Finding 578828 (2022-002)

Material Weakness
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-11-27
Audit: 4076
Organization: Allen County (OH)

AI Summary

  • Core Issue: The County exceeded the micro-purchase limit of $10,000 for two expenditures without obtaining required price quotations.
  • Impacted Requirements: Noncompliance with 2 CFR § 200.320 regarding documented procurement procedures for micro-purchases and small purchases.
  • Recommended Follow-Up: Implement a control system to ensure future compliance with procurement requirements to protect grant eligibility.

Finding Text

2 CFR § 1000.10 gives regulatory effect to Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, set forth at 2 CFR part 200 for the Department of Treasury. 2 CFR § 200.320, which states, in part, that the non-federal entity must have and use documented procurement procedures, for informal procurement methods which consist of micro-purchases and small purchases. 2 CFR § 200.320(a)(1)(ii) states, in part that micro-purchases may be awarded without soliciting competitive quotations if the non-Federal entity considers the price to be reasonable based on research, experience, purchase history or other information and documents it files accordingly. 2 CFR § 200.320(a)(2)(i) states, in part that small purchase procedures are used for purchases that exceed the micro-purchase amount but do not exceed the simplified acquisition threshold ($250,000). If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources as determined appropriate by the non-Federal entity. Allen County Uniform Guidance Procurement Policy, Adopted June 18, 2020, Section IV. A, set the micro-purchase level at less than $10,000. Two of the three expenditures tested, one for Legal fees and one for Antigen Test Kits, from the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) grant, exceeded the County's micro-purchase amount of less than $10,000. However, the County did not obtain and document price or rate quotations from adequate number of qualified sources. Noncompliance with procurement requirements could affect future grant awards. A control should be implemented to help ensure compliance with procurement requirements.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 2385 2022-001
    Material Weakness
  • 2386 2022-002
    Material Weakness
  • 578827 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.558 Temporary Assistance for Needy Families $5.41M
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $2.27M
93.563 Child Support Enforcement $1.64M
93.658 Foster Care_title IV-E $1.34M
93.778 Medical Assistance Program $976,853
93.659 Adoption Assistance $918,688
10.760 Water and Waste Disposal Systems for Rural Communities $843,845
93.667 Social Services Block Grant $773,549
93.767 Children's Health Insurance Program $559,163
17.278 Wia Dislocated Worker Formula Grants $341,770
17.258 Wia Adult Program $337,005
17.259 Wia Youth Activities $330,578
21.027 Coronavirus State and Local Fiscal Recovery Funds $296,501
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $207,214
84.181 Special Education-Grants for Infants and Families $157,822
93.556 Marylee Allen Promoting Safe and Stable Families Program $143,991
93.575 Child Care and Development Block Grant $116,170
93.645 Stephanie Tubbs Jones Child Welfare Services Program $85,106
17.225 Unemployment Insurance $54,290
93.747 Elder Abuse Prevention Interventions Program $27,870
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $25,861
16.738 Edward Byrne Memorial Justice Assistance Grant Program $21,449
97.067 Homeland Security Grant Program $21,231
20.600 State and Community Highway Safety $20,920
17.207 Employment Service/wagner-Peyser Funded Activities $18,336
16.593 Residential Substance Abuse Treatment for State Prisoners $15,792
17.277 Workforce Investment Act (wia) National Emergency Grants $15,355
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $13,552
17.245 Trade Adjustment Assistance $2,878