Finding 574657 (2021-010)

Material Weakness
Requirement
I
Questioned Costs
-
Year
2021
Accepted
2025-08-26
Audit: 364929
Organization: Virgin Islands Port Authority (VI)
Auditor: Bdo USA PC

AI Summary

  • Core Issue: The Authority failed to provide proof that a contractor was not suspended or debarred during a procurement transaction.
  • Impacted Requirements: Compliance with Federal procurement regulations regarding vendor documentation and certification.
  • Recommended Follow-Up: Ensure strict adherence to internal controls and improve communication among departments managing vendor compliance.

Finding Text

Finding Number: 2021-010 Prior Year Finding Number: N/A Compliance Requirement: Procurement and Suspension and Debarment Program: U.S. Department of Transportation National Infrastructure Investments ALN: 20.933 Award #: DTMA91G1600010 Award Year: 02/01/2017 - 03/31/2022 Criteria – Certain prescribed requirements dictate that recipients of Federal awards have adequate procedures and controls in place to ensure that practices are properly documented in the entity’s files, provide a vendor debarment or suspension certification, provide for retention of files, and that supporting documentation corroborate compliance with these requirements. Condition – In our review of the one (1) procurement transaction taking place during the year, we noted that the transaction did not contain evidence that the contractor was not suspended or debarred. Cause – The Authority did not strictly adhere to its policies and procedures. Effect or Potential Effect – The Authority could inadvertently contract with parties that are suspended or debarred from doing business with the Federal government. Questioned Costs – None. Context – This is a condition identified per review of the Authority’s compliance with the specified requirements. No sampling was performed. Recommendation – We recommend that the Authority follow its internal controls to ensure adherence to Federal regulations relating to vendor suspension and debarment. There should be timely coordination and communication amongst all departments that are responsible for handling and managing vendors. Views of Responsible Officials - The Authority concurs with the auditor’s findings and recommendations. The Authority will implement measures to ensure compliance with procurement policies and procedures. The planned corrective actions are presented in the Authority’s Corrective Action Plan, which is attached as Appendix B.

Corrective Action Plan

The Authority will establish a shared folder dedicated to debarment and suspension documentation to ensure necessary data is readily available during the audit.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 574651 2021-006
    Material Weakness Repeat
  • 574652 2021-008
    Significant Deficiency Repeat
  • 574653 2021-009
    Material Weakness Repeat
  • 574654 2021-007
    Significant Deficiency
  • 574655 2021-008
    Significant Deficiency Repeat
  • 574656 2021-009
    Material Weakness Repeat
  • 574658 2021-011
    Material Weakness Repeat
  • 1151093 2021-006
    Material Weakness Repeat
  • 1151094 2021-008
    Significant Deficiency Repeat
  • 1151095 2021-009
    Material Weakness Repeat
  • 1151096 2021-007
    Significant Deficiency
  • 1151097 2021-008
    Significant Deficiency Repeat
  • 1151098 2021-009
    Material Weakness Repeat
  • 1151099 2021-010
    Material Weakness
  • 1151100 2021-011
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
20.106 Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and Covid-19 Airports Programs $20.49M
11.307 Economic Adjustment Assistance $9.42M
20.933 National Infrastructure Investments $3.55M
97.090 Law Enforcement Officer Reimbursement Agreement Program $211,021
97.072 National Explosives Detection Canine Team Program $154,358
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $126,623