Finding 634849 (2022-001)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2022-10-19
Audit: 53865
Organization: University of Jamestown (ND)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: Lack of documented controls for cost or price analysis in procurement processes.
  • Impacted Requirements: Non-compliance with Uniform Guidance and 2 CFR sections 200.318-326 regarding procurement standards.
  • Recommended Follow-Up: Develop and implement a comprehensive procurement policy to meet federal requirements for future funding.

Finding Text

2022-001 Department of Education CFDA # 84.425F ? Education Stabilization Fund - Institutional Award Number P425F202362 2021-2022 Award Year Procurement, Suspension and Debarment Significant Deficiency in Internal Controls over Compliance Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities other than states must follow when operating federal programs and the procurement procedures required depending on the amount of the transaction. Condition: In our testing of procurement, suspension, and debarment it was identified that there was no observable control documentation to directly indicate that a cost or price analysis was performed. Cause: Based on limited federal funding previously received that would require a written policy and lack of awareness or understanding of all of the specific requirements under the Uniform Guidance specific to written policy requirements over procurement, suspension and debarment. Effect: A lack of established controls increases the overall risk that employees are not aware of the specific requirements with contracting and awarding contracts to lower-tier entities. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of 3 vendors out of 5 vendors that meet thresholds required for procurement and suspension debarment testing. Repeat Finding from Prior Year(s): No. Recommendation: We recommend that the University implement a procurement policy as required under Uniform Guidance with the required components that can be used if future federal assistance is received. Views of Responsible Officials: Management agrees with the finding.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 58407 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.766 Community Facilities Loans and Grants $17.62M
84.268 Federal Direct Student Loans $7.13M
84.063 Federal Pell Grant Program $1.36M
84.038 Perkins Loan Program $790,650
84.007 Federal Supplemental Educational Opportunity Grants $311,274
21.019 Coronavirus Relief Fund $247,766
84.033 Federal Work-Study Program $132,607
84.425 Education Stabilization Fund $12,898