Finding 598302 (2022-004)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-07-16

AI Summary

  • Core Issue: One contract lacked the required suspension and debarment language, increasing risk of non-compliance.
  • Impacted Requirements: Non-federal entities must not engage with suspended or debarred parties for contracts over $25,000 as per federal regulations.
  • Recommended Follow-up: Implement policies to ensure all federally funded projects include the necessary clauses and adhere to federal purchasing requirements.

Finding Text

Federal Program Garrison Diversion Unit (AL # 15.518) ? Significant Deficiency Criteria Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. Condition One contract did not have the required ?suspension and disbarment? verbiage listed in the contract. It was determined during the audit that the contractor was not suspended or debarred. Questioned Costs None Context Three contracts were selected for testing. One contract did not have the required ?suspension and debarment? verbiage listed in the contract. We also noted Public Utilities Commission does not have a board approved procurement policy to follow before making purchases. Effect There is an increased risk of Public Utilities Commission entering into a construction contact with a vendor who is on the suspended and debarred list. There is also an increased risk of making purchases that are not in accordance with federal requirements. Cause Management oversight Repeat Finding No Recommendation We recommend the Commission should implement policies and procedures to ensure all federally funded construction projects have the suspension and debarment clause. The Commission should also implement policies and procedures to ensure all purchases follow federal requirements. Views of Responsible Officials Management will review its policies and procedures for monitoring suspended and debarred parties.

Categories

Procurement, Suspension & Debarment Subrecipient Monitoring

Other Findings in this Audit

  • 21856 2022-003
    Significant Deficiency Repeat
  • 21857 2022-004
    Significant Deficiency
  • 21858 2022-005
    Significant Deficiency
  • 21859 2022-003
    Significant Deficiency Repeat
  • 21860 2022-004
    Significant Deficiency
  • 21861 2022-005
    Significant Deficiency
  • 598298 2022-003
    Significant Deficiency Repeat
  • 598299 2022-004
    Significant Deficiency
  • 598300 2022-005
    Significant Deficiency
  • 598301 2022-003
    Significant Deficiency Repeat
  • 598303 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
15.518 Garrison Diversion Unit $597,615