Finding 586869 (2023-001)

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Requirement
I
Questioned Costs
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Year
2023
Accepted
2024-01-29
Audit: 14096
Organization: Invest Puerto Rico Inc. (PR)
Auditor: Rsm Puerto Rico

AI Summary

  • Core Issue: Invest Puerto Rico, Inc. failed to include required contract provisions in two supplier contracts related to the Clean Air Act and the Federal Water Pollution Control Act.
  • Impacted Requirements: Contracts over $150,000 must comply with environmental standards and the Byrd Anti-Lobbying Amendment for awards over $100,000.
  • Recommended Follow-Up: Ensure all future contracts include necessary compliance provisions and certifications to avoid violations and potential penalties.

Finding Text

From a sample of twenty (20) disbursements, Invest Puerto Rico, Inc. did not include the following contract provisions in two (2) supplier contracts as required:(G) Clean Air Act (42 U.S.C. 7401–7671q.) and the Federal Water Pollution Control Act (33 U.S.C. 1251–1387), as amended – Contracts and subgrants of amounts in excess of $150,000 must contain a provision that requires the non-Federal award to agree to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. 7401–7671q) and the Federal Water Pollution Control Act as amended (33 U.S.C. 1251–1387). Violations must be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency (EPA).(I) Byrd Anti-Lobbying Amendment (31 U.S.C. 1352) – Contractors that apply or bid for an award exceeding $100,000 must file the required certification. Each tier certifies to the tier above that it will not and has not used Federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any Federal contract, grant or any other award covered by 31 U.S.C. 1352. Each tier must also disclose any lobbying with non-Federal funds that takes place in connection with obtaining any Federal award. Such disclosures are forwarded from tier to tier up to the non-Federal award.

Categories

Procurement, Suspension & Debarment Matching / Level of Effort / Earmarking Special Tests & Provisions

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $3.02M