Finding Text
Department of the Treasury, Passed through Utah Department of Workforce Services
Federal Assistance Listing 21.027
Coronavirus State and Local Fiscal Recovery Funds
Procurement, Suspension, and Debarment
Significant Deficiency in Internal Control over Noncompliance
Criteria: Appendix II of 2 CFR Part 200 defines required contract terms that must be included in contracts with contractors and vendors funded by federal awards.
Condition: The Organization did not include all the required terms in its contracts
Cause: Internal controls and the Organization’s procurement policy did not require the terms to be included in the contracts.
Effect: The contracts funded with federal awards and executed by the Organization did not comply with Appendix II of CFR Part 200 by including all the require terms.
Questioned Costs: None reported.
Context/Sampling: Nonstatistical sampling was used. Sample size was three of seven procurement transactions above the micro-purchase threshold and included contracts totaling $5,707,820 of federal awards.
Repeat Finding: Yes, Finding 2022-002
Views of Responsible Officials: Management agrees with this finding.