Finding 578229 (2022-003)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-11-14

AI Summary

  • Core Issue: The District failed to follow proper procurement procedures required by Uniform Guidance when piggybacking on Los Angeles County's procurement for program equipment.
  • Impacted Requirements: The District did not have a compliant procurement policy and lacked sufficient documentation to confirm adherence to Uniform Guidance, risking future federal awards.
  • Recommended Follow-Up: The District should obtain necessary procurement evidence from Los Angeles County and update its procurement policy to ensure compliance with Uniform Guidance.

Finding Text

Assistance Listing No: 97.044, Assistance to Firefighters Grant Federal Grantor: U.S. Department of Homeland Security - Direct Award Compliance Requirement: Procurement and Suspension and Debarment Condition: The District piggybacked on a procurement with Los Angeles County to procure program equipment, but the District did not have a procurement policy that meets the requirements of Uniform Guidance and did not adopt a compliant procurement policy for the program by, for example, adopting the Los Angeles County procurement policy for purposes of the procurement. In addition, the District did not obtain enough procurement documentation from Los Angeles County prior to approving the procurement to ensure the procurement was in accordance with Uniform Guidance and the District was not able to obtain enough information from Los Angeles County to confirm the procurement was in accordance with the requirements of Uniform Guidance during the single audit. Specifically, the District did not obtain evidence that Los Angeles County publicized the procurement, received an adequate number of bids and adequately evaluated the bids to select the lowest responsible bidder, ensuring full and open competition occurred. Criteria: Uniform Guidance, Sections 200.318 to 200.327 lists procurement requirements that must be followed by non-federal entities other than states. Section 200.318(a) indicates “the non-Federal entity must use its own documented procurement procedures which reflect applicable State and local laws and regulations, provided that the procurements confirm to applicable Federal law and the standards identified in this section.” Section 200.318(h)(1) indicates “the non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price.” Cause: The District was inexperienced in the requirements of Uniform Guidance and did not know it needed to obtain evidence that the procurement met the requirements of Sections 200.318 to 200.327 of the Uniform Guidance. Effect: Federal awarding agencies could deny future federal awards to recipients that do not comply with the Uniform Guidance. Context: The District obtained the request for proposal, contract and the Los Angeles County purchasing policy after we identified this finding in an attempt to verify the procurement was in compliance with Uniform Guidance. The District was able to verify that the Los Angeles County purchasing policy appeared to comply with Sections 200.318 to 200.327 of the Uniform Guidance, was able to verify the request for proposal did not request certain name brands, have local preferences or any other provisions that limited competition, and was able to verify that the contractor’s agreement indicated in was required to comply with the provisions of the Uniform Guidance. The District was just not able to obtain evidence the procurement was publicized, an adequate number of bids were received and Los Angeles County adequately evaluated the bids to select the lowest responsible bidder, ensuring full and open competition occurred. Recommendation: The District should continue to try to obtain evidence that Los Angeles County publicized the procurement, obtained an adequate number of bids and adequately analyzed the bids to select the lowest responsible bidder. The District should also update its own procurement policy to be in compliance with Uniform Guidance in case future federal awards are received by the District. View of Responsible Officials and Planned Corrective Action: Management’s response and planned corrective actions are included at the corrective action plan end of this report.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1785 2022-001
    Significant Deficiency
  • 1786 2022-002
    Significant Deficiency
  • 1787 2022-003
    Significant Deficiency
  • 578227 2022-001
    Significant Deficiency
  • 578228 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
97.044 Assistance to Firefighters Grant $706,716