FAC Explorer

Finding 634563 (2022-006)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-07-24
Audit: 53495
Organization: County of San Joaquin (CA)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: Significant noncompliance found in procurement practices and failure to verify suspension and debarment status for contractors.
  • Impacted Requirements: Violations of procurement standards (2 CFR sections 200.318-200.326) and suspension/debarment checks (2 CFR section 180.220).
  • Recommended Follow-Up: Implement stronger internal controls, ensure proper documentation for procurement processes, and verify contractor eligibility against the SAM database.

Finding Text

Program: COVID-19 ? Epidemiology and Laboratory Capacity for Infectious Diseases, (ELC) Federal Financial Assistance Listing No.: 93.323 Federal Agency: U.S. Department of Health and Human Services Passed-through: California Department of Public Health Award Year: 2021-2022 Compliance Requirement: Procurement and Suspension and Debarment Grant Award Number: COVID-19 ELC39 and COVID-19 ELC97 Type of Finding: Material Noncompliance, Material Weakness in Internal Control over Compliance Criteria: Procurement: Per 2 CFR part 200, subpart D, section 200.303, the nonfederal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the nonfederal entity is managing the federal award is compliance with federal statues, regulations, and the terms and conditions of the federal award. Non-federal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. A non-federal entity must: ? Meet the general procurement standards in 2 CFR section 200.318, which include oversight of contractors? performance, maintaining written standards of conduct for employees involved in contracting, awarding contracts only to responsible contractors, and maintaining records to document history of procurements. ? Conduct all procurement transactions in a manner providing full and open competition, in accordance with 2 CFR section 200.319. ? Use the micro-purchase and small purchase methods only for procurements that meet the applicable criteria under 2 CFR sections 200.320(a) (1) and (2). Under the micro-purchase method, the aggregate dollar amount does not exceed $10,000 ($2,000 in the case of acquisition for construction subject to the Wage Rate Requirements [Davis-Bacon Act]). Small purchase procedures are used for purchases that exceed the micro-purchase amount but do not exceed the simplified acquisition threshold ($250,000). Micro-purchases may be awarded without soliciting competitive quotations if the non-federal entity considers the price to be reasonable (2 CFR section 200.320(a)). If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources (2 CFR section 200.320(b)). ? For acquisitions exceeding the simplified acquisition threshold, the non-federal entity must use one of the following procurement methods: the sealed bid method if the acquisition meets the criteria in 2 CFR section 200.320(b); the competitive proposals method under the conditions specified in 2 CFR section 200.320((b) (2); or the noncompetitive proposals method (i.e., solicit a proposal from only one source) but only when one or more of four circumstances are met, in accordance with 2 CFR section 200.320(c)). ? Perform a cost or price analysis in connection with every procurement action in excess of the simplified acquisition threshold, including contract modifications (2 CFR section 200.323(a)). The cost plus a percentage of cost and percentage of construction cost methods of contracting must not be used (2 CFR section 200.323(b)). ? Ensure that every purchase order or other contract includes applicable provisions required by 2 CFR section 200.326. These provisions are described in Appendix II to 2 CFR Part 200, ?Contract Provisions for Non-Federal Entity Contracts Under Federal Awards.? Suspension and Debarment: Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. When a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at SAM.gov/Home, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180.300). Condition Found: As a result of our audit procedures, we noted the following: Procurement: ? 4 out of 8 transactions tested did not have documentation that full and open competition, price analysis, or rationale to limit competition in those cases where competition was limited. ? 2 out of 8 transactions tested did not have documentation of the rationale for the method of procurement, selection of contract type, basis for contractor selection and the basis for the contract price in accordance with the Uniform Guidance, section 318(i) and 48 CFR part 44 and section 52.244-2. ? 8 out of 8 did not include the applicable provisions required by Appendix II to 2 CFR Part 200. Suspension and Debarment: ? 6 out of 8 covered transactions tested did not have evidence that management checked for suspension and debarment during the scope of this audit; by management either not verifying the SAM?s.gov website, not obtaining a certification, or not adding a clause or condition to the covered transaction. Cause: Not following the County?s own official policies and procedures over procurement and suspension and debarment. Effect: Not following the County?s procurement policies and procedures that are in place and required by the Uniform Guidance resulted in noncompliance with the requirements of the program. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of 8 vendor contracts from a population of 38 were tested totaling $1,670,639 out of $9,5334,251 of federal program expenditures. Repeat Finding from Prior Year(s): Yes, prior year finding 2021-009. Recommendation: We recommend that the County enforce its official policies and procedures over procurement and suspension and debarment. Views of Responsible Officials and Planned Corrective Actions: Management agrees. See separate corrective action plan.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 58081 2022-012
