Finding 602102 (2022-004)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-09-25
Audit: 26280
Organization: Search for Common Ground (DC)
Auditor: Bdo USA LLP

AI Summary

  • Core Issue: Soliya lacks a written procurement policy that meets federal requirements, leading to inadequate documentation for procurement transactions.
  • Impacted Requirements: Non-compliance with procurement standards under ?200.318 and ?200.213, risking disallowed costs and contracts with debarred entities.
  • Recommended Follow-up: Soliya should adopt a compliant procurement policy and train staff to ensure adherence to federal procurement procedures.

Finding Text

Information on the Federal Program: United States Department of State Assistance Listing Number: 19.415 Assistance Listing Name: Professional and Cultural Exchange Programs ? Citizen Exchanges Pass-through Awards: Pass-through Entity Pass through Award Number Award Period The Aspen Institute SI_SOL4_SubR-2021 April 1, 2021 through June 30, 2023 The Aspen Institute SI_SOL3_SubR-2020 April 1, 2021 through June 30, 2023 Criteria or Specific Requirement: In accordance with ?200.318(a), General Procurement Standards, the non-federal entity must use its own documented procurement procedures which reflect applicable State, local, and tribal laws and regulations, provided that the procurements conform to applicable federal law and the standards identified in General Procurement Standards. Additionally, ?200.318(i) states that the non-federal entity must maintain records sufficient to detail the history of the procurement. These records are required to 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. All procurement transactions must be conducted in a manner providing full and open competition consistent in accordance with ?200.319 and must be performed using the appropriate procurement method as outlined in ?200.320. In accordance with ?200.320(c), Noncompetitive Procurement, there are specific circumstances in which noncompetitive procurement can be used. Noncompetitive procurement can only be awarded if one or more of the following circumstances apply: (1) The acquisition of property or services, the aggregate dollar amount of which does not exceed the micro-purchase threshold (see paragraph (a)(1) of this section); (2) The item is available only from a single source; (3) The public exigency or emergency for the requirement will not permit a delay resulting from publicizing a competitive solicitation; (4) The Federal awarding agency or pass-through entity expressly authorizes a noncompetitive procurement in response to a written request from the non-Federal entity; or (5) After solicitation of a number of sources, competition is determined inadequate. In accordance with ?200.213 and ?180.300, Suspension and Debarment, non-federal entities cannot enter into awards, subawards, or contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in federal assistance programs or activities. Non-federal entities must either check for exclusions in the System for Award Management (SAM); collect a certification from the entity, or add a clause or condition to the covered transaction with the entity prior to entering into a covered transaction with a non-federal entity. In addition, in accordance with ?180.415(b), non-federal entities cannot renew or extend covered transactions (other than no-cost time extension) with any excluded person, or under which an excluded person is a principal, unless the non-federal entity obtains an exception under ?180.135.Condition: During our testing of compliance, we identified the following matters: ? The Organization?s subsidiary Soliya did not have a written procurement policy that complied with the federal requirements presented above. ? For three procurement samples of a total of nine items teested for AL# 19.415, management did not provide adequate supporting documentation for the procurement transaction. BDO was only provided a copy of the authorized contract between the consultant and Soliya. No other information to support compliance with federal procurement requirements was provided. Questioned Costs: Total known questioned costs are $6,656. Context: This is a condition based on testing of Soliya?s compliance with specified requirements. The prevalence of these findings is detailed in the condition section above. The samples were selected using a non-statistical method. Cause: Soliya did not adopt a written procurement policy that was compliant with the Uniform Administrative Requirements. In addition Soliya was unable to provide complete documentation of the history of the procurement, and for ensuring proper suspension and debarment validations were performed. Effect: Failure to perform procurement procedures in accordance with a written policy that complies with Procurement Procedures as outlined in the Uniform Administrative Requirements could result in the procurement being disallowed. Failure to timely verify that a vendor is not suspended or debarred could result in transactions involving unreasonable costs or result in unintentionally entering into a contract with an entity that is barred from performing work for the U.S. government. Repeat Finding: This finding is not a repeat finding from the prior year. Recommendation: We recommend management of Soliya adopt Search for Common Ground?s procurement policy that complies with the Procurement Procedures as outlined in the Uniform Administrative Requirements. We recommend that all staff of Soliya are trained on this policy to help ensure compliance going forward.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 25656 2022-003
    Significant Deficiency
  • 25657 2022-005
    Significant Deficiency Repeat
  • 25658 2022-003
    Significant Deficiency
  • 25659 2022-004
    Significant Deficiency
  • 25660 2022-004
    Significant Deficiency
  • 25661 2022-005
    Significant Deficiency Repeat
  • 25662 2022-002
    Significant Deficiency
  • 25663 2022-002
    Significant Deficiency
  • 602098 2022-003
    Significant Deficiency
  • 602099 2022-005
    Significant Deficiency Repeat
  • 602100 2022-003
    Significant Deficiency
  • 602101 2022-004
    Significant Deficiency
  • 602103 2022-005
    Significant Deficiency Repeat
  • 602104 2022-002
    Significant Deficiency
  • 602105 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
19.016 Iraq Assistance Program $778,436
19.801 Office of Global Women's Issues $698,805
19.415 Professional and Cultural Exchange Programs - Citizen Exchanges $584,817
98.001 Usaid Foreign Assistance for Programs Overseas $467,383
97.132 Financial Assistance for Countering Violent Extremism $291,600
19.701 Global Counterterrorism Programs $247,605
19.700 General Department of State Assistance $203,559
19.222 Trans-Sahara Counterterrorism Partnership (tsctp) $173,064
19.517 Overseas Refugee Assistance Programs for Africa $172,424
19.225 Africa Regional Democracy Fund $167,482
19.501 Public Diplomacy Programs for Afghanistan and Pakistan $112,532
19.706 Partnership for Regional East Africa Counterterrorism $107,248
93.308 National Institute on Minority Health and Health Disparities (nimhd) Extramural Loan Repayment Programs $60,350
19.021 Investing in People in the Middle East and North Africa $27,658
19.345 International Programs to Support Democracy, Human Rights and Labor $10,720
19.040 Public Diplomacy Programs $7,397