Finding 635128 (2022-001)

Material Weakness
Requirement
I
Questioned Costs
$1
Year
2022
Accepted
2023-04-12

AI Summary

  • Core Issue: The Department recorded $69,375 for legal services without following required federal procurement methods.
  • Impacted Requirements: Violated 2 CFR 200.303 and 2 CFR 200.320 regarding internal controls and procurement standards.
  • Recommended Follow-Up: Ensure compliance by obtaining rate quotes from at least three law firms for future legal services as per federal guidelines.

Finding Text

2022-001: Federal Procurement Standards Federal agency: U.S. Environmental Protection Agency Pass-through agency: None Title: Air Pollution Control Program Support Assistance Listing Number: 66.001 Award Year: 2022 Award Number: 97412920 Criteria: 2 CFR 200.303 requires the Department to establish and maintain internal controls over compliance with federal awards. 2 CFR 200.320 identifies the methods of procurement to be followed for acquisition of property or services required under a federal award or subaward. Condition and perspective: The Department recorded $69,375 of legal services to the federal award without following an approved method of procurement under 2 CFR 200.320. Legal services are exempt from state procurement law, but they are within the scope of federal procurement standards. Cause: The vendor provides in-house legal representation and regularly assists the Department with legal matters. Due to the long-standing, existing relationship, the vendor was selected for services related to the grant without following procurement standards. Effect: The Department posted $69,375 of legal services to the federal award without following federal procurement standards. Questioned Cost: $69,375. Recommendation: Management should ensure the Department follows federal procurement standards for all vendors paid with federal funds. Management?s response: Rate quotes will be obtained from at least three (3) law firms as required for ?small purchases? by 2 C.F.R. 200.320.

Categories

Questioned Costs Procurement, Suspension & Debarment

Other Findings in this Audit

  • 58686 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.323 Covid-19- Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $2.99M
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $2.54M
66.001 Air Pollution Control Program Support $773,665
93.940 Hiv Prevention Activities_health Department Based $687,403
93.136 Injury Prevention and Control Research and State and Community Based Programs $531,308
93.268 Immunization Cooperative Agreements $513,791
93.069 Public Health Emergency Preparedness $288,549
93.994 Maternal and Child Health Services Block Grant to the States $217,545
66.034 Surveys, Studies, Research, Investigations, Demonstrations, and Special Purpose Activities Relating to the Clean Air Act $201,214
93.391 Covid-19- Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $195,437
93.498 Covid-19- Provider Relief Fund $122,589
93.889 National Bioterrorism Hospital Preparedness Program $110,667
93.977 Preventive Health Services_sexually Transmitted Diseases Control Grants $85,001
20.205 Highway Planning and Construction $52,040
93.217 Family Planning_services $37,412
93.421 Strengthening Public Health Systems and Services Through National Partnerships to Improve and Protect the Nations Health $13,999
93.941 Hiv Demonstration, Research, Public and Professional Education Projects $13,028
93.889 Covid-19- National Bioterrorism Hospital Preparedness Program $3,924