food for Schools Cooperative Agreement Program $1,868
84.027 Special Education Grants to States $1,545
84.424 Student Support and Academic Enrichment Program $1,177