Finding 626691 (2022-001)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2022-12-18
Audit: 51046
Organization: Town of Hingham, Massachusetts (MA)

AI Summary

  • Core Issue: The Town lacks a current procurement policy that meets federal requirements outlined in Title 2 CFR Part 200.318.
  • Impacted Requirements: Noncompliance with procurement standards can lead to significant deficiencies in internal controls over federal awards.
  • Recommended Follow-Up: The Town should develop and document a procurement policy that aligns with federal and state regulations to ensure compliance.

Finding Text

2022 ? 001 Federal Agency: U.S. Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number: N/A Pass-Through Agency: Commonwealth of Massachusetts Executive Office of Administration and Finance Pass-Through Number(s): N/A Award Period: March 3, 2021 through December 31, 2024 Compliance Requirement: Procurement Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Criteria or specific requirement: Title 2 of the U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with the provisions of procurement, suspension, and debarment compliance requirements. The Town should have internal controls designed to ensure compliance with those provisions. Specifically, CFR Title 2, part 200.318 states that the non-Federal entity (the Town) must have and use documented procurement procedures which conform to the procurement standards identified in Title 2 CFR parts 200.317 through 200.327, as well as State and local regulations, for the acquisition of property or services required under a Federal award or subaward. Condition and Context: The Town did not maintain a current procurement policy that met the criteria outlined by Title 2 of the U.S. Code of Federal Regulations part 200.318. Questioned costs: Not applicable. Cause: Procurement policies and procedures are not documented in accordance with Title 2 of the U.S. Code of Federal Regulations. Effect: Noncompliance with federal compliance requirements occurred. Repeat Finding: No. Recommendation: We recommend the Town design and document a procurement policy in accordance with the compliance requirements outlined in Title 2 of the U.S. Code of Federal Regulations part 200.318. Views of responsible officials: Management agrees with the finding. Please refer to the Corrective Action Plan.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 50249 2022-001
    Significant Deficiency
  • 50250 2022-002
    Significant Deficiency
  • 50251 2022-002
    Significant Deficiency
  • 626692 2022-002
    Significant Deficiency
  • 626693 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.20M
21.019 Coronavirus Relief Fund $529,048
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $431,447
93.778 Medical Assistance Program $278,340
84.425 Education Stabilization Fund $201,550
10.555 National School Lunch Program $158,372
84.027 Special Education_grants to States $84,043
97.044 Assistance to Firefighters Grant $61,061
10.553 School Breakfast Program $57,099
84.010 Title I Grants to Local Educational Agencies $48,985
45.310 Grants to States $37,335
15.616 Clean Vessel Act Program $18,233
84.367 Improving Teacher Quality State Grants $17,415
84.173 Special Education_preschool Grants $12,028
84.424 Student Support and Academic Enrichment Program $10,000
20.610 State Traffic Safety Information System Improvement Grants $5,429
97.042 Emergency Management Performance Grants $5,100