FAC Explorer

Finding 948363 (2023-007)

Significant Deficiency Repeat Finding
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-03-01
Audit: 293176
Organization: City of Albuquerque (NM)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: The City did not follow federal and its own procurement rules for transactions over $100,000, leading to significant deficiencies in compliance.
  • Impacted Requirements: Noncompliance with § 200.320 of 2 CFR Part 200 and the City’s procurement policy, affecting the integrity of procurement processes.
  • Recommended Follow-Up: Implement stronger controls and training for all relevant staff to ensure adherence to procurement regulations by June 30, 2024.

Finding Text

Federal Agency: U.S. Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Assistance Listing Number: 21.027 Federal Award Identification Number and Year: Pub. L. No. 117-2 2021 Award Period: 5/10/2021 - 12/31/2026 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: According to § 200.320 Methods of procurement to be followed of 2 CFR Part 200, when the value of the procurement for property or services under a federal financial assistance award exceeds the simplified acquisition threshold, or a lower threshold established by a non-federal entity, formal procurement methods are required. According to the City's Federal Procurement Guidance, formal procurement methods are required when goods and services are over $100,000. Condition: During our testing, we noted the City did not follow federal procurement regulation nor its federal procurement policy. Management's Progress for Repeat Findings: This is a repeated and modified finding. While the City has improved its efforts, there are still opportUJ1itiesfor improvement to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements as well as compliance with City policy. Questioned costs: Unknown Context: During our testing, we noted the following exceptions related to procurement. • For one of the five procurement transactions, the executed contract/agreement was not provided to us. • For two of the five procurement transactions, no cost analysis was provided to us. • For one of the five procurement transactions, no public notice was provided to us. Cause: The City failed to follow federal procurement regulation nor its federal procurement policy. Effect: The auditor noted instances of noncompliance. Recommendation: We recommend the City design controls to ensure compliance with federal procurement regulation and its federal procurement policy. Management Response: The City agrees with the finding. Over the past several years, the City has developed a significant number of guidance documents and trainings in the area of federal procurement. All of the guidance documents for Central Purchasing are housed in the Purchasing SharePoint site. The guidance and training have in the past been directed at the members of the Purchasing Liaison User Group, but given the continued findings, the City intends to reach out to a much broader group to ensure compliance, including Directors, Deputy Directors, and program representatives. This will be complete by June 30, 2024. Timeline and Responsible Position: June 2024 - Chief Procurement Officer

Categories

Procurement, Suspension & Debarment Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 371917 2023-004
    Material Weakness
  • 371918 2023-005
    Material Weakness Repeat
  • 371919 2023-005
    Material Weakness Repeat
  • 371920 2023-006
    Significant Deficiency Repeat
  • 371921 2023-007
    Significant Deficiency Repeat
  • 371922 2023-008
    Significant Deficiency Repeat
  • 371923 2023-008
    Significant Deficiency Repeat
  • 371924 2023-009
    Significant Deficiency Repeat
  • 948359 2023-004
    Material Weakness
  • 948360 2023-005
    Material Weakness Repeat
  • 948361 2023-005
    Material Weakness Repeat
  • 948362 2023-006
    Significant Deficiency Repeat
  • 948364 2023-008
    Significant Deficiency Repeat
  • 948365 2023-008
    Significant Deficiency Repeat
  • 948366 2023-009
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $33.80M
20.106 Airport Improvement Program $27.30M
21.023 Emergency Rental Assistance Program $9.13M
14.218 Community Development Block Grants/entitlement Grants $8.17M
20.205 Highway Planning and Construction $7.08M
14.239 Home Investment Partnerships Program $5.50M
20.507 Federal Transit_formula Grants $3.47M
14.267 Continuum of Care Program $2.80M
93.600 Head Start $2.32M
16.710 Public Safety Partnership and Community Policing Grants $2.25M
20.500 Federal Transit_capital Investment Grants $2.23M
93.137 Community Programs to Improve Minority Health Grant Program $2.13M
93.575 Child Care and Development Block Grant $1.68M
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $1.59M
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $1.23M
20.526 Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs $1.17M
16.034 Coronavirus Emergency Supplemental Funding Program $994,013
10.559 Summer Food Service Program for Children $808,112
10.558 Child and Adult Care Food Program $773,503
11.805 Mbda Business Center $693,794
66.001 Air Pollution Control Program Support $628,271
95.001 High Intensity Drug Trafficking Areas Program $611,914
16.741 Dna Backlog Reduction Program $537,637
14.231 Emergency Solutions Grant Program $380,036
93.052 National Family Caregiver Support, Title Iii, Part E $286,455
16.838 Comprehensive Opioid Abuse Site-Based Program $245,373
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $203,284
97.072 National Explosives Detection Canine Team Program $202,000
93.053 Nutrition Services Incentive Program $180,647
45.310 Grants to States $169,365
97.U02 Tsa Law Enforcement Officer Reimbursement Program $153,300
94.011 Foster Grandparent Program $153,040
97.024 Emergency Food and Shelter National Board Program $142,012
93.043 Special Programs for the Aging_title Iii, Part D_disease Prevention and Health Promotion Services $128,794
16.738 Edward Byrne Memorial Justice Assistance Grant Program $128,500
97.042 Emergency Management Performance Grants $122,719
93.997 Assisted Outpatient Treatment $116,743
97.067 Homeland Security Grant Program $112,637
16.588 Violence Against Women Formula Grants $87,609
21.000 National Priority Safety Programs $83,124
20.215 Highway Training and Education $81,450
16.001 Law Enforcement Assistance_narcotics and Dangerous Drugs_laboratory Analysis $80,193
16.575 Crime Victim Assistance $77,617
20.600 State and Community Highway Safety $69,744
94.016 Senior Companion Program $68,047
97.083 Staffing for Adequate Fire and Emergency Response (safer) $53,034
94.002 Retired and Senior Volunteer Program $51,723
16.742 Paul Coverdell Forensic Sciences Improvement Grant Program $37,189
16.607 Bulletproof Vest Partnership Program $32,587
15.904 Historic Preservation Fund Grants-in-Aid $29,935
16.833 National Sexual Assault Kit Initiative $26,566
93.213 Research and Training in Complementary and Integrative Health $19,259
94.013 Volunteers in Service to America $15,000
97.141 National Explosives Detection Canine Team Program $13,427
97.039 Hazard Mitigation Grant $10,223
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $3,952
66.034 Surveys, Studies, Research, Investigations, Demonstrations, and Special Purpose Activities Relating to the Clean Air Act $2,764
16.301 Law Enforcement Assistance_fbi Crime Laboratory Support $2,017