    Significant Deficiency
  • 58082 2022-007
    Material Weakness
  • 58083 2022-008
    Material Weakness
  • 58084 2022-009
    Material Weakness
  • 58085 2022-010
    Material Weakness Repeat
  • 58086 2022-009
    Material Weakness
  • 58087 2022-010
    Material Weakness Repeat
  • 58088 2022-009
    Material Weakness
  • 58089 2022-010
    Material Weakness Repeat
  • 58090 2022-009
    Material Weakness
  • 58091 2022-010
    Material Weakness Repeat
  • 58092 2022-009
    Material Weakness
  • 58093 2022-010
    Material Weakness Repeat
  • 58094 2022-009
    Material Weakness
  • 58095 2022-010
    Material Weakness Repeat
  • 58096 2022-009
    Material Weakness
  • 58097 2022-010
    Material Weakness Repeat
  • 58098 2022-009
    Material Weakness
  • 58099 2022-010
    Material Weakness Repeat
  • 58100 2022-009
    Material Weakness
  • 58101 2022-010
    Material Weakness Repeat
  • 58102 2022-009
    Material Weakness
  • 58103 2022-010
    Material Weakness Repeat
  • 58104 2022-009
    Material Weakness
  • 58105 2022-010
    Material Weakness Repeat
  • 58106 2022-009
    Material Weakness
  • 58107 2022-010
    Material Weakness Repeat
  • 58108 2022-009
    Material Weakness
  • 58109 2022-010
    Material Weakness Repeat
  • 58110 2022-011
    Material Weakness Repeat
  • 58111 2022-011
    Material Weakness Repeat
  • 58112 2022-011
    Material Weakness Repeat
  • 58113 2022-011
    Material Weakness Repeat
  • 58114 2022-011
    Material Weakness Repeat
  • 58115 2022-011
    Material Weakness Repeat
  • 58116 2022-011
    Material Weakness Repeat
  • 58117 2022-011
    Material Weakness Repeat
  • 58118 2022-011
    Material Weakness Repeat
  • 58119 2022-011
    Material Weakness Repeat
  • 58120 2022-006
    Material Weakness Repeat
  • 58121 2022-006
    Material Weakness Repeat
  • 58122 2022-004
    Material Weakness Repeat
  • 58123 2022-004
    Material Weakness Repeat
  • 58124 2022-005
    Material Weakness Repeat
  • 58125 2022-005
    Material Weakness Repeat
  • 58126 2022-005
    Material Weakness Repeat
  • 58127 2022-005
    Material Weakness Repeat
  • 58128 2022-005
    Material Weakness Repeat
  • 634523 2022-012
    Significant Deficiency
  • 634524 2022-007
    Material Weakness
  • 634525 2022-008
    Material Weakness
  • 634526 2022-009
    Material Weakness
  • 634527 2022-010
    Material Weakness Repeat
  • 634528 2022-009
    Material Weakness
  • 634529 2022-010
    Material Weakness Repeat
  • 634530 2022-009
    Material Weakness
  • 634531 2022-010
    Material Weakness Repeat
  • 634532 2022-009
    Material Weakness
  • 634533 2022-010
    Material Weakness Repeat
  • 634534 2022-009
    Material Weakness
  • 634535 2022-010
    Material Weakness Repeat
  • 634536 2022-009
    Material Weakness
  • 634537 2022-010
    Material Weakness Repeat
  • 634538 2022-009
    Material Weakness
  • 634539 2022-010
    Material Weakness Repeat
  • 634540 2022-009
    Material Weakness
  • 634541 2022-010
    Material Weakness Repeat
  • 634542 2022-009
    Material Weakness
  • 634543 2022-010
    Material Weakness Repeat
  • 634544 2022-009
    Material Weakness
  • 634545 2022-010
    Material Weakness Repeat
  • 634546 2022-009
    Material Weakness
  • 634547 2022-010
    Material Weakness Repeat
  • 634548 2022-009
    Material Weakness
  • 634549 2022-010
    Material Weakness Repeat
  • 634550 2022-009
    Material Weakness
  • 634551 2022-010
    Material Weakness Repeat
  • 634552 2022-011
    Material Weakness Repeat
  • 634553 2022-011
    Material Weakness Repeat
  • 634554 2022-011
    Material Weakness Repeat
  • 634555 2022-011
    Material Weakness Repeat
  • 634556 2022-011
    Material Weakness Repeat
  • 634557 2022-011
    Material Weakness Repeat
  • 634558 2022-011
    Material Weakness Repeat
  • 634559 2022-011
    Material Weakness Repeat
  • 634560 2022-011
    Material Weakness Repeat
  • 634561 2022-011
    Material Weakness Repeat
  • 634562 2022-006
    Material Weakness Repeat
  • 634564 2022-004
    Material Weakness Repeat
  • 634565 2022-004
    Material Weakness Repeat
  • 634566 2022-005
    Material Weakness Repeat
  • 634567 2022-005
    Material Weakness Repeat
  • 634568 2022-005
    Material Weakness Repeat
  • 634569 2022-005
    Material Weakness Repeat
  • 634570 2022-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Covid-19 - Coronavirus State and Local Fiscal Recovery Funds $22.12M
