Finding Text
Findings and Questioned Costs Related to Federal Awards
Finding Number: 2023-001
Repeat Finding: Yes - 2022-001, 2021-001
Program Names/
Assistance Listing Titles:
Assistance
Listing
Numbers:
Federal Award
Numbers:
Questioned
Costs:
Federal Transit Cluster
20.507
AZ-90-X127,
AZ-90-X132,
AZ-90-X-143,
AZ-2018-003-00,
AZ-2019-010-00,
AZ-2019-035,
AZ-2023-001-00
N/A
Formula Grants for Rural Areas and
Tribal Transit Program
20.509
CA-2021-028-00,
CA-2022-226-00,
CA-2022-231-00,
GRT-22-0008862-T
N/A
Federal Agency: Department of Transportation
Pass-Through Agency: Arizona Department of Transportation and Quechan Indian Tribe
Type of Finding: Noncompliance, Material Weakness
Compliance Requirement: Procurement, Suspension, and Debarment
CRITERIA
Non-federal entities other than states, including those operating federal programs as
subrecipients of states, must follow the procurement standards set out at 2 CFR §§200.318
through 200.326. They must use their own documented procurement procedures, which reflect
applicable State and local laws and regulations, provided that the procurements conform to
applicable federal statutes and the procurement requirements identified in 2 CFR part 200. The
Board adopted a Policies and Procedures Manual that requires the collection of three quotes for
purchases of at least $3,000 but less than $100,000 and formal bid procedures for purchases
over $100,000.
Condition
The Authority did not follow its Board adopted Policies and Procedures Manual or federal
regulations.
Cause
YCIPTA was operating under an expired contract and did not follow Board-adopted policies.
Effect
YCIPTA was not in compliance with the Board adopted Policies and Procedures Manual and
federal regulations.
Context
During our review of procurement, the following were noted:
For one purchase in excess of the federal procurement threshold of $250,000, YCIPTA
did not perform a sealed bid or proposal.
For two purchases in the YCIPTA’s quote range, the YCIPTA did not obtain or maintain
quotes.
The sample was not intended to be, and was not, a statistically valid sample.
Recommendation
YCIPTA should adhere to its Board adopted Policies and Procedures Manual. When purchases
are expected to be in excess of $100,000, formal procurement methods should be used to ensure
the best pricing possible.
Views of Responsible Officials
See Corrective Action Plan.