Finding Text
SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
FINDING NUMBER 2023-005
FEDERAL AGENCY U.S. DEPARTMENT OF THE TREASURY
FEDERAL PROGRAM CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY
FUNDS (ALN 21.027)
REQUIREMENT PROCUREMENT SUSPENSION & DEBARMENT (I)
TYPE OF FINDING SIGNIFICANT DEFICIENCY (SD) / NONCOMPLIANCE (NC)
CONDITION In our Procurement Contract Provision Test, we evaluated three
contract agreements. We found that the Municipality did not include all
contract provisions required for non-federal entity contracts under
federal awards for one none of the contract agreements evaluated.
CRITERIA 2 CFR section 200.327 references Appendix II to Part 200, which
establishes the contract provisions must be included in non-federal
entity contracts under federal awards.
CAUSE There is lack of knowledge about the contract provisions required to be
included in federal awards contracts. Therefore, the Municipality has
been awarding contracts without the proper procurement procedure.
EFFECT The program is in noncompliance with the Procurement Suspension
and Debarment requirements as established in 2 CFR section 200.327.
RECOMMENDATION We recommend the program administrators to include in the requisition for contracts a description of the requirements that need to be fulfilled
to award a federal contract. Contracts should not be signed, and
payments should not be disbursed without the required contract
provisions.
QUESTIONED COST None
PRIOR YEAR FINDING A similar finding was presented in prior year Schedule of Findings
and Questioned Costs (2022-007)
VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION We concur with the auditor’s finding. We implemented policies and procedures in accordance with Uniform Guidance 2 CFR 200.214.
Implementation Date: Fiscal year 2023-2024
Responsible Person: Kristian Rivera Santiago
Finance Director