Finding Text
Federal Agency: U.S. Department of Homeland Security Federal Financial Assistance Listing: 97.056 Applicable Federal Award Number: EMW-2019-PU-00447 & EMW-2020-PU-00288 Program Name: Port Security Grants Program Compliance Requirement: Procurement Type of Finding: Significant Deficiency, Instance of Non-compliance Criteria: 2 CFR 200.327 requires that the non-federal entity?s contracts must contain the applicable provisions described in appendix II of 2 CFR 200. Condition: We identified 3 instances in which contracts (agreements, purchases, etc.) did not include the applicable provisions from appendix II of 2 CFR 200. The contracts did not include provision (B) requiring that all contracts in excess of $10,000 must address termination for cause and for convenience by the non-Federal entity including the manner by which it will be effected and the basis for settlement. Cause: The District?s procurement procedures did not ensure that all required provisions were included in the contract. Effect: The District did not comply with the requirements of 2 CFR 200.327. Questioned Costs: None reported. Context/Sampling: A non-statistical sample of 5 procurement actions out of a population of 13 procurement actions were selected for testing. Repeat Finding from Prior Year(s): No. Recommendation: We recommend that the District strengthen its procurement procedures to ensure that all required provisions are included in its contracts. Views of Responsible Officials: Management Agrees. See separate corrective action plan.