FAC Explorer

Finding 750 (2022-004)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-10-26
Audit: 1411
Organization: Downeast Transportation, Inc. (ME)
Auditor: Edwards Faust & Smith

AI Summary

  • Core Issue: Competitive quotes were not obtained for purchases exceeding the micro-purchase threshold.
  • Impacted Requirements: This violates 2 CFR section 200.320(2i), which mandates obtaining quotes from qualified sources for certain acquisitions.
  • Recommended Follow-Up: Ensure compliance by implementing a process to obtain required competitive quotes for future purchases above the threshold.

Finding Text

2 CFR section 200.320(2i) for the acquisition of property or services, the aggregate dollar amount of which is higher than the micro-purchase threshold but does not exceed the simplified acquisition price or rate quotations requires that competitive quotes must be obtained from an adequate number of qualified sources. Competitve price quotes for several goods and services that were above the micro-purchase thershold were not obtained.

Corrective Action Plan

The organization has made various changes to personnel within the Finance Department, as well as outsourcing of Finance Director duties to an outside CPA firm. The organization will take better care to ensure that purchases above $10,000 that are applied to our grants are put through a competitive process. The organization will take better care to ensure that purchase above $10,000, which are not put through a competitive process, are not applied to our grant. The organization will consult the board about raising the level of micro-purchases from $10,000 TO $50,000

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 747 2022-001
    Significant Deficiency
  • 748 2022-002
    Significant Deficiency
  • 749 2022-003
    Significant Deficiency
  • 751 2022-005
    Significant Deficiency
  • 577189 2022-001
    Significant Deficiency
  • 577190 2022-002
    Significant Deficiency
  • 577191 2022-003
    Significant Deficiency
  • 577192 2022-004
    Significant Deficiency
  • 577193 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
15.954 National Park Service Conservation, Protection, Outreach, and Education $1.60M
20.526 Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs $1.50M
20.500 Federal Transit_capital Investment Grants $46,573
20.520 Paul S. Sarbanes Transit in the Parks $6,431
20.509 Formula Grants for Rural Areas and Tribal Transit Program $2,204