Finding Text
Finding 2022-002 Procurement and Suspension and Disbarment - Noncompliance and Significant Deficiency in Internal Controls Over Compliance Agency U.S. Environmental Protection Agency ALN 66.202 Program Name Sanitation Facilities Improvements Congressionally Mandated Projects Award Year FY 2018 Pass-Through Agency Alaska Native Tribal Health Consortium Pass-Through Entity Identifying Number(s) AN18-RO2 Criteria In accordance with 2 CFR 200, the City?s procurement policy must conform to the Uniform Guidance standards. This requires the City to establish a policy for small purchase procedures that covers transactions that exceed micropurchase amount ($10,000) but do not exceed the simplified acquisition threshold ($250,000). If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources. Condition The City executed several small purchase transactions without obtaining price or rate quotations from an adequate number of qualified sources. Cause The City did not establish a policy for small purchase to satisfy the requirements of 2 CFR 200 of Uniform Guidance. Effect or potential effect The City was not in compliance with the procurement requirement for the program. Questioned costs $156,025 Context In our testwork for procurement requirements, we noted that 2 of the 4 samples selected did not have the documentation that conformed with the Uniform Guidance procurement requirements. Identification as a repeat finding No Recommendation We recommend that the City establish a policy in regard to small purchase procedures and ensure the management is following its procurement policy and meeting the Uniform Guidance compliance requirements. Views of responsible officials Management agrees with the finding. The City is implementing new policy covering the Uniform Guidance thresholds that are established for federal programs.