Finding 596913 (2022-002)

Material Weakness
Requirement
I
Questioned Costs
$1
Year
2022
Accepted
2023-04-04

AI Summary

  • Core Issue: The Town's procurement policy lacks essential elements required by federal regulations, leading to material noncompliance.
  • Impacted Requirements: Noncompliance with 2 CFR Part 200 regarding procurement, suspension, and debarment, including failure to conduct sealed bids and retain necessary documentation.
  • Recommended Follow-Up: Revise procurement policies to align with 2 CFR sections 200.318 and 200.326 to ensure compliance and mitigate risks.

Finding Text

2022-002 Procurement and Suspension and Debarment Federal Agency: United States Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: Not Available Pass-Through Agency: State of Connecticut Office of Policy and Management Pass-Through Number: 12060-OPM20600-29669 Award Period: March 3, 2021 through December 31, 2026 Type of Finding: Material Noncompliance Material Weakness in Internal Control over Compliance Criteria or specific requirement 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) requires compliance with the provisions of procurement, suspension, and debarment. Condition: The Town?s procurement policy does not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. In addition, the Town did not properly go out to a sealed bid for an item procured by the grant in accordance with their existing policy. The Town did receive comparable pricing for the item tested, however documentation was not retained to indicate approval for waiving sealed bid requirements. Furthermore, there were no controls in place to review for suspension and debarment on related procurement activities. Questioned Costs: $215,000 Context: There was one selection tested for procurement and three selections tested for suspension and debarment . Cause: The Town did not have the resources necessary to implement a conforming policy during the fiscal year. Effect: With the absence of a compliant policy, the Town is at risk for noncompliance as it relates to all federal procurement requirements. Repeat Finding: No. Recommendations: We recommend that the Town review its formal procurement policies and revise with the criteria in 2 CFR sections 200.318 and 200.326. Views of Responsible Officials: Management agrees with this finding.

Categories

Questioned Costs Procurement, Suspension & Debarment

Other Findings in this Audit

  • 20471 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $310,701
10.553 School Breakfast Program $231,137
84.425 Education Stabilization Fund $95,483
84.010 Title I Grants to Local Educational Agencies $61,695
10.555 National School Lunch Program $52,876
84.367 Improving Teacher Quality State Grants $42,358
21.019 Coronavirus Relief Fund $35,000
10.560 State Administrative Expenses for Child Nutrition $31,282
16.738 Edward Byrne Memorial Justice Assistance Grant Program $25,000
84.173 Special Education_preschool Grants $22,289
84.424 Student Support and Academic Enrichment Program $19,859
20.607 Alcohol Open Container Requirements $19,559
84.027 Special Education_grants to States $17,160
84.365 English Language Acquisition State Grants $14,438
84.196 Education for Homeless Children and Youth $13,318
10.649 Pandemic Ebt Administrative Costs $2,456