Finding Text
Federal Agencies: Department of the Treasury Federal Assistance Listing Numbers: 21.027 Program or Cluster: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Pass-Through Entity Identifying Numbers: K3524, K3633 Criteria: In accordance with ?200.318, the non-federal entity must use its own documented procurement procedures which reflect applicable laws and regulations, provided that the procurements conform to applicable federal law and the standards identified. Additionally, the nonfederal 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 in accordance with ?200.317 through ?200.327. In accordance with ?200.214 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. Condition: The Organization has a policy outlining procurement and suspension and debarment procedures. The Organization also has standard forms in place guiding purchasing decisions. However, those forms lack elements that prompt staff to perform and document procurement and suspension and debarment procedures. The Organization did not maintain adequate documentation that procurement practices were performed in accordance with the Uniform Grant Guidance requirements. The Organization also did not perform or document suspension and debarment checks on prospective vendors and subrecipients. Cause: The Organization?s personnel did not adhere to the documented policies and procedures for ensuring complete documentation of the history of the procurement and the Organization did not have adequate internal controls in place to identify the need to ensure a check for suspended or debarred vendors on contractors occurred and was documented prior to entering into those agreements. Effect: Failure to maintain proper documentation for vendor selection process and failure to obtain vendor solicitation for procurements is noncompliance with Federal regulations. There is a reasonable possibility that resources were purchased from vendors and/or passed through to subrecipients who were suspended and/or debarred. Questioned Costs: Unknown Recommendation: Standard forms should be updated to incorporate procurement and suspension and debarment criteria for both vendors and subrecipients. Controls should be implemented to ensure that the procurement decisions and suspension and debarment checks are reviewed by an appropriate member of management and are properly stored for future reference. Views of Responsible Officials: Management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.