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $14.77M
93.563 Child Support Enforcement $11.63M
11.307 Economic Adjustment Assistance $3.58M
93.323 Covid-19 - Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $3.10M
14.231 Covid-19 - Emergency Solutions Grant Program $3.02M
10.569 Emergency Food Assistance Program (food Commodities) $3.01M
93.778 Medical Assistance Program $2.66M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $2.56M
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $2.27M
93.958 Block Grants for Community Mental Health Services $2.09M
93.659 Adoption Assistance $1.93M
93.558 Temporary Assistance for Needy Families $1.63M
21.023 Covid-19 - Emergency Rental Assistance Program $1.52M
93.268 Immunization Cooperative Agreements $1.29M
93.667 Social Services Block Grant $1.05M
20.106 Covid-19 - Airport Improvement Program $1.01M
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $885,773
16.575 Crime Victim Assistance $782,134
93.556 Promoting Safe and Stable Families $750,718
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $729,308
93.069 Public Health Emergency Preparedness $721,350
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $583,041
17.259 Wia Youth Activities $570,986
93.645 Stephanie Tubbs Jones Child Welfare Services Program $538,895
97.067 Homeland Security Grant Program $533,650
93.917 Covid-19 - Hiv Care Formula Grants $507,795
93.994 Maternal and Child Health Services Block Grant to the States $495,405
14.241 Housing Opportunities for Persons with Aids $396,437
93.052 National Family Caregiver Support, Title Iii, Part E $353,053
81.042 Weatherization Assistance for Low-Income Persons $345,752
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $286,430
97.042 Emergency Management Performance Grants $281,220
93.889 National Bioterrorism Hospital Preparedness Program $276,934
90.401 Covid-19 - Help America Vote Act Requirements Payments $263,974
10.568 Emergency Food Assistance Program (administrative Costs) $257,746
93.150 Projects for Assistance in Transition From Homelessness (path) $241,011
20.106 Airport Improvement Program $228,110
93.658 Foster Care_title IV-E $183,708
66.468 Capitalization Grants for Drinking Water State Revolving Funds $180,326
16.590 Grants to Encourage Arrest Policies and Enforcement of Protection Orders Program $177,744
17.278 Wia Dislocated Worker Formula Grants $176,366
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $174,777
93.053 Nutrition Services Incentive Program $147,595
16.738 Edward Byrne Memorial Justice Assistance Grant Program $119,081
17.277 Covid-19 - Workforce Investment Act (wia) National Emergency Grants $110,566
10.553 School Breakfast Program $108,791
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $105,843
93.045 Covid-19 - Special Programs for the Aging_title Iii, Part C_nutrition Services $105,205
95.001 High Intensity Drug Trafficking Areas Program $103,480
93.044 Covid-19 - Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $101,097
14.267 Continuum of Care Program $99,228
93.354 Covid-19 - Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $94,105
16.922 Equitable Sharing Program $81,668
14.239 Home Investment Partnerships Program $80,788
14.231 Emergency Solutions Grant Program $72,083
93.958 Covid-19 - Block Grants for Community Mental Health Services $55,033
21.019 Covid-19 - Coronavirus Relief Fund $54,575
16.U01 Drug Enforcement Admin Domestic Cannabis Eradication $52,481
93.043 Special Programs for the Aging_title Iii, Part D_disease Prevention and Health Promotion Services $45,562
20.205 Highway Planning and Construction $42,911
93.090 Guardianship Assistance $36,686
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $33,615
93.959 Block Grants for Prevention and Treatment of Substance Abuse $30,000
10.170 Specialty Crop Block Grant Program - Farm Bill $29,370
10.025 Plant and Animal Disease, Pest Control, and Animal Care $28,643
93.917 Hiv Care Formula Grants $28,492
16.607 Bulletproof Vest Partnership Program $27,333
17.258 Wia Adult Program $27,052
20.616 National Priority Safety Programs $20,654
93.566 Refugee and Entrant Assistance_state Administered Programs $17,037
93.783 Aids Drug Assistance Program - Adap $14,704
97.024 Emergency Food and Shelter National Board Program $9,592
93.941 Hiv Demonstration, Research, Public and Professional Education Projects $8,765
93.041 Special Programs for the Aging_title Vii, Chapter 3_programs for Prevention of Elder Abuse, Neglect, and Exploitation $7,650
93.042 Covid-19 - Special Programs for the Aging_title Vii, Chapter 2_long Term Care Ombudsman Services for Older Individuals $7,346
14.218 Community Development Block Grants/entitlement Grants $6,749
97.011 Boating Safety and Enforcement Grant $6,492
93.747 Elder Abuse Prevention Interventions Program $6,457
93.042 Special Programs for the Aging_title Vii, Chapter 2_long Term Care Ombudsman Services for Older Individuals $3,423
93.569 Covid-19 - Community Services Block Grant $1,011
93.568 Low-Income Home Energy Assistance $448
93.052 Covid-19 - National Family Caregiver Support, Title Iii, Part E $240
93.569 Community Services Block Grant $-65,498